Foot-and-mouth impact overstated, says survey

The foot-and-mouth outbreak is having less of an impact on UK hotels than expected, says a survey from consultants PKF. Preliminary data from 285 regional hotels outside London shows occupancy during March was 3.3% up on 2000, which was a good year for the industry. Average room rates were up by 2.9% and revenue per available room (revpar) rose by 6.3%. But 85 London hotels surveyed fared less well. Occupancy dropped by 5.4%, although a 2.2% rise in average room rates helped cut the drop in revpar to just 3.3%. Melvin Gold, managing director of hotel consultancy services at PKF, said: "Despite the limited effect to date, we have to recognise the very significant impact of the foot-and-mouth outbreak in some rural areas and we have great sympathy with those operating businesses in those very difficult conditions. "In addition to the foot-and-mouth crisis, the industry has also had to cope with a downturn in the US economy and an extended period of truly awful weather. These factors will have undoubtedly had an impact. "We believe the US economy is responsible for much of the downturn in the London hotel market. This is particularly evidenced by relatively poor performance at the top end of the market. "I do not believe, however, that these figures provide comfort for the months ahead as they only reflect the early weeks of the crisis. This may mean that there is a delayed impact and the situation is likely to worsen in the months to come. "Furthermore, hotels have widely reported disappointing levels of future bookings and, consequently, there may be a more marked effect in the peak summer tourist months. "But at least these initial results provide some relatively good news amongst the doom and gloom that has prevailed recently." The average achieved room rate in regional hotels was £63.50, occupancy was 69% and revpar £43.80. In London, the average rate was £114.19, occupancy was 78.3% and revpar was £89.50. PKF has set up a free advice hotline for anyone facing financial difficulties as a result of the foot-and-mouth crisis. The number is 0845 1 22 00 44.