Featured Sector: Hotel and Leisure

Following an uneven 2013, the outlook for the sector is improving. There are signs that improved consumer confidence will lead to higher leisure spending and hopes of greater numbers of overseas visitors.

The number of visits to the UK from overseas residents in the three months to August was 11% higher than the same three months last year, according to the International Passenger Survey. Visits from countries outside North America and Europe have increased by 13% during the first eight months of this year to date. The majority of this rise in visits was due to tourism. Weakening sterling and the US economic recovery should also help boost visitor numbers.

The wider economic recovery should also result in increased business travel, boosting hotel receipts. Premier Inn has announced plans to build 170 hotels over the next five years, which will provide a major boost to the sector if they go ahead.

Furthermore there are encouraging signs that, whilst still fragile, consumer confidence is now improving. September’s YouGov/CEBR Consumer Confidence Index reached a high since it began in 2009, with perceived job security also at a high. Consumers expect to spend slightly more on going to the cinema and taking weekend trips, but remain cautious, expecting to spend the same in 12 months’ time on most leisure activities.

However public sector spending constraints will continue to limit local authority investment in sport & leisure facilities.