Government support

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Government support

[Credit: Number 10 on Flickr]

Steps taken by the British government to address the cost of living crisis has become a major talking point over the last week. Since Chancellor Kwasi Kwarteng announced the “mini-budget” last Friday – which involved heavy cuts across National Insurance, income and corporation taxes – hoteliers and other hospitality bodies have spoken out about the lack of action on business rates.

It’s also been argued that, whilst the announced measures will go some way in helping to navigate short-term challenges, the mini-budget falls way short in providing long-term support. The rising cost of energy in particular is proving difficult to forecast pricing, meaning that the return to profitability for some hotels remains a grey area.

To focus on the more positive outcomes, the UK could experience increased volumes of inbound tourism as the country becomes cheaper to visit, and opportunistic investors will be on the hunt for value-add deals. Price sensitivities and conscious consumption may also prompt a shift to more sustainable operations and business models – the focus on ESG criteria may amplify as a result.

• All things considered, the role of accreditation schemes within hotels may play an important role as the industry navigates recovery. IHM has teamed up with Travel Intelligence Network and QIA Services to survey whether such accreditation impacts the return on investment for key stakeholders, travel managers and more.

Please take the time to fill out the survey here, in which the results will form the basis of a white paper free to all BHN subscribers. The survey deadline is Friday 7th October and the paper will be published later this year. Thank you.

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