“94% of businesses are struggling to recruit personnel”
The front page of today’s WMN looks at the dire situation for the tourist industry:
Staff shortages are putting growth of the West’s tourism at risk
Nine out of ten hospitality and leisure businesses in the South West are struggling to fill staff vacancies, as the peak summer tourist season looms. Many are introducing new perks for staff, including offering free childcare and pushing up wages in a bid to recruit and retain waiting staff, cleaners and salespeople. But soaring inflation, which is putting up tourist business costs, combined with difficulties in filling vacancies, will have a negative impact on the growth potential of the Westcountry’s most economically important industry, experts say.
These concerns are being echoed across the country – following a report out from Barclays:
“UK Hospitality’s Next Challenge”, a study from Barclays Corporate Banking, has revealed that the hotel industry is set to grow by £7.3 billion this summer – if it can overcome staffing and cost of living challenges.
Mike Saul, head of hospitality and leisure at Barclays Corporate Banking, said: “The hospitality and leisure industry was undoubtedly one of the hardest hit by prolonged periods of lockdown during the pandemic. In the early part of 2022 however, in a society free from restrictions, the sector enjoyed strong sales, leaving many confident about their growth prospects. Unfortunately, the worsening cost-of-living crisis is now a serious threat to this growth, and our research shows that talent shortages are another a major concern for almost all businesses in the South West.”
New research from Barclays Corporate Banking shows that hospitality and leisure businesses, which are a key part of Blackpool’s offering, have reaped the benefits of “pent-up consumer demand for socialising, holidays and experiences following the pandemic” with more than three quarters of firms expecting growth this year. However, Barclays says the predicted growth could be stifled by soaring supplier costs and staff shortages across the sector. Hospitality and leisure businesses report that their transport costs have already spiked by over 38% year-on-year on average, and their utility bills by 37% while 94% of businesses are struggling to recruit personnel. In particular, recruitment of cleaning staff, front of house staff, and delivery staff is causing the most issues.
This is from the Barclays report:
Cost-of-living crisis and staff shortages threaten £36bn hospitality and leisure growth
77% of hospitality and leisure businesses are confident of growth in 2022 following a bumper start to the year, predicting a 30.5% rise over pre-pandemic revenue. However, projected growth could be stifled as some supplier costs rise by almost 40% year-on-year and more than nine in ten businesses struggle to recruit staff
“UK Hospitality’s Next Challenge”, a study¹ from Barclays Corporate Banking, shows that the release of pent-up consumer demand for socialising, holidays and experiences following the pandemic has given a boost to the sector. However, the predicted growth could be stifled by soaring supplier costs and a scramble for talent.