Increased productivity is key to hospitality sector woes

Rising
wage costs and chronic skills shortages in the hospitality industry can only be
countered by greater productivity, according to the British Hospitality
Association (BHA).

However,
the BHA claims that financial pressures are set to worsen because increased
national insurance contributions will add an estimated £100m to the industry’s
wage bill.

Research
by the BHA shows that rising wage costs are causing concern with employers
worried that any increase in the national minimum wage could add to the burden.

However,
the research also shows the industry is still investing heavily in new hotel
openings despite the threat of war in the Middle East.

More
than £100m is currently invested in hotel refurbishments, extensions and new
openings.

www.bha-online.org.uk

By Ross Wigham

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