Tourism Barometer: February wave 2025
The Barometer assesses business confidence in the Welsh tourism industry and provides indicative results at national, regional and sectoral level for February wave 2024.
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Headline 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. Open comments show that investments often pay off and result in business growth.
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’.
Background and method
What is the Wales Tourism Business Barometer?
The Wales Tourism Business Barometer is designed to give quick feedback on how the tourism industry in Wales is performing at key times during the year. This wave looks back at 2024 performance and forward to expectations for 2025. The ad-hoc topic this time is investment in the business.
How was the survey conducted?
We have conducted 902 interviews by telephone. The results of questions asked to everyone are accurate to ±3.3%. The balance of the sample by region and sector broadly reflects the industry in Wales. The contact database used is a combination of Visit Wales’ list of graded businesses and databases of non-graded businesses that we have sourced from an independent supplier.
| Sector | North | Mid | South West | South East | Total |
|---|---|---|---|---|---|
| Serviced accommodation | 116 | 39 | 71 | 42 | 268 |
| Self-catering | 74 | 59 | 72 | 39 | 244 |
| Caravan and campsites | 52 | 22 | 29 | 15 | 118 |
| Hostels | 9 | 3 | 5 | 5 | 22 |
| Attractions | 32 | 22 | 26 | 30 | 110 |
| Activity operators | 13 | 8 | 13 | 6 | 40 |
| Restaurants, pubs and cafes | 23 | 21 | 29 | 27 | 100 |
| Total | 319 | 174 | 245 | 164 | 902 |
61% of businesses in the sample are graded by Visit Wales. The graded and non-graded samples are spread across the different regions and sectors except restaurants, pubs or cafes, where grading is not applicable.
All telephone interviews have been conducted with business owners or managers between 23 January and 7 February 2025.
2024 performance
2024 performance by sector
Figure 1: Q1 “How many customers did you have in 2024 compared to 2023?” [Note 1] [Note 2]
Description of Figure 1: The chart shows how many customers the different sectors had in 2024 compared to 2023. Activity operator had the highest percentage of fewer customers with 58%. Attractions had the highest percentage of 'more' customers with 23%.
[Note 1] ‘Don’t know’ and ‘not applicable’ answers have been excluded
[Note 2] Base: 841
Challenging year for all sectors
In 2024, Welsh tourism businesses were hard pressed to match customer levels seen the year before. All sectors experienced a challenging year, especially activity and self-catering operators. We discuss the reasons under Q3 later.
A self-catering accommodation in North Wales said:
People are lacking in money. We are a short break destination. People are saving up for their main holiday and they can get an all-inclusive holiday in Mallorca for the same price as a week in one of my cottages. I know which one I'd rather.
A pub in Mid Wales said:
It was quieter last year as the weather was bad and we rely on tourists and owners of caravans in the local caravan parks. A lot of caravan owners are our regulars in the summer but they didn't come as the weather was so bad.
Positive year for some businesses though
Some businesses saw their performance go against the grain last year. Open comments show that investment in the business in the lead up to or during 2024 played a part for some. We discuss the subject of investment in more detail from Q9 onwards later.
An attraction in North Wales said:
Recent refurbishment of the whole building, bringing it up to date, attracted far more visitors last year compared to 2023
A serviced accommodation in North Wales said:
Since having new owners and the fabulous, extensive refurbishment, we've been very busy
A restaurant in South East Wales said:
We’ve been far busier since being under new ownership from the end of 2023. Better menus, better service and good marketing.
2024 performance by region
Figure 2: Q1 “How many customers did you have in 2024 compared to 2023?” [Note 1] [Note 2]
Description of Figure 2: The chart shows how many customers the regions had in 2024 compared to 2023. The South East and Mid Wales experienced the biggest increase with 23%. The South West had the biggest decrease with 48%.
[Note 1] ‘Don’t know’ and ‘not applicable’ answers have been excluded
[Note 2] Base: 841
Challenging year in all regions
Businesses in all regions of Wales struggled to maintain visitor levels last year, although in South East Wales, major events in Cardiff helped some.
A pub in South East Wales said:
2024 was our most profitable year. The big events in Cardiff were a help.
A restaurant in South East Wales said:
We had a good year in 2024 due to the events happening in the castle [Cardiff] and also the big events in the [Principality] stadium – Taylor Swift
South West Wales saw a significant downturn in tourism footfall.
A serviced accommodation in South West Wales said:
Every year there are fewer and fewer visitors in our area
Reasons for being busier in 2024
Figure 3: Q2 “Are there any particular reasons why you had more customers in 2024 compared to 2023?” (unprompted) [Note 1] [Note 2]
Description of Figure 3: The chart shows a response to the question whether there are specific reasons why there are more customers in 2024 compared to 2023.
[Note 1] Q2 has been asked to businesses having more customers in 2024 (Q1). Respondents could give more than one answer.
[Note 2] Base: 161
Better product and offer had the highest percentage of 24% followed by high level of returning customers with 22%.
Investment often pays off
Some businesses invested well in their own product and/or marketing and saw the rewards of it last year. This is particularly the case for attractions, whereby 11 of the 24 seeing increased visitors attribute this to improved product.
An attraction in Mid Wales said:
We invested in a new experience at Christmas and that really brought the crowds in
An attraction in Mid Wales said:
I’m pleased with last year. A famous painting brought in more business. We are getting more exhibitions.
An attraction in North Wales said:
We had a complete refurbishment last year, which attracted far more visitors
Repeat customers
Repeat customers are key to healthy visitor levels across many sectors.
A self-catering accommodation in Mid Wales said:
I have excellent reviews from customers and returning customers
A serviced accommodation in South East Wales said:
We are happy to have a lot of repeat customers, which means they are satisfied with our services and our accommodation
Reasons for being quieter in 2024
Figure 4: Q3 “Are there any particular reasons why you had fewer customers in 2024 compared to 2023?” (unprompted) [Note 1] [Note 2]
Description of Figure 4: The chart shows if there are particular reasons why there are fewer customers in 2024 compared to 2023. People without disposable income have the highest percentage with 46% followed by the weather with 36%.
[Note 1] Q3 has been asked to businesses having fewer customers in 2024 (Q1). Respondents could give more than one answer.
[Note 2] Base: 329
Lack of disposable income
Two reasons stand out for a challenging year – the first being the lack of disposable income among consumers. This is the top answer given in every region and in most sectors.
Lack of disposable income is thought to have kept some visitors away altogether, or if they have come, stays have sometimes been shorter. For businesses receiving a lot of groups, some say the group sizes have become noticeably smaller and put this down to lack of disposable income.
A self-catering accommodation in North Wales said:
People stayed fewer nights because I guess they just have less disposable income now. Some people also said they feel unwelcome in our area.
An activity operator in Mid Wales said:
I think just the cost of living is going up and since we get customers in groups, there is a visible drop-off. If last year a group brought 50, this year it’s 40 or 35 just because people can’t afford to come.
Unfavourable weather came at the wrong time
As reported in the September barometer last year which featured the summer season, the weather was bad at the wrong time – cold northerly winds in June and July. This got the tourism industry off to a disappointing start to the peak season and the visitor volumes did not recover to 2023 levels.
The weather tops the reasons for being quieter among caravan parks (58% have cited this unprompted) and attractions (54%).
A caravan park in Mid Wales said:
Germans, Dutch, French – we’ve had more of those nationalities, whereas the British last summer went to sunnier places
Unpredictable weather may be driving holidaymakers abroad
'UK holidaymakers going abroad' is not one of the most common reasons given for being quieter in 2024, but there are concerns that this may be the case in 2025 as a result of unfavourable UK weather last summer.
A caravan park in Mid Wales said:
Due to bad weather, people are travelling overseas to warmer places instead of Wales … I expect it to be the same this year.
A serviced accommodation in North Wales said:
The weather was atrocious last year, and this year people are going abroad because of the weather changing
Welsh Government policies
Some operators feel that an accumulation of certain Welsh Government policies, particularly the ‘182 days’ rule and the impending tourism levy, are giving potential visitors from England the impression that tourists are not welcome in Wales.
A self-catering accommodation in North Wales said:
The whole picture for tourism has changed. There's an anti-tourism sentiment in Wales and in Cornwall, and people are put off visiting.
A caravan park in South West Wales said:
There is negativity surrounding tourists not being welcome in Wales, and as a nation, we rely on tourism
Autumn and winter occupancy levels (accommodation operators)
Figure 5: Q5 “How much of your available capacity was booked for…?” (estimated sector occupancy shown) [Note 1] [Note 2]
Description of Figure 5: The chart shows how much of the available capacity was booked for November, December and January for serviced accommodation, self catering and caravans and camping.
[Note 1] Q5 has been asked to accommodation operators. ‘Don’t know’ and ‘closed all month’ answers have been excluded. Occupancy levels shown have been weighted by size of business.
[Note 2] Base: 529
Higher occupancy levels than last winter for those remaining open
Net occupancy levels in both the serviced and self-catering sectors for each winter month were typically at least 10%pts higher than the corresponding months last winter. The proportion of businesses remaining open each month was very similar to last year (around 75% to 90% in serviced and 87% to 93% in self-catering). The charts below show the year-on-year differences:
Figure 6: Net occupancy year-on-year comparison (serviced sector) [Note 1]
Description of Figure 6: The chart shows a year-on-year net occupancy comparison for a service sector. During November, December and January 2024 the percentage was 38%, 39% and 41%. In 2025 the percentages had risen to 48%, 48% and 41%.
[Note 1] Base: 241
Figure 7: Net occupancy year-on-year comparison (self-catering sector) [Note 1]
Description of Figure 7: The chart shows a year-on-year net occupancy comparison for a service sector In November, December and January 2024 they were 38%, 39% and 41%. In 2025 they had risen to 48%, 48% and 41%.
[Note 1] Base: 230
Last winter’s sample of open caravan & campsite was small, and so there is no reliable comparison to be made in that sector.
A self-catering accommodation in North Wales said:
January did well – a lot of last minute bookings. It's not unusual nowadays for us to get same day or next day bookings.
A self-catering accommodation in North Wales said:
November and December were good as we are near Bangor racecourse, and Christmas and New Year were full. We rely now on last minute bookings – some just 24 hours before, which we can't always do
Differences by region
The serviced sector saw fairly consistent occupancy levels across each region. In the self-catering sector, net occupancy was higher in South West Wales.
The table below shows occupancy by region and sector for the most recent three complete months, November to January.
| Sector | North | Mid | South West | South East | All Wales |
|---|---|---|---|---|---|
| Serviced | 55% | 58% | 55% | 62% | 58% |
| Self-catering | 43% | 42% | 57% | 47% | 46% |
| Caravan & camping | 64% | 45% | 59% | 52% | 59% |
Advance bookings and confidence
Advance bookings (accommodation operators)
Figure 8: Q6 “How much of your available capacity is booked for…?” (estimated booked occupancy shown) [Note 1] [Note 2]
Description of Figure 8: The chart shows how much of the capacity has been booked in serviced and self-catering accommodation from February to May.
[Note 1] The average booked occupancy for each month is among businesses which are taking bookings for that month. Occupancy levels shown have been weighted by size of business.
[Note 2] Base: 549
Becoming harder to predict occupancy levels in advance
Net occupancy levels based on advance bookings at the time of interviewing are generally below 50% for each sector in each spring month. However, some operators comment that it is hard to gauge how business will turn out based on this due to the ever increasing trend to book last minute. The two key reasons for being quieter in 2024 – lack of disposable income and weather – are thought to be driving the ‘wait & see’ trend with UK holidays and breaks.
A serviced accommodation in Mid Wales said:
I’m confident that by April the business will be doing better due to the way people tend to book closer to the date now
A self-catering accommodation in Mid Wales said:
It's very weather-dependent. Our regulars do come back but we find lots book last minute. It's mostly weekends booked up until Easter
A serviced accommodation in North Wales said:
Upcoming months are very difficult to judge. We are experiencing far more last minute bookings. For example, on Monday, this weekend was 20% full; by today [Thursday] we are at 75% capacity.
Differences by region
Advance bookings for spring in the serviced and self-catering sectors are the same overall but differ from each other in some regions, with serviced bookings higher in Mid Wales and self-catering bookings higher in South West Wales.
In the caravan & camping sector, net occupancy levels are higher in South Wales.
| Sector | North | Mid | South West | South East | All Wales |
|---|---|---|---|---|---|
| Serviced | 44% | 56% | 29% | 45% | 43% |
| Self-catering | 42% | 31% | 54% | 39% | 43% |
| Caravan & camping | 40% | 32% | 61% | 59% | 48% |
Confidence in running profitably
Figure 9: Q7 “How confident do you feel about running the business profitably this year?” [Note 1]
Description of Figure 9: The chart shows how confident the sectors are about running the business profitably this year. 18% were 'Very confident' and 38% were 'Fairly confident'.
[Note 1] Base: 902
Mixed levels of confidence
Following a challenging year, operators vary in their confidence about what 2025 has in store for them. The proportion expressing confidence (56%) is lower than this time last year (64%). Mixed levels of confidence are seen across all sectors. By region, confidence is higher in South East Wales, where 37% say they are ‘very confident’, compared to 14% across the rest of Wales.
A caravan park in South East Wales said:
Super confident. We have great facilities around like the bike, running and zip club. Lots of bookings.
Some operators point out that although they expect to perform fine in terms of customer levels, being able to run profitably is another matter as costs continue to increase. Businesses which employ staff are about to see increases in employment costs from April, when the National Living Wage and the rate of employers' national insurance contributions increase, and the level at which employers start paying national insurance is lowered significantly.
Many businesses ideally need to put their prices up to cover rising costs, but they know that this could result in reduced bookings as customers have affordability issues of their own.
A self-catering accommodation in North Wales said:
We have found everything has gone up in price, but you can’t put prices up as people won't come.
A café in Mid Wales said:
We are a bit concerned about the minimum wage rise and are trying to balance fair deals and prices for our customers.
An attraction in South East Wales said:
Increasing national insurance for full time staff will hit us
An activity operator in South East Wales said:
We are at the mercy of the customers – fewer are coming due to the economy and lack of money. Increases in the minimum wage and impact of NI and pushing us to put prices up. It’s damaging the business in terms of profitability.
Challenges of the ‘182 day rule’ in self-catering
Many self-catering operators comment on the challenges of meeting the 182 day occupancy requirement to qualify for non-domestic rates. This causes some to discount their rates in order to meet the minimum number of days, but this affects their ability to keep the business profitable.
A self-catering accommodation in South West Wales said:
To have more people this winter, I had to decrease my price so I can reach the 182 days
A self-catering accommodation in North Wales said:
I am getting out of holiday letting. There is the misconception that these holiday lets will be bought by local people but they won't.
A self-catering accommodation in North Wales said:
In the last ten years we only made 182 days in the last three years and that's because I've been forced to. I'm having to put in more work for less reward.
Investment in the business
Plans to invest
Figure 10: Q9 “Have you invested or do you plan to invest in improving your product for 2025, beyond routine maintenance?” [Note 1]
Description of Figure 10: The chart shows an investment life that has or will happen in 2025. Overall 38% had invested and 45% had not.
[Note 1] Base: 902
Some plan to invest
About two in five (38%) operators have invested or plan to invest in improving their product for 2025, beyond routine maintenance. This differs between accommodation and non-accommodation operators, shown above (differences between individual sectors within these broad types are not significant).
By region, 47% of businesses in Mid Wales say they have invested or plan to invest, which compares to 36% of businesses across the rest of Wales.
Proud to be always investing
Some operators take a lot of pride in their product and say they are always looking to invest in making it better.
A caravan park in South East Wales said:
We have and continue to expand the business massively. We have a new soft play area for the guests with children. We have invested over £2 million and have had a major pool refurbishment.
A self-catering accommodation in Mid Wales said:
We always need to invest. We need to have things to do on site to attract people to come.
A serviced accommodation in North Wales said:
We always plough our profits into upgrading
Uncertainty over how the year will go
One in six (17%) operators say they don’t know yet whether they will invest this year. Some say this rests on affordability.
A self-catering accommodation in Mid Wales said:
Performance this year will dictate improvements to property
A self-catering accommodation in Mid Wales said:
We would like to invest but it’s difficult to say whether we will be able to because of the economy
Areas of investment
Figure 11: Q10 “What have you or do you plan to invest in?” (unprompted) [Note 1] [Note 2]
Description of Figure 11: The chart shows what the businesses plan to invest in. Raising the standard of the current product had the highest percentage with 81%.
[Note 1] Respondents could give more than one answer to the above question
[Note 2] Base: 341
Raising the standard of existing product
Generally speaking, investment priorities in the industry lie with raising the standard of existing product much more so than adding new product. This is the case in all sectors and regions.
A self-catering accommodation in North Wales said:
I will be renovating the sitting room this year as the sofa is 10 years old, so it’s about time for it all to be new
A serviced accommodation in North Wales said:
Painters, gardeners and roofers are all in this week and next getting everything ready
A caravan park in Mid Wales said:
Due to the uncertainty of profitability in the business, we have decided to invest in an attempt to adapt and beat the slump. We've redone our kids’ play park … We recognise that some of our facilities are a bit dated...
New product is more common in non-accommodation sectors
About a quarter (26%) of non-accommodation businesses which are investing say they are adding a new type of product. This compares to 15% of accommodation operators.
An attraction in North Wales said:
Our new outdoor baths are a big attraction and we have just invested in a huge gazebo where people can sit outside and have coffee
A self-catering accommodation in North Wales said:
We plan to create a spa and wellness centre
A self-catering accommodation in Mid Wales said:
We're opening the golf course, picnic areas, jacuzzis and saunas. We're trying everything to bring more people in.
Expanding capacity
Around one in five (18%) of those investing say they are expanding capacity. Intentions to expand capacity are particularly high among activity providers (8 of the 19 activity providers have answered this).
An activity operator in North Wales said:
We are expanding our capacity through investing in manpower and new products
A self-catering accommodation in North Wales said:
We plan to get another five cabins
Investment can bring rewards
As mentioned, many businesses suggest that investment in the business pays off in terms of increased visitor levels and satisfaction.
A self-catering accommodation in South West Wales said:
We have invested £1 million into the business and we can already see more bookings coming
An activity operator in North Wales said:
We put a lot of resource into the website last year and expect it to bear fruit this year
Prompts for new products & services
Figure 12: Q11 “What prompts you to come up with a new type of product or service?” (prompt if necessary) [Note 1] [Note 2]
Description of Figure 12: The chart shows what encourages the businesses to think of a new type of product or service. Their own initiative had the highest percentage with 76%.
[Note 1] Q11 has been asked to those answering ‘adding new type of product’ or ‘adding new services’ in Q10. Respondents could give more than one answer.
[Note 2] Base: 87
Own initiative leading the way
Among operators introducing a new type of product or service, their own initiative is most likely to have prompted the investment. This is the clear top answer in every region and in nearly every sector (restaurants, pubs & cafés are also led by their head office).
Some investments are prompted by what customers say they want or expect.
An activity operator in South West Wales said:
We’re going to be adding some new services based on what we see people wanting when they book
Reasons for not investing
Figure 13: Q12 “Are there any particular reasons why you are not investing in improving your product for 2025?” (unprompted) [Note 1] [Note 2]
Description of Figure 13: The chart shows if there is a specific reason why they do not want to invest in improving their product for 2025. 27% believed that there was no room for improvement, 27% thought that business is doing fine as it is and 24% have already invested.
[Note 1] Respondents could give more than one answer
[Note 2] Base: 405
Variety of reasons for not investing
Businesses not investing for 2025 give a variety of reasons. Some believe that business is ticking over fine, or they don’t see what needs improving.
An activity operator in South West Wales said:
Business going well as it is, so I do not see the need to invest in any additions
Already invested in recent years
Some businesses have invested keenly in their product recently and are now seeing the rewards. They do not necessarily need to invest so soon again for 2025. 30% of North Wales businesses give this as a reason, compared to 21% of businesses across the other regions of Wales.
A serviced accommodation in North Wales said:
Three years ago we invested significantly in the business so we do not feel the need to invest heavily this year beyond routine maintenance
A caravan park in South West Wales said:
Invested last year – £100,000 in new toilets and a shower block
Can’t afford to invest
There are many operators who see the need for investing in their business but they can’t afford to. The current economic climate is making it hard for tourism businesses to break even, let alone find extra money to invest or make repayments on loans.
Around 28% of businesses in Mid and South West Wales say they can’t afford to invest, compared to 19% in North Wales and 13% in South East Wales.
An activity operator in North Wales said:
Funding is the main hurdle. We need to put grant fund applications in and grant bodies should be the ones paying for the rebuild, as passing the cost onto customers is not how it should be.
A self-catering accommodation in South East Wales said:
Not enough profit to invest
A self-catering accommodation in North Wales said:
We would love to upgrade the properties but we can't afford to
Lack of confidence in the market or economy
Substantial investment carries an element of risk in that businesses need to see a return. Some operators are not confident with how tourism in Wales is going at present to take that risk. Differences by sector and region are not significant.
An activity operator in Mid Wales said:
Base price to come on holiday in Wales is way above the cost for a holiday abroad. People don't want to come to Wales and feel unwelcome. I would love to invest more but I don’t see the point if there are no customers.
A self-catering accommodation in Mid Wales said:
The current economic climate doesn't allow for investment
Desires to invest
Figure 14: Q13 “If funding were available to improve your product, what if anything would you want to invest in?” (unprompted) [Note 1] [Note 2]
Description of Figure 14: The chart shows what the investment would be that the businesses would consider if the funding were available. Raising the standard of the current product is what 57% of those questioned said.
[Note 1] Q13 has been asked to those answering ‘can’t afford to’ in Q12. Respondents could give more than one answer.
[Note 2] Base: 90
Desires to invest if funds could be available
If funding were available, there are many businesses which would be keen to invest in improving their product. This would most commonly involve raising the standard of existing product, but some would look to expand capacity or introduce new products & services.
An attraction in South West Wales said:
Environmentally friendly motors are something we would like to invest in but it’s not doable in the current economic climate
A serviced accommodation in Mid Wales said:
We would like to improve the booking system as booking through third parties gets expensive but it’s only possible with funding
A pub in South West Wales said:
We have so many ideas so would love some funding help. We have a large beer garden but it's cold here in the winter. We would like to put a cover over so we can utilise the space at all times of the year. The back is very overgrown but used to be clear and was a wedding venue many years ago … we would love to make a small venue where this could be an option again.
Some operators say they have recently sought funding to make investments but have either not found a suitable funding source or have had their application rejected. They would be keen to hear about any future opportunities for funding.
A caravan park in Mid Wales said:
Sustainability and wellbeing are important and we would like to invest more money to add products covering this. Our grant application last year was rejected.
A serviced accommodation in North Wales said:
We would very much like to invest in energy efficiency but we can't seem to find any funding
Contact details
Report author: Anthony Lydall, Strategic Research and Insight
Views expressed in this report are those of the researchers and not necessarily those of the Welsh Government.
For further information please contact:
Research and Insights Team
Visit Wales
Economy, Skills and Natural Resources Group
Welsh Government
Cathays Park
Cardiff
CF10 3NQ
Email: tourismresearch@gov.wales
Social research number: 27/2025
Digital ISBN: 978-1-83715-417-3
