Tourism and hospitality support around 159,000 jobs in Wales, accounting for 11.8% of total employment. In Bangor Conwy Môn, the sector is particularly important, employing up to 20% of the workforce in some areas.
However, businesses are facing mounting pressures from the cost-of-living crisis, higher business rates, tax increases, rising food and energy costs, increases to the minimum wage, and higher employers’ National Insurance contributions.
Janet Finch-Saunders, the Member of the Welsh Parliament for Bangor Conwy Môn, has called on First Minister Rhun ap Iorwerth MS to work with the UK Government to reduce VAT for tourism and hospitality businesses from 20% to 10%.
Janet said:
“Tourism and hospitality businesses were still recovering from the pandemic when they were hit by further challenges imposed by the then Welsh and UK Labour Governments, including the Visitor Levy, the 182-day threshold, rising costs, and increased taxes.
“The removal of the 40% Retail, Leisure and Hospitality Rates Relief on 1 April means the sector now faces an estimated £122 million increase in business rates bills over the next three years, according to UKHospitality.
“These additional costs are putting significant strain on businesses across Wales. Which I have had heard first hand from constituents, and have seen historical hotels in Llandudno close their doors as a result.
“Without action, more businesses could close, with serious consequences for local economies and high streets.
“I am calling on the First Minister to work with the UK Government to reduce VAT to 10% and provide much-needed support for tourism and hospitality businesses. For the sector in Bangor Conwy Môn, this reduction can not come soon enough.”
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ENDS
Photo: Janet Finch-Saunders MS/AS
