Over a third of The North's hotels and guest houses are fighting for survival after seeing their business decimated by the foot-and-mouth outbreak, a survey published tonight said.
PricewaterhouseCoopers and the Northern Ireland Hotel Federation found 70 per cent of leading hotels and guest houses have had tours, conferences and events cancelled due to the outbreak.
Their survey warned more than a quarter were considering immediate staff lay-offs, with a further 30 per cent freezing expansion plans.
If business does not improve by July, nearly 70 per cent of undertakings say they will have to make staff redundant.
Sixty per cent of NIHF members' businesses experienced improved turnover in 2000, with 45 per cent taking on extra staff.
Expectations for 2001 were more ambitious with 90 per cent expecting growth, reported the survey.
But since the foot-and-mouth outbreak, 86 per cent had suffered reduced sales, 65 per cent reduced profits and 39 per cent were experiencing cash-flow difficulties.
PwC chief economist Mr Philip McDonagh said the hospitality sector in the North was now operating at levels of activity almost 30 per cent down on last year.
"The industry needs to get back to near capacity or the entire season may be in jeopardy." He said the next ten weeks would be "critical" to the future of the industry.
PA