New figures from PricewaterhouseCoopers (PWC) suggest that the July terrorist attacks on the capital have slowed overall UK hotel demand but probably only for a short-term period.

The Europe edition of PWC’s Hospitality Directions predicts that the effect of the attacks on the hospitality industry will be short-lived and concentrated mainly in London.

Instead of the 7.9 per cent and 6.5 per cent growth that PWC predicted for the UK in 2005 and 2006 respectively in its May forecast, PWC now anticipates 3.3 per cent Revenue per Available Room (REvPAR) growth in 2005 and a further 3.3 per cent in 2006, with a gain of 4.0 per cent in 2007. This growth will primarily be driven by room rate growth.

PWC’s head of research, Liz Hall, warned that the September forecast could still be disrupted by hard to quantify elements such as fear of future terrorist attacks. Details: www.pwc.com