SEASIDE TOWNS:THE ECONOMIC CHALLENGES

Prof Steve FothergillCentre for Regional Economic and Social Research

Sheffield Hallam University

Coastal towns or seaside resorts?

‘Coastal towns’ are not a coherent category formost purposes

‘Seaside resorts’ (or ‘seaside towns’) are a more meaningful group:

Seaside tourism Infrastructure Economic pressures Self-identity

Some reports……

The Seaside Economy (2003)

England’s Seaside Towns: a benchmarking study (2008)

The Seaside Tourist Industry in England and Wales: employment, economic output, location and trends (2010)

England’s Smaller Seaside Towns (2011)

How many people?

2.9m people live in England’s 37 principal seaside towns (population 10,000+)

A further 170,000 live in England’s smaller seaside towns (population 1,500 -10,000)

And 220,000 in seaside towns in Wales

Population of England's principal seaside towns

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

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Source: ONS mid-year population estimates

Share of population over state pension age

Source: ONS

34%

25%

19%

23%

Smaller seaside towns

Larger seaside towns

England Ruralareas

Employment rate(% of working age)

Sources: Census, LFS, ONS

70%

72%

74%

76%

Smaller seaside towns

Larger seaside towns

England Ruralareas

Working age benefit claimant rate (2008)

Sources: DWP, ONS

13.0%13.8%

11.4%

6.9%

Smaller seaside towns

Larger seaside towns

England Ruralareas

Jobs in distribution, hotels and restaurants (%)

Source: Annual Business Inquiry

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10

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30

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Seaside towns

England

Median hourly earnings (2008)

£10.78 £11.38

£12.29 £12.39

£8.18 £8.75

£9.35 £8.98

Smaller seaside towns

Larger seaside towns

England Ruralareas

Smaller seaside towns

Larger seaside towns

England Ruralareas

Men Women

Average seasonal fluctuation in unemployment

0.0

0.5

1.0

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Seaside towns

England

Sources: DWP, ONS

Deprivation: key points

England’s principal seaside towns are, on average, rather more deprived than the rest of the country, but not markedly so

England’s smaller seaside towns are, on average, slightly less deprived than their larger counterparts

But there is considerable diversity between places

Smaller seaside towns: overall deprivation (2007)(Average LSOA ranking)

Source: Indices of Deprivation

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0

5,000

10,000

15,000

20,000

25,000

30,000

Larger towns with the strongest local economies

On the broadly ‘economic’ data within the IMD:

Bognor Regis, Exmouth, Greater Bournemouth,Greater Brighton, Greater Worthing, Sidmouth, Southport, Swanage, Whitley Bay,Whitstable/Herne Bay

(in alphabetical order)

Larger towns with the weakest local economies

On the broadly ‘economic’ data within the IMD:

Bridlington, Clacton, Great Yarmouth, Ilfracombe, Lowestoft, Morecambe, Penzance, Thanet, Torbay, Skegness, Whitby

(in alphabetical order)

The economies of the biggest seaside towns

On the basis of the same IMD data, the ranking of the largest nine seaside towns/areas (100,000+ pop) is in order of disadvantage:

ThanetTorbayHastings/BexhillGreater BlackpoolIsle of WightSouthend on SeaGreater BrightonGreater BournemouthGreater Worthing

What about the future?

Is the seaside tourist industry a dead duck?

Will the national economy help or hinder growth?

Can local efforts make a difference?

How many tourism jobs?

210,000 jobs in seaside towns directly supported by seaside tourism

58 individual places around the coast have at least 1,000 jobs in seaside tourism

Source: Sheffield Hallam University

Jobs in seaside tourism – the top 20

Greater Blackpool 19,400 Scarborough 4,200Greater Bournemouth 12,100 Southend-on-Sea 3,400Greater Brighton 11,900 Weymouth 3,400Torbay 9,200 Eastbourne 3,300Isle of Wight 7,900 Hastings/Bexhill 3,200Great Yarmouth 5,600 Southsea 2,900Newquay 5,300 Skegness 2,800Southport 5,300 St Ives 2,600Thanet 4,800 Tenby 2,600Llandudno/Colwyn/Conwy 4,600 Cleethorpes 2,500

Source: Sheffield Hallam University

Trends in tourism job numbers

ESTIMATED INCREASE IN SEASIDE TOURISM EMPLOYMENT IN PRINCIPAL SEASIDE TOWNS, 1998/2000 to 2006/8

South West 8,900North West 2,700South East 1,600Wales 1,300NE/Yorks/E Midlands 800Eastern - 1,300

All principal seaside towns 14,000

Source: Sheffield Hallam University

Comparisons with other industries

No of jobs, 2008

Higher education 489,000 Advertising 100,000Computer software463,000 Air transport 99,000Insurance & pensions 338,000 Radio & TV 78,000Telecommunications 224,000 Railways 61,000SEASIDE TOURISM 210,000 Pharmaceuticals 50,000Motor industry 165,000 Steel industry 40,000Publishing 154,000 Fishing 14,000Aerospace 110,000Coalmining 7,000

Source: Based on ABI

Possible wider impact no of jobs

Directly supported by seaside tourism 210,000‘Missing’ places 20,000‘Missing’ sectors 10,000Supported by inland spend of seaside tourists 10,000

DIRECT JOBS 250,000

Jobs in supply chain 50,000DIRECT & SUPPLY CHAIN JOBS 300,000

Multiplier effects 300,000DIRECT & INDIRECT JOBS 600,000

Source: Sheffield Hallam University

The national economy: the downside

Interest rates can’t fall any lower to stimulate growth

Public spending cuts will result in lower output and lower employment

Eurozone crisis is hitting the UK’s biggest export market

Real household incomes are falling

Support for economic development has been cut

The national economy: the upside

Lower household incomes will mean less spending on leisure and tourism, but it may also mean more ‘staycations’

The low exchange rate has made holidays abroad, especially in the eurozone, far less affordable

The low exchange rate also makes the UK far more attractive for foreign visitors

And local efforts…..?

If there is a double-dip recession in the national economy, few if any places can expect to escape unscathed

Don’t expect much help from central government RDA budgets have al but disappeared LEPs have little cash and few powers Area-based grants have disappeared Shortage of matching finance to draw down EU funding Coastal Communities Fund is welcome but small

But there are still things you can do…..

Adopt a pro-development approach

Welcome economic diversity – language schools, old people’s homes, residential caravans, call centres etc. etc.

But don’t give up on seaside tourism

Diversify the tourist accommodation base

Maintain spending on infrastructure assets that underpin visitor economy