How's Business 2025

MARCH 2025

Largely as a result of the timing of Easter in 2024, March 2025 saw 60% of all businesses experiencing decreased visitors/customers compared with the same time last year – representing a decrease of -9% (compared with March 2024) and whilst the largest proportion of businesses also reported experiencing decreased turnover during the same period (53%), at -6% the decrease was slightly lower than that for visitors/customers.  These figures remain very similar to the region as a whole with decreases of -10% for visitors/customers and -7% for turnover during the same period.

64% of businesses did not anticipate their Easter performance to be as good as 2024 and 66% said the same about their April performance as a whole and whilst there was some warm and sunny weather experienced across the English Riviera during the first half of the Easter school holidays it was all change by the time the Easter long bank holiday weekend came around and just before the schools returned after the Easter break.

At 73%, businesses are currently most concerned about decreasing visitor numbers/booking levels (an increase of 3% compared with last month), increases in the cost of living generally (63%, a decrease of -4% compared with last month) and increases in other business costs e.g. food (62%, a decrease of -5% compared with last month).

At 4.77 out of 10.00 the optimism score has decreased compared with last month (4.89).
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FEBRUARY 2025

February 2025 saw 53% of all businesses in each case experiencing decreased visitors/customers and turnover compared with the same time last year – representing decreases of -8% and -7% respectively compared with February 2024.

Occupancy levels for serviced accommodation, at 26%, have increased compared with February 2024 (23%) whilst self catering occupancy, at 20%, has decreased compared with February 2024 (31%).

63% of businesses currently anticipate a decreased business performance for April 2025 (when the Easter holidays fall) based on their forward bookings at the time of completing the survey. For the two-week Easter period at a regional level, we currently anticipate UK staying visitors to be down on last year and overseas staying visitors slightly up which will see staying trips down overall. However, we anticipate increased day visitor activity which will lead to the period overall being slightly up on last year which we would usually expect with the later holiday period this year compared to last. The weather will be a key factor in this!

At 70% each, businesses are currently most concerned about rising energy costs (an increase of 13% compared with October 2024) and decreasing visitor numbers/booking levels (an increase of 11% compared with October 2024), increases in other business costs e.g. food and other business supplies etc. (67%, an increase of 15% compared with October 2024) and increases in the cost of living generally (67%, a decrease of -3% compared with October 2024).

At 4.89 out of 10.00 the optimism score has increased considerably since the end of the year (4.49 Nov/Dec 2024) and to its highest level since July 2024 (5.00). Whilst times remain very challenging for businesses, particularly as the changes to employers NI contributions/thresholds and the increase in the national minimum wage and national living wage have now come into effect in April, performance has remained relatively consistent again this month with much lower decreases in visitors/customers and turnover compared with February 2024 and, encouragingly, performance has remained relatively steady over the last four months.

Occupancy levels for serviced accommodation have increased compared with February 2024 and business optimism has also increased to its highest level for six months.

Download the full report here.