Academic research into economic restructuring in the tourist industry has solely focused on the
strategies adopted by large chain hotel companies and little attention has been paid to the strategies
adopted by small scale, family-run accommodation establishments. This sector is particularly
significant for traditional resort areas in the UK. For example, in Torbay, Devon (as in most
seaside resorts), there is an absence of large chain hotels and small-scale accommodation
establishment pl ay an integral role in the local tourism economy.Consequently, an understanding
of the competitive pressures and restructuring strategies in this sector is essential in maintaining
the long-term health and prosperity of the resort. The aim of this study is therefore to examine
the restructuring process occurring in the hotel industry and, in particular, to focus on the
restructuring strategies in the small-scale accommodation s ector. To do so, this study will draw
on empirical data obtained from a number of sources including a commercial register, holiday
accommodation brochures, planning applications and a major questionnaire survey of all serviced
and self-catering accommodation establishments o perating in Torbay.
This study will show that the restructuring process within the accommodation sector has been
influenced by a combination of factors within the internal and external resort environment,
including free market forces and public sector intervention. Restructuring strategies have
concentrated on the development of ensuite and leisure facilities, although provision has been
influenced by the structural and locational characteristics of accommodatione stablishments. A
review of the entrepreneurial characteristics of the accommodation providers highlights the
complexity of the decision-making process and that business strategy is influenced by highly
personalised and individualistic operating characteristics that are difficult  to isolate and analyse.
Therefore, any policy directives to guide the future development of the resort will depend on
dealing with individual managemen strategies and business objectives