Job cuts about to hit hospitality, says report

10 December 2008 by
Job cuts about to hit hospitality, says report

A wave of job cuts is about to hit hotels, restaurants and other employers in the services sector as the economic crisis intensifies, according to a CBI report.

The employers' group's latest Service Sector Survey of 195 professional and consumer services employers found many were expecting to wield the axe.

In the consumer services sector, including hotels and restaurants, profitability plummeted during the three months to November.

The percentage of respondents expecting to cut jobs over the next three months was 25 points higher than the percentage expecting to create them.

Ian McCafferty, chief economic adviser at the CBI, said: "With consumers continuing to tighten their belts, companies operating in consumer services such as leisure and personal care are continuing to find trading conditions very challenging.

"So far, job losses have been relatively small across the whole of the service sector, but with firms predicting faster falls in volumes, values and profitability in the next quarter, we can expect to see significant job losses in the coming months."

Travelodge considers job cuts to fund price war>>

Wyndham Worldwide announces job cuts and other international hotel news>>
UK tourism dismayed by cuts at VisitBritain>>
Hoteliers told not to slash rates in response to slowdown>>

Downturn can strengthen businesses>>

By Daniel Thomas

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