UK hotel industry gets ready for growth

Demand for hotel accommodation in the UK is set to increase next year after remaining stable throughout 1999, according to an industry survey.

BDO Hospitality Consulting's United Kingdom Hotel Industry 1999 report forecasts average occupancy levels of 73% this year, with events such as the cricket and rugby world cups helping to sustain demand. Next year an increase of two percentage points is expected as a result of the millennium celebrations.

"There is little question that any fear there may have been of a possible economic recession in the latter part of 1998 has now subsided," said BDO's chairman Paul Dukes.

The survey says the UK hotel industry enjoyed buoyant business last year, despite such concerns. Room occupancy dropped very slightly from 74.3% in 1997 to 72.9%, although this was balanced by increasing average room rates - up from £63.41 to £65.22.