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Type of area

Population base and socio-economic characteristics

The population of East Lindsey is 136,200 (2004), but the focus of this application is the district’s Coastal Action Zone1, which has a population of about 60,000. This more than doubles in the summer months and can reach 300,000. The district of East Lindsey covers 700 square miles and is the third largest district in the country.

Measures of deprivation

The statistics relating to deprivation reveal serious socio-economic difficulties and are outlined at www.coastalactionzone.co.uk. People living on the Coast are older than the national average – 26% are over 65 against 16% nationally and their ethnicity is overwhelmingly (99%) white. Residents of working age have dramatically different socio-economic characteristics from the county, regional and English averages:

  • Skill levels are extremely low – 50% of people have no qualifications whatsoever (25% nationally), and only 8% are graduates (28% nationally).
  • Only 54% of people aged 16-74 are either in work or seeking work (ie unemployed) against 68% nationally.
  • Incapacity Benefit claims are at significantly high levels. In Trusthorpe and Mablethorpe South ward, 250 (29%) of the 861 residents aged 16-59 are on Incapacity Benefit. There is little doubt that the numbers would fall if economic conditions were better.
  • Of the relatively small numbers in work, 40% work part-time only against a national average of 22%.
  • Tourism leads to extreme seasonality in employment. For instance, numbers on the unemployment register (JSA claimants) doubled between August 2005 and January 2006.
  • 15 wards inside the Coastal Action Zone are within the 20% most deprived and 5 within the 10% most deprived wards in England.

The map shows official indices of deprivation at super-output area level. The Coastal Action Zone appears in red (most deprived) and the inset map shows that this ‘most deprived’ status is shared with the obvious inner city areas but with few other rural areas other than Cornwall, which is designated an Objective 1 Area.

An opportunity

The very isolation and deprivation of the Coast presents a specific opportunity. The jobs created by the casino and other leisure facilities will, mainly, offer modest wages indicatively between 10% and 100% higher than the minimum wage, or some £10,000-£20,000 a year depending on the job. Moreover, many of the jobs would be year-round, lessening the problem of seasonality of employment which is one of the main difficulties facing residents seeking work. These conditions are attractive to residents but insufficient to induce significant in-commuting given the distances that commuters would need to travel. In short, most jobs would go to local people.

In keeping with the strict operating practices casinos invest heavily in training adding to the local skills base especially in customer care – a vital element in a service based economy such as ours.

A further effect associated with isolation is that ‘knock-on’ expenditures from for instance spending by casino and other employees will be concentrated within the Coast itself rather than – as in major urban areas – being dispersed throughout a large economy. As a result, our estimate of the forward employment multiplier is relatively high at 1.25, compared with a more normal figure of about 1.183.

Tourism in the Coastal Action Zone

A central element of our tourism strategy is the development of ‘year-round’ facilities, such as the casino, to lessen the seasonality of current tourism. The Coast attracts over six million visitors per annum and has numerous visitor attractions, the largest in terms of visitor numbers include:

  • Magical World of Fantasy Island (which is one of the possible casino sites).
  • Skegness Natureland Seal Sanctuary.
  • Skegness Water Park.
  • Gibraltar Point Nature Reserve.

Skegness Natureland Seal Sanctuary (143,000 visitors @ £4.95) is the East Midlands’ 5th largest paid attraction and Skegness Water Leisure Park (160,000 visitors) is the region’s 4th largest free attraction2. Although these attractions are wholly different in type from the proposed casino, they demonstrate the ability of the visitor base to generate visitor numbers of the same order of magnitude (about 90,000) as is planned for the casino in its first year of operation.

The table presents key data on tourism. The critical points are as follows:

  • Day visitors are numerically preponderant but visitor days are divided equally between day visitors and staying visitors.
  • Static caravans account for about 60% of bedspaces – or 74% including touring pitches.
  • Hotels account for under 10% of bedspaces and self-catering and holiday camp accommodation for approximately 12%.
  • Expenditure per visitor day – about £30 as an overall average – is low, as many visitors are people of moderate means.
  • Although there is no hard data, consultation with hotel proprietors reveals over-supply of hotel accommodation at the bottom end of the price range but a scarcity of three or four star accommodation.

Transport access

It is important to emphasise the isolation of the Coastal Action Zone from areas of economic success. Skegness is an hour by car from Lincoln and is two hours from major centres of prosperity such as Peterborough and Nottingham. The Coast lacks an FE college and travel-to-learn times from Skegness to colleges in Grimsby, Boston and Lincoln average an hour one way by car. All travel times are greatly increased if public transport is used. This degree of isolation make it impractical for people without reliable cars to access employment and learning opportunities away from the Coast, and makes the effects of deprivation worse than in the inner cities which – whatever their problems – are at least adjacent to many opportunities.

Map 2 shows the location of the Coastal Action Zone and specifically of its two main settlements, Skegness and Mablethorpe. Visitors from much of England have good access to the M180 and to the near-motorway A1, but from these major routes to the Coast road travellers face long journeys.

Central Trains provides a rail link from Skegness to the East Coast Mainline station at Grantham via Boston and Sleaford, but this link transports only a small proportion of total visitor numbers. Similarly, the local bus services accommodate only small numbers of visitors: the predominant mode of transport is the private car.

Origins of visitors

The market for the resorts of the Coastal Action Zone has been for decades the industrial areas of South Yorkshire and the East Midlands, areas already served by casinos, with the local, Lincolnshire market in a secondary role. This remains the position today, though visitor numbers from farther afield and even from abroad are already significant and growing in importance – and our tourism strategy, of which this casino proposal is a central part, aims to reinforce these trends.

Key tourism data for the Coastal Action Zone
Visitors Day Overnight Total
Visitor days, m 4.95 4.76 9.71
Visitor numbers, m 4.95 1.13 6.08
 
Accommodation Units Bedspaces  
Static caravans 11328 133984  
Pitches for touring caravans & tents 4525 9050  
Hotels etc. N/A 5207  
Self catering 898 2694  
Holiday resort (Butlins) 1600 7000  
Total   57935  
 
Expenditure, £m 2003   Spend per visitor Spend per visitor day
Day visitors 131.4 £26.54 £26.54
Overnight visitors 170.0 £150.44 £35.71
Total 301.4    
Catering 103.0    
Retail 68.3    
Accommodation 47.1    
Travel 44.0    
Attractions & Entertainment 39.0    
Total 301.4    

1. Extensive information about the Coastal Action Zone is available from www.coastalactionzone.co.uk

2. www.staruk.co.uk has extensive statistics

3. Professor Glyn Owen – Economic Case for a Small Casino within the Coastal Action Zone

Map showing coastal deprivation

Map 1.   Coastal deprivation. Please click the image to view it at a larger size.

Map showing coastal action zone location

Map 2.   Coastal action zone location. Please click the image to view it at a larger size.