The UK's tourism industry is expected to hit difficult times as major cuts in the Department for Culture, Media and Sport are scheduled to take effect later this year. The planned 6.2 billion public sector cuts are likely to have an impact across the industry resulting in reduced tourism and a substantial hit to the hotel industry.
Talks are underway and the key challenge is to maintain core services regardless of budget cuts. However, it is still unclear whether or not this will be a viable option.
Good News for 2010
Plans to stimulate the economy in the medium term will benefit the UK's hotel industry, and a number of initiatives are already in the pipeline. With the 2012 Olympics in London virtually right around the corner many hotel owners are anticipating an increase in demand over the next few years.
It goes without saying that 2012 Olympics will be a great way to increase business and develop the UK's tourism economy but the event also poses some serious challenges.
Dealing with the challenge of having proper and adequate hospitality and lodging for the 2012 Olympic traffic will certainly test the local area's hotels and facilities. The good news is that this will help to stimulate hotel business and the wider economy by creating new inflows and excellent job opportunities.
With tourism considered to be one of the main "tent poles" of the UK's economic recovery, the industry is therefore relived to welcome the World's biggest sporting event during this period of economic gloom. Hoteliers across the country are looking forward to enjoying the economic stimulation that the games will bring and hope that it will lead them out of the economic downturn.