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More money is being put into a Welsh Government fund supporting tourism and hospitality businesses, following “overwhelming” demand.

The Year of Croeso Weatherproofing Fund was set up to help businesses install measures to protect themselves from poor weather.

The fund received nearly 400 applications from businesses seeking grants between £5,000 and £20,000.

The original £1.75m budget has now been increased by a further £2 million.

The scheme aims to support micro, small and medium size businesses employing between one and 250 people. Successful applicants will receive grants covering up to 75% of project costs.

It comes after Visit Wales research, carried out in 2024, found that 55% of tourism businesses cited poor weather as the main reason for reduced visitor numbers.

This additional investment will help businesses extend their operating seasons and create better experiences for visitors, the Welsh Government said.

Rebecca Evans, Wales’ economy secretary, said: “Our Welsh tourism and hospitality businesses offer fantastic year-round experiences, but the weather isn’t always on our side.

“By allocating a further £2m to our popular weatherproofing fund, the Welsh Government is helping nearly 400 businesses stay open longer, keeping people employed, and boosting local economies across Wales.”