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SEASIDE TOWNS: THE ECONOMIC CHALLENGES. Prof Steve Fothergill Centre for Regional Economic and Social Research Sheffield Hallam University. Coastal towns or seaside resorts?. ‘Coastal towns’ are not a coherent category for most purposes ‘Seaside resorts’ (or ‘seaside towns’) are a more
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SEASIDE TOWNS:THE ECONOMIC CHALLENGES Prof Steve Fothergill Centre for Regional Economic and Social Research Sheffield Hallam University
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
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 Source: ONS mid-year population estimates
Share of population over state pension age Source: ONS Rural areas Larger seaside towns England Smaller seaside towns
Employment rate (% of working age) Sources: Census, LFS, ONS Rural areas Larger seaside towns England Smaller seaside towns
Working age benefit claimant rate (2008) Sources: DWP, ONS Rural areas Larger seaside towns England Smaller seaside towns
Jobs in distribution, hotels and restaurants(%) Source: Annual Business Inquiry
Median hourly earnings (2008) Men Women Rural areas Rural areas Larger seaside towns Larger seaside towns England England Smaller seaside towns Smaller seaside towns
Average seasonal fluctuation in unemployment 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
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: Thanet Torbay Hastings/Bexhill Greater Blackpool Isle of Wight Southend on Sea Greater Brighton Greater Bournemouth Greater 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 4,200 Greater Bournemouth 12,100 Southend-on-Sea 3,400 Greater Brighton 11,900 Weymouth 3,400 Torbay 9,200 Eastbourne 3,300 Isle of Wight 7,900 Hastings/Bexhill 3,200 Great Yarmouth 5,600 Southsea 2,900 Newquay 5,300 Skegness 2,800 Southport 5,300 St Ives 2,600 Thanet 4,800 Tenby 2,600 Llandudno/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 8,900 North West 2,700 South East 1,600 Wales 1,300 NE/Yorks/E Midlands 800 Eastern - 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 100,000 Computer software 463,000 Air transport 99,000 Insurance & pensions 338,000 Radio & TV 78,000 Telecommunications 224,000 Railways 61,000 SEASIDE TOURISM210,000 Pharmaceuticals 50,000 Motor industry 165,000 Steel industry 40,000 Publishing 154,000 Fishing 14,000 Aerospace 110,000 Coalmining 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 10,000 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
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