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Over a third (36%) of hoteliers expect their costs to rise by more than £100,000 as a result of the Budget, according to data from BWH Hotels.
Alongside this, six out of 10 have reported a hike of more than 20% since the announcement of the Budget in October.
Half of the independent hoteliers surveyed attribute this hike to increases in employers’ National Insurance and 32% say it’s down to increases in the National Living and Minimum Wage.
As a result, 83% of hoteliers claim they will be forced to cut staff hours, with 77% claiming they must resort to increasing room rates and food and beverage prices.
Furthermore, 68% of hoteliers will delay maintenance or upgrades and 64% will have to resort to minimising staff pay rises in an industry already impacted by shortages.
Tim Rumney, CEO of BWH Hotels said: “The recent budget has sent shockwaves through an industry that was just getting back on its feet after COVID. Hospitality staff are some of the hardest working people in Great Britain and they’re having to cope with yet another barrage of financial pressures.
“These increases not only push up prices but could potentially worsen the customer experience, leaving independent businesses struggling to survive after years of rising interest rates and the cost of living crisis. We are helping hotels to navigate external pressures, drive business and reduce costs – all while keeping their unique identity intact and are proud to do so.”
