According to results from accountancy firm Baker Tilly's Outlook 2012 survey, just 4 per cent of businesses in the hospitality industry had a negative outlook for the year compared to 49 per cent who were positive. The remaining 47 per cent said they were 'unsure' about their future.
Ali Aneizi of Baker Tilly said despite the UK 'teetering on the edge of a double dip recession' there was confidence among business owners in the hospitality sector that business would survive.
She said: “It seems that the general sentiment amongst hospitality and leisure firms is fairly positive and they are looking to innovation and improved service to help flourish through these uncertain times. Although there are some measures that the Government can take in helping businesses to continue the recovery, the basis of performance for the sector is going to be heavily driven by consumer confidence.”
Despite the positive outlook for many, respondents to the annual survey said a reduction in VAT, tax and red tape would help improve business conditions and 45 per cent predict that the economy's general recovery will be slow with low growth while 47 per cent predict economic stagnation.
To survive this year, 49 per cent of businesses said they would be focusing on improving their processes and systems while 43 per cent said they would be cutting costs directly. Over a third (47 per cent) of businesses said they were looking to raise new capital to help them through the economic downturn and hopefully open up new revenue streams.