Home Business NewsBusinessBusiness Growth News Bank Holiday Boom: Coastal SMEs contribute £3.15 billion to UK economy and support 269,000 jobs

Bank Holiday Boom: Coastal SMEs contribute £3.15 billion to UK economy and support 269,000 jobs

by LLB Finance Reporter
22nd Aug 23 9:38 am

Ahead of the last Bank Holiday of the year, new research from Three Business reveals the huge contribution that the Summer Economy makes to the UK economy.

The research shows coastal small and medium businesses (SMEs) contribute £3.15bn in Gross Value Added (GVA) to the UK economy, supporting 269,000 jobs and 10,900 SMEs across the nation.

Wet weather won’t dampen bumper summer

Despite a damp start, business leaders from Brighton say that “trade is up since last summer, which creates a buzz around the city and has provided a vital boost for our businesses.”

This builds on the positive outlook from the start of the summer, when nearly two thirds (64%) believed the summer months would be good for their business. Naturally, seaside businesses are reliant on a successful summer period, from June to August, and generate almost half (47%) of their annual turnover in this period.

Of those businesses surveyed, nearly three quarters (70%) say their area has become more popular with tourists since the pandemic and the same amount (70%) believe their business has benefitted from increased holiday-maker numbers.

This matches YouGov Travel Profiles research, which showed that over half of people in the UK planned to spend their leisure time at home in 2023. An analysis of Three’s network data reflects this increased footfall in tourist hotspots like Brighton and Blackpool, where network usage was up 60% when compared to last year’s summer season.

SMEs need unique support to relieve pressure

However, more than three in five (64%) of the coastal businesses surveyed say the summer months bring additional pressure on their business.

This includes recruitment of seasonal workers, which over three quarters (76%) of the coastal businesses surveyed rely on, but nearly two in five (38%) say finding seasonal workers is a struggle.

Connectivity – including phone data and internet connection – is another key challenge for coastal SMEs. Almost all (94%) of those surveyed said connectivity was important to the everyday running of their business for reasons including taking card payments while out serving customers, communicating with staff who are working in nearby pop ups, or offering free Wi-Fi to their customers, which almost half (47%) do.

Meanwhile, 45% feel their business is losing money on fixed contracts, and over half (55%) wish they could scale their phone contracts to reflect seasonal demand.

This underlines the importance of understanding coastal businesses’ unique needs, as over two thirds (69%) say the way they operate is vastly different from SMEs based elsewhere.

Snehal Bhudia, Director of Propositions and Marketing, Three Business said, “Brits are known for their determination to enjoy their summer plans come rain or shine – which is lucky given the wash-out we saw in July.

“The summer months are such a crucial trading period for coastal businesses, as our data shows, particularly bumper bank holiday weekends like the ones we had in May and the upcoming August bank holiday. Flexible and affordable 5G connectivity goes a long way to enabling coastal businesses in making the most of this busy period.”

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