UK small businesses benefit with ‘staycation’ economy up by 6%
Turnover for businesses in the tourism sector has increased by 30% to £50bn since 2012...
Small businesses across the country have received a boost from the UK’s thriving ‘staycation’ economy, according to research from Barclays Business out today.
The study found that the average spend of the 70% of adults who have been on, or are planning, to holiday in the UK has increased by 6% in the last 12 months.
Over the same period, turnover for businesses in the accommodation and food services markets has risen by 6.4% on 2015 and now stands at £50bn – a 30% increase on 2012.
The tourism sector is thought to be amongst the strongest growing in the country at 10% above the UK average for small business turnover growth.
London has witnessed the greatest increase in the number of new businesses in this sector, followed by the South East and the North West. The South West is the region with the highest share of small business turnover and the most popular staycation destination of 2016 – chosen by 32% of holidaymakers.
It’s estimated that Brits are spending £22.1bn on UK staycations, at an average of £613 and up from £575 in 2015.
Adam Rowse, head of business banking at Barclays, commented: “Brits are opting to spend their leisure time on UK shores and in turn it is boosting the takings of business in the tourism sector.
“With a weaker pound, UK small businesses are also likely to see a rise in overseas holidaymakers coming to the UK.”