Hospitality: Interest rate cut could boost jobs

Wed, 11 Feb 2009

Last week’s cut in interest rates could lead to more hotel openings in the UK, according to hospitality recruiters.

Mark Norris, chief executive at Profile, told Recruiter: “A decrease in interest rates combined with the weakness of the pound should provide an ideal environment for companies to invest in new facilities, build or buy hotels and expand their interests.

“Simultaneously, our weak pound will increase the UK’s attractiveness to countries enjoying excellent exchange rates. Theoretically, this will lead to real growth in business success in the hospitality industry and a resultant increase in the availability of jobs.”

Martin Smith, director at Collins King, adds: “It is similar to how the euro was a couple of years ago with more Brits going abroad to get value for money. I would say with the interest rate being cut, we would be a more attractive proposition for the Europeans.”