Holiday In Wales As the major holiday season gets underway, and mindful of the General Election campaign, the Committee of the Tourism & Hospitality Special Interest Group (SIG) of the Institute of Chartered Accountants in England & Wales (ICAEW) launches the results of a wide ranging member research survey undertaken amongst chartered accountants working within the tourism and hospitality sectors, or whose clients are in these sectors.
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Holiday Wales The Tourism and Hospitality SIG is made up of members of the ICAEW working within the tourism and hospitality sectors, and its Committee is chaired by Geraint James, Finance Director of the Wales Tourist Board.
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Cottage Holiday In Wales The purpose of the survey was to ascertain the make up of those members working within the and to gauge members views on topical sector issues.
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Caravan Holiday In Wales Of great interest to the industry is the view that respondents were positive about the profitability of the industry, as they felt that the last year was characterised by greater competition in the marketplace and increased customer demand. 51% of respondents with business operations in the UK forecast the profitability of the industry to improve in the coming year. Respondents with business operations on mainland Europe are more optimistic in their forecasts for profitability (61% expect an improvement in the coming year) than those with business operations in the UK.
sized Enterprises (SMEs) will welcome new plans to help those working in the construction sector. Many SMEs have struggled to establish themselves in the construction sector and those that have managed complain that they feel they are being "squeezed out of the market". In response to these concerns, the Chartered Institute of Building (CIOB) has announced plans to conduct a survey across England, Scotland and Wales to assess exactly how big the problem is.
Camping Holiday Wales Competition from mainland Europe continues to increase as cheaper travel alternatives are offered, with lower levels of VAT and the Euro, placing a strain on the competitiveness of the UK tourism and hospitality industry.
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Accommodation Holiday Wales On the issue of funding for tourism, it was interesting to note that only 27% of respondents strongly agree that the UK government should provide increased funding to tourism in England in line with the amount spent by the Scottish Parliament and the Welsh Assembly, though half (51%) of respondents believe lottery funding should be channelled more towards tourism projects.
Holiday Last Minute Wales The survey also asked respondents about employment issues surrounding the industry. Increasing customer demand and competition in the marketplace has created a greater need for skilled management and competent staff. However, there is a significant skills gap in the industry with almost a half (45%) of respondents report that skills shortages are restricting the industrys opportunity to expand.
Catering Holiday Self Wales However, with the recent announcement of the raising of the National Minimum Wage, respondents will be further dismayed as they responded that the national minimum wage continues to have a negative impact on the industrys performance. Half (48%) of respondents believe that the national minimum wage has had a worse impact on the industrys performance in the past 12 months.
Holiday Wales Walking In terms of the effect of VAT on the tourism & hospitality industry, the finance professionals who responded to the survey are in favour of a reduction in the level of VAT for tourism related businesses 15% agree strongly and a quarter (25%) tend to agree with this.
Family Holiday Wales Respondents are also very much in favour of extending the VAT recovery scheme to all museums and galleries in the UK. A quarter (25%) of respondents strongly agree that this should be done and a further 43% tend to agree with this.
Holiday Riding Wales The issue of red tape is a real headache for the industry as 69% of respondents report that regulatory requirements have had a worse impact on the industrys performance in 2004, and almost the same amount of respondents (67%) believe that the growth of the compensation culture in the UK is having a worse effect of the industry than it did 12 months ago.
Adventure Holiday Wales Interestingly, given the current political climate over half of the respondents feel that the impact of terrorist activities is having less of an impact on the industry now than 12 months ago.
Holiday Park South Wales Commenting on these results, Geraint James, the Tourism & Hospitality SIG Chairman said: This major survey of finance professionals working closely within the tourism & hospitality sector gives us much food for thought in terms of our lobbying activities and information priorities over the coming months.
Cottage Holiday Wales With the General Election campaign now in full swing we hope these results will act as a sector specific manifesto, and we also urge the next Chancellor, whoever that may be, to look at the financial implications of reducing VAT and increasing funding to English tourism in line with Wales and Scotland.