Corporate hospitality market forecast to contract 6 per cent in 2009

Michael Jackson's death worsens the blow to the UK corporate hospitality market

Michael Jackson's death worsens the contraction of the UK corporate hospitality market
Michael Jackson's death worsens the contraction of the UK corporate hospitality market

Corporate hospitality in the UK is anticipated to contract by 6% to £973m this year, according to a new report.

"Negative public perception of elaborate corporate hospitality in the current climate of redundancies and pay freezes has discouraged many companies from public displays of spending," says the UK Corporate Hospitality Market Development Report by business-to-business market researcher Market & Business Development (MBD).

MICHAEL JACKSON
Michael Jackson's death is anticipated to add to that contraction, causing a "large financial loss to the corporate hospitality industry", MBD found.

RECOVERY
MBD forecasts that the UK corporate hospitality market will begin to grow in the second half of 2010, at the latest.

The UK corporate hospitality's value will grow each year from 2010 and reach a value of £1.205bn by 2014, MBD projects.

WORLD CUP, LONDON OLYMPICS
"Growth in the sector is likely to be helped by a number of large future sports events including the football World Cup in South Africa in 2010 and the London Olympics in 2012," the report found.

Corporate sponsorship, however, will be difficult to obtain over the next five years, MBD predicts: "Many experts believe that the majority of sponsors will refuse to continue with their existing deals when the renewal period arrives and that a few will pay a break free (fee) to terminate their commitments before they end."
PRE-RECESSION MARKET
Pre-recession, the UK corporate hospitality market's value grew between 5% and 7% in 2005-2007, said the report.

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