4th May 2010
Volcanic ash disruption could boost hospitality jobs in the UK

Recent travel disruptions caused by ash that was released into the atmosphere by Iceland's Eyjafjoell volcano could boost UK hospitality jobs, reports suggest.

As increased numbers of British holidaymakers choose to remain within UK boundaries, giving rise to the 'staycation', hotels and catering establishments are expected to see more business. The effects of the recent recession and ongoing economic instability has also encouraged more people to holiday at home rather than to go abroad.

The knock-on effect is expected to generate additional hospitality jobs and catering work for skilled employees as hotels, restaurants and other establishments react to increased demand.

Cutback in business travel

However, recent reports suggest that a drop in business travel - most recently caused by the volcanic ash, but more significantly due to firms struggling for bank loans amid the economic crisis - is said to be having a negative effect on UK hotels.

In the aftermath of Britain's worst recession since World War II, the hospitality sector is facing difficulties as businesses continue to cutback on non-essential payouts, which in some cases includes overnight stays or use of conferencing facilities.

A report by accountancy firm Wilkins Kennedy claims that the boost in UK tourism "hasn't translated into the increased spending that hotel owners had hoped for" - partly because customers have cut back on their length of stay and extras, such as spas and room service.

Wilkins Kennedy director Anthony Cork said that 2009 saw a "strict tightening-up of corporate budgets", which led to a curtailing of business trips, conferences and team-building events.

2010 may remain a challenging year for some establishments in the hospitality sector. But the rise in UK holidays is expected to generate additional revenue and could go some way towards compensating for the loss of corporate business.

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