War threat casts a cloud over hospitality recovery

Hoteliers and restaurateurs are preparing to tighten their belts and put a hold on expansion as the threat of war with Iraq deepens.

As speculation mounts that the USA is getting ready to launch a new military campaign against Iraq, Jonathan Raggett, managing director of Red Carnation Hotels, said: "We will continue to invest where necessary, but are unlikely to sanction large capital expenditure. We had been forecasting a strong September but in the back of your mind you fear trouble. We will target the domestic market much more than in the past and will react in whatever way necessary."

Bob Cotton, chief executive of the British Hospitality Association, said the threat of war would stop any gentle recovery in the industry. He said: "The biggest impact will be on business confidence. Operators thinking of expanding will probably postpone action for a month or two. The threat is as much of a problem as action itself."

Source: Caterer & Hotelkeeper magazine, 12-18 September 2002