Wales Hospitality Sector Needs Winter Funding
Wales’ hospitality sector is gearing up for the summer season, a period that can determine the success of an entire year for many businesses. From the mountains of Eryri to the streets of Cardiff, and from the coast of Pembrokeshire to the Welsh borders, businesses depend on strong visitor numbers to generate income that helps sustain them through quieter periods.
A successful summer supports jobs, boosts confidence, and creates opportunities for investment. Hospitality is one of Wales’ greatest economic strengths, supporting more than 165,000 jobs and contributing billions of pounds to the economy.
The sector is at the heart of communities across Wales, particularly in rural areas where hospitality businesses are often major employers. They support local supply chains, attract visitors, and create opportunities for local people.
Hospitality has also long provided one of the most accessible routes into employment. Many people gain their first experience of the workplace in a hotel, restaurant, café, or visitor attraction, developing skills such as communication, teamwork, resilience, problem-solving, and customer service.
At Cambrian Training Company, more than 20,000 apprenticeship programmes have been delivered, and more than 4,500 employers have been worked with across Wales. Apprenticeships enable people to earn while they learn, gain industry-recognised qualifications without accumulating student debt, and develop confidence in the workplace.
Employers benefit from building skilled and loyal teams equipped for future leadership roles. This matters now more than ever, with almost one million young people aged 16 to 24 across the UK not in education, employment, or training.
Hospitality remains a key sector capable of providing accessible pathways into employment, skills development, and long-term career progression. However, the sector is operating in an increasingly challenging environment, with rising wage costs, inflationary pressures, and higher employment costs impacting profitability.
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The UK’s 20% VAT rate for hospitality is significantly higher than the reduced rates applied by many competing tourism destinations across Europe. Support is growing for Tom Kerridge’s VAT’s The Problem campaign, which calls for hospitality VAT to be reduced from 20% to 10%.
A lower VAT rate would help businesses invest in facilities, recruit staff, expand apprenticeship opportunities, and improve long-term sustainability while creating a more level playing field with international competitors. Despite these challenges, hospitality remains one of Wales’ most resilient and innovative sectors.
Businesses continue to adapt, diversify, and invest in enhancing customer experiences, developing staff, and using new technologies. But resilience alone is not enough; the industry needs conditions that encourage investment, workforce development, and sustainable growth.
Hospitality apprenticeships will play a role in that future.
The summer season will always be important.
The long-term success of the industry depends on creating an environment where businesses can invest with confidence, develop their workforce, and grow sustainably. Wales’ hospitality sector must be recognised for its true value and continue investing in the people, skills, and businesses that make the sector such an important part of the economy and communities. When hospitality succeeds, Wales succeeds.
