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Bosses in the hospitality sector are concerned by instability, with confidence in the economy, the EU referendum and a poor relationship with the government cited as the biggest factors.
That’s according to a survey from the British Hospitality Association (BHA) and global search firm Heidrick & Struggles, which was conducted with 41 business leaders at Britain’s principal hospitality companies, including AccorHotels, Marriott International, Shangri-La Hotels and Travelodge.
The study found the main economic challenge facing the UK remains consumer confidence. Industry leaders said consumer confidence is ‘terribly fragile’, with last year’s general election and volatility in financial markets believed to have created uncertainty.
The upcoming EU Referendum on the 23 June and recent terrorist attacks and threats are continuing to knock consumer confidence.
Some 74% of bosses involved in the study said they would vote to remain in the EU, with only 18% wanting to leave – the remainder (8%) were undecided.
Respondents who are part of a global, or at least pan-European business, felt building barriers was counterintuitive to growing their business.
Meanwhile, the majority of those interviewed felt that the industry’s relations with government had not improved in the last 12 months, citing the recent changes in the rates of the National Minimum Wage (NMW) as a prime example.
Respondents said this was done with ‘little or no consultation’ and although the NMW itself was not viewed negatively by the majority of participants, all commented that their businesses needed time to plan.
Ufi Ibrahim, CEO at the BHA, said: “The business leaders interviewed in this report represent a very important voice. They feel that the economic recovery is fragile and consumer confidence easily knocked. This, together with the uncertainty and lack of clarity in the referendum debate, is already having a detrimental effect on the industry.
“They also share a feeling of frustration that government is still out of touch and is failing the industry, due to an apparent lack of interest when it comes to policy development for tourism and hospitality.
“Given the size and importance of the hospitality and tourism industry, the significance of these views cannot be ignored.”
