• Summer sales fizzled out: Despite four in ten (45%) ‘tourism’ SMEs in the South East reporting a financial boost thanks to the recent summer sun, 16% say connectivity issues stopped them from maximising sales.
• Tourism-related SMEs missing out on millions: Economic modelling shows tourism-related SMEs in the county are missing out on £654M per year
• VodafoneThree is helping businesses and customers stay connected when it matters most: Millions of Vodafone and Three customers will enjoy the best of both networks, with devices automatically connecting to the best coverage available – whether that’s on the Vodafone or Three network, at no extra cost
Tourist traders in Sussex holiday hotspots are missing out on a share of over £650 million a year due to poor connectivity, new data has revealed.
The county has welcomed droves of holidaymakers over the years - but for the cafes, restaurants, hotels and transport providers of today, the major issue appears to be poor mobile signal and bad broadband, according to new research from VodafoneThree.
The study across the UK showed that the nation's SMEs (small and medium enterprises) as a whole are missing out on over £1.5 billion of potential earnings due to poor connectivity across the UK.
That £1.5bn potential revenue boost would be felt across 50 UK staycation hotspots*, including Bognor Regis, Eastbourne and Seaford if connectivity improved. Retailers serving the tourist industry could increase their annual revenue by £900m, while food and drink SMEs could pocket £400m thanks to better connectivity.
The new research comes as VodafoneThree begins expanding network access across the UK using innovative ‘Multi-Operator Core Network’ (MOCN) technology, letting customers use each other’s networks, at no extra cost. Where activated, customer devices will automatically connect to the best coverage available - whether that’s on the Vodafone or Three network. This effectively gives customers access to two networks, delivering improved coverage, reliability, and speed when using 4G and 5G.
With improved connectivity, the county’s SMEs could stand to make £654 million more every year, according to the economic modelling.
Bognor Regis has 360 tourism SMEs, including the famous holiday resort Butlins. The town’s tourism SMEs could make an extra £122,955 a year if connectivity improved across Sussex.
Eastbourne has 730 tourism SMEs, each one with a potential pot of £127,307 that could be added to earnings through better broadband and mobile signal.
Seaford’s 125 tourism SMEs could land £125,740 each if connectivity were improved, Littlehampton’s 320 SME’s could get a £93,766 boost while Brighton’s 1,815 businesses could net £171,124.
Worthing’s 445 SMEs stand to gain the most of any around the country from improved connectivity at an estimated £200, 260 each, according to the economic modelling.
The historic town of Hastings has 565 SMEs. Each business would land £127,460 each after improvements to broadband and phone signal in the area.
According to the research, scores of tourist traders across the wider South East region saw an uplift in sales thanks to this year’s heatwaves and prolonged summer season.
More than two-fifths (45%) of the region’s tourism-related SMEs saw a bump in business thanks to Brits holidaying in the UK, rather than heading abroad.
And, more than a third (35%) of the region’s tourist traders reported an increase in sales thanks to Brits taking longer holidays to soak up more of the sun.
However, more than one in 10 (16%) tourism-related SMEs told researchers they were unable to take full advantage of this year’s extra footfall due to poor connectivity while another one in 10 (12%) said they actually lost business because of it.
According to the study, the majority of business owners in the South East (67%) reported that social media is how customers find their business.
Google Maps (50%) and Trip Advisor (42%) are also helping to ensure that people visit the many hundreds of SMEs across the South East.
But, tourist traders across the South East have also revealed a wish list of things they would improve if they had better mobile or broadband connectivity.
Four in ten (45%) tourism SMEs would like to use social media more to highlight their business including their use of platforms such as Instagram and TikTok.
And, a third (33%) of tourist SMEs would introduce or improve customer Wi-Fi, a third (32%) would set up online booking or virtual queues.
The UK-wide study combined polling of 1,000 SME tourist traders as well as economic modelling.
Andrea Donà, Chief Network Officer at VodafoneThree, said: “We know that tourism plays a critical role in boosting local economies across the UK, with improved connectivity accelerating their growth to the tune of £1.5bn a year.
“That’s why VodafoneThree is investing £11 billion building a network that provides reliable, quality connectivity to all corners of the UK. As we begin rolling out network sharing access across the UK, our initial sites have been carefully selected to deliver the greatest benefit to customers, particularly in rural and coastal areas where demand surges during the summer months.
“This means smoother streaming and quicker downloads for consumers, as well as equal access to digital tools to boost productivity and growth for local businesses.”
VodafoneThree coming together
VodafoneThree is transforming connectivity for millions in the UK. All customers of VodafoneThree brands (Vodafone, Three, SMARTY, VOXI, and Talkmobile) will see benefits within 12 months, including:
• Peak period improvements: Summer holidays and UK staycations bring a surge of visitors to popular destinations, from coastal towns, tourist attractions and countryside retreats. This places extra demand on the mobile network, as sites can be flooded with more customers than they can provide a good quality service too. Thanks to MOCN technology, customers will be moved from a busy network to one that is able to provide the required level of service.
• Eliminating 4G not spots: By providing 4G coverage to 16,500km of the UK where it wasn’t previously available to either Vodafone or Three customers, VodafoneThree will eliminate not spots across an area ten times the size of London. This means fewer not spots in rural, coastal, and countryside destinations, helping tourists stay connected while exploring the UK.
• Enhanced 5G coverage: Around 71% of the UK population (circa 50 million) will have access to VodafoneThree’s fastest 5G speeds by the end of year one, thanks to bringing the networks together and an accelerated 5G roll out plan. This means better connectivity in more places, including rural and coastal locations, so whether they’re exploring somewhere new or streaming their favourite content on the move, customers will enjoy a smoother, more reliable experience.
The company has already switched on over 600 sites across the UK, representing the next stage of VodafoneThree’s £11 billion investment programme, with 9,000 sites to follow by the end of the first year: VodafoneThree automatically improves coverage for millions
*The top 50 resort locations were informed using ONS data in the UK and the Northern Ireland Government tourism website.
Where connectivity could make the biggest impact (Top 20)
Methodology
The research was conducted by Censuswide among 1,000 senior decision-makers (aged 18+) in SMEs with 1–250 employees. All businesses surveyed operate in sectors affected by cyclical tourism, including:
• Accommodation (hotels, B&Bs, guest houses, self-catering, caravan and holiday parks)
• Entertainment and leisure (cinemas, escape rooms, bowling alleys, museums, zoos)
• Food and beverage (cafés, restaurants, ice cream vans, coffee trucks, fast food outlets, pubs and bars)
• Retail (gift shops, local craft shops)
• Seasonal events and pop-ups
• Tourism activities (boat tours, wildlife experiences, hiking, biking)
• Transport (taxis, bus operators, cycle hire, ferries)
At least 50 respondents were included per region (except North East England, Northern Ireland and Wales), with a maximum of 50 in London. Fieldwork took place between 22 July and 1 August 2025. Censuswide complies with the Market Research Society Code of Conduct and is a member of the British Polling Council.
These localised figures were then matched to the 50 resort locations in the study to estimate the number of tourism-related businesses and their average revenues. The top 50 resort locations were informed using ONS data in the UK and the Northern Ireland Government tourism website
How the economic modelling works
To estimate the potential revenue uplift from better connectivity, survey responses were combined with official data from the Office for National Statistics (ONS) and the Northern Ireland Statistics and Research Agency (NISRA). This included:
• Average annual revenues for businesses in visitor economy sectors (accommodation, food and drink, leisure, retail, and transport).
• Business counts and employment data for 48 UK resort locations.
To calculate the potential revenue uplift for each town, researchers combined survey responses with local economic data from official sources. Because national datasets don’t always align perfectly with town boundaries, the closest available geographic areas were used:
• England and Wales: Mid-level Super Output Areas (MSOAs)
• Scotland: Intermediate Zones
• Northern Ireland: District Electoral Areas (DEAs)
Survey questions on revenue impact (e.g., Q1, Q6, Q8 outlined below) were combined with these datasets to calculate:
• The potential impact of improved connectivity on tourism businesses in resorts
• The effect on revenues from poor connectivity
Survey questions used
• Q1: In an average year, how much of your income is generated during the following timeframes? (1) July-August; (2) April, May, and September
• Q6: To what extent, if at all, would enhanced connectivity (mobile data and/or broadband) increase your income from June to August?
• Q8: How much do you expect poor connectivity to cost you from June to August (as a percentage of your annual business revenue?)
About VodafoneThree
VodafoneThree is the UK’s largest mobile provider serving the fixed and mobile market, formed following the merger of Vodafone UK and Three UK in June 2025.
Through an unprecedented £11 billion investment, VodafoneThree will build the UK’s best network. The network will deliver reliable, quality connectivity to all nations and regions, creating as many as 13,000 jobs and laying a digital foundation for the country’s growth ambitions. VodafoneThree is the only mobile network operator with a fully funded, regulated and guaranteed network build plan, reaching 99.95% population coverage by 2034. From big cities to small towns, and everywhere in between, the company’s mission is to build the UK’s best network.
VodafoneThree is a private company, 51% owned by Vodafone and 49% owned by CK Hutchison Holdings. It encompasses all businesses and assets, including Vodafone UK, Three UK, VOXI Mobile, SMARTY and Talkmobile.