HOSPITALITY Ulster’s quarterly members’ research compiled by CGA has confirmed that once again, the issues that are making hospitality businesses unprofitable remain ever present and clear as day.
We have found that rising costs, labour shortages, VAT, and rates, continue to be the biggest concerns among operators, with less than a quarter of business owners optimistic about the sector’s prospects over the next year.
If these same issues continue to persist over time, as they have, then it is clear that there is a priority list of business failure markers that need to be addressed. Although our asks and arguments have been well rehearsed and at sometimes exhausted, now is not the time to sit back and just try our best to muddle through.
With a UK Budget on the horizon, and a conservative government now in semi-election mode, there is a fresh window of opportunity to convince the government to alleviate some of these problems.
So long as the government ignores these specific pain points that are gnawing away at the resilience of our hospitality sector, we are clear that we will be dealing with a further wave of closures that could be prevented.
When asked what future support the government could provide to enable their business to grow, a sizeable majority of our members cited that a VAT reduction for hospitality would go a long way in helping their business to not only survive, but actually thrive.
More have also said that a reduction in Northern Ireland’s excessive rates, and an easier process for recruiting staff from overseas would help address current pressures and labour shortages.
The problems remain the same, but so too are the solutions. It should be a collective goal to create an environment that fosters growth, innovation, and long-term sustainability in hospitality, and now is the time to reiterate this as fervently as ever.
A commitment from policy-makers to allocate adequate resources and implement targeted solutions to mitigate the problems that limit growth in hospitality is well within reach with the right political will.
As we head into the winter months, the outlook does not appear bright, but hope for renewal and rejuvenation in the hospitality sector remains within reach.
:: Colin Neill is chief executive of Hospitality Ulster
