PWC offers gloomy view of hospitality sector

PWC's latest analysis of corporate insolvencies shows a 14% increase in hotels and travel and tourism businesses collapsing.

PWC reports business failures in hospitality sector
PWC reports business failures in hospitality sector

A total of 325 hotels have become insolvent in the past two years, including 95 in the first half of 2012. This compares to 90 in the same period last year.

Meanwhile, a total of 27 companies in the travel and tourism sector were hit with insolvency in the first half of 2012, up from 17 in 2011.

Worst hit

However, restaurants were the worst hit in the first two quarters of 2012, with 378 businesses becoming insolvent.

London saw the highest number of restaurant insolvencies in quarter two 2012, when compared to other regions, at 56. London alone has seen 432 restaurant insolvencies since quarter three 2010.

Recessionary pressures

PWC hospitality and leisure leader Robert Milburn said: "Only time will tell if hospitality and leisure insolvencies reached their peak in the first quarter of 2012 and are now on the decline."

He added that "recessionary pressures" were expected to continue over the next 12 months.

Olympics effect

British Hospitality Association spokesman Miles Quest told C&IT that "this has been a very strange year, certainly for London".

Quest added that the effect of the London 2012 Olympic Games on booking patterns could have contributed to the poor figures.

"The Olympic Games has really upset all the normal booking patterns," he said. "But I think come September and October one would hope and expect that the business pattern would swing back into action and there would be much stronger business and corporate demand in London and throughout the UK."

Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Register now
Already registered?
Sign in
London venues hosted 37% more events in 2018

London venues hosted 37% more events in 2018

Year-on-year increase from Unique Venues of London shows strong demand for events in the capital.

Why you should design human-centric experiences

Why you should design human-centric experiences

At EMEC19 in The Hague, Kim Myhre of MCI Experience gave an insightful talk on design-thinking in events.

New event producer for HGA

New event producer for HGA

Becky Jones-Williams has previously worked at Event Concept and will work for clients in a range of sectors.

Stagestruck adds event producer to team

Stagestruck adds event producer to team

Sarah Saward is joining the business as a group account director, with responsibility for a portfolio of blue-chip clients.

Incentive review: Club Med Plantation d'Albion

Incentive review: Club Med Plantation d'Albion

With dinner and champagne on a paradise beach, the white sands and the turquoise coral sea ocean of Mauritius are hard to beat.

Premier Events acquires Collective Minds

Premier Events acquires Collective Minds

Acquisition of Leicester-based events agency is part of growth plan to reach £5m turnover and 50 staff.

3 reasons to run wellness incentives

3 reasons to run wellness incentives

Endellion King, incentives account director at Top Banana, makes the business case for incorporating wellness into incentives.

'Procurement and events teams work best when they swap notes'

'Procurement and events teams work best when they swap notes'

Global procurement director of Knect365 Hetal Dassani talks to C&IT about how planners can build bridges for better buying.

ILEA members reveal 'shock' over Fyre Festival failings

ILEA members reveal 'shock' over Fyre Festival failings

Members of the International Live Events Association (ILEA) give their verdict on the event planning disaster of 2017, the Fyre Festival.

Case study: MAN's Apprentice of the Year Awards

Case study: MAN's Apprentice of the Year Awards

Venues and Events International organised an awards ceremony at Liverpool Football Club.

LATEST JOBS