According to the International Society of Hospitality Consultants, the top 10 issues of the industry for 2007 were labor and skills shortage, construction costs, technology, changing demographics, future of hotel profits, branding, distribution concerns, travel restrictions, emerging markets and capital availability.
Based on actual performance most of 2007, there appears to be continued growth in international tourism, especially in the emerging market and developing economies, which overall posted a 5% increase, the fourth consecutive year it has yielded such a performance. Approximately 610 million tourists have been recorded for the period of January to August 2007 while a further 32 million are already booked through to the end of the year. There seems to have relatively minimal impact of the turbulent financial markets, security and health issues, increased taxes on air transport or the increase in oil prices, although the latter situation is projected to have a more significant impact as the price approaches US$100 a barrel. The impact on consumer confidence could prove to tip the scales on the demand for international travel once this point is reached.
In the UK, strong growth was posted in the hospitality industry for the last quarter of 2007 even as the economic situation worsens. According to a Deloitte survey, the UK room revenue per available room (revPAR) increased by almost 7%, some UK cities including London (10.4%), Aberdeen (18.6% - the highest in the UK) and Glasgow (13.1%) posted double digit increases. Scotland posted the best performance in hotel occupancy for the UK overall. London, with occupancy levels of 82.7%, costs more per night at £126, an increase of £12 per night from 2006, which contributed to the revPAR rating of the city.
