SURVEY > Mazars
REVIEWING THE
HOSPITALITY SECTOR
For the fifth year running, accountancy firm Mazars has surveyed a cross section of
finance directors, HR directors and owner-managers in the hospitality industry to find
out what challenges lie ahead. We publish the findings here
W
38
e are delighted to share with What do you think will change the rapid and has taken many by surprise.
you the key findings of the shape of the market in the next Added to this, businesses are likely to
Mazars annual survey of leading three years? take advantage of measures to make it
businesses in the hospitality and leisure Over two thirds of respondents (69%) easier for employees to book business
industry, which reveal the challenges and believe pricing competition will change accommodation with Airbnb hosts.
opportunities facing the sector. the shape of the market in the next three years. The dominance of Online Travel How concerned are you about the
THE RESULTS Agents (OTAs), a voucher culture in the impact of Brexit on aspects of the
What are the top three factors that restaurant industry and a rise in the economy and your business?
could impact on the performance of number of low cost, no contact, gyms are Some 97% of all respondents express an
your business over the next year? just a few examples of aggressive pricing element of concern around the impact
mechanisms in the sector. of Brexit on economic growth, with half
The hospitality and leisure sector is
significantly dependent on the state of
New legislation, particularly around
being slightly or somewhat concerned
the economy. Some 66% of respondents the employment of EU nationals, is also and half being moderately or extremely
feel the economy will impact their a factor expected to shape the market. concerned. There is also some concern
business this year, although this is down With uncertainty around the government’s over the impact this will have on consumer
from 77% last year and 90% in 2014. future position on EU workers and a spending, with the majority slightly to
potential £1,000 levy, it’s no surprise 59% moderately concerned.
Some 63% of respondents also
believe that Brexit could impact
of respondents are concerned.
In addition, 34% are extremely
concerned about the recruitment of skilled
the performance of their business,
however the extent of the impact is What do you perceive to be the key workers. The difficulty in attracting and
yet to be determined. Fears around risks and challenges associated with recruiting skilled workers highlights the
new immigration laws far outweigh the the industry today? significance to employers of retaining
short term positive impact of attractive Increasing costs are the greatest quality staff for longer. Often this is not
exchange rates on both investment and challenge cited by respondents - through financial incentives, but through
inward tourism. over 80%. As a result of inflation and training and flexible benefits.
As a labour intensive sector,
fluctuating exchange rates, businesses
managing staff levels affects all are being affected by increasing food In April 2016, the NLW was
hospitality and leisure businesses and and drink costs. In addition, utility price introduced. What financial impact
47% of respondents predict this to increases, significant business rate hikes, has this had on your business?
affect their business going forward. the additional costs of employment and For two thirds of respondents, the
Both auto-enrolment and the National OTA price increases are significantly financial impact of the NLW has been
Living Wage (NLW) are now well affecting the market. This coincides with as expected. It is encouraging to know
embedded into businesses but, with the demands of consumers increasing that one of the hardest hit sectors has
the upcoming Apprenticeship Levy exponentially - 44% of respondents are weathered the storm and survived.
and significant increases in minimum concerned about changes in customer Indeed, for a fifth of respondents, the
auto-enrolment conditions, the cost of expectations. introduction has had no impact at all on
employing staff is expected to increase
further.
www.hotelowner.co.uk
Competition also continues to be a their business and only 3% have found
key challenge. The rise of Airbnb has been the introduction to have had a greater
April 2017