Rising payroll costs are causing concern in the UK hotel industry with
wages rising by 6 per cent or more in a third of businesses.
A survey by the British Hospitality Association shows that last year a
fifth of respondents saw wage costs increase by more than 6 per cent and a
further 15 per cent experienced an increase of more than 10 per cent.
A quarter saw costs rise by between 3 per cent and 6 per cent with the
remainder containing cost increases to 3 per cent or less.
“These higher increases are considerably more than the growth in average
earnings in the country as a whole and far higher than inflation. This is
unsustainable if it continues at this level," said Bob Cotton, chief
executive of the BHA.
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He put the increase down to a severe shortage of skilled staff pushing
up wages, as well as the impact of the National Minimum Wage which rose by 11
per cent in October last year.
