The Barometer assesses business confidence in the Welsh tourism industry and provides indicative results at national, regional and sectoral level for February wave 2024.
This is the latest release in the series: Tourism Barometer
Main findings
2024 was a challenging year in all sectors and regions
About a fifth of businesses (19%) had more visitors in 2024 than in 2023, and 42% had the same level. However, 39% experienced a decrease. The proportion of businesses having fewer visitors outweighs the proportion having more visitors in every sector and in all four regions of Wales.
Two reasons stand out for the subdued performance: people lacking in disposable income (cited unprompted by 46% of those receiving fewer visitors) and the weather (36%), which hampered tourism at the start of the key summer season.
Spring occupancy levels
Net occupancy for the coming spring in the serviced accommodation sector based on advance bookings at the time of interviewing is 43% in March, 42% in April and 43% in May.
Net booked occupancy in self-catering is 39% in March, 43% in April and 46% in May.
Some operators say it is very difficult to predict occupancy this far in advance due to the ever increasing last minute booking trend.
Investment in the business
About two in five (38%) operators have invested or plan to invest in improving their product for 2025, beyond routine maintenance.
By far the most common type of investment is raising the standard of the existing product, cited by 81% of those investing. Some (18%) of those investing are adding a new type of product, and some (18%) are expanding capacity.
Various reasons are given for not investing, including ‘don’t see what needs improving’ (cited unprompted by 27% of those not investing), ‘business is doing fine as it is’ (27%), ‘already invested in recent years’ (24%) and ‘can’t afford to’ (22%).
Among those who say they can’t afford to invest, many (57%) would want to raise the standard of existing product if funding were available, and a further 21% would like to expand their capacity.
Mixed confidence to run profitably this year
Rising employment costs are a concern, but 18% say they are ‘very confident’ in running the business profitably this year and 38% say they are ‘fairly confident’.
Contact
Phil Nelson
Email: tourismresearch@gov.wales
Rydym yn croesawu gohebiaeth yn Gymraeg / We welcome correspondence in Welsh.
Media
Telephone: 0300 025 8099
Rydym yn croesawu galwadau yn Gymraeg / We welcome calls in Welsh.