Coastal Tourism Business Survey 2024 results

Coastal Tourism Business Survey 2024 Winter Wave
Survey live between 4th November – 16th December 2024

This wave reflects on 2024 performance compared to 2023, looking forward to 2025 and the impact of the UK Government Budget in October 2024

Download the results here

Key Headlines

• Two-thirds of business (66%) said that profitability in 2024 was down on 2023, with a third stating it was significantly lower and only 14% saying their profitability had improved over 2023
• The impact of the UK Government budget on businesses that employ staff is significant with 59% saying the rise in employers National Insurance contributions will have a significant negative impact on their business and further 21% expecting a moderate negative impact.
• Confidence remains relatively static over the last few waves – with 45% of businesses at least somewhat confident about the next 6 months of trading.
• Forward bookings are low but comparable to the level of forward bookings for the same point last year.
• The top external factors influencing businesses are the economic climate (81%), increasing costs (79% and the impact of poor and unpredictable weather (60%).
• In response to the challenges facing businesses 58% of businesses are increasing their prices in 2025, 51% are going to delay investment, building or maintenance work with 37% stating they will not invest in their business in 2025. Almost a third (31%) are planning to reduce staffing.
• The top priority for almost all businesses (94%) is reducing costs, followed by increasing year round business (87%).
• Businesses would like support through an increased investment in destination marketing (67%), support reducing costs and improving efficiency (45%) or increasing sales (40%). They would also appreciate training focused on digital marketing, increasing sales and innovation to lower costs.
• Interest remains high in growing the following markets – walkers (78%), nature and wildlife (65%) and cycling (56%).

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Coastal Tourism Business Survey 2024 Summer Wave
Survey live between 24th May – 30th June 2024

This wave reflects on performance since the start of 2024 and looking forward to summer 2024

Download the results here

Key Headlines

• More than half of businesses (53%) said that 2024 turnover to date was worse than the same period in 2023 – just 16% of businesses said that so far 2024 had been better than 2023.
• Confidence has decreased since the previous wave – with just 43% of businesses at least somewhat confident about the next 6 months of trading and 37% not confident.
• Forward bookings for the summer have improved over the previous wave but remain behind the same period last year.
• Businesses continue to see consumers booking much closer to departure, that consumers are looking for deals and that overall spend is lower.
• The key external factors influencing businesses are the economic climate (73%) and the impact of poor and unpredictable weather is now the second highest external influence at 71%.
• In response to the challenges facing businesses 51% of businesses are increasing their prices in 2024, 31% are cutting costs by closing for more of the year or on certain days of the week or reducing their service offer, 37% are delaying investment and 19% are planning to reduce staff.
• There is continued strong support for a reduction in VAT for hospitality and tourism (61%) and support for energy costs (54%). 48% would like to see greater investment in destination marketing
• UK overnight visitors are still the key priority market for the next 12 months with 82% treating them as high priority. There is a continued growth in priority for both European and other International visitors.
• Interest is high in growing the following markets – walkers (66%), nature and wildlife (63%) and cycling (56%).

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Coastal Tourism Business Survey 2024 Spring Wave
Survey live between 25th February – 28th March 2024

This wave reflects on performance over the previous year (2023) and forward to plans for 2024.

Download the results here

Key Headlines

• Over a third (37%) of businesses said that 2023 turnover was better than 2022 – which is positive news considering the previous wave had highlighted how poor the summer period had been. 31% of businesses though said that turnover was worse in 2023 than 2022.
• Confidence has increased since the previous wave – with 57% of businesses at least somewhat confident about the next 6 months of trading and 25% not confident.
• Forward bookings are low across all seasons and lower than the same point last year. Only 8% of businesses have sold the majority of their summer 2024 capacity.
• Businesses continue to see consumers booking much closer to departure, that consumers are looking for deals and that overall spend is lower.
• The top business priority continues to be reducing costs (95% of businesses) followed by increasing year-round business (87%) and improving sustainability (78%).
• A slight change in the factors influencing businesses sees the economic climate as the most influential factor (76%) and a slight decrease in the impact of energy costs, though still high at 68%. However, the cost of insurance premiums (42%) and the cost of finance (31%) have risen to now be included in the top 10 external factors influencing businesses.
• In response to the challenges facing businesses - 57% of businesses are increasing their prices in 2024, 31% are cutting costs by closing for more of the year or on certain days of the week or reducing their service offer, 39% are delaying investment and 18% are planning to reduce staff.
• There is continued strong support for a reduction in VAT for hospitality and tourism (61%) and support for energy costs (60%). An increasing 53% would like to see greater investment in destination marketing – this is up +4pts on the previous wave
• UK overnight visitors are still the key priority market for the next 12 months with 88% treating them as high priority. There is a continued growth in priority for both European and other International visitors.
• Interest is high in growing the following markets – walkers (75%), nature and wildlife (66%) and cycling (56%