In pictures: Economic unease in Tenby

Hotelier Chris Osborne has seen a fall in bookings and visitors aren't spending as much as they used to. In response, he has spent less on refurbishment and cut staff numbers.

Driving school owner Suen Andrews had a good start to the year but things have slowed down very quickly. Rising living costs are forcing people to prioritise spending on essential items, he says.

Gift store County Clothes is seeing the same number of people come through its doors. But Toby Rhys Davies says customers are spending less and shying away from expensive purchases.

Summer bookings are down 25% at the Royal Lion Hotel but its restaurant costs alone have risen by a fifth. Owner Graham Fry says he is "having to run to stand still" at the moment.

Some firms, like Webb Computers, have benefited from the tougher climate. Owner John Goodwin says he is doing more repair jobs as people hold onto existing models rather than buy new ones.

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