Research by RSM Tenon shows that nearly 50% of Hospitality & Leisure (H & L) businesses are confident about the outlook for 2013, whilst 35% are undecided, and almost 20% are pessimistic.
Key findings:
- 46% of H&L businesses are optimistic about the year ahead, against 19% who are pessimistic
- Confidence on revenues is greater than on profitability
- For many businesses, economic uncertainty and volatility provides new opportunities for those strong enough to exploit them
- 34% of H&L businesses felt 2012 was worse than expected, with 26% thinking it was better than expected
- 23% of H&L businesses think 2013 will be a turning point for the economy, whilst 37% disagree
Jonathan Perrin, Head of the H&L Group at RSM Tenon says:
“For the UK’s hospitality and leisure (H&L) sector, the start of 2013 has been chillier than hoped in several respects. Economic forecasters now expect GDP growth to be smaller than predicted. However, nearly half of H&L businesses surveyed remain confident about the overall outlook.”
Businesses will continue to find opportunities: “It’s quite a positive challenge to run a business in difficult times,” said Jamie Lamb, CFO of Kew Green, hotel management company. “Distress in the marketplace provides opportunities, and we’re getting management contracts as owners want the best returns on their assets and people who can achieve that.”
Revenue vs profit
Although 59% of firms are confident about revenues for 2013, only 50% feel the same about profit levels.
Chart: How confident are you about the overall outlook for 2013, and specifically about hitting your profit and revenue figures?
% respondents