p19 C&F sep12 8/9/08 18:08 Page 19
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‘Fear drives firms’ acts’
Lee Hayhurst.
the business confidence and spending required
A LEADING firm of travel industry accountants for economic growth to resume.”
has said some UK businesses are taking actions The survey of 500 small to medium-sized
to mitigate the downturn even though they are enterprises was carried out in July and August
Club Med sales are up
trading ahead of next year. and 84% of respondents said they thought there
Commenting on the results of a survey of had been a significant overall decline in the
FRENCH resort operator Club Med has attributed businesses in all sectors of the UK economy, economic outlook for the UK.
a 6.8% increase in third-quarter sales to its move including travel firms, Andrew Burnham It found 75% were imposing stricter controls
upmarket. (pictured), principal at MacIntyre Hudson, said: on operational expenditure, while 44% had
Although growth in sales has slowed over “Despite the high level of anxiety among the reduced their capital expenditure.
the summer the Paris-based operator said it saw business community, 26% said About a third were cutting back on staff,
sales increase to ¤362 million for the three their business was doing better 47% were tightening credit control for existing
months to August, compared with ¤339 million than last year, and 19% said customers and 44% conducting stricter credit
for the same period last year. trading was much the same. assessments for new clients.
In a statement the company said: “The lull “And yet many were taking Survey respondents also reported greater
following the early booking phase is continuing protective measures even difficulty in agreeing borrowing from banks with
and deepening, especially for long-haul destina- though they had yet to experi- two-thirds saying the rate of interest they were
tions, and leading, as anticipated, to an increase ence any downturn themselves. charged had increased in the past six months.
in last-minute sales.” For them, fear is the driving force. Burnham said although owner/managers were
Evidence of the downturn, particularly for “This response is both rational working harder, most had not changed their
Club Med’s long-haul destinations, came in the and sensible, but illustrates the plans for exiting the business and over half
slowing of growth in sales, which stood at 5.7% problem for policy-mak- expected the income from their business to re-
on August 30, down from 8.8% in June. ers in re-establishing main the same, not decrease, over the next year.
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