The number of people visiting tourist hotspots in the South Hams is dropping, but those who are coming are spending a lot more money.

New research commissioned by South Hams District Council reveals that tourism is worth a staggering £266 million a year to the district, which includes which includes places like Salcombe and Dartmouth. Making it one of the most important drivers of the local economy and a key source of income for many small businesses.

The figures are contained in a report to the council’s executive committee by the South West Research Company which highlights tourism as a ‘key contributor’ to the local economy.

It says the tourism sector accounts for one in 10 jobs in the district, with almost 4,500 people working in the industry. It goes on: “The headline data shows a slight decrease in visitor numbers since 2005, but a significant increase in overall visitor spend over the same period.”

In 2023, the last year for which data are available, 340,000 people spent one or more nights in the South Hams, while 2.7 million came as day visitors. The number of domestic ‘staycation’ visitors fell slightly although overseas visitor numbers were up.

Day visitor numbers were roughly the same as in 2022, but they spent more money. Altogether, visitor numbers were one per cent down but spending increased by eight per cent.

The report says the South Hams is ‘bucking the trend’ and doing well compared to the rest of the UK.

It goes on: “The increased spend, despite fluctuations in visitor numbers, suggests that the visitor economy is buoyant in South Hams, but that there is a changing trend in how visitors are choosing to spend their time here.

“It would appear that people are favouring shorter or day trips over long stays whilst still spending their money in the local economy during their visit.”

Challenges facing the industry include Devon’s changeable weather and the cost of living crisis. Poor public transport is a factor, as was the 2024 water supply incident in Kingswear and Brixham which saw hundreds of people becoming ill and thousands of households having to boil their water before drinking it.

The report says: “The cryptosporidium outbreak had a huge impact on tourism to the area. The outbreak was widely reported in national media where it was frequently described as ‘in Devon’ rather than the specific area that was affected.”

The council has handed out more than £170,000 in grants to tourism businesses and is working on a number of other projects to support the sector.

The committee is expected to commission a new in-depth study on the South Hams visitor economy, to look at the challenges local communities are facing and ways in which the council can offer support.

Money for the study will come from the UK Shared Prosperity Fund, a £3.5 billion government initiative to support local investment and boost economic development.