Leisure and hospitality firms are divided about their business prospects in 2012, according to a report from Baker Tilly.
The Outlook 2012 report found businesses were almost equally split about the future prospects, with nearly half ‘unsure’ and nearly halfv ‘confident’. A small minority (four per cent) had a negative outlook for the year ahead. These figures were supported with more than 90 per cent of businesses expecting their profit levels to increase or stay the same.
Ali Aneizi of Baker Tilly, 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.”
When asked what single initiative from the Government would help improve business conditions, many respondents said a reduction in VAT, tax and red tape. Business leaders identified a downturn in overall demand and an increase in global inflation as potential threats for the coming year.
Ali Aneizi continued: “It seems that the general sentiment among 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.”