New research by business advisory firm PKF and the University of Portsmouth has found that fraud could be costing the UK's hotel industry in excess of £2bn each year.

Findings from The Resilience to Fraud of the UK Hotel Sector were combined with the results of a separate study - both of which were undertaken by the two institutions.

The Resilience to Fraud of the UK Hotel Sector examined how the hotel industry is protecting itself against fraudulent activity and identified areas which required more action.

Using a 50-point scale, the sector was found to be less resilient than other industries. It had an average score of 25.4 points, compared with 30.6 points for the private sector as a whole.

However, the sector did perform strongly in some areas - 88 per cent of respondents have a zero-tolerance approach to fraud, while 85 per cent promptly reported suspected activity.

PKF national hotels partner Stuart Collins said: "Fraud is a serious issue for hotel companies and one that has far reaching consequences.

"Given the challenging business environment, with the possibility of a double dip recession, hoteliers are advised to review and strengthen their protection against fraud."

Report co-author Jim Gee added: "Hoteliers need to be proactive in their approach to tackling fraud - responding and reacting to individual incidents is not enough."

Details: www.pkf.co.uk