Rising costs cause concern for hotels

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.

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.

By Ben Willmott

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