Hospitality and leisure

Global Challenges

The hospitality and leisure industry sectors are highly sensitive to economic and competitive market conditions and are capital, management, marketing, personnel, energy, maintenance, and technology intensive.

Demand and consumer expectations have continued to expand with the evolution of a global marketplace and the increased development of a population desiring additional conveniences. Hospitality and leisure companies can only meet the challenges of today’s world market by understanding, and establishing strategy to address, consumer trends, economic conditions, technology, competition and concerns for public safety.

Importance of this sector to the local economy

Tourism is the leading services activity in terms of employment and is a key foreign currency earner. As at June 2009, this sector employed circa 10,000 people, which corresponds to 6.8% of the gainfully occupied. In January to June 2009, gross earnings from tourism accounted for 12.1 per cent of exports of goods and services.

How can PricewaterhouseCoopers help

PricewaterhouseCoopers provides advice and know-how to hospitality and leisure owners, franchisors, management, lenders, investors, creditors, business organisations, government entities, local authorities and product and service providers. Our professionals fully understand the underlying dynamics of the market, and are able to provide various services to clients engaged in the hospitality and leisure industry sector, including:

• Business Strategy – Our professionals offer transaction, performance improvement and other strategy and business planning services to focus the direction and resources of our clients.
• Transaction Support/Due Diligence – Our approach, whether for single asset purchases or a portfolio, is to study the market conditions, competitive positioning and threats, repositioning potential, reporting integrity and value.
• Valuation – Our professionals perform valuations and appraisals for single assets to large-scale, full-service resort and luxury properties, to entire portfolios of assets. We are able to guide our clients in strategising or enacting physical and operational improvements that can enhance entity values.
• Performance Improvement – By examining performance with both comparable and standard costs, our operational specialists can identify areas for improvement in revenue enhancements and cost reductions, and develop and jointly implement actionable recommendations.