• 29 million Brits have already or will holiday in the UK this year, spending a staggering £17 billion at local high streets across the country
• Nearly seven in 10 holiday goers (67 per cent) are prioritising local businesses when spending while away
• Almost three quarters (71 per cent) of retail workers have seen a rise in demand for products and services due to UK tourism
• Half of small businesses (51 per cent) have had to employ more staff to keep up with new demand and capitalise on the opportunity

 

Regional high streets will see a £17 billion tourist spending boom this year, with 29 million Brits holidaying in the UK, according to new research by Direct Line business insurance. ¹

British tourists are spending big with local businesses, giving them a helping hand after more than a year of difficulty. Nearly seven in 10 (67 per cent) domestic tourists are prioritising shopping at small businesses, which struggled during the pandemic.

The survey, which excluded London businesses, found that regional cafes and coffee shops are set to be busiest this year, with 57 per cent of holiday goers choosing to spend the largest amount of their holiday budget at these retailers.

There’s good news for small independent shops as well, with nearly half of tourists (49 per cent) saying they’ll buy goods from them while they’re on holiday – music to small business owners’ ears after more than a year of closures and uncertainty.

Table One: Top local businesses to benefit from UK holiday goers.

71 per cent of retail employees say they’ve seen an increase in business as a direct result of Brits holidaying in their area. ² And nearly two in 10 (19 per cent) estimate their employers’ sales have increased by over 25 per cent since lockdown restrictions eased.

Nearly two thirds (65 per cent) of retail workers are happy about the increase in tourism in their area, with nearly half (46 per cent) saying it’s exactly the boost their area needs to recover from the pandemic.

Surprisingly, demand for UK holidays isn’t purely a result of restrictions on foreign travel. The most popular reason (31 per cent) for Brits holidaying at home this year is because they want to explore a new area of the UK. This implies that local high streets across the UK may continue to see high levels of demand from tourists even after foreign travel restrictions are lifted.

The spending boom will affect multiple regions, with Brits planning on travelling far and wide for their UK holiday this year. The top four holiday destinations are:

·         South West (25 per cent)

·         Scotland (19 per cent)

·         Wales (13 per cent)

·         South East (13 per cent)

Encouragingly, regional small businesses are making significant changes to adapt to surging demand. Half (51 per cent) have had to employ more staff to deal with the rise in customers, with over four in ten (42 per cent) needing to buy more stock to capitalise on the opportunity.

But only a third (33 per cent) of small businesses have updated their insurance policy to protect new investments they’ve made to capitalise on this demand.

Jane Morgan, SME Product Manager at Direct Line, said:

“It’s great that small businesses in the UK will see a £17 billion boost this year thanks to staycations. And encouraging to see Brits prioritising spending with local businesses, helping them to recover from the pandemic.

“As small businesses adapt to increasing demand, it’s essential they continue to review their insurance cover and ensure they keep it up to date. It’s also vital they protect any new investments they might have recently made.

“For those businesses that supply goods, it’s crucial that your stock is protected in case the worst happens. With Direct Line’s Contents and Stock cover, when you insure stock at your premises or home, you'll also get an extra 25% of stock covered for any two months of your choice as standard, which is ideal for these busy periods.”

For further information on Direct Line’s small business insurance, please visit our webpage here:

https://www.directlineforbusiness.co.uk/small-business-insurance

ENDS

1      Opinium survey of 2,001 UK adults, conducted 30^th July – 3^rd August 2021, and commissioned by Direct Line business insurance

2      Opinium survey of 309 SMEs outside of London working in Cafes, Retail Trade or Tourism, conducted 4^th August – 6^th August, and commissioned by Direct Line business insurance

For further information please contact:

Direct Line Group
Unni Henry
Senior PR Consultant
Tel: 07859 888026
Email: [email protected]

About Direct Line business insurance

Launched in 2007 Direct Line business insurance now has over half a million customer policies, providing a flexible range of insurance products for the landlord, van and small business sectors.

Direct Line business insurance policies are underwritten by U K Insurance Limited, Registered office: The Wharf, Neville Street, Leeds LS1 4AZ. Registered in England and Wales No 1179980. U K Insurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Direct Line business insurance and U K Insurance Limited are both part of Direct Line Insurance Group plc.

Customers can find out more about Direct Line business insurance products or get a quote by calling 0345 301 4827 or visiting https://www.directlineforbusiness.co.uk