Seaside town businesses have seen a boost to their coffers this summer, but the small and medium sized firms (SMEs) which power Britain’s tourism industry are missing out on £1.5billion in earnings due to “poor” broadband, research shows.
Analysis from telecomms firm VodafoneThree shows that almost three-quarters (74%) of tourism-related SMEs, including hotels, eateries and gift shops, reported a financial boost but a fifth (19%) believe poor connectivity prevented them from taking full advantage of the boom.
Of 1,000 business bosses surveyed, one-in-three (32%) felt better connectivity would help them grow their e-commerce from improving online shopping to adding services such as click-and-collect.
Four-in-10 said they would enhance their wifi, making it easier for customers to stay connected while a third said they would explore using artificial intelligence for customer support.
According to the study, the Sussex coast would gain the most from better connectivity, with four seaside towns at the top of the list.
Each tourism SME could unlock up to £200,000 a year in Worthing, followed by Brighton at £171,000, Eastbourne and Hastings at about £127,000 each, the research shows.
Andrea Donà, Chief Network Officer at VodafoneThree, said tourism plays a critical role in boosting local economies across the country.
He hailed VodafoneThree’s £11bn investment in building a network which he said will provide “reliable, quality” connectivity to all corners of the UK.
A 2019 parliamentary committee report identified digital connectivity as just one challenge facing coastal areas. Others included limited access to education, poor-quality housing and “inadequate” transport connections.
Remoter parts of the UK have long faced lower rates of internet and mobile signal coverage. In 2023, Ofcom found that roughly 6% of homes in the UK didn’t have internet access. Three percent of households in coastal areas had no reliable indoor phone signal. This rose to 6% in rural areas, according to Ofcom’s findings reported in the New Statesman.
Tracey Toulmin, who runs Bryn Woodlands House in Colwyn Bay, North Wales, promotes her guesthouse on Instagram and Facebook. She said: “Good mobile connectivity isn’t just nice to have – it’s what turns posts into bookings and followers into guests.”