EDITOR'S COMMENT
• The saying goes that a week is a long time in politics, and the last three weeks have proved that the travel and hospitality sectors are far from immune from the effects of wider societal issues, such as the current cost of living crisis.
Since being appointed UK Prime Minister three weeks ago, Liz Truss and her newly formed government have unveiled an urgent support package to cut energy bills for businesses not covered by the price cap and announced a blitz of tax cut measures in a mini-Budget designed to stimulate economic growth.
On one hand, the reversal of the rise in employer national insurance contributions and the introduction of tax free shopping for overseas customers are a welcome boost for the sector by helping businesses limit their expenditure and incentivising foreign tourists to visit the UK and invest in the tourism economy. On the other hand, Chancellor Kwasi Kwarteng made little mention of business rates - another significant outgoing for property occupiers - and this must be addressed to encourage property investors to invest in the sector and raise their confidence in order to address the tumbling value of the pound.
That said, it is the energy crisis that "dwarfs all other concerns for the hospitality trade", according to MHA partner Rajeev Shaunak, as the government unveiled its Energy Bill Relief Scheme. However, while the package places an initial six-month cap on wholesale energy bills for businesses, the hospitality sector would be less vulnerable to future energy price fluctuations if the government reinvested in long-term programmes and provided grants for improving energy efficiency.
The support package drew a mixed response from industry experts - though some see it as recognition of the hospitality sector's importance to the economy, others believe the temporary fixed cap on energy prices does not provide sufficient clarity for businesses seeking to survive this winter. It is clear that long-term solutions are required to stave off mass bankruptcies and job losses, stabilise business expenditure and raise consumer confidence to ensure that the hospitality sector has a bright future.
• Don't miss out on our upcoming RockSTRz webinar tomorrow [27 September] as we dive into "The new era of smarter, sustainable, responsible tourism" [sponsored by PriceLabs and Minut]. Expedia Group's senior manager for climate and sustainability, Tessa Lee, will participate alongside Emanuele dal Carlo [Fairbnb.coop], Vanessa de Souza Lage [Sustonica] and Judy Kepher-Gona [STTAKenya] - join us for the no-cost session here.
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