The current trading situation is putting more and more emphasis on the need for skilled staff.

Since Easter, tourism demand in London has remained strong, and it’s largely holding its own in major cities, but it is distinctly weak in rural and resort areas where domestic holiday tourism – on which these areas depend – is suffering from lower consumer spending, later booking patterns and a 20 per cent increase in food and utility costs.

Hotels and restaurants are suffering from exactly the same inflationary pressures as consumers are facing. As a result, any price increase – if at all – has to be kept to the minimum, which then puts considerable pressure on the industry’s profitability. The scope for essential re-investment is thus reduced.

This difficult trading situation makes it all the more important that the government recognises that there should be no new regulatory burdens on hospitality businesses. Unfortunately, however, there are proposals to extend the working conditions of full-time workers to agency workers who have worked for one employer for 12 weeks or more.

The industry employs over 100,000 agency workers, who tend to move from employer to employer at different times of the year. They provide an efficient and flexible workforce, which suits both the industry and the workers themselves. Already, wage costs represent over 30 per cent of a hotel’s revenue (and more for a restaurant). Giving agency staff the same employment conditions as other workers will add more cost to the industry’s payroll bill, putting yet further pressure on the viability of some individual hotels. The government seems oblivious to the damage this will cause.

This highlights the need for the establishment of the employer-led National Skills Academy for Hospitality, for which I am delighted to be appointed its first chairman.

Rising input costs make it ever more important that we raise skill levels in all areas so that staff can work smarter and more effectively. The network of Academy training centres will enable us to achieve this. Each centre will serve a particular occupational or regional skills need. Regardless of their particular specialism, they will all be recognised as offering excellent training.

Academy training programmes will be run by Academy providers, subject to rigorous quality assurance, and they will represent the highest currency across the sector. The first Academy learners will come on-line in September of this year in the five launch colleges: Bournemouth and Poole College, Westminster Kingsway, University College Birmingham, Leeds Thomas Danby and Newcastle College. In Year 2, we will increase our reach and the number of recognised centres offering Academy provision.

When an Academy learner applies for a position in industry, employers will know they are recruiting a member of staff with the practical and personal skills to make an immediate contribution to the business.

I’m glad to say that already the Academy has the support of many leading companies including Barcelo Hotels, Compass Group, Sodexho, InterContinental Hotels, Accor Hotels and McDonald's Restaurants.

I’m sure many others will join as the value of Academy training is tried, tested and proven.