More Welsh attractions could follow Oakwood theme park in going out of business, with one owner describing “the most worrying time” in his 32 years in the industry.

Charles Davies, who runs Heatherton World of Activities, near Tenby in Pembrokeshire, will see his wage bill go up £250,000 because of increases to National Insurance and minimum wage, and grimly predicted others “are not going to last”.

The owner of a marine zoo on Anglesey said small operators are at “breaking point”, and the boss of the national show caves in Swansea county admitted “we can’t carry on life this”.

Oakwood shut after almost 40 years due to a drop in visitor numbers.

Operators such as Heatherton, which employs about 160 people, are being hit from “all sides” Mr Davies said, with increases in minimum wage, National Insurance, as well as higher supply and energy costs.

“It’s the most worrying time we’ve ever had in 32 years of running the attraction,” he said.

“If everything carries on the way it does others [attractions] are not going to last.”

Three Welsh attractions have recently failed according to the Welsh Visitor Attractions Association (WAVA), hitting a tourism sector that employs 150,000 people in Wales.

The sector is facing a new burden in 2027 when the Welsh government could let councils charge £1.25 a night Welsh tourism tax, affecting guests at hotels, B&Bs and self-catered accommodation, or a75p charge for hostel and campsite visitors.

Mr Davies called the tax a “suicide mission for the industry” that could cost his business an extra £200,000 a year, depending on how the tax is implemented.

“Welsh government is discouraging the whole industry,” he claimed, accusing ministers of seeing it as a “cash cow to be milked”.

Frankie Hobro, owner of Anglesey Sea Zoo, said she expects more closures to be announced in the coming months.

“Since Covid, we haven’t recovered with our visitor numbers, down 23%,” she said.

“On top of that, we’ve got a cost of living crisis so people are earning less so we’ve got less visitors spending less.”

Ms Hobro said she is worried about the mental health of some operators.

“We are the people that are putting their life and soul into this kind of thing,” she said.

“We’re resourceful, we want to make things work, and yet these people are at absolute rock bottom.”

Operators are cutting costs and staff to survive, she said, but are now facing a future hurdle in the Welsh tourism tax.

She added: “All these things are stacking up and there’s a breaking point with everybody and particularly with small business owners.”

WAVA secretary Ashford Price, told the BBC Radio Wales Phone In that more Welsh attractions could fail if the tourism season is poor.

the organisation represents more than 80 of Wales’ main visitor attractions.

“I feel that the Welsh government has made life difficult for tourism in Wales,” he said, pointing to rules over second homes, and proposals for a tourism tax.

“In the last year, 29% fewer visitors have stayed overnight in Wales, and the tourist tax is sure to make the situation worse,” he added.

Mr Davies, who is also chairman of Dan-yr-Ogof – the National Exhibition Caves Centre for Wales – in Abercrave, Swansea county, said attractions “can’t survive” if current trends continue.

“We need visitor numbers to key places like Dan-yr-Ogof caves going,” he said.

“We can’t carry on like this.”

He called for government changes.

“We don’t spend enough on marketing and certainly some of the policies that the Welsh government have derived… like the tourism tax, the 182 day law for self caters, they are putting people off,” he explained.

Welsh Conservative Samuel Kurtz MS said Oakwood was “part of the fabric” of Pembrokeshire’s tourism offer.

“To lose a key cornerstone of that if going to make the season ahead quite difficult I think,” he said.

Charles Davies admitted in the short-term Heatherton would benefit from the closure of Oakwood, saying they had already picked up more school bookings.

“In the longer terms though, will people still want to come to Pembrokeshire if we don’t have a theme park?” he asked.

He said Heatherton will have to find the money to “keep up to date”.

“It’s a battle to have lots of attractions on site, which we are managing to do,” he said.

“At moment we are on hold with everything… hopefully everything goes well this summer.”

Prof Calvin Jones of Cardiff Business School said tourism was “rapidly changing” since Covid, with people once again “jumping back on a plane to go somewhere”.

“There’s a need of understanding what tourists want into the future, how to provide that for them,” he said.

“Unfortunately it does seem running a theme park obviously with its high costs and very high safety requirements just doesn’t seem to be viable.”

The Welsh government has not helped, he admitted, with the environmental and cultural priorities behind policies such as the second home and tourism tax initiatives.

“It’s very hard to find a goldilocks position,” he added.

A Welsh government spokesperson said it wanted to “work closely” with the Welsh tourism sector to help address the challenges businesses face.

“Tourism makes an important contribution to the Welsh economy and to Welsh life,” a spokesperson added.