seaside towns: the economic challenges prof steve fothergill centre for regional economic and social...
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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
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Source: ONS mid-year population estimates
Share of population over state pension age
Source: ONS
34%
25%
19%
23%
Smaller seaside towns
Larger seaside towns
England Ruralareas
Employment rate
(% of working age)
Sources: Census, LFS, ONS
70%
72%
74%
76%
Smaller seaside towns
Larger seaside towns
England Ruralareas
Working age benefit claimant rate (2008)
Sources: DWP, ONS
13.0%13.8%
11.4%
6.9%
Smaller seaside towns
Larger seaside towns
England Ruralareas
Jobs in distribution, hotels and restaurants (%)
Source: Annual Business Inquiry
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England
Median hourly earnings (2008)
£10.78 £11.38
£12.29 £12.39
£8.18 £8.75
£9.35 £8.98
Smaller seaside towns
Larger seaside towns
England Ruralareas
Smaller seaside towns
Larger seaside towns
England Ruralareas
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England
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
Ma
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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 8,900North West 2,700South East 1,600Wales 1,300NE/Yorks/E Midlands 800Eastern - 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 software463,000 Air transport 99,000
Insurance & pensions 338,000 Radio & TV 78,000
Telecommunications 224,000 Railways 61,000
SEASIDE TOURISM 210,000 Pharmaceuticals 50,000
Motor industry 165,000 Steel industry 40,000
Publishing 154,000 Fishing 14,000
Aerospace 110,000Coalmining 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 10,000Supported by inland spend of seaside tourists 10,000
DIRECT JOBS 250,000
Jobs in supply chain 50,000DIRECT & SUPPLY CHAIN JOBS 300,000
Multiplier effects 300,000DIRECT & 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