Business

Tourism pressures: Davies and Kurtz warn of “perfect storm” for West Wales

Published

2 months ago

November 20, 2025

MSs say cumulative policies risk pushing long-standing operators to the brink – Welsh Government insists reforms will strengthen sector in the long term

WEST WALES’ visitor economy is heading into one of its most challenging off-seasons in recent memory, senior politicians have warned, as small accommodation providers face rising costs, tightening consumer demand and a raft of new regulations arriving at once.

Preseli Pembrokeshire MS Paul Davies and Carmarthen West and South Pembrokeshire MS Samuel Kurtz say the region’s long-standing tourism operators – many of them small family-run B&Bs, holiday cottages and rural retreats – are now dealing with “cumulative pressures” that are beginning to feel overwhelming.

Their warnings follow a mixed summer season across Pembrokeshire, with operators reporting decent spells of weather but noticeably weaker footfall during the shoulder months, shorter stays, and more last-minute cancellations as households continue to cut back.

Cumulative pressures hitting at once

Businesses across West Wales say they are struggling to absorb multiple financial and regulatory changes arriving in quick succession.

As well as the Welsh Government’s plans for a tourism levy and the new all-Wales registration scheme for holiday accommodation, providers are adapting to council tax premiums linked to the 182-night threshold for self-catering properties.

These measures are landing at the same time as:

rising wage bills following this year’s minimum wage uplift,
higher employer National Insurance contributions,
utilities and commercial insurance costs that remain far above pre-pandemic levels,
and a broader slowdown in UK domestic holiday spending as the cost-of-living crisis continues.

Many smaller operators rely on strong summer takings to carry them through winter. Several have told The Herald the convergence of pressures now feels like a “perfect storm”, with some trimming staff hours, postponing maintenance or delaying planned investment until the outlook stabilises.

Tourism bodies say the effects are especially sharp in Pembrokeshire, where thousands of jobs – from Tenby and Saundersfoot to St Davids, Newport, Solva and the Preseli villages – depend on a reliable and healthy visitor economy.

There is also concern about the impact on casual hosts and small-scale providers who increase capacity during major events such as Ironman Wales, Long Course Weekend, the Bluestone Marathon and Pembrokeshire’s packed summer festival calendar.

***Paul Davies MS wants the Welsh Government to listen to the People of Pembrokeshire***

Paul Davies MS: “Ministers must listen to those on the ground”

Preseli Pembrokeshire MS Paul Davies said operators have been “clear and consistent” about the cumulative impact of rapid policy change.

“Tourism businesses in West Wales have been clear about the challenges they face and yet rather than providing support, governments at both ends of the M4 have introduced measures that have added further pressure to the sector,” he said.

“I have consistently called on the Welsh Government to engage constructively with tourism operators and to work collaboratively on solutions that will support local tourism businesses.

“Ministers must listen to those on the ground, remove unnecessary regulations, and deliver practical support that ensures the long-term sustainability of the tourism sector in Wales.”

Davies said several business owners had contacted him to express growing anxiety about the winter period, with some already scaling back operations in the face of uncertainty.

***Sam Kurtz MS says he is concerned about red tape being a barrier to business in West Wales***

Samuel Kurtz MS: “Tourism is the backbone of the West Wales economy”

Carmarthen West and South Pembrokeshire MS Samuel Kurtz said the timing of recent changes risks weakening a sector that remains one of West Wales’ strongest economic pillars.

“Tourism is the backbone of our economy in West Wales, and as we enter the quieter months many local businesses will be feeling the pressure more than ever,” he said.

“Instead of adding layers of costly red tape, the Welsh Government should be supporting operators who are already battling the 182-night threshold, rising wage bills and increased NI costs, all on top of reduced footfall as the season ends.”

He added: “The cumulative effect of these changes is taking a devastating toll on the tourism industry. Ministers must pause, listen, and rethink before more long-standing businesses are pushed to the brink.

Welsh Government response and broader context

Welsh ministers maintain that the reforms are necessary to modernise the sector, protect communities, and ensure that tourism remains sustainable in the long term.

The all-Wales registration scheme, they argue, will help identify poor-quality accommodation, improve safety standards, and give councils better data when making decisions about housing pressure in coastal and rural communities.

The tourism levy, they say, simply brings Wales in line with many European nations, with revenue raised locally to support services relied upon by visitors – from car parks and toilets to coastal paths and waste collection.

A Welsh Government spokesperson has previously said the seasonal nature of the sector “requires a sustainable model that works for communities as well as visitors and businesses”, with reforms forming part of a wider plan to “balance the needs of residents, workers and the environment”.

Industry calls for “joined-up thinking”

Tourism associations across Wales have repeatedly stressed that the challenge lies not with any single measure but with several arriving simultaneously.

Some operators have already exited the market citing an unfavourable environment, while others are waiting to see whether domestic holidaymakers will return in greater numbers next year or whether the shift towards cheaper overseas breaks will continue.

With winter now settling in, the coming months will prove a critical test of resilience for a sector that remains central to Pembrokeshire’s rural economy, its employment base, and its cultural identity.

Business

Cardiff airport investment under fire as Qatar link stalls despite £400m public backing

Published

3 days ago

January 30, 2026

Tom Sinclair

Ministers admit no meetings with airline that once received Welsh Government marketing support

THE FUTURE of Cardiff Airport’s long-haul ambitions has been thrown back into the spotlight after Welsh ministers admitted they have not personally met Qatar Airways executives — despite the airline once operating the airport’s flagship international route and benefiting from a publicly funded marketing partnership.

The admission has prompted fresh questions over whether taxpayers are getting value for the almost £400 million of public money that has been invested in the airport since it was bought by the Welsh Government in 2013.

South Wales Central Conservative MS Andrew RT Davies said the lack of direct engagement was “unacceptable”, arguing that ministers had failed to prioritise restoring one of Wales’ most important global connections.

In written questions to Economy Minister Rebecca Evans and Transport Minister Ken Skates, he asked how many times they had met Qatar Airways since August 2024.

Both confirmed they had not held any meetings.

Ms Evans said commercial negotiations are led by the airport’s executive team and added she would “very much welcome” the route’s return when the time is right.

Mr Skates said responsibility for the airport sits outside his portfolio and declined to comment further while discussions are ongoing.

Flagship route

Qatar Airways launched daily flights between Cardiff and Doha in 2018 to considerable fanfare.

At the time, ministers described the service as “transformational”, linking Wales directly to one of the world’s biggest aviation hubs and providing one-stop access to more than 150 destinations across Asia, Australia, Africa and the Middle East.

Business groups said the route would make Wales more attractive to inward investors and exporters, while tourism chiefs hoped it would bring higher-spending international visitors.

To promote the link, the Welsh Government entered into a two-year marketing partnership with the airline, understood to be worth around £1 million, aimed at raising Wales’ profile overseas and encouraging travel through Cardiff.

The agreement funded joint advertising and promotional campaigns in international markets.

However, the route operated for less than two years before being suspended at the start of the Covid-19 pandemic in 2020.

While Qatar Airways has since restored flights to other UK airports including Heathrow, Manchester and Birmingham, Cardiff remains the only former UK destination where services have not resumed.

***Press event celebrating two years of Qatar flying from Cardiff to Doha in 2019***

Value for money questions

The situation has reignited debate over whether the public investment delivered lasting benefits.

Critics say the combination of direct airport funding and marketing support should have secured a more sustainable presence from a global carrier.

They question whether the advertising partnership represented value for money if the route ultimately disappeared and has yet to return.

***Passengers got given complimentary cupcakes in 2019***

For some observers, the absence of Qatar has become a yardstick for judging the success of government ownership.

After more than a decade and hundreds of millions of pounds in loans and support, they argue, Wales should be seeing stronger international connectivity rather than retreat.

Supporters counter that the pandemic severely disrupted aviation worldwide and that rebuilding routes takes time, particularly for smaller regional airports.

They also note that commercial airline negotiations are typically handled by airport management rather than ministers.

***A Qatar plane heading of Doha in 2019***

Passenger recovery

Cardiff Airport was purchased by the Welsh Government for £52m to prevent its closure and safeguard jobs.

Since then it has required repeated financial support packages to maintain operations and invest in infrastructure.

Passenger numbers remain below pre-pandemic levels, and the airport continues to compete with Bristol, which offers a far wider range of routes and attracts many Welsh travellers across the border.

Industry analysts say long-haul services such as Doha are especially important because they connect regions directly to global markets without relying on London hubs.

Without them, airports risk being seen as secondary or feeder operations.

Political pressure

Mr Davies said the government needed to show greater urgency.

“Senedd ministers have ploughed almost £400 million into Cardiff Airport since they bought it – yet they haven’t even bothered to meet with a major airline to re-establish a crucial international link,” he said.

***Andrew RT Davies is asking awkward questions about spending on Cardiff Airport***

“When that level of public money is involved, people expect leadership.

“Getting flights back should be a priority.”

The Welsh Government maintains it remains supportive of restoring the route and says talks with Qatar Airways are continuing through airport executives.

But for many travellers and businesses, the key question remains simple: after years of investment and promises, when will Wales once again have a direct long-haul link to the world?

Until Qatar — or another global carrier — returns, critics say, that question will continue to hang over Cardiff Airport’s future.

Business

Croeso awards return to celebrate Pembrokeshire’s tourism stars

Published

3 days ago

January 30, 2026

Tom Sinclair

Colin Jackson to host major industry night as entries open for 2026 event

THE CELEBRATION of Pembrokeshire’s tourism and hospitality sector is officially underway as the Visit Pembrokeshire Croeso Awards return for 2026 after a two-year break.

The prestigious awards, designed to recognise businesses that go above and beyond to deliver exceptional visitor experiences, are back with what organisers describe as “fresh energy and renewed ambition”.

This year’s ceremony will be hosted by Welsh sporting legend Colin Jackson CBE, the Olympic silver medallist and former world champion hurdler, who will act as compère for the evening.

The awards will take place on Thursday (Oct 29), bringing together leading hotels, attractions, restaurants and tourism operators from across the county for a night of celebration and recognition.

Seventeen categories are open for entry, including Best Hotel, Best Place to Eat, Accessible & Inclusive Tourism Award and Rising Star, highlighting both established operators and emerging talent within the industry.

Organisers say the event is not only about rewarding excellence, but also about developing the next generation of hospitality professionals.

At the heart of this year’s ceremony is a partnership between Pembrokeshire College and the Celtic Collection. Students will gain hands-on experience in staging a live, large-scale event, working alongside front-of-house teams and industry specialists to plan and deliver the evening.

The collaboration aims to give young people practical skills while supporting the long-term future of the county’s tourism sector.

Emma Thornton, Chief Executive of Visit Pembrokeshire, said: “We are very excited to be launching our 2026 Croeso Awards building on our 2024 event through working in partnership with Pembrokeshire College and the Celtic Collection.

“We’ve taken the deliberate step to launch three months earlier than in previous years. By doing so we hope this will encourage more entries, making it much easier for businesses and organisations to submit entries well ahead of the busy spring and summer season.

“If you haven’t entered the Croeso Awards before, please make this the year that you do.”

Applications are now open via the Croeso Awards pages on the Visit Pembrokeshire website and close on Monday (March 31). The shortlist will be announced on July 1.

Support sessions to help businesses complete applications will be held every Wednesday throughout February at the Bridge Innovation Centre in Pembroke Dock.

Tickets and a limited number of sponsorship opportunities are also available.

Photo caption:

Colin Jackson CBE will host the 2026 Croeso Awards when they return this October (Pic supplied).

Business

Welsh business confidence falls sharply in January

Published

4 days ago

January 30, 2026

Tom Sinclair

BUSINESS confidence in Wales fell by twenty points in January, according to the latest Business Barometer from Lloyds Bank, amid weakening optimism about both trading conditions and the wider economy.

The headline confidence figure for Wales dropped to 32%, down from 52% in December 2025. Firms’ confidence in their own trading prospects fell even more steeply, down thirty points to 38%, while optimism about the wider economy declined by eight points to 27%.

Despite the downturn in sentiment, Welsh businesses reported stronger hiring intentions. A net balance of 44% of firms said they expect to increase staff numbers over the next twelve months, up twenty-four points on the previous month.

Looking ahead, businesses in Wales identified their main priorities for growth over the next six months as developing new products or services (43%), investing in staff training and skills (40%), and introducing new technology (33%).

The Business Barometer surveys around 1,200 businesses across the UK each month and has been running since 2002, providing early indicators of regional and national economic trends.

UK outlook mixed

Across the UK as a whole, business confidence slipped by three points in January to 44%. While firms’ confidence in their own trading prospects increased by seven points to 59%, optimism about the wider economy fell sharply, down fourteen points to 28%.

London recorded the highest confidence level of any UK nation or region at 68%, followed by Northern Ireland at 66% and the West Midlands at 65%.

Sector picture

Retail confidence edged up slightly in January, rising by two points to 49%. Confidence in the service sector increased by one point to 42%, marking the first rise since the summer. Construction confidence, however, fell back after a particularly strong improvement in December.

Nathan Morgan, area director for Wales at Lloyds, said the figures reflected ongoing economic pressures but highlighted some positive signals.

“Business confidence has reduced this month, reflecting wider economic headwinds,” he said. “However, hiring intentions are up sharply, with Welsh businesses planning to invest in people at scale, showing a real commitment to growth despite the challenges.”

Hann-Ju Ho, senior economist at Lloyds Commercial Banking, said firms were entering the year with confidence in their own trading prospects, even as concerns about the broader economy persisted.

“The first rise in confidence in the services sector in seven months is encouraging, given the sector’s central role in supporting UK economic activity,” she said.