Yorkshire tourism sector faces lost decade
18 March 2013
The Yorkshire tourism industry risks a ‘lost decade’, according to a report by business advisory firm Deloitte that says it could take five more years to return to pre-2008 levels.
As the region celebrates National Tourism Week, 38% of businesses think it will be 2017 at the earliest before the Yorkshire hotel market returns to its previous peak. A further 43%, think it will be at least another three years before the market recovers.
Five years since the credit crunch, almost half of the businesses and investors surveyed for the Deloitte UK Hotel Performance and Investment report in conjunction with TNS are still finding it tough to secure financing for any type of project in the regions, either new developments or acquisitions.
The main bright spot in the Deloitte survey was in the upper-midscale and upscale sectors in the regions, which recorded a growth in revenue per available room, with respondents citing a return of business from corporates.
The report also found that while the London 2012 Olympic and Paralympic Games provided a boost to hotel performance in London, many felt that the performance benefits were limited to the Capital with no impact being felt in the regions.
Andy Coticelli, consumer business partner at Deloitte in Yorkshire said: “The results of the Deloitte survey make sobering reading for the Yorkshire tourism sector. Firms have had to make a number of tough decisions in recent years to maintain their profitability and the regional market is more challenging than London. However, we have seen funding being made available to thriving businesses in Yorkshire to make important new investments in upgrading and branding existing hotels”.
The Deloitte findings were drawn from a survey of owners, operators, lenders, developers and investors at the European Hotel Investment Conference.
Notes to Editors
In this press release references to Deloitte are references to Deloitte LLP, one of the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.
Member of Deloitte Touche Tohmatsu Limited.
TNS advises clients on specific growth strategies around new market entry, innovation, brand switching and stakeholder management, based on long-established expertise and market-leading solutions. With a presence in over 80 countries, TNS has more conversations with the world’s consumers than anyone else and understands individual human behaviours and attitudes across every cultural, economic and political region of the world.
TNS has a wealth of experience in managing brand and customer satisfaction studies in the UK and worldwide. By bringing together measurements of brand commitment and customer experience, we provide our clients with a more holistic understanding of performance against brand promise.
TNS’s clients in the travel, tourism and leisure sector include all the national tourism organisations in the UK and Ireland, the UN World Tourism Organisation and the European Travel Commission. We also carry out research for leading hotel groups, travel operators, airlines, visitor attraction operators and train companies.