After two years of Covid strife for the tourism industry, 2022 ushered in the start of what appeared to be a golden age for domestic holidays. But businesses in East Anglia warn the staycation boom might have already gone bust. BETHANY WALES reports.
For Emma Punchard, the owner of Winterton-on-Sea based Mill Farm Eco Barns, the tail end of the pandemic offered an unexpected boost.
She said: “We definitely saw an increase in bookings directly after Covid.
“It’s like when people weren’t able to fly or were nervous to, they re-discovered all the fantastic things the UK has to offer.”
The visitor economy grew 49pc in Suffolk and 44pc in Norfolk in 2022 compared to the previous year, with visitor numbers even exceeding pre-Covid historic levels.
Experts put this down to a combination of factors, including lingering concerns about travelling, reduced budgets due to the cost of living crisis, and a newfound appreciation for UK breaks inspired by two years of travel bans.
And while many in the industry were hopeful the upswing would continue, the latest figures suggest this is not the case.
Brits took 20.3 million overnight tourism trips in England in the first three months of 2023, down 8pc on the same period in 2022, when there were 21.9 million.
Helen McGrath-Doherty, the founder and owner of Hedenham-based holiday cabin “Albion Nights”, said this has been reflected in her Easter bookings.
She said: “We are definitely down on last year. Bookings are coming in but they are slower than expected.”
RETURN OF THE ‘MAIN HOLIDAY’
It appears the decrease in domestic visitors is due, at least in part, to the returning popularity of foreign holidays.
Norwich Airport saw passenger numbers more than double from 2022 to 2023, with almost 350,000 catching flights abroad in the past 12 months.
London’s Heathrow airport reported 37 million passengers in the first half of 2023, compared with 26 million in the same period the previous year, while travel company TUI AG said UK bookings during the summer were 4pc higher than pre-pandemic levels.
And Ms McGrath-Doherty said that with such limited vacation budgets, people were having to make tough choices.
“Five years ago people might have gone abroad for their main holiday and then to us for a short break, but when money is tight they can’t afford that extra trip.
“They’re booking more last minute than we’re used to seeing, presumably because they’re waiting to see what they can manage.
“We’ve had to change our policies to try and pick up what we can - we’re currently offering one night stays which we wouldn’t usually do, but we’ve just had to throw whatever we can out there.”
This drop off in bookings is hitting UK business owners hard.
The number of holiday-let limited companies set to be struck off the Companies House register rose from just over 300 in July 2021 to more than 550 in 2023, according to data from estate agent Hamptons.
Ms McGrath-Doherty added: “We saw a huge number of people setting up Airbnb's and holiday lets in response to the increased demand just after Covid.
“But they quickly found out it isn’t that easy. You can’t base a business on a 12 month trend.”
THE SILVER POUND
Not all businesses have seen a drop in bookings this year.
Ms Punchard said her Easter occupancy levels had been increasing year-on-year for the past decade, with people becoming more aware of UK holiday spots beyond Cornwall and the Peak District.
However, with young families being especially vulnerable to the rising cost of living, she said she anticipated a future crisis for the industry.
She said: “Recently we’ve been seeing a lot of extended family bookings where older generations are paying for the holiday because the youngsters don’t have any money.
“The silver pound is very important to this industry and there are those questions of what happens in the future as it starts to diminish.
“In 10 years, who will be paying for these holidays?”
It is estimated over-55s are significantly more valuable to the UK travel market than under-35s, taking 30pc more domestic trips in 2019 and spending 52pc more on them, according to Mintel’s Traveller Market Report.
Ms Punchard added: “Our priority now is making sure we’re offering great value for families.
“Offering itinerary ideas makes a big difference in convincing people to come to Norfolk, because it showcases all the fantastic experiences here.
“We’re also hoping to tap into more bookings as people increasingly look for more sustainable holidays.
“As a value-driven business we’re making sure our values meet those of our customers.”
FUNDING BLIND SPOTS
Among the challenges for East Anglia’s tourism sector is competing with historically better-known UK destinations.
Business owners warn our region is falling behind other parts of the country due to blind spots in the way the public funding is allocated.
It's after the government changed the structure of destination management organisations (DMOs) - which include Visit North Norfolk and The Suffolk Coast - replacing many existing bodies with a new type of organisation, called Local Visitor Economy Partnerships (LVEPs).
Fifteen have been set up across the UK, with millions of pounds of public money ring-fenced to support their activities.
But while advocates claim they'll help align regional goals with national priorities, East Anglian businesses say they fear government targets will take precedence over local concerns.
Greg Munford, CEO of Norfolk-based Richardsons Leisure, said: “Creating a Norfolk and Suffolk LVEP would give us more central funding but it would come with very clear government targets which are not necessarily in line with local priorities.
“Yes the money would be fantastic, but it would come with clear conditions on how it would need to be spent.”
Instead, many in the industry are urging the government to ensure area-specific DMOs like Visit the Broads National Park and Visit Great Yarmouth are given equal funding to their LVEP equivalents, with local businesses guiding where it should be spent.
Ms McGrath-Doherty said: “There’s no doubt we’re lagging behind other areas of the UK in terms of promoting the area.
“The bottom line is that everyone is feeling the pinch, and people are really thinking about where to spend their money.
“We need to make sure people know about everything East Anglia has to offer - because it's a lot.”
This article is part of our Supercharge East campaign, brought to you in association with the Eastern Daily Press and Greater Anglia.
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