March 2021
9th March 2021
A morning conference for the tourism industry
Featuring travel journalist Simon Calder, marketing expert Prof Rob Kwortnik, Sarah Duignan on hotel performance and TripAdvisor’s Justin Reid. Full details and much more on the website.
Find out more and book now at tourismsummit.co.uk
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INSIDE HOTPLATE
business benefit kills support?
P. 16
ge stronger from the crisis and
LEAVING LOCKDOWN
caused by Covid-19 we need to inspire future at are already in the industry, to stay.
CHIEF EXECUTIVE, GAULT, ose attributes and behavioursJANICE are valued andON THE LONG ROAD BACK TO NORMALITY AND ement to deliver a tourism product that attracts WHY THE INDUSTRY MUST BE SUPPORTED. P. 4
e webinars to discover how your nded support programmes. Funded Skills support from Invest Northern Ireland Monday 15 March, 10.00 - 10.30am David McKeown, Invest NI
P. 21
LOVE IN THE TIME OF COVID WEDDINGS- WHAT COUPLES WANT IN 2021 AND BEYOND. P. 21 MEMBER NEWS Only a few snippts this month. Hopefully we’ll be back to more positive news soon.
P. 6 CASH IS KING Gareth McGonigle from ASM on using forecasting to keep hold of your money.
P. 11 RE-OPENING PLANNING Right Revenue is using data to help you prepare for turbulent times.
P. 12 IMMIGRATION Brexit has brought complications to recruitment but solutions still exist.
P. 20 HOTPLATE
etwork-webinars Northern Ireland Hotels Federation The McCune Building, 1 Shore Road Belfast BT15 3PG Tel: 028 9077 6635 Web: nihf.co.uk Email: office@nihf.co.uk
PRESIDENT’S MESSAGE
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PRESIDENT’S MESSAGE
A
lmost a year after the first lockdown, recovery appears to be some way off. A significant fall in infection levels, reduced pressure on the health service and great strides in the vaccination rollout have been greatly welcomed by us all. After the positive announcements from the Prime Minister, there was much hope of a similar pathway document from the Executive but it was not to be. There is no denying the disappointment many felt nor the distress it has brought to those planning a wedding or a holiday. Support for the sector has been forthcoming and the Federation has been pressing for this to continue throughout any future lockdown period and until full normal business trading is restored. Having opened for two short expensive weeks at Christmas, the desire is for the hotel sector to open within a viable framework in a sustainable manner. Clamouring to open without the ability to trade profitably or remaining closed without support are both unpalatable options. The Federation has been assured of a more collaborative approach to the easing of restrictions and hopes that this will result in a better outcome for the sector in the long term. The Budget saw the current reduced 5% VAT rate held in place until the end of September. It will then be replaced by a new 12.5% rate until March 2022. A new VAT band offers hope of
a continuing reduction from the top rate in the future. Furlough has been extended until the end of September with increased contributions from July onwards. This offers a small cushion against the “furlough cliff edge”. It’s been a very tough time for staff and hopefully by the summer we will be on the road to recovery. The Federation produced a policy paper – Return to Trading for Hotels, which outlines a five phase restoration process which would be supported by eight key measures. This will continue to be the focus in the short term until the effects of the pandemic have been fully addressed. We’re staging a Tourism Summit next week and will be focusing on the Road to Recovery. There is a very topical programme with a welcome address from the Economy Minister, Diane Dodds MLA, who recently announced a £290m economic recovery action plan which recognises the importance of tourism. The line-up also includes renowned travel journalist Simon Calder, Professor Robert Kwornik from Cornell and an updated hotel forecast from Sarah Duignan of STR. There will be insights from Tourism Northern Ireland, Tourism Ireland and NITA. In staging the summit, the Federation has had great support from sponsors which has enabled us to create an innovative programme for the event. This assistance is greatly appreciated, particularly in the current
STEPHEN MELDRUM President
circumstances. You can see the full programme at tourismsummit.co.uk and all members have a free logon. Just contact the Federation office to make sure you have the details. I hope when I write my next address that we have made progress towards restoring the hotel industry to normal trading. Thank you for your continued support and I would like to take this opportunity to wish you, your staff and families continued good health and hope that you are coping in these particularly challenging times.
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EDITORIAL
LEAVING LOCKDOWN JANICE ON THE LONG ROAD BACK TO NORMALITY. The definition of a “Pathway” is a series of actions that can be taken in order to achieve something. This week the Executive released its long awaited paper on the road out of lockdown. Titled, Moving Forward: The Executive’s Pathway Out of Restrictions, this publication was greeted by dismay with a lack of dates being identified as possibly its greatest failing. The document details 3 measures and 5 periods of easement across nine pathways. Hotels have been placed in the travel and tourism pathway. However, the complex nature of hotel trading would place certain activities under the at least three other pathways: Worship and Ceremonies, Hospitality and Sports and Leisure Activities. It could also be argued that the pathway for Culture & Heritage and Entertainment will affect recovery of the hotels as well. In a summer whose success appears to be based on the “staycation” the availability of things to see and do will play a critical role in the attractiveness of Northern Ireland. The reaction to the Executive’s document is hardly surprising. With no dates, no clear route or progression and a process based on 9 pathways over 5 phases, the prospect of 45 plus permutations is a cause for concern (never mind confusion). It should be noted that there is some sympathy for those political decision makers who are facing an unprecedented situation. There is a realisation that the transition
of COVID-19 from pandemic to endemic status was never going to be simple. After a disastrous cycle of opening & closing in 2020, culminating in the festive fiasco of Christmas, businesses want to open within a viable framework in a sustainable manner. The document gives four review dates. The first of these is 16th March and the understanding is that there will be little easement for travel, tourism and hospitality on that date. 15th April is the next review day and the indication is that collaboration with industry will take
JANICE GAULT Chief Executive
COVID-19 Return to Trading for Hotels
NORTHERN IRELAND HOTELS FEDERATION
February 2021
DOCUMENT.
5-STAGE PATHWAY. » The Federation set out the five steps needed for the industry to get back to normal.
» This is the pathway document published by the Federation in February 2021.
8 KEY SUPPORT MEASURES. » The support needed covers a wide range of areas. The Federation will continue to lobby for this support and more.
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place as pathways are reviewed possibly around this time. The publication of the pathway paper has resulted in cancellations, a falling off in demand for hotel stays and anxiety for staff. Vaccine rollout, falling infection numbers and an easement of the pressure on the health service are all positive developments which give hope. However, a date, a timeline and a framework are what businesses need to survive and reopen. The Federation sees the pathway back to normally stretching over five phases. Support will be required throughout this journey. Restoration of the economy and the establishing of societal norms will come. However, the price the hotel sector and the wider tourism industry have paid has been enormous. The Federation published a policy paper in February and has pressed for 8 key support measures. It is good to see that some of these measures have been addressed in the Budget of 3rd March 2021. In the main, the approach has been a short term one, with VAT extended for six months and a new VAT band introduced for the remainder of the fiscal year. Local support by way of grants has been put in place and the hope is that this will continue until recovery is underway. The NIHF will continue to press for a better business climate. There is a flicker of light at the end of the tunnel. The issue for hotels is that we do not appear to be around the corner to see it, just yet!
BUDGET BULLETIN
POSITIVE STEPS IN RELATION TO VAT, INVESTMENT AND FURLOUGH BUT PLANS FOR RE-PAYING THE NATIONAL DEBT ARE COMING. The Chancellor Rishi Sunak presented his second Budget on Wednesday 3rd March 2021. In his speech he stated his Budget ‘meets the moment with a threepart plan to protect the jobs and livelihoods of the British people’. Main Budget proposals Tax measures include: • A super-deduction for companies investing in new plant and machinery. • A time extension of the temporary increase to the SDLT nil rate band for residential property in England and Northern Ireland. • An extension to the temporary 5% reduced rate of VAT for tourism and accommodation until 30th September 2021. The introduction of a new 12.5% rate until 31st March 2022. • A temporary increase in the carry-back period for business losses.
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An increased rate of corporation tax from 2023.
Other Measures: • Extension of the Job Retention Scheme to 30th September 2021 under its current terms but with employers contributing 10% of wages in July and 20% in August and September. • Self-Employment Income Support Scheme fourth and fifth grant. • A new mortgage guarantee scheme. • Business Rates relief for England, this is a devolved matter with the local rates position to be fully clarified by the Department of Finance. A number of initiatives in the Budget are not UK-wide and may be implemented in a different manner in Northern Ireland.
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MEMBER NEWS
CLAYTON HOTEL BELFAST. » Clayton Belfast has relaunched their Club Vitae Health Club. Over the last year a renovation programme has taken place which has included updating the sauna, steam room, changing rooms and gym with new equipment added. This city centre health club is still the only venue to offer a swimming pool.
NIHF MEMBER NEWS
IVANHOE HOTEL
CULLODEN ESTATE & SPA
The Ivanhoe has taken advantage of the lockdowns to refurbish the hotel bedrooms. So far 10 of the 29 rooms have been completed. The hotel has also invested in a new front office system in preparation for the industry re-opening.
Hastings Hotels has been crowned ‘Best Luxury Hotels Collection – Northern Ireland’ and also picked up the ‘Client Service Excellence Award 2021’ at this year’s LUX Travel & Tourism Awards. Now in its fifth year, the Travel & Tourism Awards, hosted by Luxlife Magazine, recognise those businesses that are offering the finest experiences, products and services in the industry. Howard Hastings, Managing Director said: “We are delighted to have won these awards. Despite the challenges the travel industry has faced during the last year, we continue to pride ourselves in offering the very best service to our guests.”
9th March 2021
A morning conference for the tourism industry
Featuring travel journalist Simon Calder, marketing expert Prof Rob Kwortnik, Sarah Duignan on hotel performance and TripAdvisor’s Justin Reid. Full details and much more on the website.
Find out more and book now at tourismsummit.co.uk With thanks to
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THE SEMINAR SERIES PEOPLE
SALES
Who will be joining you down ‘the road to recovery’?
The staycation - where will your customers come from?
Three curated seminars to help you to bring your people on the journey with you.
Our markets, the segments and best prospects.
1 - Re-establish your identity 2 - Re-engage the workforce 3 - Re-energise your business These three 45-minute seminars will look at the solutions and give you ideas and tools to help with these challenges. Each People Seminar will be delivered by Tim Browne who is an experienced trainer, with an engaging mix of energy, enthusiasm and humour in his delivery to teams and audiences. He is a communications specialist within the hospitality, retail and service industries. He has a wealth of experience of creating cultures, engaging teams and motivating staff.
How to capture their attentions and compel them to book. This 45-minute seminar will provide an in-depth analysis for the hotel sector including an action plan and a checklist for delegates. The session will be delivered by Helen O’Leary, business consultant to the tourism industry. Helen is a specialist in sales, marketing and commercial strategies. A recognised expert in hotel sales and marketing with a proven track record in business growth, new account acquisition, segment realignment and channel development.
Tim Browne
Helen O’Leary The Seminar Series will be delivered online in preparation for the re-opening of the sector. Further details soon at nihf.co.uk.
TOURISM NEWS
ECONOMIC RECOVERY PLAN
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DALATA CEO PAT MCANN STEPS DOWN
MINISTER DODDS LAUNCHES PLAN.
LAUNCH. » Dr Joanne Stuart, CEO, NITA and Angela McGowan, Director, CBI with Economy Minister at launch of Economic Recovery Action Plan.
In February, the Economy Minister, Diane Dodds MLA launched the Economic Recovery Action Plan which sets out a road map to rebuilding the economy from the impact of the pandemic.
•
Upon its Launch, the minister said: “Northern Ireland’s economic recovery will be driven by innovation, investment and a skilled workforce. As we move slowly back to normality, we must put all our efforts into restarting, repairing and rebuilding our economy.” The report identifies supporting a highly-skilled workforce, stimulating research and development, building a greener economy and promoting investment, trade and exports as the drivers to recovery.
The plan has a number of key actions for tourism which the Federation welcomes and is pleased to see that tourism has been recognised as a key driver for the local economy. While these are difficult times, it is important that we look to the future. The Economy Minister, Diane Dodds MLA, has been a firm supporter of tourism and has laid out an ambitious and comprehensive range of measures within the action plan with a cost of £290m. The NIHF is supportive of the process which is underpinned by a collaborative and region wide approach.
It also identifies a number of actions the Department plans to take to stimulate growth. These include: • the development of a flexible skills fund; • widening access to apprenticeships by removing the age cap; • developing proposals to implement a Northern Ireland artificial intelligence centre of excellence; • delivering the High Street Stimulus Scheme;
Investment, Trade and Exports is one of the key themes of the plan. Hotels really contribute to this action having invested over £650m over the last five years. However, what many do not realise is that the bulk of tourism spend is an export as it brings in monies from overseas. Prior to the onset of the COVID-19 pandemic tourism contributed £1bn to the Northern Ireland economy with £700m falling into the export category.
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delivering a Tourism Voucher Scheme to stimulate demand; accelerating delivery of City and Growth Deals; and developing a green innovation challenge fund.
Dalata Hotel Group Plc has announced that Chief Executive Officer, Pat McCann has informed the Board of his intention to step down as CEO and from the Dalata Board following a transition period. Pat McCann has served as Dalata CEO since founding the Company in 2007. The Dalata Board has announced that Dermot Crowley, currently Deputy CEO, will succeed to the position of Chief Executive Officer.
ANDRAS HOTELS NEW GM FOR HAMPTON Andras Hotels are delighted to announce the appointment of Stephen Sellars as General Manager for Hampton by Hilton Belfast City Centre. Stephen joined the company in May 2019, with over 10 years’ experience in hospitality. Whilst the hotel has been closed Stephen has been honing his baking skills and learning sign language. Stephen commented “I’m thrilled to take up my position as General Manager and can’t wait to welcome back my fantastic team and of course our guests as we get closer to reopening”
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ON THE ROAD TO RECOVERY SHARING LOCAL WITH YOU
WE’RE WITH YOU EVERY STEP OF THE WAY We aim to embed quality into everything we do; whether that’s in our people, service or products. We proudly support the Virtual Tourism Summit, and look forward to once again being able to share our local talent and produce.
BD Foods specialise in a wide range of premium fresh, frozen and dry goods to the foodservice sector including speciality duck, game, continental cheeses, premium store cupboard ingredients and cured meats.
Henderson Foodservice is one of the largest foodservice companies in Ireland and has one of the widest product portfolios spanning across fresh meat and produce, chilled, frozen, ambient, and non-food.
Foodco enhances the Henderson Foodservice portfolio with a wide range of products ideal to create delicious meals including fish and seafood specialities, international cuisine ingredients and Artisan bread products.
BETTER TOGETHER henderson-foodservice.com
FINANCE
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CASH IS KING... BUT MAKE SURE YOU ARE IN CONTROL. The recent extension to lockdown in Northern Ireland until 1 April 2021 will be disappointing to many but may not have come as a surprise to the hospitality industry. While most, if not all, hoteliers have come up against cash flow and working capital pressures since the pandemic hit, the extended period of closure means that grants and loans already secured will be diminishing and as government support tapers down, cash-flow pressures may remain for some time. If your business does not use cash-flow forecasting on a regular basis, now is the time to start. It is a fundamental tool that supports operational and financial performance and decision making. In challenging times or in dire situations, it will help shape decisions on cashflow management and planning, on the need or opportunity to refinance, or in making the decision to sell or cease trading. In short, it promotes decisive action. Regardless of the size of your finance function, never has solid cash flow forecasting been so imperative to ensure survival in the short term and to enable growth in the medium and long term. Why implementing proper forecasting is essential now. 1.
A well prepared and agile recovery With so much uncertainty, forecasts should evaluate various scenarios on the road to recovery including the cost of any repurposing or introducing new product offerings. Cloud-based tools can be used if working across multiple sites to facilitate easy sharing and whatif analysis can be used to assess different scenarios.
projected revenue, operators can quickly adapt to changes in market conditions and demand when lockdown eases. 3.
4. One central source In a volatile trading environment, data should be consolidated daily from across the hotel to create real-time forecasts not bound by month-end deadlines. Forecasts used as a strategic tool, instead of just a reporting vehicle, can make a substantial difference. Out of date or inaccurate forecasts will lead to poor decision making while realistic, comprehensive and easily flexed forecasts help protect asset value and can buy precious time until revenues start flowing again. Cash flow forecasting challenges. Some of the challenges to reliable, pragmatic forecasting are: 1.
2. 2.
Weighing up risks and opportunities By forecasting different scenarios, understanding probabilities and risks, and paying close attention to
Cash and working capital With the correct forecasting tools in place, operators can ensure that appropriate levels of cash and working capital are on hand. Accurate projections help optimise staffing and purchasing, manage utilities efficiently and scheduling maintenance to better control costs
Clear presentation Forecasts will be viewed by various stakeholders including lenders and investors. Ensure they are clear and concise but with sufficient levels of detail i.e., separate income streams with associated fixed and variable costs, timing of tax payments and key supplier payments. Timely forecasts There has been a shift to weekly rather than monthly forecast models within the last year to ensure any liquidity gaps are identified as soon as possible.
GARETH MCGONIGLE ASM Belfast
Follow this trend. 3.
Lack of speed and agility in an ever-changing environment The ability to quickly tweak forecasts to reflect new income opportunities, changes to opening dates, government support and payment holidays is essential.
4. Clear assumptions Every cash flow forecast depends on assumptions around future revenues, cost of sales, growth opportunities from new markets or product offerings. These must be clearly defined and articulated for them to be challenged and tested. Do not compromise your business due to the absence of cash-flow forecasting and management. Early warning of impending problems allows you to be in control of the decisions you may need to take. Gareth McGonigle is Restructuring and Insolvency Director at ASM Chartered Accountants and is a Chartered Accountant and Licensed Insolvency Practitioner. If you require advice on cash flow forecasting, or restructuring or insolvency advice, please do not hesitate to contact Gareth on 028 9024 9222 or at gareth.mcgonigle@asmbelfast. com.
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HOTEL INDUSTRY
TOMORROW IS COMING ADRIENNE HANNA ON PREPARING TO RE-OPEN AND HOW TO MAXIMISE YOUR DATA. Tomorrow belongs to those who hear it coming… • This is a quote I have used many times and gosh, I wish it was mine but alas, David Bowie is the genius behind it, but isn’t it more true today than ever? At the time of writing, we are weeks away from opening, but are we ready? Whether we care to admit it, business will be different; demand will be different; our customer needs will be different, as will pace, price point, rate strategy and buying patterns. So how do we prepare ourselves? How do we start to prepare for tomorrow and to absolutely see it coming.
•
My advice is to measure everything as understanding data and trends will be critical. Even if you think you are a traditional ‘leisure’ hotel, what you will find is that this new ‘Staycation’ segment behaves very differently. Let’s take pace as an example…
•
• Lead times will change. They will either be very short with customers waiting until the last minute to book or more likely, very long, with ‘pent up demand’ being the order of the day. But how are you measuring that? •
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What kind of people are booking? Families, couples, girly breaks, larger groups? Which rates are they buying?
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Activity packages? Dining breaks? Cultural stays? What is the average length of stay? We are very much expecting (and seeing) much stronger pick-up on multi-night stays so be very careful about allowing those 1 night weekend breaks! What price point? This is not a time for a ‘race to the bottom’ attitude. This is a time to have a strong rate policy but a FAIR one. You want to maximise profit but you also want happy customers who will come back. These are short-break stays so even if foreign travel is allowed, you want to give your guests such a great experience, that they will want to come back. How are your customers booking? Now is the perfect time to get your brand website in order and push direct but as travel opens up you will need to continue to work with the OTA’s. Monitor changes in booking channels like a hawk. What is your cancellation pattern like? If you forecast too high, you risk closing out too early and pushing rates to high, too soon. If you forecast too low, you risk leaving profit on the table. You will only understand your actual booking curve if you are tracking. Which rooms types are pacing strongly? You may see demand for higher room types as customers treat themselves to a luxury break
ADRIENNE HANNA Right Revenue
•
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but you won’t know unless you track How is your demand pacing against your comp set? Pricing should never be driven by a single competitor, it is your job to understand where you sit in the market and how that changes. Which digital ad campaigns are affecting your pace? What is driving your demand and how do you maximise?
To find out how Right Revenue can help take the heavy-lifting from data tracking and help you maximise revenue, just ask@rightrevenue.co.uk
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TOURISM IRELAND
A SPOTLIGHT ON THE ISLAND OF IRELAND TOURISM IRELAND WILL CAPITALISE ON HEIGHTENED EXPOSURE FOR IRELAND ON 17TH MARCH. St Patrick’s Day will be a virtual celebration in 2021; however, Tourism Ireland will roll out a really extensive programme of promotions to capitalise on the heightened exposure for the island of Ireland around the globe on 17th March, to ensure that Ireland remains ‘top of mind’ as a great holiday destination for bookings, when the time is right. This year, Tourism Ireland’s St Patrick’s programme will include: • Global Greening 2021: numerous iconic landmarks and buildings around the world will take part in Tourism Ireland’s Global Greening 2021 initiative around St Patrick’s Day. From Brussels to Buenos Aires and from Sydney to San Francisco, a host of buildings and sites around the world will light up in green.
GOING GREEN. » The Sydney Opera House and the London Eye will join Tourism Ireland’s Global Greening again in 2021. Tourism Ireland is encouraging tourism partners in Northern Ireland to light a green candle on 17th March.
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Green Candle: Tourism Ireland is encouraging tourism partners here in Northern Ireland to take part in the Global Greening from home, by lighting a green candle at 7pm on 17 March and then sharing a photo of the candle on social media – to send a message of hope, solidarity and friendship to the world. A new online video will be created by Tourism Ireland, inspiring people to think about holidaying here in the future. This video will be shared by Tourism Ireland on social media in GB, the US, Canada, Germany, France, Spain, Italy, the Netherlands, Belgium, the Nordic countries, Switzerland and the GCC. A tailor-made event, called ‘St Patrick’s Day @Home Live’, will be livestreamed on social media from Johnny Fox’s pub in the Dublin
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Mountains, as well as from other locations, including the Duke of York in Belfast. A big international publicity push will take place in the run-up to, and on, St Patrick’s Day. Activity in this area will include a video news release to Tourism Ireland’s database of 20,000+ international media contacts. Tourism Ireland will also be working closely with popular international influencers. For example, Dr Tim Campbell from the Saint Patrick Centre in Downpatrick will tell the story of St Patrick, including some fun facts, to influential US and Canadian journalists and influencers.
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Calor BioLPG.
100% renewable energy for your business. Made from renewable and waste materials, Calor BioLPG reduces carbon footprint and cuts emissions by at least 50%. It’s identical in use and performance to regular LPG, so switching is easy. That’s why businesses are choosing Calor BioLPG to help them meet their sustainability targets and their customers’ demands. See more at calorgas.ie
How can your business benefit from funded skills support?
Invest in your talent to emerge stronger from the crisis and help your business flourish. As the industry builds back from the disruption caused by Covid-19 we need to inspire future generations to enter the industry – and those that are already in the industry, to stay. Building back with a better skilled workforce, whose attributes and behaviours are valued and nurtured will provide the much-needed reinforcement to deliver a tourism product that attracts visitors and encourages repeat business.
Act now. Join our series of free webinars to discover how your business can benefit from funded support programmes. Funded Skills support from Ulster University Management Knowledge Transfer Partnerships & Innovation Support Wednesday 10 March 2.00 - 2.30pm Dr Peter Bolan and Amanda Fullerton, Ulster University
Funded Skills support from Invest Northern Ireland Monday 15 March, 10.00 - 10.30am David McKeown, Invest NI
Free Workplace Health and Wellbeing Support Programme Monday 15 March, 2.00 - 2.30pm Emma McCrudden, NI Chest, Heart and Stroke
Register: www.people1st.co.uk/HATS-network-webinars
TRAINING
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FUNDED SKILLS SUPPORT NEW GUIDE LAUNCHED TO HELP INDUSTRY FIND FUNDED SUPPORT PROGRAMMES. The Hospitality and Tourism Skills (HATS) network has launched a guide on funded skills support available to help hospitality and tourism businesses retain talent through this difficult time and develop the skills needed for the future. Developed in partnership with the Department for the Economy and Invest NI, the guide outlines the funded support programmes available from local colleges, Invest NI and Ulster University plus provides links to online training courses and mental health and wellbeing support.
HATS Network chair, Ciaran O’Neill from the Bishop’s Gate Hotel comments:
Roisin McKee, Project Director for the HATS Network adds:
“As the industry builds back from the disruption caused by Covid-19 we need to inspire future generations to enter the industry – and those that are already in the industry, to stay. There are support packages available now to help businesses invest in talent to emerge stronger from the crisis and help them flourish. The new guide is an excellent resource that will be hugely beneficial in giving clarity to many businesses in these difficult trading conditions.”
“We have a unique opportunity to reset the status quo when it comes to skills and professional development. Building back with a better skilled workforce will provide the much-needed reinforcement to deliver a tourism product that attracts visitors and encourages repeat business.” Act now and benefit from funded skills support to invest in talent and help your business emerge stronger from the crisis. Access the skills funding guide via https://people1st.co.uk/HATS-network/
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ECONOMICS
Webb Wonders
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Musings from the Federation’s Economic Advisor
COMFORT OR CLARITY? ANDREW WEBB ON THE EXECUTIVE’S LACK OF CLARITY AND THE CHANCELLOR BRINGING SOME COMFORT. After a lot of hype and tales of what would and could be announced, the Chancellor delivered a Spring budget and re-confirmed the ‘whatever it takes’ mantra that he has tried to carry through the past year. There will be many who feel there could have been more support over the past year but there is no denying the enormity of the numbers. The current Covid-19 support bill is standing at over £400 billion. The Chancellor was aiming to steer a path from protecting jobs through to fixing public finances and on to building the future economy. In his speech, the Chancellor probably delivered more comfort and certainty for the hospitality sector than our own Executive managed just days earlier. Over the course of his speech he confirmed the extension of the Furlough scheme and the business rates relief until the end of June (for England).
The NI Executive following suit with at least the same will be a massive boost to business here. The Chancellor also extended the 5% VAT rate for hospitality until September before going to 12.5% until April of next year. This is an important move. That said, its only important if the sector is open and able to attract custom. I’ve never been one to demand dates when dealing with how we move out of lock down; we are dealing with an exceptionally contagious virus after all, but I think I heard the collective frustrated sigh when the Executive released their plan for reopening the economy. Time and again the message goes out that businesses need certainty. Certainty is in such short supply but at least the Chancellor did his best to provide it where he could.
Once we are through the pandemic and when trading has resumed it isn’t going to be a flick of a switch moment and everything is back the way it was. The sector will need aftercare to see it back to full fitness. What we really need is visitors. To that end, it is encouraging that Tourism NI are very active and alert to the challenge of focussing on the domestic and near markets before aiming for the international visitors, which will be harder to reach. There is encouraging evidence from last August when visitor from the south soared by 200%. More of the same this summer, with clarity on the terms of trade and appropriate levels of support might go some way to repair a very fragile sector.
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IMMIGRATION
IMMIGRATION SOLUTIONS EMPLOYING WORLD CLASS TALENT IS STILL POSSIBLE. With the advent of Covid much has changed in the world and in the middle the Brexit transition period ended on 31 December 2020. Along with that, came the end for freedom of movement and the introduction of the new immigration point based system. Do you need to change your recruitment strategies? Since 1 January 2021, European nationals coming to the UK for the first time will now be treated in the same way as nonEuropean nationals and will need to apply under the new immigration rules. Therefore, businesses relying heavily on a European workforce will need to urgently make some key adjustments if they haven’t already done so.
the UK) may be appropriate. What is a sponsor licence? A sponsor licence allows UK-based companies to employ skilled workers who are based overseas and are planning to move to the UK or are in the UK under a different visa category (for example Tier 4 Student and Tier 2 visas). Once the licence is approved, it will be valid for a period of four years with the option for renewal.
SHADNOUSH MCCLEMENTS Noush & Co
What are the eligibility requirements for to £10,000 and the company could also a sponsor licence? face prosecution. To be eligible to apply for a sponsor Here at Noush & Co. we are experienced licence, your organisation must have UK immigration experts ready to help a UK presence and be operating or you and your business to reach its trading lawfully in the UK. If you have In many cases, employers will need to multiple UK branches you may apply for potential by taking the worry of business immigration off your mind. sponsor European nationals under the one licence to cover all your linked UK new skilled worker category and will entities – alternatively, you might apply We work closely with your business, need a sponsor licence. If the business for separate licences for each branch, tailoring our support to the specific needs does not already hold a sponsor licence, it depending on your circumstances. of your company. Depending on your should consider applying for one as soon requirements, we can either provide full as possible, with appropriate advice. Applying for a Tier 2 sponsor licence end-to-end support or ad-hoc advice on is tricky. Employers often run into specific queries. Businesses will also need to budget for difficulties if they apply for a licence the significant costs associated with without really understanding how the Shadnoush McClements is managing the sponsorship system and factor in sponsorship system works. Problems director of Noush & Co. Based in Surrey, lead time for the individual to obtain employers face include having an they deal with clients all over the world, their visa before starting their role in application rejected or refused, or including Northern Ireland. the UK. In addition, employers should experiencing compliance issues further consider how the changes will impact down the line, including having a sponsor Shadnoush has close links to Northern workers coming to the UK temporarily licence revoked and in severe cases, if a and whether the visitor or new frontier firm is found in breach UKVI regulations Ireland having married here to a local and is often visiting friends and family. worker permit scheme (for those overseas (having employed workers without the residents who have previously worked in right work permit) may issue a fine of up
WEDDINGS
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LOVE IN THE TIME OF COVID CIARA CROSSAN FROM WEDDING DATES ON WHAT COUPLES WANT IN 2021. WeddingDates has just launched its 2021 Wedding Industry report which looks at the key findings and trends that have emerged over an unprecedented year in the hospitality sector.
a heartening cohort of brides and grooms are looking at 2022 weddings and beyond with a confidence from which the wedding industry can take inspiration.
If 2020 showed us anything, it is that even a pandemic can’t stop love.
The COVID Divide
Couples across Northern Ireland have continued to commit to lifelong love and get engaged. In fact, 67% of this year’s survey respondents have gotten engaged during COVID. More than half of those said yes in the 30 day period immediately preceding our 2021 survey, signaling a new confidence in the future after a long 2020 decline. Couples also continue to plan weddings. WeddingDates has processed almost 23,000 enquiries since the start of the pandemic. While the postponement of so many 2020 weddings has caused a huge shift in the length of time couples are spending engaged, the engagement backlog is good news for wedding venues and suppliers looking to fill capacity for their remaining 2021 and 2022 dates. Most significantly,
The data shows us a significant divide in our pre-pandemic and post-pandemic couples. Looking at all couples, the majority are booking 2022 dates. But for the cohort engaged before COVID, they are reluctant to put off their weddings any longer and are going ahead with 2021 dates. THE ALL IMPORTANT VENUE 74% of our NI respondents have chosen a hotel as their venue, the traditional favourite. Our survey has consistently shown that location is key when choosing a venue. 2021 is no exception, and while location is the #1 factor in choosing a venue, this is less about an idealised setting and more often about convenience. Couples tend to look for venues near their own or a parent’s house, and somewhere that’s convenient for family and friends.
VENUE TOURS IN THE VIRTUAL AGE 2020 marked the year virtual tours really came to the fore in the wedding industry. 66% of our respondents were new to virtual tours and had never done one, but 32% of them say it’s a great idea while 34% say they still wouldn’t be interested. However, 34% of survey respondents had done a virtual venue tour, with most doing 2 3. Interestingly, this corresponds to in-person venue visits, where 2 - 3 is also the most common. Of those who had done a virtual venue tour, a live stream walkthrough with the wedding planner was the preferred lone option, although most couples wanted combinations of tours. The full report is available for download on h ttp://bit.ly/ wed2021reportUK If you would like to know more about using the WeddingDates WedPro software to generate better quality leads, improve your conversion and accelerate your wedding revenue then reach out to company CEO Ciara Crossan via Linkedin or email Ciara@weddingdates.co.uk.
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NORTHERN IRELAND HOTELS FEDERATION
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