The latest research by insolvency trade body R3 has found that hospitality firms in Yorkshire are amongst the first to witness a strong recovery, ahead of other UK regions.
According to the report, only 17 per cent of hotels and 27 per cent of restaurants in Yorkshire and the Humber had a higher than normal risk of insolvency in December.
Yorkshire and the North West were found to be among the best performing regions, only beaten by London, where hotels reported a 16 per cent risk. In comparison, the Midlands was the weakest region with hotels reporting a 23 per cent risk.
The research also found that Yorkshire’s restaurant sector performed relatively well with the percentage of businesses considered to be at higher than normal risk seeing a slight fall of 0.3 per cent from the previous month. Levels were below the national UK average of 30 per cent.
In line with the UK average, 26 per cent of pubs in Yorkshire were found to have a higher than normal risk of insolvency.
William Ballmann, chair of R3 in Yorkshire and partner at Gateley LLP, told the Yorkshire Post: “It is encouraging to see the hospitality sector in Yorkshire continuing to recover as consumers have more money in their pockets and feel more confident about spending.
“This has been further boosted by our hosting of the Tour de France which has already delivered huge benefits to local hotels and restaurants and is expected to continue to attract more visitors to the regions over the coming years.”
Ballman said that January was traditionally the most difficult time for the hospitality sector with insolvencies spiking, but a strong Christmas should provide a buffer.