Popular seaside towns at risk of 'disappearing' for good

New data has revealed that some seaside spots are struggling financially and without action, they could face even more severe economic challenges by 2025

Parts of Essex, renowned for their coastal towns that draw in hundreds of thousands of tourists annually, are facing financial struggles according to new data. This could potentially erase them from the economic map.

Coastal towns in Essex, once teeming with tourism and small businesses, are now on the brink of a severe economic downturn. The 2024 BizSpace report, which ranks the best and worst business locations in the UK, reveals a concerning trend of declining business survival rates and increasing costs in seaside areas such as Clacton-on-Sea, Southend, and Frinton-on-Sea.

Without intervention, these areas could face even more serious economic challenges by 2025. Essex, traditionally known for its blend of tourism, retail, and hospitality businesses along the coast, is now staring at an uncertain future.

Despite Essex witnessing the formation of 8,050 new businesses in 2021, the business survival rate stands at a mere 42.92%, significantly lower than neighbouring Suffolk's higher survival rate of 48.34%. Coastal towns are particularly at risk, heavily dependent on seasonal tourism, which has been severely impacted by shifts in consumer behaviour and escalating living costs.

Coastal towns like Clacton-on-Sea and Southend are reportedly facing a tough economic climate, with a rent-to-wage ratio of 40.84%, signalling that high property costs are impacting small business profits. With average rents hitting £975 per month against wages that hover around £2,388, local enterprises are struggling to keep their heads above water, reports Essex Live.

These areas, once bustling with tourists, are now grappling with changing travel patterns and the need to evolve beyond traditional business models. Southend in particular is seeing a decline in visitors, putting its economy at risk.

A BizSpace representative, who gathered the data, remarked: "Essex's coastal towns are part of the UK's cultural heritage, but without timely intervention, we could see these iconic areas disappear from the map economically. It's crucial that both local and national authorities step in to provide support."