Industry Report - Accommodation, Cafes and Restaurants

Confidence up in hospitality sector

The November 2010 Sensis® Business Index found confidence in the accommodation, café and restaurant sector up 15 percentage points to 58% from the previous quarter, well above the average confidence level of 44 per cent.

SOURCE: Sensis® Business Index November 2010

Industry gross value added

Industry gross value added in the accommodation and food services sector grew by 0.7% seasonally adjusted in the September 2010 quarter, down from growth of 0.9% in the June quarter.
By comparison, Australia’s gross value added grew by 0.3% for the September quarter.

Based on: Australian Bureau of Statistics, Australian National Accounts: National Income, Expenditure and Product, Cat. 5206.0, September 2010

Business indicators

Sales in the accommodation and food services sector rose by 0.9% in seasonally adjusted terms in the September 2010 quarter.
In the same period:
•Business gross operating profits fell by 6.7% in seasonally adjusted terms.
•Inventories in the accommodation and food services sector rose by 2.6% in seasonally adjusted terms.
•Wages increased by 2.3% in seasonally adjusted terms.

Key ratios

The sales to wages ratio in the accommodation and food services sector rose by 3.9% in the September 2010 quarter to sit at 3.99.
The business gross operating profits to sales ratio rose by 9.1% in the same quarter, to sit at 0.12, while the inventories to sales ratio was unchanged during the quarter at 0.09.

Based on: Australian Bureau of Statistics, Business Indicators, Catalogue 5676.0, September 2010

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