Review of the Year – 2001

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No one would deny that it's been a tough year for the hospitality industry, with foot-and-mouth in the first half of the year and the fall-out from September's terrorist attacks following on its heels. But were these events really the cause of the industry's difficulties, or are the problems more deep-rooted? Here we track the major stories of the year as they appeared on caterer.com. Click on the links to view the full story.

[January](#january)	[February](#february)	[March](#march)	[April](#april)	[May](#may)	[June](#june)
[July](#July)	[August](#august)	[September](#september)	[October](#october)	[November](#november)	[December](#december)

### January The year began with a collective sigh of relief from hoteliers who saw a return to big Christmas and New Year trading following the disappointment of the previous year's Millennium celebrations. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=34808) This was quickly followed by the first big deal of the year with Japanese Investment bank Nomura snapping up Principal Hotels for £255m. Nomura already had its sights set on Granada Compass's Forte hotels. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=34187) And there were a couple of famous industry faces celebrating good news. John Jarvis, chairman of Jarvis Hotels, was appointed CVO (Commander of the Royal Victorian Order) for his services to the Prince's Trust in the New Year Honours. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=33810) And Gordon Ramsay's eponymous restaurant became only the second in the UK to hold three Michelin stars. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=34154) [Return to top](#top) ### February Things were still looking up a few weeks later when Ramsay followed up his Michelin star award by announcing he'd be taking over the restaurant at five-star London hotel Claridge's. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=34541) It was looking like a promising year for many in the industry. Compass continued its quest for global domination by buying US caterer Morrison Management Specialists for £382m. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=34386) And, back in the UK, Welcome Break service stations secured Egon Ronay to consult on their food. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=34664) But the first signs of the troubles to come started to appear. A report predicted that while 2001 should be a good year, the tightening US economy would make 2002 a difficult time for UK hotels. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=34792) Another report predicted that continuing rail problems caused by bad winter weather would also affect UK tourism. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=34260) But then came the news that in a small abattoir in Essex, 28 pigs had been diagnosed with foot-and-mouth…[Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=34634) [Return to top](#top) ### March The foot-and-mouth crisis began to take hold, with both the English Tourism Council and the Countryside Agency warning that it could have a major impact on tourism if it continued into Easter. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=34915) Ireland was forced to cancel its St Patrick's Day celebration to stop people travelling and spreading the disease. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=34989) Away from diseased animals, the bad news continued. A debate erupted as the minimum wage rose to £4.10 an hour despite protests from the British Hospitality Association. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=34926) Yet at the same time a report said that hospitality workers were the lowest paid full-time workers in the UK. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=35096) The Butlers Wharf chef school announced that unless it got a cash injection from the industry it would close. It didn't get the money and was shut the next day. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=34939) And the industry mourned the first of what would turn out to be many tragic deaths during 2001. Great North Eastern Railway chef Paul Taylor was among the ten people killed in the Selby train crash. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=34988) [Return to top](#top) ### April The foot-and-mouth epidemic approached its peak. The Cheltenham horse racing festival was cancelled ([full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=35446)), as was the Royal Show in Warwickshire ([full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=35440)). But one survey started to question whether the industry was over-reacting to the disease's impact, saying the US economic slowdown was the real reason for falling occupancies. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=35841) The big deals continued, with Bass buying Posthouse from Compass for £810m. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=35444) The approach of May Day was grabbing the headlines in London as the prospect of anti-capitalist protests turning to violence had hoteliers and restaurateurs boarding up their windows. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=35887) [Return to top](#top) ### May The biggest deal of the year so far went ahead with Compass off-loading Le Meridien to Nomura for £1.9b. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=36446) Foot-and-mouth was still the biggest issue in the news. The British Tourist Authority estimated the impact of the disease would cost the tourism industry £2.5b. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=36234) On the other hand, the Trades Union Congress said the impact would be "minor and temporary". [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=36222) A long-awaited review of the UK licensing laws was promised, with 24-hour opening a real possibility. It was welcomed by the industry but the Goverment would abandon it soon after the General Election in June. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=35995) The saga of Wolverhampton & Dudley continued with the company fending off takeover bids from Noble House and Pubmaster. It eventually succeeded in August. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=36038) [Return to top](#top) ### June Noble House had more success in buying up 646 pubs from Scottish and Newcastle in a joint £354m bid with Enterprise Inns. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=36759) The wranglings over the uncertain future of the National Stadium following the decommisioning of Wembley spilled over into hospitality as the caterer Letheby & Christopher sued the stadium and the Football Association for £7m. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=36552) Kim Howells was appointed the new Parliamentary under-secretary state for Culture, Media and Sport despite calls from the industry for a full Minister for Tourism. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=36798) Bass changed its name to Six Continents, saying that it was well aware that there were seven but it had no operations in Antarctica. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=36887) Dutch restaurateurs said a plague of flies was destroying their business. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=36934) [Return to top](#top) ### July The Government's new tourism boss Kim Howells rattled the industry's cages in an interview with Caterer when he slammed the high prices and low wages he saw as prevalent in the industry. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=37109) The industry associations hit back at Howells ([full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=37394)) but comments to Caterer suggested that half the industry agreed with him ([full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=37740)). The continuing effects of foot-and-mouth saw the UK hotel industry still taking a bleak view of the future. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=37170) And the Food Standards Agency released a report damning the hygiene standards in restaurants and other catering outlets. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=37433) [Return to top](#top) ### August On 1 August caterer.com is relaunched with a £1m makeover. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=38758) Things begin to look up for the industry as the worst of the foot-and-mouth crisis begins to ease. A report says that business growth will begin again in 2002. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=37852) The year-long shenanigans surrounding visitscotland, the former Scottish Tourist Board, reach a suitably ridiculous zenith when it changes its name to VisitScotland. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=37626) Hotel tycoon Reo Stakis dies from a stroke, aged 88. Stakis devoted most of his life to creating and developing the chain of eponymous hotels and casinos. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=38231) [Return to top](#top) ### September On 11 September terrorists caused four plane crashes in the US: two ploughed into the twin towers of the World Trade Center in New York leading to their collapse. Another crashed into the Pentagon in Washington and the last was bought down in Pennsylvania. The attacks almost immediately brought the US tourism industry to a halt. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=38424) Hundreds of hospitality workers were caught up in the disasters and harrowing individual stories began to emerge ([full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=38517)). The Windows on the World restaurant at the top of one of the towers was fully staffed for a conference when the planes hit ([full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=38541)). And 1,000 New York hotel workers were left jobless simply because their hotels weren't there anymore ([full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=38678)). The possible impact of the attacks on tourist business both in the US and the UK began to emerge within days. Visitors to the UK droppped almost immediately ([full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=38520)). Fears of possible retaliation in the Middle East caused ex-pat workers to leave ([full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=38560)), and one report predicted a record drop in revpar ([full story](http://www.caterer.com/news/articledetail.asp?lSiteSectionID=72&lSectionID=1&articleID=38561)). [Return to top](#top) ### October The woes continued as the ramifications of the 11 September attacks become clear. Hospitality companies start to cut jobs in an attempt to save cash. Hilton, for example, cut 600 staff after a 20% drop in occupancy. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=38833) And in New York, restaurants laid off more than 15,000 staff. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=39363) In a bid to revive the UK tourist industry following the double whammy of foot-and-mouth and 11 September, a tourism alliance is formed involving, among others, the British Hospitality Association and the British Beer and Pub Association. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=39255) [Return to top](#top) ### November More reports and predictions estimated the tourism and hotel industries would be ravaged for a long time to come thanks to 11 September. One said it would last into 2005 ([full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=39572)), another said more than a third of US hospitality wokers had been laid off ([full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=39851)). London's hotels faced their worst month for more than 10 years, another report said ([full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=39819)), and visitor numbers to the UK had fallen by 250,000 since the attacks ([full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=39657)). But, as with foot-and-mouth, there were some commentators suggesting that the effect of the 11 September was being exaggerated ([full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=39518)) and was an "excuse to make cutbacks" in a year that was already significantly down on a record-breaking 2000 ([full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=39672)) In other news, the new Harden's Restaurant guide blasted celebrity chefs for "prostituting their names" in poor and expensive spin-off restaurants. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=39575) It was also revealed that staff at the Sanderson hotel in London were working for £2.15 an hour, with their tips making their wages up to the £4.10 legal minimum. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=39939) [Return to top](#top) ### December As the year came to a close, the split of opinions of the true effects of 11 September was still evident. One report said that UK hotels were facing their worst downturn in 30 years ([full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=39973)) and tourist spending had droppped by 25% ([full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=40059)). But there were still some critics saying there had been "knee-jerk" reactions by big hotel groups in laying off huge numbers of staff and it would detrimental to their future. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=40146) In fact, one budget hotel operator said his sector had got better since the attacks as more people holidayed at home. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=40151) Reports began to emerge that the suggested recovery had already begun. Business was still bad compared to October and November, just not as bad. [Full story](http://www.caterersearch.com/Articles/Article.aspx?liArticleID=40158) [Return to top