Credit Crunch
The ‘Credit Crunch’ and the impacts on the tourism industry in the South East of England
Initial research into the credit crunch suggests that the tourism sector will lose some business from overseas visitors and business travellers, but that the industry will be less vulnerable than other sectors.
Download the full Tourism South East report on the credit crunch here
The initial impression is that the number of overseas visitors to the UK will fall and that business travel might drop. However as credit lines dry up the ability of hotel operators to borrow will be constrained. This means that although demand may drop, supply of bed spaces is unlikely to increase. Hoteliers should be able to keep their prices up to established levels.
The ‘Credit Crunch’ and the impacts on the tourism industry in the South East of England
Initial research into the credit crunch suggests that the tourism sector will lose some business from overseas visitors and business travellers, but that the industry will be less vulnerable than other sectors.
Download the full Tourism South East report on the credit crunch here
The initial impression is that the number of overseas visitors to the UK will fall and that business travel might drop. However as credit lines dry up the ability of hotel operators to borrow will be constrained. This means that although demand may drop, supply of bed spaces is unlikely to increase. Hoteliers should be able to keep their prices up to established levels.
Industry analysts say that in this case no compromise should be made on quality in an attempt to gain a competitve edge by reducing prices. More than ever before, the quality of an establishment will be the key determinant of its success.