Terrorattacks used as ‘excuse for cuts'

The International Hotel and Motel Show took place in New York from 10 to 13 November. David Harris was there.

The growing feeling that some hospitality companies used 11 September as an excuse to make cutbacks they wanted to make anyway was endorsed at the International Hotel and Motel Show in New York at the weekend.

Consultant Michael Whiteman said that the terrorist attacks only increased the speed at which cuts were made.

He said: "What was true on 10 September was just as true on 12 September. The future is just appearing at a faster rate. It may even mean that we get through a recession more quickly."

Whiteman added that even the cancellation of seasonal celebrations normally organised by businesses might be more cynical than is at first apparent.

He said: "Lots of companies in New York and elsewhere have used 11 September as an excuse to cancel Christmas parties which they didn't want to pay for anyway."

Whiteman, of consultants Baum & Whiteman, said any recession might not be entirely bad for the US restaurant business.

He argued that the fall in the number of restaurants, combined with healthy demand for eating out, could mean the average amount of money spent for each restaurant seat would go up."

He added: "Restaurant managers will also stick around longer, because there will not be so many jobs available. This is not bad news."