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Poor connectivity costs tourism SMEs £1.5 billion in lost earnings

Staff Reporter
August 26, 2025

Small businesses in the tourism sector are missing out on more than £1.5 billion a year because of poor mobile connectivity, according to new research commissioned y VodafoneThree

The study was conducted by Censuswide in July,  The research was informed by a survey of 1,000 businesses in 12 UK region. The research highlights regional disparities, with coastal and rural areas most affected.

It shows that almost three quarters of tourism-linked SMEs – including hotels, restaurants and gift shops reported a financial boost this summer as more people chose to holiday in the UK. Yet almost a fifth of businesses believe weak connectivity prevented them from taking full advantage of the staycation trend.

Sussex stands out as the region with the greatest untapped potential. Worthing businesses could each generate as much as £200,000 in additional annual revenue if connectivity improved.

Those in Brighton (main pic) could add £171,000. Eastbourne and Hastings SMEs stand to gain around £127,000 each. Nationally, retailers in tourist areas could earn an extra £900 million, while food and drink companies could gain £400 million.

Improved digital infrastructure would help these companies to expand their services and reach more customers. A third said better connectivity would allow them to grow ecommerce operations, offering options such as click-and-collect. Four in 10 would improve their customer Wi-Fi, while three in 10 said they would explore AI-driven tools such as automated customer support.

Social media remains the most powerful driver, with 43 per cent of respondents saying they would use it more actively if mobile connections were stronger.

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