News / Bristol Hoteliers Association
Bristol hoteliers fear ‘tough times’ ahead
Although the start of a new year often brings fresh optimism, hoteliers in Bristol have voiced serious concerns about facing “tough times” ahead in 2025.
Members of the Bristol Hoteliers Association (BHA) warn that the hospitality sector is set for a challenging year, as the financial impact of last October’s budget takes hold.
BHA chair Raphael Herzog highlighted the difficulties on the horizon.
He said: “Post-Christmas is traditionally a quiet period, but by April, we will face a perfect storm of rising taxes, National Insurance contributions, higher wages, and increasing property rates—just when we should be seeing a recovery in business.”
Members of the Bristol Hoteliers Association (BHA) warn that the hospitality sector is set for a challenging year, as the financial impact of last October’s budget takes hold – Photo: Hotel Du Vin Bristol
In addition to the fresh financial pressures, Herzog noted the rise in energy costs, with suppliers also increasing their prices due to their own struggles.
Herzog also pointed to the staffing crisis the sector is grappling with.
“We are still battling to recruit staff, but the cost of employing them is rising significantly.”
This announcement comes as a recent British Retail Consortium (BRC) poll revealed that two-thirds of leading retailers are planning to raise prices to cope with increased National Insurance costs, while many are also considering cutting hours, reducing staff, or increasing automation.
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According to the BHA, consumer confidence remains low, further exacerbated by the ongoing cost-of-living crisis. This has been reflected in a quieter-than-usual festive season, with both corporate and private events down and many people cutting back on their spending.
Herzog also noted changing lifestyle patterns alongside the budget woes, as younger generations become increasingly health-conscious. More people are opting for low or non-alcoholic drinks, which is reshaping social gatherings.
He said: “Younger people are generally more health-conscious, and there is clear evidence showing that an increasing number are turning to low and non-alcoholic drinks.
“As a result, we’re seeing a shift in the types of ‘team celebrations’ people are seeking over the festive season.”
Although the start of a new year often brings fresh optimism, hoteliers in Bristol have voiced serious concerns about facing “tough times” ahead in 2025 – photo: Milan Perera
Figures from the British Beer and Pub Association (BBPA) show that more than 120 million pints of low and no-alcohol beers were consumed across the UK in 2023, with this number expected to rise by a further 20 million once the 2024 figures are analysed.
To compound these challenges, Herzog expressed concern that the potential introduction of a workplace parking levy in Bristol could negatively impact businesses, while the unregulated rise of Airbnb properties is intensifying competition in the accommodation market.
Herzog expressed optimism on the potential benefit for the hospitality sector upon the completion of projects like sporting quarter in south Bristol – photo: Milan Perera
While exciting developments, such as the YTL Arena Bristol in Filton and the multi-million-pound sporting quarter in south Bristol, provide hope for the future, Herzog stressed that immediate support is needed to help the sector survive long enough to benefit from these opportunities.
All photos: BHA
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