Tourism businesses in Bognor Regis and Littlehampton warn rising costs are threatening jobs and investment

Tourism and hospitality businesses in Bognor Regis and Littlehampton have warned that rising costs, policy uncertainty and employment regulations are making it increasingly difficult to open, recruit staff and invest.

Bognor Regis and Littlehampton MP Alison Griffiths hosted Shadow Culture, Media and Sport Secretary Nigel Huddleston during a constituency visit on Monday, July 6.

The pair visited Harbour Park, Bailiffscourt Hotel and Spa and Pinks Parlour before attending a tourism and hospitality roundtable at East Beach Café.

Employers from across the constituency said increases in staffing costs, energy bills, VAT and business rates were affecting decisions about opening hours, prices, recruitment and future investment.

Concerns were also raised about the Government’s Employment Rights Act, with businesses arguing that the legislation does not adequately reflect the seasonal nature of the visitor economy.

Tourism demand can vary significantly depending on the weather, school holidays, bank holidays and weekend trade.

Several employers said changes to statutory sick pay could bring additional costs and administrative pressures for small and seasonal businesses.

They also warned that rising costs were making it more difficult to offer young people their first employment opportunities, with some business owners taking on additional shifts themselves or reducing staffing levels.

Proposals for a visitor levy, described by opponents as a “holiday tax”, were also discussed. Businesses warned that an additional charge could increase the cost of family holidays and harm seaside destinations.

Alison Griffiths MP said:

“Tourism and hospitality are the backbone of our local economy in Bognor Regis, Littlehampton, and our villages.

“Across the day, businesses told us what rising costs mean in practice. A family attraction deciding it cannot afford to open. A café owner taking on more shifts themselves, without taking a wage. A hotel worried about seasonal staffing. Young people missing out on the first job that would help them build confidence, skills, and independence.

“These businesses are not asking for special treatment. They are asking Government to understand how a seaside economy actually works. It runs around school holidays, bank holidays, weekend trade, good weather, and staff who often want flexible work that fits around studies, family life, or other commitments.

“Ministers say they want growth, but businesses here are telling us that they are spending more time worrying about the next tax rise, the next rule change, or the next Budget than planning for next season.

“Bognor Regis, Littlehampton, and our villages have so much to offer. We have fantastic attractions, hotels, pubs, cafés, restaurants, shops, and holiday businesses. Government should be backing them to succeed, not making it harder for them to create jobs, bring visitors to our coast, and invest in our towns.

“I will continue taking these concerns to Parliament and making sure local businesses have their voices heard.”

Nigel Huddleston MP, Shadow Secretary of State for Culture, Media and Sport, said:

“It was a pleasure to join Alison to meet local tourism and hospitality businesses in Bognor Regis and Littlehampton.

“Wherever I travel in my role as Shadow Secretary of State, I hear the same message: businesses want to invest, employ more people, and grow, but Labour is making that increasingly difficult. Higher National Insurance, rising costs, and the prospect of a tourism tax are creating real uncertainty for businesses that are the backbone of our visitor economy.

"Alison is a fantastic champion for local businesses, and together we will continue making the case for lower taxes, less regulation and policies that allow businesses to thrive rather than simply survive.”

Matt Rake, Resort Director, Butlin’s Bognor Regis, said:

“This was a very productive meeting where we had some great conversations. Discussions around the proposed holiday tax and the impact this alongside other rising costs is having on Butlin’s are important.

“These conversations matter because the decisions made nationally have a direct impact on local employers, local jobs, and the communities we operate in.

“As one of the town's largest employers, we're keen to keep working with policymakers to ensure Bognor Regis and other coastal communities continue to attract investment and remain great places to work, visit and grow.”

Gary Smart, Chairman of Harbour Park, said:

“The reality of running a business by the seaside is already tough. We have to deal with the weather, seasonal visitor numbers and all the usual pressures that come with running a family business. But businesses like mine are now drowning in ever higher taxes and red tape, and Labour is making it harder.

“Pressure is building. With the Employment Rights Act and other new rules coming down the track, we are spending more time dealing with paperwork and compliance when we should be focused on opening our doors, employing local people, and giving families a great day out. With this Government, it feels like all take and no give.

“I was delighted to welcome Alison and Nigel to Harbour Park because what they heard from us is what businesses here are dealing with every day. Now we need the Government to listen too, and realise that small business owners need the freedom to open, hire, invest and grow, without extra costs and bureaucracy constantly hanging over our heads.”

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