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29 August 2024

A Summer Season of Low Bookings and Economic Uncertainty


GUEST COLUMN:

Lisa Francis
Policy Advocate
Wales Tourism Alliance 

As we reach the height of the high season in Wales the feedback from the tourism sector paints a mixed picture.

Accommodation providers, for instance, are reporting an average occupancy rate of about 75%. This is a far cry from the fully booked status one might expect during this peak period. Several factors are contributing to this less-than-ideal situation, and it's worth examining them closely to understand the broader context.

One of the primary reasons for the lower occupancy rates is the poor weather that has plagued Wales recently. Bad weather can significantly impact tourist numbers, particularly for a region like Wales, where outdoor activities and natural beauty are key attractions. When the skies are grey and the rain is relentless, potential visitors often reconsider their plans, opting for sunnier destinations or postponing their trips altogether.

The broader economic climate is also playing a crucial role. The lingering effects of the Ukraine war, rising energy costs, and high fuel prices are creating a challenging environment for both businesses and consumers. These economic pressures mean that people have less disposable income to spend on holidays, leading to fewer bookings.

Moreover, the general sense of economic uncertainty is exacerbated by the current political situation. An operator mentioned an interesting perspective: the timing of the General Election. The previous UK Government's decision to call an election now, rather than in the autumn, has been perceived by some as an indication that the economy is unlikely to improve in the near future. This perception may be causing potential tourists to hold back on making bookings, further impacting occupancy rates.

While the attractions sector might have a different experience, the accommodation providers are certainly feeling the pinch. The combination of poor weather and economic concerns is creating a tough environment. Unlike in previous years, these providers are not turning away guests due to overbooking. Instead, they find themselves working hard to fill rooms and attract guests.

As we look ahead, it is essential for the tourism sector in Wales to adapt to these challenges. Diversifying the range of activities on offer, improving marketing strategies to highlight indoor attractions, and offering competitive pricing could help mitigate some of these issues. Additionally, lobbying for support from local and national governments to address the broader economic challenges could provide much-needed relief.

While the current season is not living up to its full potential, understanding and addressing the underlying causes can help the tourism sector in Wales navigate these turbulent times. By being proactive and adaptable, accommodation providers and other tourism businesses can weather the storm and look forward to better days ahead.




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