Archive for the ‘Hotel & Leisure’ Category

Brexit: The rise and rise of the ‘staycation’

Posted on: July 11th, 2016 by Matthew Thomas No Comments

Matt ThomasOn Thursday 23 June the UK voted to leave the European Union.  What does this mean for the country’s tourist industry when we consider that two thirds of visitors to the UK and nearly three quarters of business visitors to the UK are from EU Countries.

We have already seen a fall in the value of the pound; it will now buy you fewer Euros or Dollars.  When holidaying abroad the cost of accommodation will have risen and spending money will not go as far.  If people find foreign holidays significantly more expensive and with more and more of us choosing to book holidays late we may choose to stay and holiday at home in the UK.

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Survey reveals a positive year for hospitality and tourism businesses, but some still lack crucial online presence

Posted on: April 25th, 2016 by Matthew Thomas No Comments

Matt ThomasThis month MHA, the UK-wide association of independent accountancy and business advisory firms, released the results of its annual Hospitality and Tourism survey. The survey provides in-depth sector specific knowledge, thus enabling association members to provide expert business advice to attraction owners, restaurateurs and accommodation providers.

The survey results revealed a positive financial year for hospitality and tourism businesses, with 67% of respondents reporting increased turnover in the past 12 months and 58% expecting an increase in 2016-17. Profits also increased for 64% of respondents, although the majority reported growth figures of less than 5%.

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National Living Wage

Posted on: January 26th, 2016 by Sarah Curzon No Comments

Sarah CurzonThe National Living Wage (announced by the Chancellor in Budget 2015) is due to be introduced from April this year to £7.20 per hour for over 25 year olds. This could potentially cost small businesses as much as £2 billion, so planning cash-flow will be key for small businesses, especially as the National Living Wage is set to rise to £9.00 per hour by 2020.

The cost to business is likely to be significant, especially for businesses who are reliant on part-time workers such as the tourism and hospitality sector and those in the care sector.

From an employee’s perspective the Government have put a very positive spin on this announcement but for business owners this could have negative repercussions. Many businesses fear that they will be forced to make redundancies to manage ever increasing salary costs. This comes at a time when the Government are also ensuring employers provide pensions for employees through Auto-Enrolment. Many employers have still not yet gone through the Auto-Enrolment process and may have no idea of the impact of the cost increases that face them.

The wage hike will affect workers aged 25 and over, and is reportedly set to boost the salaries of over six million people. The National Minimum Wage rates will stay the same for workers aged 24 and under.

For advice on how this can affect your business and help with cash flow management and forecasting please contact us on [email protected]

UK tourism is on the up but companies need to get online

Posted on: May 11th, 2015 by Matthew Thomas No Comments
Matt Thomas, Director, MHA Broomfield Alexander

Matt Thomas, Director, MHA Broomfield Alexander

The latest Travel & Tourism Survey conducted by MHA, the UK-wide association of chartered accountants and business advisors, indicates that 26% of operators in the hotel and bed and breakfast sector are still unable to take online bookings.

This is despite the fact that 50% of respondents to the annual survey report a year-on-year increase in online bookings and the fact that there has been a 16% increase in the ability to take online bookings direct.

“This growth in direct transactions is good to see, especially as online booking agents have been increasingly dominating the UK hotel and bed and breakfast sector,” said Andrew Burnham, head of the MHA travel and hospitality sector. “This trend should lead to a greater online presence and more competitive offerings.”

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Tourism & Hospitality survey 2015

Posted on: December 3rd, 2014 by Matthew Thomas No Comments
Matt Thomas, Director, MHA Broomfield Alexander

Matt Thomas, Director, MHA Broomfield Alexander

The tourism and hospitality sector is a rapidly changing landscape and businesses operating within it must be adept at responding to changes in both local and global market conditions, ensuring awareness of the competition at all times.

We would welcome the input of all those involved in the travel and tourism sector in Wales as we identify the trends and challenges for the sector in 2015 in our second Travel & Tourism Survey.

Please click here to complete the survey and be entered into our iPad Mini prize draw.

This survey is going out to thousands of businesses in the sector across the UK. Along with our colleagues in our Travel & Tourism team of our national association at MHA, we have a wealth of experience advising leisure, hospitality and tourism businesses ranging from pubs and restaurants, hotels of all sizes and hotel groups to travel agencies, tour operators and travel management companies.

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Tourism & Hospitality survey results 2014

Posted on: July 29th, 2014 by Matthew Thomas No Comments

Around one third of staff working in guest houses, hotels, restaurants and pubs are now employed on zero hours contracts, according to the latest Tourism and Hospitality survey conducted by MHA.

Yet, despite the flexibility that this arrangement offers employers, well over 60% of these staff regularly work 20 hours or more – with more than three quarters of these routinely employed for 40 hours per week.

The survey paints a picture of an industry starting to benefit from an upturn in trading conditions, with 56% reporting improved profitability in the last 12 months and 58% predicting that 2014 will be better still. However, 50% cited turnover either stagnant or growing by less than 5% over the last 12 months.

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Capital Allowances: Use it or lose it!

Posted on: January 24th, 2014 by Sarah Curzon No Comments
Sarah Curzon, Tax Director, MHA Broomfield Alexander

Sarah Curzon, Tax Director, MHA Broomfield Alexander

The tax relief available on fixtures is potentially very valuable.  Not only is it an area of tax that is often poorly understood, but the tax rules are changing and the changes are significant.

In the past it was possible to buy a property and sort out the amount on which capital allowances could be claimed retrospectively.  This is no longer the case.

Some transitional changes took effect in April 2012 and the full impact of the changes takes effect in April 2014.  The changes radically alter much of the tax planning that would have been appropriate previously, shifting the balance of power between sellers and buyers of commercial property.

How does it work?

All commercial property contains fixtures on which tax allowances can be claimed.

The tax allowances are given in the form of tax deductions know as capital allowances.

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Travel & Tourism survey: what’s your outlook for 2014?

Posted on: January 7th, 2014 by Matthew Thomas No Comments
Matt Thomas, Director, MHA Broomfield Alexander

Matt Thomas, Director, MHA Broomfield Alexander

The leisure and hospitality sectors are a rapidly changing landscape and businesses operating within them must be adept at responding to changes in both local and global market conditions, ensuring awareness of the competition at all times.

We would welcome the input of all those involved in the travel and tourism sector in Wales as we identify the trends and challenges for the sector in 2014 in our first Travel & Tourism Survey.

Please click here to complete the survey and be entered into our iPad Mini prize draw.

This survey is going out to thousands of businesses in the sector across the UK. Along with our colleagues in our Travel & Tourism team of our national association at MHA, we have a wealth of experience advising leisure, hospitality and tourism businesses ranging from pubs and restaurants, hotels of all sizes and hotel groups to travel agencies, tour operators and travel management companies.

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Understand your trading profitability to grow your business

Posted on: September 13th, 2013 by Matthew Thomas No Comments
Matt Thomas, Director, MHA Broomfield Alexander

Matt Thomas, Director, MHA Broomfield Alexander

Throughout the more challenging trading conditions of recent years, those travel businesses that have grown and remained strong share a keen understanding of their trading profitability. This requires systems and controls to be in place to monitor sales mix and net margins by product line.

While this may sound straightforward, often companies place undue focus on driving total sales and rewarding staff on this basis, which can lead to a detachment from real profitability. It is all too easy to sell low-margin products and boost sales at the expense of sacrificing margins and undervaluing the true service cost that your business bears to deliver those sales.

Do your sums
Perhaps a good starting point to changing this culture is to carry out an exercise to establish the running costs per day/hour/transaction of your sales team. This should include both direct sales staff wages, with an allowance for the associated direct costs for your operations including apportioning marketing, office/call centre, technology and transaction charges.

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Recent Changes to Grant Support in Wales

Posted on: October 11th, 2011 by Mike Fenwick No Comments
Mike Fenwick, Director, MHA Broomfield Alexander

Mike Fenwick, Director, MHA Broomfield Alexander

Following the introduction of the Economic Renewal Programme (ERP) in 2010 there have been a number of significant changes to how grant support is delivered to businesses in Wales.

The principal changes introduced by ERP were as follows

  • Targeting support by focussing on a number of key priority sectors
  • Moving to a model of mainly repayable business finance
  • Reallocating a significant proportion of the grant budget to investment in infrastructure and high speed broadband

The initial proposal contained in the ERP was to limit support to the following key 6 sectors

  • Creative industries
  • Information, Communication and Technology (ICT)
  • Energy and Environment
  • Advanced materials and manufacturing
  • Life Sciences
  • Financial and Professional services

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