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City hotels suffer worst as Britain feels the pinch
 
The Hilton is one of the city's busiest hotels and bosses say it will be able to survive any lean times ahead
The Hilton is one of the city's busiest hotels and bosses say it will be able to survive any lean times ahead
 

A DROP in the number of hotel guests in Glasgow has been blamed on the global credit crunch and high fuel prices.

A new survey shows the city was worst-hit in the UK during March as the number of full rooms fell by 8.4%.

In Scotland as a whole bookings were down 5.3%.

The report on hotel occupancy was published by business advisers PKF and based on a survey of more than 300 three and four-star establishments across the UK.

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Some industry insiders said this could signal the beginning of a slowdown in the industry as travellers keep a closer watch on their wallets. But many Glasgow hoteliers said April went on to be their best month in 10 years and added that demand in the city continues to be strong as it heads towards the 2014 Commonwealth Games.

Business chiefs also remain optimistic about the future - with two developers looking to launch new hotels in the city because of its potential.

Scott Taylor, chief executive of Glasgow City Marketing Bureau insisted all European destinations had been hit by the slowdown except Budapest and cited the earlier Easter break in March instead of April this year as a reason.

He said occupancy in Glasgow's 12,000 hotel rooms was 75% in April, the highest since records started 10 years ago.

But he added that the credit crunch, poor exchange rates with the US dollar and petrol prices were having an affect.

Mr Taylor said: "It's a mixed bag. There's no doubt companies are cutting back on their travel and expenditure.

"You will see a continuing squeeze on higher and top-end hotels, and the budget sector continuing to do well.

"Cities will spend their way out of tough times. We have started that already by spending on the Commonwealth Games, the Glasgow Airport rail link and the M74 extension.

Glasgow is better placed than most to handle a downturn."

Alastair Rae, from PKF, said 2007 was a record year for hotels in Scotland and added it was inevitable that figures in 2008 might not always compare well.

He said: "It may be the start of a downturn but it will be difficult to know until April's figures come through. The sector will have to be creative over the rest of the year in order to stimulate business."

But Craig Gardner, general manager of the two Hilton hotels in Glasgow and one in Bellshill, said the number of conventions in the city continues to attract guests.

He explained: "The market is robust and we're doing well. It's all positive news."

Other Scottish cities named in the survey that also saw a downturn in March included Edinburgh, down 4.5%, and Aberdeen, down 7.4%.

Publication date 26/05/08

Posted by: Sydney Meriwether, Glasgow on 11:03am Mon 26 May 08
Mr Taylor said:
Cities will spend their way out of tough times.

This is EXACTLY what I've been talking about for months: that a city economy built essentially on tourism (and call centres) is dangerously weak! It is even weaker when we have so-called experts unable to see what was coming...

...and now we have this so-called expert telling us that public money will be used to bail out transnational hotel companies, at the same time that the decrepit Glasgow City Council (who partly pay Mr Taylor's sky-high salary) is cutting back on spending on education and social work.

The best thing Mr Taylor could do is tell his boss at GCMB (a certain Mr Purcell) to resign and let someone with knowledge and ability do the job ...before it is too late for Glasgow.
Posted by: Meep, Shawlands on 11:18am Mon 26 May 08
I told you so. I told you all that Gl;asgow has an over-provision of hotels and that Glasgow was not a tourist city. I told you so. and now when the global recession hits home the relaity of the uselessness of hotels becomes apparent. I look forward to some the city centre hotles being converted to homeless hostelas over the next ten years due to the mortgage crisis kicking in. The worst has yet to come.
Posted by: People Power, Glasgow on 12:27pm Mon 26 May 08

I never understood the huge volume of hotels built within Glasgow, in such a short period of time.
Whether it's a tourist destination or not. The sustainability of the smaller hotels, and even the far more expensive ones in the long term is clear.
We all know America is feeling the squeeze, the dollar is weaker against the pound, and a potential recession looms there.
Air fares are far more expensive due to the cost of fuel, so if hotel costs are also as high tourists could be less inclined to stay as long.

Surely the quality, not quantity of hotels should be the key. And the greed of city councillors in allowing so many hotels to be built in recent years is starting to prove more detrimental, than beneficial.

Out of interest how many new hotels have been built within Glasgow in the past 10 years ?

People have priorities, and when their earnings cover less of their outgoings, i.e. the cost of taxation, fuel, living, mortages, inflation, interest rates etc is it any wonder some people have going to hotels on the bottom of their list.

Perhaps if Glasgow hotels want to encourage more trade from within the UK they need to seriously look at their price structures, and offer more discount deals etc online, and a.s.a.p.
Posted by: jim, Glasgow on 1:04pm Mon 26 May 08
london is even worse
Posted by: People Power, Glasgow on 1:30pm Mon 26 May 08

I can only imagine how much worse London is for its hight prices, and trouble with congestion, not just of the traffic.
Folk may enjoy that buzz of being in such a 24/7 city, but it - like so many other UK cities have a long way to go before they can compete with their European cousins.

Give us an alternative to pubs, and places which can stay open far later, and people might not feel the need to get carry outs from off licences, or drink as much at home.

The culture of Glasgow and other UK cities has as much to do with the problem as the cost of living.
Posted by: jkr, Lochwinnoch Greater Glasgow on 2:01pm Mon 26 May 08
Glasgow not a tourist city? Rubbish! Of course it is. Any time I am in town , which is fairly often I always see and hear foreign visitors about. Glasgow is also a gateway to the rest of Scotland so the city will always need hotel rooms to cope. The more recent April occupancy figures prove this.
Posted by: ex labour voter, glasgow on 4:06pm Mon 26 May 08
jkr wrote:
Glasgow not a tourist city? Rubbish! Of course it is. Any time I am in town , which is fairly often I always see and hear foreign visitors about. Glasgow is also a gateway to the rest of Scotland so the city will always need hotel rooms to cope. The more recent April occupancy figures prove this.
How do you know they are not asylum seekers?
Posted by: Scott, Airdrie on 5:47pm Mon 26 May 08
Sydney,

When I saw this headline I just knew the first comment would be yours - do you just sit all day by your PC waiting for something to whinge about?

Congratulations - in typical style, you've managed to link negative aspects of a news story to your favourite targets, Glasgow Council and Stephen Purcell. You complain about public money being used to bail out hotel companies (although it's actually being used to develop the city), but you're happy to blame public authorities for the actions of those same companies.

Again, typically, no solutions to the problem are offered, apart from sacking your No.1 enemy Stephen Purcell. Is this your way of trying to get his job, because it doesn't work like that.

Boring, tedious.....but if it gives you some purpose in your empty life, then maybe it's all worthwhile.
Posted by: Sydney Meriwether, Glasgow on 7:09pm Mon 26 May 08
Congratulations yourself Scott... one very small point though... it's actually Steven Purcell... just remember it like I do... every time I think of him I see V for VACILLATION!
Posted by: jkr, Lochwinnoch Greater Glasgow on 7:10pm Mon 26 May 08
Ex labour voter.

How do I know they are not asylum seekers?
Pretty obvious to me the difference. I have been asked for directions to various tourist attractions in the city but have never been asked where the nearest benefits office is!!
Posted by: People Power, Glasgow on 8:11pm Mon 26 May 08
ex labour voter wrote:
jkr wrote: Glasgow not a tourist city? Rubbish! Of course it is. Any time I am in town , which is fairly often I always see and hear foreign visitors about. Glasgow is also a gateway to the rest of Scotland so the city will always need hotel rooms to cope. The more recent April occupancy figures prove this.
How do you know they are not asylum seekers?

Okay so Glasgow is a tourist haven, but - it has to be said how do you distinguish between tourists, and the huge influx of Polish and other E.U. residents ? the vast numbers of foreign people within Glasgow don't necessarily reflect the huge numbers of so called tourists.
Posted by: celtic4, United States on 8:19pm Mon 26 May 08
So. Glasgow is not a tourist city? Rubbish. I am a potential tourist from America and cannot wait to see the glory of Glasgow. But I will admit we are under the crunch just now with petrol prices being sky high and the airfare going up. And the dollar far weaker than the pound. Ouch. But I and my best friend are coming to your fair country and not for asylum.
Posted by: alexparade, Glasgow on 8:32pm Mon 26 May 08

occupancy in Glasgow's 12,000 hotel rooms was 75% in April, the highest since records started 10 years ago.

So why all the fuss about March's poor figures then? Do people actually care about any of this?
Posted by: Meep, Shawlands on 8:51pm Mon 26 May 08
celtic4, considering that over 30 million people are on food stamp aid in America has we speak i wouldnt be talking about yankee tourists. America is in recession due to senile Bush. America has squandered its federl reserves on thr Iraq genocide. So american tourism will be a rare occurance over the next 30 years. Go and read some Batman comics. Clown.
Posted by: QuincyMD, Glasgow on 11:24am Tue 27 May 08
Seeing as prices for hotel rooms in Glasgow are astronomic, over £70 a night at most hotels for a room, then lets hope this crunch will see us customers getting a good deal.

...and maybe if they stopped charging £8 for breakfast on top of the room rate then they might get more return custom.
Posted by: People Power, Glasgow on 11:39am Tue 27 May 08
QuincyMD wrote:
Seeing as prices for hotel rooms in Glasgow are astronomic, over £70 a night at most hotels for a room, then lets hope this crunch will see us customers getting a good deal. ...and maybe if they stopped charging £8 for breakfast on top of the room rate then they might get more return custom.

Too right QuincyMD,

The only PM's we're going to be doing in months to come are on the dead hotels, never mind people in them.

Ask the question why hotels need to charge such exorbitant prices, and how much their management and executive continue to be payed through this credit crunch.

Then theres the shareholders, shaky investors, sponsors and the likes - the squeeze is affecting all aspects of hotels and their custom.

If the top chiefs of hotels like the Hilton Grosvenor and The SAS Radisson etc all want to charge such high prices fine - but lets see their reaction when their profits fall, and empty hotel rooms rise. My heart bleeds for them.
Posted by: Foxy, Brigadoon on 6:54pm Thu 29 May 08
A DROP in the number of hotel guests in Glasgow has been blamed on the global credit crunch and high fuel prices.

Strange how the same scenario hasn't affected Edinburgh Hotels...FWIW The Glasgow Airport Rail link isn't expected to wash it's hands
finacially, the M74 extension is a road to nowhere and the Commonwealth Games merely being a panacea to cure Glasgow's ills. Why oh why does Glasgow rely on corporate and political fixes? Let the markets decide and stop begging for handouts to fix the unfixable.
Perhaps folk might voluntary visit Glasgow if
it wasn't relying on taxpayer funded incentives.
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