British seaside resorts 'missed out on £1.5billion' - despite boost in business over heatwave summer
Businesses in small seaside towns could be missing out on thousands of pounds 📱
- A scorching summer has given traders in the UK’s seaside towns a bumper financial boost
- The sunny weather has brought in a surge in visitors and takings
- However, a new report has found that businesses on the coast have potentially missed out on £1.5billion due to poor 5G and broadband
Britain’s seaside towns have enjoyed a bumper financial boost thanks to the scorching summer, a new report has found.
Three-quarters of small and medium-sized tourist businesses - including ice cream sellers, guest houses, cafes and gift shops - say the sunny weather brought a surge in visitors and takings.
But economic experts have discovered that the country’s seaside traders have potentially missed out on a massive £1.5billion due to the poor 5G and bad broadband, often suffered by coastal towns.
Financial modelling and research by mobile network operator VodafoneThree found the average small holiday town business could have made up to £73,708 more this year with better signal and WiFi.
And in some major resorts, such as Brighton and Worthing in the South East, traders could have made even more than that.
Thousands of coastal and rural traders across the country lose out on sales because of poor connectivity. This also often means they do not take card or online payments, discouraging the growing number of customers who never carry cash.
The study of 50 seaside towns across the UK found that one in three SMEs (32%) felt enhanced connectivity would help them grow their ecommerce, from improving online shopping options to adding services like click-and-collect.
Four in ten (41%) would enhance their Wi-Fi, making it easier for their customers to stay connected, while three in ten (30%) would explore AI tools for customer support. This could include virtual help to answer questions faster and automated responses to common enquiries.
Social media topped the SME wish list with 42% wanting to use it more if they had better connectivity.
The new research comes as VodafoneThree begins expanding network access across the UK using innovative technology, allowing Vodafone and Three customers to use each other’s networks at no extra cost.
Where activated, customer devices will automatically connect to the best coverage available - whether that’s on the Vodafone or Three network. This effectively gives customers access to two networks, delivering improved coverage, reliability, and speed when using 4G and 5G.
Andrea Donà, Chief Network Officer at VodafoneThree, said: “We know that tourism plays a critical role in boosting local economies across the UK, with improved connectivity accelerating their growth to the tune of £1.5bn a year.
“That’s why VodafoneThree is investing £11billion to build a network that provides reliable, quality connectivity to all corners of the UK. Our initial sites have been carefully selected to deliver the greatest benefit to customers, particularly in rural and coastal areas where demand surges during the summer months.
“This means smoother streaming and quicker downloads for consumers, as well as equal access to digital tools to boost productivity and growth for local businesses.”
The Sussex coast stands to gain the most from better connectivity, with four seaside towns leading the list. Worthing tops the rankings, where each tourism SME could unlock up to £200,000 a year, followed by Brighton at £171,000, and Eastbourne and Hastings at around £127,000 each.
These figures reflect the high number of seasonal businesses and strong visitor numbers in these areas, combined with survey data on the extra revenue SMEs believe they could generate with improved connectivity.
The rise of remote work during holidays is also seen as a factor in the rising demand for connectivity. Nearly half of high-street food and drink venues (42%) and hotels (48%) saw more guests extending the long weekend into a working holiday, and 61% say customer Wi-Fi is their top digital essential.
The top 50 resort locations were informed using ONS data in the UK and the Northern Ireland Government tourism website.
Where better connectivity could make the biggest impact
- Worthing, South East - £200,260
- Brighton, South East - £171,124
- Southport, North West - £128,570
- Hastings, South East - £127,460
- Eastbourne, South East - £127,307
- Seaford, South East - £125,740
- Bognor Regis, South East - £122,955
- Mablethorpe, East Midlands - £113,794
- Bridlington, Yorkshire - £103,642
- Southend, East England - £103,009
- Littlehampton, South East - £93,766
- Broadstairs, South East - £91,327
- Blackpool, North West - £87,548
- Ayr, Scotland - £85,571
- Bournemouth, South West - £84,504
- Falmouth, South West - £84,407
- Frinton, East England - £80,864
- Margate, South East - £79,032
- Cromer, East England - £74,819
- Clacton, East England - £73,596
It’s not just seaside towns that struggle with connectivity. Here, our technology writer uncovers the 10 ‘dead zones’ where it’s hardest to get a mobile phone signal across the UK.