A third of the UK tourism industry is at risk of bankruptcy

A third of the UK tourism industry is at risk of bankruptcy

Joint survey of tourism infrastructure enterprises conducted by several specialized organizations in IV quarter of this year showed that 35% of respondents expect to be operating at a loss or become unviable by the end of the year, with 96% facing higher energy costs and 93% — with a sharp rise in food prices. 

Customers are also feeling the impact of the cost-of-living crisis, with more than three-quarters of service businesses (77%) seeing a decline in — people are less likely to eat and drink outside the home. 85% are pessimistic, they believe that the situation will only worsen in the future. As a result, 89% are unsure about the future, assessing the current levels of support offered by the government as insufficient to protect the industry in the next six months.

Continued uncertainty about rising inflation, future government regulation and staffing has already created a crisis of confidence among business owners. Business confidence has fallen lower than it was even during the pandemic. The trade associations said in a joint statement: “The results clearly show the dire situation faced by hospitality businesses, many of which are on the brink of crisis due to rising costs. The main ones — this is a sharp rise in energy prices, an increase in the cost of products and goods, and a decrease in consumer confidence. “We are all likely to lose a significant portion of the UK's iconic hospitality sector in the coming weeks and months.”

“We would all like to urge the new Prime Minister to pay attention to the industry, take urgent action and think on the way forward to ensure the hospitality industry survives today and continues to thrive in the future.”

A third of the UK tourism business is under threat of bankruptcy

Leave a Reply

Your email address will not be published. Required fields are marked *