GUEST COLUMN:
Faith O'Brien
Managing Director
Cambrian Training Company
Every summer, hospitality businesses across Wales look to the school holidays with a mixture of anticipation and hope. For many restaurants, cafés, pubs, hotels and visitor attractions, July and August are not simply busy trading months. They are the period that can determine the success of an entire year.
From the mountains of Eryri to the streets of Cardiff, and from the coast of Pembrokeshire to the Welsh borders, businesses depend on strong visitor numbers to generate the income that helps sustain them through quieter periods. A successful summer supports jobs, boosts confidence and creates opportunities for investment. A disappointing season can place significant pressure on businesses already facing rising costs.
Hospitality is one of Wales' greatest economic strengths, supporting more than 165,000 jobs and contributing billions of pounds to the economy. Yet its value extends far beyond economics.
The sector is at the heart of communities across Wales, particularly in rural areas where hospitality businesses are often major employers. They support local supply chains, attract visitors and create opportunities for local people.
Hospitality has also long provided one of the most accessible routes into employment. Many people gain their first experience of the workplace in a hotel, restaurant, café or visitor attraction, developing skills such as communication, teamwork, resilience, problem-solving and customer service.
These are qualities that employers consistently tell Regional Skills and Learning Partnerships they value most, alongside a positive attitude and practical workplace experience. They are also the foundations upon which successful careers are built.
At Cambrian Training Company, we have spent more than 30 years supporting work-based learning and helping hospitality businesses develop talented employees. During that time, we have delivered more than 20,000 apprenticeship programmes and worked with more than 4,500 employers across Wales.
Every day, we see the difference apprenticeships make. They enable people to earn while they learn, gain industry-recognised qualifications without accumulating student debt and develop confidence in the workplace. Employers, in turn, benefit from building skilled and loyal teams equipped for future leadership roles.
This matters now more than ever. Almost one million young people aged 16 to 24 across the UK are not in education, employment or training (NEET). Hospitality remains a key sector capable of providing accessible pathways into employment, skills development and long-term career progression.
However, the sector is operating in an increasingly challenging environment. Rising wage costs, inflationary pressures, higher employment costs, food price increases and ongoing energy costs continue to impact profitability, while consumers remain cautious about discretionary spending.
The result is a sector being squeezed from both sides.
The UK's 20% VAT rate for hospitality is also significantly higher than the reduced rates applied by many competing tourism destinations across Europe, including France, Spain and Italy. When families compare the cost of a holiday abroad with a staycation in Wales, those differences matter.
That is why support is growing for Tom Kerridge's VAT's The Problem campaign, which calls for hospitality VAT to be reduced from 20% to 10%.
A lower VAT rate would help businesses invest in facilities, recruit staff, expand apprenticeship opportunities and improve long-term sustainability while creating a more level playing field with international competitors.
Despite these challenges, hospitality remains one of Wales' most resilient and innovative sectors. Businesses continue to adapt, diversify and invest in enhancing customer experiences, developing staff and embracing new technologies.
But resilience alone is not enough.
The industry needs conditions that encourage investment, workforce development and sustainable growth. Hospitality apprenticeships will play a crucial role in that future, helping to develop the next generation of chefs, supervisors, managers and business leaders while addressing skills shortages across the sector.
Hospitality is not simply a sector that creates jobs. It creates careers, supports communities and showcases the very best of Wales to visitors from across the UK and beyond.
The summer season will always be important, but the long-term success of the industry depends on creating an environment where businesses can invest with confidence, develop their workforce and grow sustainably.
If we want Wales' hospitality sector to thrive rather than simply survive, we must recognise its true value and continue investing in the people, skills and businesses that make the sector such an important part of our economy and communities.
Because when hospitality succeeds, Wales succeeds.
