Furious locals blame new ‘tourist tax’ for UK theme park closure as they ask ‘what’s next?

Wales Daily Life

Oakwood Theme Park closed for good last week (Image: Getty)

Furious locals have blamed a new “tourist tax” for the closure of an iconic UK theme park and are concerned more venues will be forced to shut. The Oakwood Theme Park in Pembrokeshire, west , closed its doors for good on Tuesday last week.

Its owners say the Government’s national insurance, minimum wage hikes, and spiralling energy costs are to blame. But locals believe a looming “tourist tax” proposed by the Welsh Government could be the death knell for local tourism.

The commerce-crushing levy, which could come into force from 2027, will see visitors slogged £1.25 a night when they stay in a hotel, B&B or self-catered accommodation. Those staying at hostels and campsites will have to pay 75p per night.

Cardiff says the money raised will fund services in tourism hotspots, but critics, including locals in Pembrokeshire, believe it will scare visitors off. Kevin Hart, who has been running a restaurant and caravan site a stone’s throw away from Oakwood for the past 18 years, told the he is “dreading” the new tax.

Kevin, 66, and his wife, Debbie, run The Snooty Fox and had planned to sell up and retire in a few years. But their dream has fallen to pieces. Kevin said: “How am I going to be able to sell up and retire now when the Welsh and national governments are doing their level best to destroy what we’ve spent 18 years building up?

“I employ 10 people here and I’m already having to find extra money to pay for the rises in national insurance and minimum wage, not to mention inflation and energy costs going through the roof. And now the Welsh government expects people coming here to pay a tourism tax.”

The business owner is certain the pending tourism tax was a factor in Oakwood’s decision to close. He said: “The closure is going to hit my business very hard because most of the people staying here spend a day or two there.

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Wales’ parliament, the Senedd, has to pass legislation to issue the new tax (Image: Getty)

“They specifically come to the Snooty Fox because it’s within walking distance of Oakwood. They can have an adventure there, then grab a decent meal here, have a drink and get a good night’s sleep. But I’m really worried we’ll lose a lot of custom now the place has closed for good.

“There’s plenty of other things to see and do around here, but there’s no denying Oakwood was a massive attraction for people stying with us

“All we can do now is just keep plodding on and hope the Welsh government drops its ridiculous tourism tax idea.”

Jenny, a local resident, said Oakwood’s demise was “the tip of the iceberg” for the tourism and hospitality sector in Wales. She said the levy was “yet another tax” and fears it will drive visitors away from Pembrokeshire. She said: “[It comes] at a time when everyone’s already feeling the squeeze caused by every other tax we pay, on top of inflation, soaring energy costs and, if you’re an employer, extra national insurance and another rise in the minimum wage. Oakwood going is the tip of the iceberg, I fear. In the years ahead, there’ll be nothing left here.”

The proposed tax will be charged per person per night and will also apply to children. Welsh have slammed the plan and say it will risk jobs in the tourist industry, which employs 159,000 people – roughly 12per cent of the nation’s workforce.

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To issue the tax, the Welsh Parliament needs to approve new legislation. A draft was published last Monday.

If passed, officials believe the tax could be in play by April 2027, at the earliest. Councils can also choose to charge more in the future if they carry out a public consultation and give 12 months’ notice. Not all local authorities are expected to introduce the level, which could raise £33m a year.

The levy won’t be issued on stays over 31 nights or on people forced into temporary accommodation or rough sleepers staying in homeless hostels. The Wales Tourism Alliance said the decision by Oakwood’s Spain-based owners Aspro to close its operation down was “disappointing” new for Wales’ tourism sector.

They said decisions taken by the Welsh Government and Westminster seriously risked damaging the nation’s tourism industry which contributes £3.8bn to the economy annually. They also criticised plans to increase national insurance, council tax premiums and a 182-day minimum occupancy for holiday lets and proposals for the Welsh tourist tax.

Carmarthen West and South Pembrokeshire MS Samuel Kurtz said the decisions had made businesses “very nervous”. Mid and South Pembrokeshire MP Henry Tufnell said the closure was “incredibly disappointing news for Pembrokeshire”.

He added: “My first thoughts are with the staff who have lost their jobs. This will be an extremely difficult time for them, and I urge Aspro Parks to provide as much support as possible. Oakwood has been an iconic part of Pembrokeshire’s visitor economy, drawing tourists, creating employment, and contributing to local businesses that have relied on its success.

“Its closure will undoubtedly be felt across the community, and we must now focus on what comes next for the site and the people affected. The last thing Pembrokeshire needs is a derelict site that is sat empty for years.”

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