A new report has suggested that opening a royal palace in Wales could be worth an additional £3.6m (US$5.1m, €4.2m) a year in tourism spend.

According to the Gorwel think-tank, the case for a royal residence in the county should be considered, with its report suggesting such a move could draw thousands of visitors to Wales.

The royal family holds official residences in every UK country, except Wales. The Gorwell Report says that if that were to change, there would be both political and economic benefits, with a long-term increase in visitor numbers and more than 100 jobs created as a direct result. In addition, between £765,000 (US$1.1m, €884,000) and £3.6m (US$5.1m, €4.2m) could be generated through tourism income annually, with a further £510,000 (US$731,000, €590,000) to £2.4m (US$3.4m, €2.8m). According to the projections such a move could draw between 55,000 and 267,000 visitors annually.

Several buildings were suggested for the residence, including City Hall and Duffryn Gardens near Cardiff. The report also suggested a new site rather than an old one could be "more interesting than a building that had been there for many years already".

"There are a number of royal events coming up, which benefit other capitals, such as London and bring in increased tourism there,” said Prof Russell Deacon, the report’s co-author.

"We'd like to see whether royal occasions could also benefit Cardiff, why is Wales left out of that tourism bonanza? We're part of the UK and in that respect we should have a royal residency here too."