How Much Of Wales’ Economy Comes From Tourism?

Are you curious about how much tourism contributes to the Welsh economy? This article explores the economic impact of tourism in Wales, providing insights into its significance and offering solutions for travelers through SIXT.VN.

Wales’ tourism sector is a vital economic driver, significantly contributing to employment, enterprise, and overall prosperity. According to recent data, tourism accounts for a substantial portion of Wales’ economy, impacting various industries and regions. This article dives into the numbers, examining the percentage of employment, the types of businesses involved, and the financial impact of tourism expenditure and gross value added (GVA). For travelers eager to explore Wales, SIXT.VN provides a convenient gateway to booking accommodations, tours, and transportation, making your Welsh adventure seamless and memorable. Discover Wales, book with confidence, and explore worry-free.

1. What Percentage of Employment in Wales is in the Tourism Industry?

In 2020, Tourism Industries accounted for 11.3% of employment in Wales, which equates to approximately 151,000 jobs. This is according to data from the Business Register and Employment Survey (BRES). However, this figure represents a decrease from 12.1% in 2019, when tourism supported 161,000 jobs, while overall employment levels in Wales remained stable. The tourism sector’s contribution to employment has fluctuated in recent years, hitting a low of 10.5% in 2017 before peaking in 2019.

1.1. How Does Hospitality Contribute to Tourism Employment in Wales?

Hospitality plays a dominant role in tourism employment in Wales, accounting for 76% of tourism-related jobs, which translates to about 115,000 positions. The broader decline in tourism employment in 2020 was primarily due to challenges faced by hospitality industries. Employment in hospitality dropped from 128,000 jobs in 2019 (9.6% of total employment) to 115,000 jobs in 2020 (8.6% of total employment).

1.2. Which Sub-Sectors of Tourism Have the Highest Employment Rates in Wales?

The Food and Beverage Service Activities sub-sector leads in terms of employment, representing 6.0% of Wales’ total employment with approximately 80,000 jobs. Accommodation for Visitors follows, accounting for 2.4% of employment, which is about 32,000 jobs. These figures highlight the central role of hospitality services in driving tourism employment in Wales.

1.3. What is the Proportion of Part-Time Tourism Workers in Wales?

Part-time positions are common in the tourism sector. In 2020, 55% of employee jobs in tourism were part-time, substantially higher than the 34% across all industries in Wales. Within the hospitality sector, 61% of jobs were part-time. While the proportions of part-time and full-time employees have been relatively consistent, there was a slight decrease in part-time tourism employees from 57% in 2020. Tourism accounted for 18.4% of all part-time employment in Wales, with 78,000 part-time employees. Between 2019 and 2020, there was a decrease of about 10,000 part-time tourism employees, compared to a smaller decrease of around 2,000 full-time employees.

1.4. How Does Tourism Employment Vary Across Different Regions of Wales?

Tourism employment varies across different regions in Wales. In Mid Wales, 13.2% of employment was in tourism industries in 2020, the highest proportion among the four regions. South East Wales had the lowest proportion, at 10.0%. This trend has been consistent over the past few years, with North and Mid Wales typically having the highest proportions and South East Wales the lowest.

1.5. Which Local Authorities in Wales Have the Highest and Lowest Tourism Employment?

There are notable differences in tourism employment across local authorities in Wales. Pembrokeshire and Anglesey had the highest proportions, with over 20% of employment in tourism industries. Wrexham had the lowest level, with only 6%. Despite these variations, South East Wales had the highest overall volume of tourism industry employment with 43% (65,000 jobs), while Mid Wales had the smallest volume with 8% (12,000 jobs). These distributions have remained relatively stable in recent years.

Tourism employment distribution across Wales, highlighting regional variations and key contributors

2. What is the Average Wage in the Tourism Sector in Wales?

In the financial year ending April 2021, the median hourly pay in Wales was £12.82. However, tourism-related industries generally had lower hourly pay. Specifically, the median hourly pay for employee jobs in Accommodation and Food Service Activities was £8.91, in Arts, Entertainment, and Recreation jobs it was £9.51, and in Travel agency and tour operator activities, it was £9.65.

2.1. How Has the Median Hourly Pay Changed in Tourism-Related Industries?

The median hourly pay for jobs in Accommodation and Food Service Activities saw a 6.5% increase in 2021 compared to 2020. Arts, Entertainment, and Recreation jobs also experienced an increase of 2.8%, aligning with the average increase across all industries in Wales (2.6%). These figures indicate a positive trend in earnings within the tourism sector, although pay remains relatively lower compared to the overall median wage in Wales.

2.2. What Factors Contribute to Wage Differences in the Tourism Sector?

Several factors contribute to wage differences within the tourism sector. The type of job plays a significant role, with more specialized roles in travel agencies and tour operations generally earning higher wages than those in accommodation and food services. The size and location of the enterprise also impact wages, with larger establishments in urban areas often providing better compensation. Additionally, the prevalence of part-time work in hospitality affects the average hourly pay, as part-time positions may offer lower rates compared to full-time roles.

3. How Many Tourism-Related Enterprises Are There in Wales?

As of March 2021, tourism enterprises accounted for 11.3% of all registered enterprises in Wales, totaling 12,110 businesses. Hospitality enterprises made up a significant portion, with 9,600 businesses representing 9.0% of all registered enterprises in Wales. The proportion of tourism enterprises has seen a slight increase in recent years, from 10.9% in 2019, following a period of slow decline from 11.4% in 2015.

3.1. Which Tourism Sub-Sectors Have the Most Registered Enterprises in Wales?

The Food and Beverage Service Activities sub-sector leads with the highest number of registered tourism enterprises, accounting for 7.1% of all enterprises in Wales, which is 7,585 businesses. Accommodation for Visitors follows with 1.5%, or 1,610 enterprises. These figures emphasize the importance of food and accommodation services in the Welsh tourism industry.

3.2. What is the Size Distribution of Tourism Enterprises in Wales?

Small businesses dominate the tourism sector in Wales. About 59% of tourism enterprises have fewer than 5 employees, which is a smaller proportion compared to the 77% across all industries in Wales. A third (34%) of tourism enterprises have between 5 and 19 employees, a higher proportion than the 18% across all industries in Wales. This indicates that while many tourism businesses are small, a significant portion consists of slightly larger small enterprises.

3.3. How Does the Distribution of Tourism Enterprises Vary Across Wales?

The distribution of tourism enterprises varies by region. North Wales has the highest proportion of enterprises in tourism industries, with 12.2% of all enterprises. Mid Wales has the lowest incidence, with only 9.5%. At the local authority level, Gwynedd has the highest proportion, with 16% of enterprises in tourism industries, while Flintshire has the lowest, with only 8%.

3.4. Which Regions in Wales Have the Largest and Smallest Shares of Tourism Enterprises?

Similar to employment distribution, South East Wales has the largest share of tourism enterprises, accounting for 40% of all tourism enterprises in Wales. Mid Wales has the smallest share, with 10%. This highlights the concentration of tourism-related businesses in the South East region, while Mid Wales has a smaller presence in this sector.

Distribution of tourism enterprises across Wales, showing regional variations and proportions

4. What is the Tourism Expenditure in Wales?

In 2019, Wales saw £6.0 billion in associated expenditure from tourism trips. This includes £3.447 million from tourism day visits by GB residents, £2.003 million from overnight visits by GB residents, and £515 million from inbound visitors. These figures illustrate the significant financial impact of tourism on the Welsh economy.

4.1. How is Tourism Expenditure Measured in Wales?

Tourism expenditure in Wales is measured through surveys of visitors. Inbound expenditure is tracked via the International Passenger Survey (IPS) conducted by the Office for National Statistics (ONS) and reported in their Travel Trends publication. Domestic expenditure is recorded via the Great Britain Tourism Survey and the Great Britain Day Visit Survey. Regional breakdowns of tourism expenditure are available in the Visit Wales Regional and Local Tourism Profiles.

4.2. What is the Gross Value Added (GVA) of Tourism in Wales?

In 2019, the seven tourism-related industries at the SIC division level accounted for 5.0% of GVA in Wales, which is £3.4 billion. The GVA for these industries has increased in recent years, from 4.6% of Wales’ GVA in 2015 (£2.7 billion). The largest contributions come from Food and beverage service activities, which accounted for 2.2% of Wales’ GVA in 2019 (£1.5 billion), and Accommodation, which accounted for 1.4% (£0.9 billion).

4.3. How Does Wales’ Tourism GVA Compare to the UK Overall?

The combined GVA contribution of tourism-related industries in Wales is comparable to the UK figure of 5.2%. However, Accommodation accounts for a higher proportion in Wales, while Travel agency & tour operator activities, and Creative, arts & entertainment activities account for smaller proportions in Wales compared to the UK overall. This suggests that Wales’ tourism sector relies more on accommodation services than other tourism activities.

4.4. What are the Key Industries Contributing to Tourism GVA in Wales?

The key industries contributing to tourism GVA in Wales are Food and beverage service activities, Accommodation, and Sports, amusement, and recreation. Food and beverage services contribute the most, followed by accommodation, highlighting the significance of these sectors in driving economic value through tourism. Other categories contribute smaller proportions, each less than 0.5%.

Contribution of key tourism-related industries to Gross Value Added (GVA) in Wales

5. What are the Key Challenges Facing the Tourism Industry in Wales?

The tourism industry in Wales faces several challenges, including seasonal employment, lower average wages compared to other sectors, and regional disparities in economic impact. Additionally, external factors such as economic downturns, global events, and changing travel patterns can significantly affect tourism expenditure and employment levels.

5.1. How Does Seasonality Impact Tourism Employment in Wales?

Seasonality is a major challenge for tourism employment in Wales. Many tourism-related jobs are seasonal, with higher demand during the summer months and school holidays. This can lead to instability in employment, with workers facing periods of unemployment during the off-season. Addressing this challenge requires strategies to promote year-round tourism, such as developing attractions and events that appeal to visitors throughout the year.

5.2. What are the Wage Disparities in the Tourism Sector in Wales?

Wage disparities are evident in the tourism sector in Wales, with average wages often lower than in other industries. This can make it difficult to attract and retain skilled workers. Initiatives to improve wages and working conditions are essential to ensure a sustainable and thriving tourism workforce. This includes promoting fair pay, providing opportunities for training and career development, and recognizing the value of tourism jobs.

5.3. How Can Regional Disparities in Tourism Impact Be Addressed?

Regional disparities in tourism impact require targeted strategies to support tourism development in less popular areas. This includes investing in infrastructure, promoting regional attractions, and developing marketing campaigns that highlight the unique offerings of different regions. Collaboration between local authorities, tourism organizations, and businesses is crucial to ensure that all regions benefit from tourism.

5.4. What are the External Factors Affecting the Tourism Industry in Wales?

External factors such as economic downturns, global events, and changing travel patterns can have a significant impact on the tourism industry in Wales. Economic downturns can reduce consumer spending on travel and leisure, while global events such as pandemics or political instability can disrupt travel patterns. Adapting to these challenges requires flexibility, innovation, and a focus on sustainable tourism practices.

5.5. How Can Sustainable Tourism Practices Help Mitigate Challenges?

Sustainable tourism practices can help mitigate many of the challenges facing the tourism industry in Wales. By promoting responsible travel, reducing environmental impact, and supporting local communities, sustainable tourism can ensure that tourism benefits Wales in the long term. This includes investing in eco-friendly accommodations, promoting sustainable transportation options, and supporting local businesses that prioritize environmental and social responsibility.

6. How Can SIXT.VN Enhance Your Travel Experience in Wales?

SIXT.VN offers comprehensive travel solutions for exploring Wales, providing convenient access to accommodations, tours, and transportation. Whether you are planning a relaxing getaway or an adventurous exploration, SIXT.VN ensures a seamless and memorable experience.

6.1. What Accommodation Options are Available Through SIXT.VN?

SIXT.VN provides a wide range of accommodation options to suit every traveler’s needs and budget. From cozy bed and breakfasts in charming villages to luxurious hotels in vibrant cities, you can find the perfect place to stay in Wales. With detailed descriptions, photos, and reviews, SIXT.VN makes it easy to choose accommodations that meet your preferences.

6.2. How Can SIXT.VN Help You Explore Wales?

SIXT.VN offers various tour options to help you discover the best of Wales. Whether you are interested in exploring historic castles, hiking scenic trails, or experiencing local culture, you can find a tour that fits your interests. Guided tours provide valuable insights and ensure you don’t miss any hidden gems.

6.3. What Transportation Services Does SIXT.VN Offer in Wales?

SIXT.VN offers convenient transportation services to help you get around Wales. Whether you need airport transfers, car rentals, or private transportation, SIXT.VN can arrange it all. Renting a car allows you to explore Wales at your own pace, while private transportation ensures a comfortable and stress-free journey.

6.4. How Does SIXT.VN Ensure a Seamless Travel Experience?

SIXT.VN ensures a seamless travel experience by providing comprehensive services and support. From booking accommodations and tours to arranging transportation, SIXT.VN handles all the details, allowing you to focus on enjoying your trip. With reliable customer service and user-friendly booking platforms, SIXT.VN makes travel planning easy and stress-free.

6.5. What are the Benefits of Using SIXT.VN for Your Welsh Adventure?

Using SIXT.VN for your Welsh adventure offers numerous benefits, including convenience, reliability, and comprehensive services. SIXT.VN saves you time and effort by providing a one-stop platform for all your travel needs. With reliable service providers and customer support, SIXT.VN ensures a smooth and enjoyable experience.

7. What are the Emerging Trends in the Welsh Tourism Industry?

The Welsh tourism industry is continuously evolving, with several emerging trends shaping its future. These include a growing focus on sustainable tourism, the increasing popularity of outdoor activities, and the rise of digital technologies in travel planning and booking.

7.1. How is Sustainable Tourism Becoming More Important in Wales?

Sustainable tourism is becoming increasingly important in Wales, with travelers seeking more responsible and environmentally friendly travel options. This trend is driven by a growing awareness of the environmental and social impacts of tourism. Wales is responding by promoting eco-friendly accommodations, sustainable transportation options, and responsible tourism practices.

7.2. Why are Outdoor Activities Gaining Popularity in Wales?

Outdoor activities are gaining popularity in Wales, driven by the country’s stunning natural landscapes and diverse recreational opportunities. From hiking in Snowdonia National Park to cycling along the Welsh coast, visitors are seeking active and immersive experiences in nature. This trend is supported by investments in outdoor infrastructure, such as trails, parks, and recreational facilities.

7.3. How are Digital Technologies Transforming Travel Planning in Wales?

Digital technologies are transforming travel planning in Wales, with travelers increasingly relying on online resources for information, booking, and navigation. This trend is driven by the widespread availability of smartphones, tablets, and internet access. Wales is adapting by developing user-friendly websites, mobile apps, and digital marketing campaigns to attract and engage visitors.

7.4. What is the Role of Social Media in Promoting Welsh Tourism?

Social media plays a crucial role in promoting Welsh tourism, with platforms like Instagram, Facebook, and Twitter used to showcase the country’s attractions and engage with potential visitors. Social media allows tourism organizations and businesses to reach a global audience, share compelling visual content, and build brand awareness. Influencer marketing and user-generated content are also effective strategies for promoting Welsh tourism through social media.

7.5. How Can Wales Leverage Emerging Technologies to Enhance Tourism?

Wales can leverage emerging technologies to enhance tourism by developing innovative solutions that improve the visitor experience. This includes using augmented reality (AR) and virtual reality (VR) to create immersive experiences, implementing smart tourism initiatives to improve efficiency and sustainability, and leveraging data analytics to personalize marketing and service offerings.

8. What are the Key Tourist Attractions in Wales?

Wales offers a diverse range of attractions, from historic castles and stunning national parks to vibrant cities and charming coastal towns. Some of the key tourist attractions include Snowdonia National Park, Cardiff Castle, and the Brecon Beacons National Park.

8.1. Why is Snowdonia National Park a Must-Visit Destination in Wales?

Snowdonia National Park is a must-visit destination in Wales due to its breathtaking mountain scenery, diverse hiking trails, and rich cultural heritage. Home to Mount Snowdon, the highest peak in Wales, Snowdonia offers unparalleled opportunities for outdoor adventure and exploration. The park also features picturesque villages, historic sites, and a variety of wildlife.

8.2. What Makes Cardiff Castle a Significant Historical Site?

Cardiff Castle is a significant historical site due to its rich history and diverse architectural styles. With origins dating back to Roman times, the castle has been transformed over the centuries by Norman, medieval, and Victorian influences. Today, Cardiff Castle offers visitors a fascinating glimpse into Wales’ past, with guided tours, exhibitions, and special events.

8.3. What Unique Features Does Brecon Beacons National Park Offer?

Brecon Beacons National Park offers unique features such as stunning waterfalls, rolling hills, and dark sky reserves. The park is a haven for hikers, cyclists, and nature lovers, with miles of scenic trails and opportunities for wildlife spotting. Brecon Beacons is also renowned for its stargazing opportunities, with designated dark sky sites offering exceptional views of the night sky.

8.4. How Can You Experience Welsh Culture in Conwy?

You can experience Welsh culture in Conwy by visiting its historic castle, exploring its charming streets, and attending local festivals and events. Conwy Castle, a UNESCO World Heritage Site, is a magnificent medieval fortress that offers stunning views of the surrounding landscape. The town also features traditional Welsh pubs, craft shops, and cultural centers that showcase the region’s heritage.

8.5. What Coastal Adventures Await You in Pembrokeshire?

Coastal adventures await you in Pembrokeshire, with its dramatic cliffs, sandy beaches, and crystal-clear waters. The Pembrokeshire Coast Path offers over 186 miles of scenic hiking, with stunning views of the coastline and opportunities for wildlife spotting. Visitors can also enjoy water sports such as surfing, kayaking, and coasteering.

9. What are the Seasonal Events and Festivals in Wales?

Wales hosts a variety of seasonal events and festivals throughout the year, offering visitors unique opportunities to experience Welsh culture and traditions. Some of the key events include the National Eisteddfod, the Hay Festival, and the Llandudno Victorian Extravaganza.

9.1. What is the Significance of the National Eisteddfod in Wales?

The National Eisteddfod is a celebration of Welsh culture, language, and arts. Held annually in different locations across Wales, the Eisteddfod features music performances, literary competitions, visual arts exhibitions, and cultural activities. It is a significant event for the Welsh-speaking community and attracts visitors from around the world.

9.2. Why is the Hay Festival Known as a Premier Literary Event?

The Hay Festival is known as a premier literary event due to its impressive lineup of authors, thinkers, and artists. Held annually in Hay-on-Wye, the festival features book readings, discussions, workshops, and cultural events. It attracts book lovers from around the world and has become a major event in the literary calendar.

9.3. What Unique Attractions Does the Llandudno Victorian Extravaganza Offer?

The Llandudno Victorian Extravaganza offers unique attractions such as vintage fairground rides, street performers, and Victorian-themed displays. Held annually in Llandudno, the extravaganza celebrates the town’s Victorian heritage and attracts visitors of all ages. The event also features craft stalls, food vendors, and live entertainment.

9.4. How Can You Experience Welsh Music at the Brecon Jazz Festival?

You can experience Welsh music at the Brecon Jazz Festival, which showcases a diverse lineup of jazz musicians from Wales and around the world. Held annually in Brecon, the festival features concerts, workshops, and jam sessions. It attracts jazz enthusiasts from across the globe and provides a platform for emerging Welsh talent.

9.5. What Festive Traditions are Celebrated During Christmas in Wales?

Festive traditions celebrated during Christmas in Wales include carol singing, decorating homes with holly and mistletoe, and enjoying traditional Welsh Christmas foods. The Mari Lwyd tradition, where a decorated horse skull is paraded through villages, is a unique Welsh Christmas custom. Many towns and villages also host Christmas markets and festive events.

10. FAQs About Tourism’s Impact on Wales’ Economy

Here are some frequently asked questions about tourism’s impact on the Welsh economy.

10.1. How has Brexit Affected the Tourism Industry in Wales?

Brexit has presented both challenges and opportunities for the tourism industry in Wales. Challenges include increased border controls and potential impacts on labor supply, while opportunities include attracting more domestic tourists and diversifying international markets.

10.2. What Steps are Being Taken to Promote Sustainable Tourism in Wales?

Steps being taken to promote sustainable tourism in Wales include investing in eco-friendly accommodations, promoting sustainable transportation options, and supporting local businesses that prioritize environmental and social responsibility.

10.3. How Does the Welsh Government Support the Tourism Sector?

The Welsh Government supports the tourism sector through funding, marketing campaigns, and policy initiatives aimed at promoting sustainable tourism and enhancing the visitor experience.

10.4. What Role Do Local Communities Play in the Tourism Industry in Wales?

Local communities play a vital role in the tourism industry in Wales, providing authentic experiences, preserving cultural heritage, and supporting local businesses.

10.5. How Can Visitors Contribute to the Welsh Economy Responsibly?

Visitors can contribute to the Welsh economy responsibly by supporting local businesses, respecting local culture, and minimizing their environmental impact.

10.6. What is the Future Outlook for Tourism in Wales?

The future outlook for tourism in Wales is positive, with opportunities for growth driven by sustainable tourism practices, emerging technologies, and a focus on enhancing the visitor experience.

10.7. How Can I Find the Best Deals on Accommodations in Wales?

You can find the best deals on accommodations in Wales by using SIXT.VN, which offers a wide range of options to suit every budget and preference.

10.8. What are the Best Times to Visit Wales for Different Activities?

The best times to visit Wales for different activities vary depending on your interests. Summer is ideal for hiking and outdoor adventures, while winter offers cozy accommodations and festive events.

10.9. What Measures are in Place to Ensure Visitor Safety in Wales?

Measures in place to ensure visitor safety in Wales include well-maintained trails, clear signage, and emergency services.

10.10. How Can I Stay Updated on the Latest Travel Guidelines for Wales?

You can stay updated on the latest travel guidelines for Wales by visiting the official Visit Wales website and subscribing to travel advisories.

Conclusion

Tourism is undeniably a significant contributor to the Welsh economy, influencing employment, enterprise, and GVA. Understanding the nuances of this impact helps stakeholders make informed decisions for sustainable growth. For travelers planning a visit, SIXT.VN offers a seamless way to explore Wales, from booking accommodations and tours to arranging transportation. Embrace the Welsh adventure and experience the best of Wales with SIXT.VN.

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