Hotels And Leisure-00-3650

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But although it is tempting to see the recession as a fire breathing dragon there are some surprising statistics to give heart to all those who own, manage or have any interest in the hotel and leisure sector, not to mention the construction companies that are bidding for new build and refurbishment projects.

Olympics Skewing the Picture?

Sceptics will say that only once 2012 projects are stripped out can the true statistics be evaluated. But surely that is like emptying the filling out of the sandwich before counting the calories! At the end of last year construction in the leisure sector was slowing dramatically: new hotel projects were down 43% from January to August 2008 and there was every indication that the trend would continue, yet London bucked the trend, showing growth in most areas of construction, particularly as work started on the Velopark and the Aquatics Centre at the East London Olympics site. The fact is, 2012 is good for the construction industry and although it may mask the most severe effects of the recession, jobs created as the Olympic Park progresses are surely welcome.

London ...
... Booming

The weak dollar has kept many American visitors out of the UK for some time. In May 2008 the US dollar was hovering around 50 pence but over recent months has started to regain ground. Walk around any London tourist hot-spot today and one can hear the familiar US accent back on British soil. In addition visitors from other European countries have risen. Figures from Visit London show that numbers visiting the capital's tourist and cultural attractions were up 20% in April 2009; that's around 3.6 million visitors streaming into the city looking for places to eat, drink and stay.

Outside the Capital

Regions outside London are also benefiting from tourism. Butlins is about to open a brand new 200 bedroom hotel at Bognor Regis: the Ocean Hotel is part of an extensive programme of regeneration in the area, including residential, leisure and retail development as well as civil engineering works. Travelodge has just opened a brand new development at Clacton on Sea in Essex and is undertaking development at nine other sites, which when complete will create 170 new jobs with an investment from the group of over £28 million. The sites are all tourist destinations and form part of the company's ambitious plans to treble the size of its estate by 2020.

Re-fit and Refurbish

Glenigan, the construction industry data specialist, reports that the rate of decline in new project starts slowed in May and although no true recovery is predicted the figures for the rest of the year are expected to stabilise. Many new projects relate to re-fit or refurbishment as hoteliers and leisure facilities owners make their properties more attractive to the increasing number of UK holiday makers.

A Mixed Bag

The overall picture is complicated. Increased tourism and ‘stay at home' holidays mean that certain sectors benefit. For example, fast food outlets are showing an increase in trade as people choose takeaways over expensive restaurants or look for economical ways of feeding the kids on a day out; yet health club memberships and business bookings at hotels are in sad decline.

Opportunities for construction companies are at a premium. In a highly competitive arena, responsiveness, quality and value are key but it will take more than words to close any sale. The best way to prove performance to potential customers is through an exemplary track record and use of reference sites. What every business aims to do right now is survive but it will be those that are truly in tune with their customers that can survive and thrive.

About the Author:

As one of the UK's leading http://www.phelans.co.uk/ Phelan Construction has a great wealth of experience within the http://www.phelans.co.uk/ having been established more than 20 years ago.
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