Half of Lancashire hospitality industry admits to using zero hour contracts

By Dean

28 Jul 2016

[caption id="attachment_70920" align="f-align-medium-right f-align-center" width="238"] UPBEAT: Colin Johnson, partner at Moore and Smalley said the survey results were a positive sign for Lancashire's hospitality industry[/caption]

More than half of Lancashire’s hotel and hospitality businesses that took part in a major leisure sector survey have admitted to employing staff on zero hour contracts, it has been revealed.

55 per cent of those businesses that took part in the MHA Hospitality and Tourism Survey said they used the controversial contracts to employ staff with 35 per cent stating employees on the contracts are given at least 21 hours a week.

The survey, which was put together in conjunction with Lancashire accountants Moore and Smalley, was carried out to judge the success of Lancashire’s leisure industry.

According to the results, more than two thirds of businesses saw an increase in sales and profits in the last year, with 67% of hospitality businesses reporting an increase in turnover while 64% increased profits.

The report also found that the region’s leisure businesses remained confident about the future with more than half saying they expect a further increase in the profits in the next 12 months.

It also found that close to 90 per cent of businesses would be considering further investment in building and infrastructure improvements in the next year and more than half will continue to invest in staff training and marketing.

Colin Johnson, head of the leisure and tourism team at Moore and Smalley, said: “The findings of this research are encouraging and paint a picture of growth and optimism in the leisure sector as the summer season gets underway.

“We mustn’t get carried away though as there are still many challenges for hotel and leisure businesses to overcome. The full impact of the National Living Wage on profits is still unknown and some businesses are still to get to grips with auto-enrolment pension legislation. These are two major issues that tourism businesses need to plan for.”

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