Cornwall’s tourism sector is under mounting pressure as rising costs and declining visitor numbers push businesses to the brink, with hotels offering fuel discounts to entice families to holiday in the UK.
Claire Elliott and Cornwall Live readers
06:00, 14 Apr 2026
Aerial View of Padstow Harbour in Cornwall(Image: Getty)
Cornwall’s tourism sector is under increasing pressure, with some business owners warning the county is ‘on the brink’ as rising costs, policy changes and falling visitor numbers bite.
Six years after locals told holidaymakers to “turn around” during the pandemic, the situation has reversed, with many businesses now struggling to attract visitors at all. Holiday lets are sitting empty in peak weeks, pubs are cutting hours or closing, and hotels are trying new offers just to bring guests in.
Hugh Ridgway, co-owner of the St Moritz Hotel on Cornwall’s north coast, told The Telegraph costs are set to rise by around £100,000 in 2026. He blamed increases in business rates, National Insurance, VAT and the minimum wage, saying staffing has had to be reduced while expectations remain high.
He also criticised the idea of a tourist tax, saying businesses already act as “unpaid tax collectors” and questioning whether any revenue would be reinvested locally. The hotel is offering discounts to encourage UK stays over cheaper holidays abroad.
More widely, Cornwall’s tourism support network has weakened, with Visit Cornwall entering voluntary liquidation in 2025 after funding cuts, leaving a gap in promotion and coordination. Business owners say they feel out of touch with decision makers. Sue Jewell of the South East Cornwall Tourism Association said many policymakers “have never run a business” and do not understand daily pressures.
She also highlighted the impact of second home measures, saying they have hit the holiday market as well as housing supply, with falling bookings and slowing sales forcing her to cut costs and do more work herself. In Falmouth, The Seven Stars pub is also under strain, with rising costs pushing up prices, including a pint of Guinness rising from £4.80 to £5.20. Landlady Amy Bennetts warned long term survival is uncertain.
Cornwall saw a 12 per cent drop in visitors in 2024, with only a slight recovery in 2025, and with later, shorter bookings, the outlook for 2026 remains unclear.
Commenter Nwise1 thinks: “ We’ve only got ourselves to blame, we insisted that the second home council tax would be a good idea, it raised a fraction of the revenue predicted and made no difference to housing needs. Open up car parks for free and hope the sun shines and all will be well. Now if holiday rentals were sensibly priced that might also help.”
DAVIDKC agrees: “It is not surprising given the recent anti tourist messaging, the unfair doubling of council tax, high parking charges, and the rise of private parking firms. Add in increasing business taxes, regular reports about polluted beaches, and even talk of a tourist tax, and it all feels very off putting. There are plenty of other great places to visit, both in the UK and abroad.”
Muswellhillexile points out: “£5.20 a pint and £15 to £20 for a burger and chips in a pub, or £2 a pint and under £5 for a meal at home. You can’t rent a one bedroom holiday cottage for less than £500 a week. At the end of the day, these prices are not down to government or council policy, but the private sector, which is focused on maximising profit. It is worth remembering that not everyone is coming from affluent parts of London or the South East, and many will simply be priced out.”
Kernowmaid67 agrees: “Not surprised as Cornwall is a rip-off. Parking is extortionate, businesses put prices up in the tourist season (even though they deny it) and now with the cost of fuel, why would people travel the extra 50 odd miles to get here, when they can find the same countryside and coast in other counties nearer their home?”
Marchmont Needham adds: “Visit Cornwall did not fall apart because of reduced funding so much as its own overspending, if reports at the time are to be believed. When you see Airbnb places in St Ives going for £5,000 plus a week in peak season, it does feel like some kind of correction is overdue. As for complaints about being “unpaid tax collectors”, that is basically what VAT registered businesses are, just like most other larger businesses in the country. It also makes you wonder how many of those owners supported Brexit, which reduced access to cheap overseas labour and meant wages had to rise to more realistic levels.”
Dis1954 believes: “It is going to be a tough time for holiday businesses, not just in Cornwall, with a lot of reasons behind it. Cornwall is still very reliant on tourism, and that lack of variety makes things pretty fragile when trade drops off. If Cornwall Council put even part of what they spend on the airport into supporting the wider economy, it would probably help a lot more in the long run. Outside of the NHS and the council, there are not many big employers in the county. Even things like mineral projects tend to get a burst of funding and then go quiet again once that money runs out.”
Princewalter agrees: “CCC has pretty much killed the golden goose with high parking charges and doubling council tax on second homes. A lot of visitor attractions have also priced themselves out, which is leading to fewer and fewer tourists. Cornwall’s economy is still very fragile, with hardly any industry and not many well paid jobs. Fishing is a tiny part of it now, and mining still talks big but doesn’t really deliver much in reality. It is quite heavily reliant on government support, and the situation is clearly under strain. There is also constant tension around tourism and its impact. No wonder it is still one of the poorer regions in Europe.”
Triggerandhisdoggo jokes: “The council will undoubtedly have a meeting and decide that the solution is less parking and more cycle lanes.”
Do you think Cornwall’s tourism struggles are mainly driven by costs and policy changes, or is it more about changing holiday habits overall? Have your say in our comments section.
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