The effects of the downturn on the tourism, catering and leisure industry
The last few months have been increasingly challenging for the tourism, catering and leisure market. Latest figures show that some stocks in this sector have fallen with more than 50% from the beginning of 2008. Funding of new projects will be a challenge for many companies in this sector. Moreover, many companies are still in the transition of their business model and the financial and economic crisis is not helping them in achieving their goals. It is likely that the upscale market will be affected the most and cutting costs without giving in to quality will be a big challenge. The crisis will have an impact on the results of 2009 and some predictions are that the market will turn better in 2010. The next couple of months will tell us whether this is a realistic view.
However, consumers still want to travel and stay in hotels. In our view this willingness to travel is the big difference between the previous crises, such as SARS and 9/11, and the current one. Despite the gloomy forecast we feel that there are numerous opportunities for entrepreneurs in the tourism, hospitality and leisure market. For example developing cost saving plans, review of the capital expenditure plans, and acquisition of distressed assets to reach previously untapped sectors in the market. As a THL entrepreneur you should take the current crisis as an opportunity to ensure that your investment is in good financial shape and prepare for the opportunities as soon as the market is picking up.
Deloitte is the ideal partner to help you navigate the downturn. Our industry expertise will be bundled to support you with an integrated approach to gain quick insight and to help you develop and execute a focused plan. Our integrated offering focuses on optimising your business portfolio, controlling costs, mitigating risks, optimising tax and improving cash flow and funding.
- We provide you with a complete analysis that assesses improvement opportunities within 2 to 4 weeks
- We are a one-stop trusted partner that has all the expertise you need: one team, many perspectives funneled to one vision, one complete overview
- We have the power to implement what we advise
If you would like to explore how Deloitte can help you navigate the downturn, please contact:
Mobile: +31 (0)6 20 25 20 88
Assistant: +31 20 582 53 13
Stefan de Kruijf
Mobile: +31 (0)6 12 01 14 59
Assistant: +31 20 454 70 20
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