Business News Round Up (14/02/2022)
UK tourism on path to recovery in 2022
New data from the World Travel & Tourism Council (WTTC) shows the tourism sector in the UK is recovering. The industry is expected to make a £192 billion contribution to the economy this year, though this is still down by a fifth on pre-pandemic levels. The global tourism body forecasts a healthy recovery for the UK tourism sector if travel restrictions and “unnecessary” testing protocols remain off limits for the rest of the year. According to the latest research, it could also mean a net gain in jobs for the sector, with a rise of 1.7 per cent on pre-pandemic levels, resulting in some 4.3 million people being employed within tourism by the end of the year, 70,000 more than in 2019. This latest WTTC data will come as welcome news to the country’s battle-scarred tourism sector as it looks forward to travel returning.
https://www.breakingtravelnews.com/news/article/wttc-uk-tourism-on-path-to-recovery-in-2022/
Confidence returning to private equity market
Scotland’s private equity market closed out a steady year in 2021, with a record number of midmarket deals, despite total investment still falling short of pre-pandemic values, according to new analysis. Despite uncertainty caused by COVID-19, both the volume and value of mid-market investments grew year-on-year in 2021. There were 44 deals worth £2.1 billion in 2021 – the largest number in the last five years and a 55% increase on volumes in 2020 when 29 deals worth £1.7 billion took place. The new figures produced by KPMG show a welcome return to form, but by comparison with pre-pandemic levels, the value of deals seen in 2021 remains 19% lower than in 2019 when 42 deals worth £2.59 billion were transacted. Graeme Williams, director, corporate finance M&A at KPMG UK, said: “Scotland’s private equity market saw confidence return, and pent-up demand released in 2021 after an atypical 2020. The momentum we saw at the end of 2020 continued to gather pace into the first half of 2021, and while activity dipped slightly throughout the rest of the year, the levels maintained were still a record high. In the final quarter of 2021, some clouds began to gather on the horizon, with inflation, supply chain stability, fiscal-monetary policy, and COVID-19 variant concerns on the minds of many, however, deals continued to get done.”
North West growth slows as Covid staff absences, rising prices and material shortages bite
Covid staff absences, rising prices and material shortages resulted in the North West private sector recording its slowest growth in business activity for almost a year in January, according to new data. The latest Regional PMI data from NatWest shows the headline North West Business Activity Index registered 50.8 in January, down from 53.1 in December. The latest reading was only just above the 50.0 mark that separates growth from contraction and the lowest since February 2021. It was also below a UK average of 54.2. Latest data showed a sustained increase in new business at firms in the North West, thereby extending the current sequence of growth to 11 months. However, having eased for the third month in a row, the rate of increase was the slowest in the current sequence and well below the national average. Underlying data pointed to modest increases in demand across the region’s manufacturing and service sectors.
https://www.business-live.co.uk/economic-development/north-west-growth-slows-covid-23061469
Scottish salmon exports recover to near record levels
Scottish salmon exports recovered to near record levels, with sales increasing by 36% last year. It remains one of the UK’s biggest food exports, with sales overseas increasing to £614m, compared to 2020 and marginally below the record level at £618m in 2019. The HM Revenue & Customs also showed that the industry directly employs 2,500 people in Scotland and supports more than 3,600 suppliers, with around 10,000 jobs dependent on the sector. Exports were shipped to 52 different markets last year, with growth across 10 of the top 20 markets. France led the recovery – up £119m to £304m – followed by the US as the second main market – up £47m to £152m – and China – up £31m to £45m. The EU accounted for 61% of the volume of global Scottish salmon exports.
https://www.insider.co.uk/news/scottish-salmon-exports-recover-near-26205527