MONTH IN REVIEW
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TOURIST TAX
Edinburgh
tourist tax a
‘danger’ to hotel
industry, says
UKHospitality
It is estimated that the introduction of
a Transient Visitor Levy (TVL) would to
lead to a reduction in accommodation
turnover in Scotland of £128m per
annum and an overall negative impact
of £191m per annum.
Edinburgh is in danger of becoming
the most expensive destination in
Europe, according to evidence submitted
today by UKHospitality (UKH) to the
Scottish Government’s consultation on
the Transient Visitor Levy (TVL).
The group said the hospitality
industry “remains opposed” to the tax
and the introduction of a TVL will make
the country “less competitive” and
make the tourism market one of the
highest taxed globally.
According to the World Economic
Forum, the UK currently ranks 135th in
terms of overall price-competitiveness.
With the introduction of a TVL, Edinburgh
will become the most expensive city to
visit in Europe, well above the likes of
Paris, London and Rome.
UKHospitality said it is estimated that
the introduction of a Transient Visitor
Levy (TVL) would to lead to a reduction
in accommodation turnover on Scotland
of £128m per annum and an overall
negative impact of £191m per annum.
Willie MacLeod, executive director
of Scotland for UK Hospitality, said:
“A TVL could be a disaster for the
tourism industry in Edinburgh and
across Scotland.
“The introduction of a £2 per room,
per night tax will cost the economy
between £175m – £200m per annum.
At this a time of great economic and
political uncertainty, much needed jobs,
tax revenues and investment will be put
at risk.”
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HOTEL INVESTMENT
Northern hotels
attract £1bn of
investment in
2018
Hotels in the north of the UK attracted
over £1bn of investment in 2018, with
total investment in the region for the
year reaching £1.11bn, according to real
estate advisor Savills.
The north accounted for 17% of total
UK hotel transactions last year, with
total UK transactions hitting £6.6bn.
The market in the north was led by
portfolio transactions, accounting for
56% of deals (£630m), with individual
transactions at 44% (£480m).
Despite current underlying
uncertainty, portfolio investments
proved to be attractive to both domestic
and international investors with UK
and Israeli investors leading the market
share, followed by French, Canadian
and Danish investors. Individual
transactions were largely dominated by
domestic investors, accounting for 54%
of investment value, with an average
transaction size of £8m.
The largest deal in the region
last year was £118m for the 312-bed
Midland Hotel in Manchester, equating
to a price per key of £378,000. The
average price per key for 2018 across
the region was £100,000.
QUOTE OF
THE MONTH
“The handover was today.
Everything was completed, we’d
put the last tile in, cleaned up and
made sure everything was perfect.
Then some idiot in a mini digger
decided to drive through the
middle of the building.”
That’s what ceiling fixer Samuel White
told the BBC after a builder destroyed a
newly constructed reception at Travelodge
Liverpool using a digger, amid an alleged
£600 pay dispute.
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STAFFING
Staffing
shortages ‘biggest
operational’
concern for
hoteliers, says EY
Problems with recruiting new staff and
retaining existing staff is the biggest
challenge for UK hotel general managers,
according to research released by
professional services firm EY.
Some 28% of UK general managers
ranked staffing problems as the biggest
challenge, followed by 22% citing
cost increases and inability to pass
these onto guests. Maintaining hotel
standards through capital expenditure
is the third biggest challenge for hotel
general managers (15%).
On the staffing front, 90% of
respondents to the survey were also
recruiting for unfilled positions and 54%
of respondents have seen a decrease in
non-UK residents applying for jobs at
their hotels since the Brexit vote.
According to the group, the UK
hospitality sector is “highly reliant” on
EU nationals, with between 12.3% and
23.7% of the sector’s workforce made
up of EU migrants, according to figures
from the British Hospitality Association.
In addition, current uncertainty
around a Brexit deal and subsequent
implications for free movement are
pushing wages up in the short to
medium term. In the longer term, the
supply of workers is highly likely to be
affected following Brexit.
Christian Mole, head of hospitality
and leisure for EY, said: “Retaining and
attracting staff remains understandably
the biggest challenge for hotel general
managers and, particularly with Brexit
moving closer, a shortage of migrant
labour is an overwhelming concern
not only for hotels but the hospitality
industry as a whole.”
END: THAT’S ALL. YOU ARE NOW UP TO DATE
February 2019
www.hotelowner.co.uk
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