03/03/2009 - Scottish hotels suffer in downturn
A new report has revealed that the economic turmoil has hit Scottish hotels harder than the rest of the UK, with occupancy falling 4.1% on average during 2008.
Takings were also down further than in England and Wales, according to the survey by accountants and business advisers PKF.
Aberdeen was the only city to buck the trend after it recorded a rise in revenue because of the strong offshore industry, although it still suffered a 4.6% fall in occupancy rates.
PKF spokesman Alastair Rae warned that the sector should be braced for further decline. "The impact of the credit crunch increasingly affected the hotel sector during 2008," he said.
"The decline in both occupancy and rooms yield in Scotland has increased in pace toward the year end and looks likely to continue into 2009."
He added: "The hospitality industry is facing one of its toughest economic challenges for some time and it is important that the fundamentals of managing costs, increasing efficiency savings and monitoring profitability remain in place."
Copyright © Press Association 2009
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