Tourism injects £700 million into the Great Yarmouth economy but traders squeezed by rising cost

• Tourism contributed almost £700 million to Great Yarmouth’s economy last year with spending on the 7.5 million visits to the area 10 per cent more than in 2023.
• But, despite an upturn in visitors, businesses say they are being squeezed by rising energy and staff costs, while visitors are spending less because of their own cost of living pressures.
• Confidence for October half term is fairly high but tempered by uncertainty.
• Pressures are leading to businesses increasing their prices and cutting staff.
• Businesses point to rising costs delaying investment and building maintenance.
• They are calling for an energy price cap, business rates and cuts to VAT on hospitality, tourism, and energy.

 

Tourism generated almost £700 million for the Great Yarmouth area economy last year.

The economic impact of the 7.5million visits to the area in 2024 for holidays, short breaks and day trips showed a 10 per cent increase on 2023.

Tourism was worth a total of £698 million in 2024, according to independent research commissioned by Visit Great Yarmouth.

However, results of the latest Visit Great Yarmouth-commissioned survey, the quarterly Greater Yarmouth Business Confidence Monitor for October, this year paints a picture of business uncertainty in the face of increasing costs and pressures.

External factors remain the top negative influence on local businesses with increasing energy and fuel costs and higher staff costs causing challenges

Businesses say they would like interventions focused on cost relief, with the top asks an energy price cap and business rates and PAYE relief.

They would also like cuts to VAT on hospitality and tourism and energy and increasing the VAT threshold.

Businesses say were having to increase prices by up to 10 per cent and cut staff in the face of rising costs.

They are also delaying investment and maintenance with some reducing hours more than in previous years to cut operating costs.

Not one business that took part in the survey said they were unaffected by cost increases.

The Business Confidence Monitor asked local businesses about their business performance since the start of the school summer holiday period in July, their outlook for the immediate future, trading conditions and levels of confidence, in an online questionnaire.

Confidence for this October half term week is fairly high; however, it is tempered by uncertainty.

While satisfaction with the summer holiday period improved from July, with repeat business the strongest positive factor, businesses pointed to pricing and costs influencing their business.

Finance and regulation pressures, including the cost and availability of finance were also contributing to business difficulties.

Visit Great Yarmouth CEO Asa Morrison said data from the two surveys demonstrated the full impact of pressures businesses in the Greater Yarmouth area were facing.

“While there has been another upward trajectory of the impact of tourism in the borough in terms of numbers, and the destination remained a powerful draw for visitors, our businesses face many challenges.

“Footfall might be higher, but people are not spending as much because of their own life’s pressures.

“Businesses are having to make some very tough choices because of external pressures in terms of opening hours, staff numbers and delaying investment in their businesses, and favour interventions that support them to continue their offer to visitors.

“Our members are constantly analysing and refreshing their offer while maintaining the formula that appeals to visitors and entices them back time and time again.

“These are challenging times with the cost-of-living pressures affecting both visitors and businesses alike, and everyone is pulling together to improve and deliver.”

Tourism accounted for 40 per cent of local employment in 2024. A total of 10,140 full time roles.

A further 3,878 non-tourism related jobs are supported by the sector.

The economic impact assessment undertaken by the independent Cambridge Model revealed that a total of 6,419,000-day trips were made to the Great Yarmouth area in 2024. Day trippers sent a total of £226,046,000 on attractions, food and drink travel and with local traders.

Overnight visits peaked at 1,035,000 with a total of 4,217,000 nights stayed, with holidaymakers and short breakers spending £301, 912,000, which includes accommodation.

The total of day and staying trips added up to 7,454,000, together spending £528 million with local businesses, which led to an average of £44 million spent in the local economy each month of 2024.

 

The Cambridge Model examines the volume and value of tourism and the impact of that expenditure on the local economy.

The results are calculated by adding associated spending on top of visitor spend. Associated spending includes maintenance investment on second homes and holiday homes, boats, static caravans and household spending.

Visit Great Yarmouth, whose year-round programme of activities are designed to draw people to the destination, announced this week a triple firework display half term spectacular on the seafront on Wednesday (October 29), with street acts to entertain crowds in the sky and on the ground, building on the success of its six summer Big Wednesdays.