A new forecast issued today for the UK Hotel Sector, by the PricewaterhouseCoopers Hospitality and Leisure Group, shows corporate…
A new forecast issued today for the UK Hotel Sector, by the PricewaterhouseCoopers Hospitality and Leisure Group, shows corporate and leisure travel markets remain depressed, with little evidence that the much hoped-for recovery gained momentum during the second half of 2002. In London the travel slump (particularly the dearth of US tourists) continues to hit the hotel sector hard.
The report entitled ‘Hospitality Directions – Forecast Alert – October 2002’ (Hospitality Directions Europe) concludes that the slump in tourists to London, the economic slowdown and the uncertain political environment will lead to further Revenue Per Available Room (RevPAR) declines in the hotel sector this year, in addition to the severe declines reported in the UK and London in 2001. These declines are expected to be most severe in London where they envisage a RevPAR decline of 9.3% this year. Less severe RevPAR declines are forecast for the UK as a whole and the Provinces with RevPAR declines of 2.2% and 2.4 % more likely. These declines are driven by further falls in occupancy across the country but in London discounting has led to a steep fall in average room rates with a decline of 7.2 % forecast this year. At this stage PricewaterhouseCoopers continues to envisage stronger corporate and leisure travel growth throughout 2003.
Liz Hall, research manager, PricewaterhouseCoopers Hospitality and Leisure Group commented: Overall the incipient recovery reported earlier this year in UK travel markets has been slow and susceptible to a number of setbacks, including the recent Bali bombing that is likely to fuel fears of new terrorist attacks. Overall we are now less optimistic than our mid-year position regarding the out-turn for 2002 and beyond and our latest forecast for UK, London and Provincial hotel markets reflects the weaker than expected recovery in tourism ? especially business travel.
Liz Hall added: It is not all doom and gloom and international visitors are returning to the UK. In London the city is fighting back and the Mayor’s three-year plan – Visit London – should help to restore both strategic direction and tourists to the capital.
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