1. SEASIDE TOWNS: THE ECONOMIC CHALLENGES Prof Steve Fothergill Centre for Regional Economic and Social Research Sheffield Hallam University

2. Coastal towns or seaside resorts? ‘Coastal towns’ are not a coherent category for most purposes ‘Seaside resorts’ (or ‘seaside towns’) are a more meaningful group:  Seaside tourism  Infrastructure  Economic pressures  Self-identity

3. 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)

4. 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

5. Population of England's principal seaside towns Source: ONS mid-year population estimates

6. Share of population over state pension age Source: ONS Smaller seaside towns Larger seaside towns EnglandRural areas

7. Employment rate (% of working age) Sources: Census, LFS, ONS Smaller seaside towns Larger seaside towns EnglandRural areas

8. Working age benefit claimant rate (2008) Sources: DWP, ONS Smaller seaside towns Larger seaside towns EnglandRural areas

9. Jobs in distribution, hotels and restaurants (%) Source: Annual Business Inquiry

10. Median hourly earnings (2008) Smaller seaside towns Larger seaside towns EnglandRural areas Smaller seaside towns Larger seaside towns EnglandRural areas Men Women

11. Average seasonal fluctuation in unemployment Sources: DWP, ONS

12. 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

13. Smaller seaside towns: overall deprivation (2007) (Average LSOA ranking) Source: Indices of Deprivation

14. 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)

15. 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)

16. 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: Thanet Torbay Hastings/Bexhill Greater Blackpool Isle of Wight Southend on Sea Greater Brighton Greater Bournemouth Greater Worthing

17. 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?

18. 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

19. Jobs in seaside tourism – the top 20 Greater Blackpool 19,400Scarborough 4,200 Greater Bournemouth 12,100Southend-on-Sea 3,400 Greater Brighton 11,900Weymouth 3,400 Torbay 9,200Eastbourne 3,300 Isle of Wight 7,900Hastings/Bexhill 3,200 Great Yarmouth 5,600Southsea 2,900 Newquay 5,300Skegness 2,800 Southport 5,300St Ives 2,600 Thanet 4,800Tenby 2,600 Llandudno/Colwyn/Conwy 4,600Cleethorpes 2,500 Source: Sheffield Hallam University

20. Trends in tourism job numbers ESTIMATED INCREASE IN SEASIDE TOURISM EMPLOYMENT IN PRINCIPAL SEASIDE TOWNS, 1998/2000 to 2006/8 South West8,900 North West2,700 South East1,600 Wales1,300 NE/Yorks/E Midlands 800 Eastern - 1,300 All principal seaside towns 14,000 Source: Sheffield Hallam University

21. Comparisons with other industries No of jobs, 2008 Higher education489,000Advertising100,000 Computer software463,000Air transport 99,000 Insurance & pensions338,000Radio & TV 78,000 Telecommunications224,000Railways 61,000 SEASIDE TOURISM210,000Pharmaceuticals 50,000 Motor industry165,000Steel industry 40,000 Publishing154,000Fishing 14,000 Aerospace110,000Coalmining 7,000 Source: Based on ABI

22. Possible wider impact no of jobs Directly supported by seaside tourism 210,000 ‘Missing’ places 20,000 ‘Missing’ sectors 10,000 Supported by inland spend of seaside tourists 10,000 DIRECT JOBS 250,000 Jobs in supply chain 50,000 DIRECT & SUPPLY CHAIN JOBS 300,000 Multiplier effects 300,000 DIRECT & INDIRECT JOBS 600,000 Source: Sheffield Hallam University

23. 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

24. 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

25. 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

26. 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