Increases in rates bills could be the final straw for Pembrokeshire’s self-catering businesses already facing a downturn in business, warns local AM Paul Davies.
New figures reveal that almost a quarter of self-catering properties in Wales were empty in August last year.
Mr Davies is worried that the drop in visitors at such a peak time of year, coupled with the huge hike in rates bills that many self-catering businesses are facing, could spell the end for some.
“I would think that coupled with lower occupancy levels in August, the rates increase is going to be the final death knell for some self-catering businesses in the county,” warned the Preseli Pembrokeshire AM.
The Wales Tourism Alliance (WTA), an umbrella organisation that represents 7,000 tourism businesses across the country, released the new figures.
It revealed that only 76% of self catering units were full in the peak month of August last year – compared to 81% in 2008 and 93% in 2007.
“It looks like a worrying trend is developing in the self-catering sector,” warned Mr Davies.
“The WTA points out that ‘it wasn’t exactly boom time’ for the touring caravan and camping parks last summer either as they only had 63% occupancy in August compared to 73% the year before.
“I am sure that our miserable summers are partly to blame for fewer people going camping in Wales but the slump in the self-catering is especially worrying.
“I have met with Pembrokeshire Tourism and know that they have grave concerns for their self-catering members in light of some huge increases in their rateable values.
“One complex in the county has seen its rateable value rise from £11,500 to £29,000 and the owner says it would need to increase profit by £6,500 a year just to pay the new bill. Unsurprisingly he is having to consider closure.
“I am concerned that the double whammy of fewer visitors in the peak months and higher rates bills is going to be the final straw for some self-catering businesses.”
