Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

Hospitality one of the sectors worst affected by the recession

19 April 2011 by
Hospitality one of the sectors worst affected by the recession

Hospitality is one of the sectors still being worst hit by the recession, new figures confirm.

The latest PricewaterhouseCoopers (PwC) research found that 239 hospitality and leisure companies became insolvent in the first quarter of 2011 - out of a total of 979 for the period - making it one of the worst affected sectors in the UK.

Pubs and restaurants felt the brunt of consumers' reluctance to spend, with 70 and 119 businesses respectively becoming insolvent. Wet-led pubs and pubs with no food offering continued to be the hardest hit.

But it was not all bad news. A separate PwC survey of Small Luxury Hotels of the World club members found that 30% of respondents considered booking a holiday this year a spending priority, although short value breaks were the order of the day.

Robert Milburn, hospitality and leisure leader at PwC, said: "Surveys carried out by PwC show that consumers are less likely to cut back on holidays than at the start of the recession and more likely to cut back on discretionary spend on socialising - like drinking and dining out."

He warned that these trends could continue throughout the year, adding: "Recessionary behaviours are now the norm and the focus on buying clever has certainly stuck with the consumer."

Luxury hotels in London to expand by more than a quarter >>

Growth in London and provincial hotels stronger than forecast >>

By Emily Manson

E-mail your comments to Caterer News here.

If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to www.caterersearch.com/tabletalk

Caterersearch.com jobs

Looking for a new job? Find your next job here with Caterersearch.com jobs

[Newsletters For the latest hospitality news, sign up for our e-mail newsletters.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking