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Hospitality sector split over whether outlook good or shaky

Published:  12 April, 2012

The hospitality sector is split over whether 2012 will be good for business or whether it's on shaky ground, according to a survey by Baker Tilly.

The hospitality sector is split over whether 2012 will be good for business or whether it's on shaky ground, according to a survey by Baker Tilly.

Forty-nine percent are positive about 2012 prospects, 47% are unsure, while 4% have a negative impression of what is to come, according to the Outlook 2012 survey by Baker Tilly. Around 90% of firms are expecting their profit levels to increase or stay the same.

Nearly half (45%) of bosses predict the recovery to be slow with low growth, whilst 47% predict economic stagnation. Only 8% think we're heading for another recession.

Baker Tilly's Ali Aneizi said: "As the results of the Outlook 2012 survey show, despite the UK economy teetering on the edge of a double dip recession, there is confidence within the leisure and hospitality sector for the rest of the year." 

Firms called on government to cut VAT, tax and red tape as a way of boosting their businesses.

Most companies are improving efficiencies to offset the difficult economic climate - 49% are improving processes, while 43% are cutting costs. Another 47% are looking to raise new capital to open up new revenue streams.

Aneizi added: "The general sentiment amongst hospitality and leisure firms is fairly positive and they are looking to innovation and improved service to help flourish through these uncertain times. Although there are some measures that the government can take in helping businesses to continue the recovery, the basis of performance for the sector is going to be heavily driven by consumer confidence."

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