Bristol hoteliers question budget measures
Hoteliers in Bristol say abolishing business rates for smaller firms in the hospitality and leisure sector is welcome but does nothing to support bigger firms which are also suffering.
Chancellor Rishi Sunak’s first budget outlined what he described as a package of “extraordinary” measures to support businesses most at threat from the impact of the coronavirus outbreak.
This included a 12-month break from business rates for small hotels with a rateable value of less than £51,000 and other business in the sector, such as museums, art galleries, gyms, sports clubs and night clubs.
The budget came just a week after UK Hospitality wrote to Prime Minister Boris Johnson calling for special measures to support the sector.
UK Hospitality represents more than 700 businesses, and said they were being hit hardest by “pragmatic measures to contain and minimise the spread of coronavirus.”
UKH says first-quarter hotel occupancy was down by 15 percent, while eating and drinking out was down by seven percent, and forward bookings across hotels, restaurants, pubs and bars were down by up to 50 percent.
Raphael Herzog, chair of the Bristol Hoteliers Association, said: “Abolishing business rates for the smaller hotels for one year is definitely good news for those businesses.
“But the sector as a whole is suffering significantly. The Coronavirus outbreak is having a massive impact on all our businesses.
“Many conferences – which the smaller hotels are not able to accommodate – are being cancelled because people fear they will be more at risk from the virus, and there are many guest cancellations, too.
“Across the BHA membership, it is estimated that Coronavirus-related cancellations will have cost at least £2 million altogether, although it could quite easily be double this by the time all the data is studied, just for March and April.
“You don’t need to be an expert economist to see that those kind of decreases are simply not sustainable unless more support is forthcoming.”
Mr Herzog said the Coronavirus crisis is yet another blow to a beleaguered sector already faced with severe difficulties because of the proposed post-Brexit immigration policy due to be introduced next January which will significantly curtail the ability to recruit from the continent.
He said: “With people choosing to self-isolate and avoid crowded areas, the hospitality industry is being hit particularly hard by the Coronavirus threat.
“The economy is now predicted to grow by just 1.1% this year, the slowest growth since 2009; but this estimate takes no account of the impact of coronavirus, so the real figure is likely to be even lower.
“The hospitality sector is going to need a lot more help if it is to come through this particularly challenging period.
The Bristol Hoteliers Association represents 40 major hotels in the city, with around 4,000 rooms. Hotels put an estimated £200 million into the local economy.
