NEARLY a third of Bournemouth hotels are at risk of failing in the next 12 months as cash-strapped holidaymakers continue to tighten their belts.

That’s the warning from the insolvency trade body R3 which says the lure of cheaper accommodation abroad is also taking its toll on UK ‘staycations’.

With just a few months until the start of the summer holidays, R3’s research shows that 30 per cent of Bournemouth hotels are at risk of failing in the next year.

Twenty per cent of hotels are at risk in the North East, 19 per cent are likely to suffer the same fate in Scotland while 17 per cent are struggling to stay afloat in London.

James Stares, vice chairman of the R3’s Southern Committee and director of Grant Thornton in Southampton, said: “This is disappointing news, particularly as Bournemouth is such a beautiful area with many highly regarded hotels and popular tourist attractions. The fact is that many people are now living on tighter budgets and, while one would expect this to lead to an increase in ‘staycations’, some European countries are often offering much cheaper alternatives, in terms of accommodation.”

He added: “While the figures may look grim there is no reason for even those hotels in the most troubled bracket to fail.

“Seeking the advice of a professional sooner rather than later is the key is recovery.”

Commenting on the research, Andy Woodland, chairman of the Bournemouth Accommodation and Hotel Association (BAHA), said: “The economic climate is making it tougher for hoteliers here because of food inflation and the minimum wage going up.

“While their margins are getting smaller the price they are able to charge their customers has remained the same.

“I’m surprised by these figures but I have spoken to a lot of hoteliers who say they are going through the worst time they can remember.

“The weather plays a big part and Easter was difficult. As soon as the forecasters say it is going to rain in Bournemouth – even if it doesn’t – we become unstuck.

“It is a difficult time for hotels but the good ones, who pride themselves in providing a great personal service and building up a loyal clientele, will always be able to survive.”