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BWH chief executive Tim Rumney has warned that independent hoteliers face a £1.4bn increase in costs following the latest rise in the minimum wage, saying that “something has to give” in the sector.
It comes as the hospitality industry has seen successive increases in various operational costs. In light of this, Rumney fears that independent hotels will struggle to absorb the cumulative impact of volatile energy bills and rising business rates.
Rumney said the wage increase alone could add up to £40k to annual costs for a typical 60-bedroom hotel, adding that the financial pressure risks undermining the businesses that provide local jobs.
Previously released data from UKH has also shown that 64% of hospitality businesses are planning to cut jobs, with a further 42% of operators looking to reduce trading hours to manage the payroll burden. One in seven businesses in the sector now fear closure as a direct result of rising costs.
As a result, Rumney is urging the government to implement a reduction in VAT to help hoteliers protect their businesses and sustain employment levels.
With hospitality remaining one of the largest employers of young talent in the UK, Rumney has expressed concern that without government support, higher costs will lead to fewer jobs and higher prices for consumers.
Rumney said: “The latest minimum wage rise is the fifth blow in a relentless run of cost hikes for independent hoteliers. Volatile energy bills, rising business rates, the deeply flawed ‘Holiday Tax’ proposal, the increase in employers’ national insurance and now yet another sharp jump in payroll burden. At some point, something has to give.
“Independent hotels are the backbone of Britain’s tourism economy, operating on tight margins while supporting local jobs and communities. For a typical 60-bedroom hotel, this wage increase alone could add £30k to £40k to annual costs, before any of the other pressures are even considered.”
He added: “Without proper support, increasing costs will inevitably lead to fewer jobs, higher prices for consumers and ultimately lower tax revenues for the government.”
BWH chief executive Tim Rumney has warned that independent hoteliers face a £1.4bn increase in costs following the latest rise in the minimum wage, saying that “something has to give” in the sector.
It comes as the hospitality industry has seen successive increases in various operational costs. In light of this, Rumney fears that independent hotels will struggle to absorb the cumulative impact of volatile energy bills and rising business rates.
Rumney said the wage increase alone could add up to £40k to annual costs for a typical 60-bedroom hotel, adding that the financial pressure risks undermining the businesses that provide local jobs.
Previously released data from UKH has also shown that 64% of hospitality businesses are planning to cut jobs, with a further 42% of operators looking to reduce trading hours to manage the payroll burden. One in seven businesses in the sector now fear closure as a direct result of rising costs.
As a result, Rumney is urging the government to implement a reduction in VAT to help hoteliers protect their businesses and sustain employment levels.
With hospitality remaining one of the largest employers of young talent in the UK, Rumney has expressed concern that without government support, higher costs will lead to fewer jobs and higher prices for consumers.
Rumney said: “The latest minimum wage rise is the fifth blow in a relentless run of cost hikes for independent hoteliers. Volatile energy bills, rising business rates, the deeply flawed ‘Holiday Tax’ proposal, the increase in employers’ national insurance and now yet another sharp jump in payroll burden. At some point, something has to give.
“Independent hotels are the backbone of Britain’s tourism economy, operating on tight margins while supporting local jobs and communities. For a typical 60-bedroom hotel, this wage increase alone could add £30k to £40k to annual costs, before any of the other pressures are even considered.”
He added: “Without proper support, increasing costs will inevitably lead to fewer jobs, higher prices for consumers and ultimately lower tax revenues for the government.”
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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
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