TOURISM businesses in Norfolk, Suffolk and Essex are under sustained structural pressure despite continued visitor demand.
According to the Tourism Business Survey 2026, published by Larking Gowen, the sector is grappling with rising employment costs, taxation, business rates, and regulatory changes.
Chris Scargill, tourism, leisure and hospitality partner at Larking Gowen, said: "Tourism businesses in East Anglia are still trading, still investing and still delivering exceptional experiences, but the nature of resilience has changed.
"This is no longer about bouncing back from a single shock.
"It’s about absorbing a permanent reset in costs, policy pressure and customer behaviour.
"Hospitality is resilient, but it is not invincible.
"Without greater stability, clarity and proportionate policy, even well-run businesses will struggle to sustain themselves long-term."
While 60 percent of businesses reported increased turnover in 2025, 40 percent expect lower profitability.
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A key challenge identified is rising wage costs, with nearly 80 percent of businesses citing increases due to changes in the National Living Wage.
Business rates, taxation, energy costs, and potential overnight visitor levies were also flagged as major threats.
Despite these pressures, 43 percent of businesses expect higher profits in 2026, and nearly half are increasing investment in marketing, technology and customer experience.
