A large number of hotels in Llandudno face increasing pressure this year due to dramatic rises in rateable values, which will result in significant increases in business rates bills. Combined with rising energy and staffing costs, many hotels are expected to struggle to remain profitable.
The hospitality sector has faced mounting challenges since 2021, with sharp increases in food and drink prices, rises in the living wage, higher utility costs, and now increased business rates. These pressures have left many within the industry feeling frustrated and let down.
Wales has the highest business rates in the UK, the dramatic increase is a result of rateable values increasing by 26%, business rates relief being removed, and hospitality being excluded from the Welsh Government’s business rates reform (Figures from UK Hospitality Cymru).
Llandudno has one of the highest concentrations of hotels in Wales and the sector employs a substantial number of local people, particularly in larger hotels with long-term career staff.
Industry leaders have made it clear that if costs continue to rise, staff redundancies may become unavoidable, placing further strain on public finances.
Janet Finch-Saunders, Welsh Conservative Senedd Member for Aberconwy and Lead Senedd Candidate for Bangor, Conwy and Môn, said:
“This is worrying news for the hospitality sector in Llandudno. I regularly talk with hotel owners and hospitality businesses and have heard first hand their concerns as they head into this year, particularly around rising business rates and increasing operating costs.
The Welsh Government must do more to support hospitality in Wales. Llandudno thrives off tourism, and if closures or redundancies occur, the impact on the local economy and tourism sector would be significant.
I, along with the Welsh Conservatives, have been clear that business rates for small firms must be reduced to give them the opportunity to survive, grow and create good, long-term career opportunities for local people in the tourism sector.”
