Skegness Businesses Face Collapse as Cost of Living and Political Discontent take Their Toll
A sign reading “Keir Starmer is barred” displayed in a Skegness hotel window encapsulates the growing frustration felt by many business owners in the famed seaside town. Several hospitality businesses report that 2025 is shaping up to be one of the most challenging years yet,largely blaming government policies and a decline in consumer spending.
Loraine Parker, 73, and her partner neville Henshaw, 80, owners of the 60s-themed Beeston Lodge Hotel, have made the challenging decision to retire as their business struggles to survive. After two decades of operation, Parker attributes the downturn to a combination of factors, including what she describes as damaging policies from the Labour party, rising energy costs, and a general reluctance among potential visitors to spend money.
“They’re not going to the caravan sites because they’ve gone up [in price], they’re getting rid of the caravans,” Parker explained on a Saturday in June, noting she only had two of her six rooms booked – a stark contrast to the fully booked weekends she typically experiences. “People seem to be about in Skegness but after tea they’re all gone. It’s a shame, really, I do love Skegness.”
The decline isn’t isolated to the Beeston Lodge. A widespread sentiment among local businesses suggests a broader crisis impacting the Lincolnshire resort. Parker claims that “every single place” she’s visited, including pubs, is reporting similar difficulties.
Learn about the evolution of Skegness from a small fishing village to a popular seaside resort. Click here to discover more.
Down the road, Gary Allen, 63, owner of Hatters Hotel, is also preparing to sell. Allen recently refused an offer of £563,000 for a year-long contract to house migrants at his hotel,a decision he believes contributed to a significant loss of business. He alleges that the presence of asylum seekers in Skegness hotels has deterred tourists. “We lost loads of business,loads of people cancelled,” Allen stated. “Skegness has been a holiday destination for decades and then all of a sudden you check 500 young males in. It just destroyed the place.”
Understand the financial incentives and ethical considerations behind hotels housing migrants. Read the full report.
Like Parker, Allen points to the broader economic climate as a major factor. He cited the Chancellor’s National insurance Contribution hike and soaring energy prices – which reached a “colossal” £7,000 per month – as key reasons for closing the 29-room hotel portion of his business. he has already reduced the asking price on the property by £300,000, listing it for £650,000.
See how energy prices are affecting small businesses across the UK. View the data.
The struggles extend beyond hotels. Fantasy Island, a major employer in the area, has reduced it’s hours during the off-peak season to cut costs, and has also observed a decrease in customer spending.
Explore the impact of reduced hours and spending on local employment. Learn more.
Richard Tice, Reform UK deputy leader and local MP, expressed concern over potential job losses, asserting that Labour “has got this catastrophically wrong at every level.”
Local authorities acknowledge the challenges. Councillor Craig leyland, leader of East Lindsey District Council, stated that changes to the winter fuel allowance and the overall cost of living crisis are undoubtedly impacting the tourism sector. “we offer fantastic, good value for money on our coasts and resorts,” Leyland saeid. “People are bound to feel the pinch and while they’re still coming here, they’re obviously not going to be spending as much.”
Discover how the cost of living crisis is affecting tourism in coastal towns. Read the analysis.
In response to the concerns, a government spokesperson highlighted the governance’s pro-business stance, pointing to measures such as protecting small businesses from the employer National Insurance rise, shielding retail, hospitality, and leisure properties from full business rates, and capping corporation tax at 25%. The spokesperson added that the government is focused on “creating opportunities for businesses to compete and access the finance they need to scale, export and break into new markets.”
Despite the challenges, Skegness remains a popular destination, attracting visitors with its beach and customary attractions like donkey rides. Though, the experiences of parker, Allen, and others paint a concerning picture of a once-thriving seaside town grappling with economic headwinds and a growing sense of uncertainty.
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The Changing face of Skegness Tourism: Beyond the Beach
The economic climate impacting Skegness businesses, as highlighted by the struggles of the Beeston Lodge Hotel and hatters Hotel, extends beyond immediate financial concerns. The town’s identity as a quintessential British seaside resort is also evolving. While the golden sands and conventional attractions remain, the challenges force a reevaluation of the Skegness tourism model [[2]]. Gary Allen’s experience with migrant housing contracts, described earlier, underscores the complex factors at play, while Fantasy Island’s adjustments reflect broader shifts.
This begs the question: What exactly is changing in Skegness, and what does the future hold for this classic holiday destination?
Adapting to New Realities: A deep Dive
The challenges faced by skegness businesses are multi-faceted. The cost of living crisis, as Councillor Craig Leyland noted, has undoubtedly impacted visitor spending. Rising energy costs, as experienced by Hatters Hotel, eat into already thin profit margins. additionally, government policies and broader economic shifts are putting pressure on the traditional tourism model. Skegness, like many seaside towns, must adapt to survive.
One visible change, as mentioned by Loraine Parker, is the shift in accommodation preferences. The rising cost of caravan holidays, along with a general tightening of wallets, influences where visitors choose to spend their money. Many businesses are, therefore, feeling the strain.
What can be done? Innovative businesses in Skegness are finding new ways to boost their bottom line and revitalize the town.
- Diversify Offerings: Businesses can expand their services to cater to a broader range of interests.This could include unique events, specialized tours or other activities beyond the traditional seaside attractions.
- Embrace Digital Marketing: Strengthening online presence through social media and search engine optimization can help attract new visitors [[3]].
- Develop Partnerships: Collaborate with other local businesses to offer package deals, cross-promote offerings, and create a more cohesive visitor experience.
- Focus on Value: Businesses need to offer competitive prices, without compromising on quality. Highlighting value can still attract budget-conscious travelers.
Is Skegness a good place to visit in 2025? Despite the challenges, Skegness continues to offer a classic seaside experience for many.
What are the main issues affecting Skegness businesses? Rising costs,changes in consumer spending,and shifts in government policies are putting pressure on local enterprises.
A Look at the Future
The future of Skegness tourism likely involves a blend of tradition and innovation.While classic attractions like the beach and donkey rides will always have their appeal,the town must evolve. This could involve focusing on niche tourism, investing in lasting practices, and fostering a stronger sense of community among businesses and residents.
The situation in Skegness illustrates broader trends affecting many British seaside towns. Adapting to economic uncertainty, identifying new revenue streams, and evolving to meet the changing needs of visitors will be crucial. The local authorities and businesses must work together if Skegness is to thrive in the years ahead [[1]].
Ultimately, Skegness’s success relies on its ability to adapt, innovate, and offer visitors a compelling reason to choose the Lincolnshire coast.
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