I recently joined the Board of the International Hotel and Restaurant Association (IH&RA). I feel that within this global economy, and with a government committed to addressing global security and environmental issues, it is essential that our industry is represented at all levels of the global market.

British tourism has improved markedly over the past two years, with figures for 2005 showing record numbers of overseas visitors, though the amount that they are spending has yet to hit the peaks of 2000. The BHA is well-placed to oversee the continuation of this trend.

But if current conditions favour the hospitality industry in terms of demand – and investment in new hotels continues apace – we must also be aware that the cost of doing business in Britain is also rising.

Energy costs continue to increase rapidly. Interest rates are gradually going up. The Treasury’s overall tax take is also on the increase, chiefly through stealth taxes and a refusal to increase tax allowances in line with inflation. The powers of local authorities to levy taxes to supplement the ever increasing council tax are also to be expanded in the next few years.

Whatever the outcome of the Lyons Enquiry, the possibility of a bed or tourist tax remains a very real threat, especially in light of the recent report in Scotland proposing a similar tariff on tourism. At the same time, our level of VAT is one of the highest in Europe, and national minimum wage costs account for 30 per cent of revenue in England, more in Scotland and Wales.

Britain is already at a competitive disadvantage with Europe; above all these increasing costs is the cost of complying with Britain’s regulatory regime.

In the last year, the BHA lobbied on more than 20 major government Bills – from the Work and Families Act to the new non-smoking regime in public places; from the setting up of Alcohol Disorder Zones to the chaotic introduction of the 2005 Licensing Act.

As ever, it is smaller hospitality operators who suffer the most, and it is these operators who’s businesses require the most protection, as more often than not they lack the support infrastructure to make sense of the constant flow of the new regulation.

While the BHA is well placed to make an impact on a global and national level, we are constantly working to help our smaller members regionally and locally. With the three events for members piloted earlier this year, we reconnected with our members in the regions, and over the course of a morning seminar updated those present on the forthcoming legislation they need to know about, and what they need to do to comply with the regulations.

Next year, as part of our Centenary celebrations, we will be running a series of events for all members in the regions which will again look at those issues you need to be aware of, and allowing you to meet your fellow members, celebrate your industry’s successes, and share your experiences. No hospitality business operates in a vacuum – your support of the BHA’s regional events helps your association to work on a national and global level to best protect your interests.

Even more regulation will impose even greater burdens on businesses in the future, raising costs, increasing prices and harming competitiveness at a time when, in a free global market, Britain is on its own competing with other, freer economies.

There is a real danger that the cost of regulation could price us out of the market. We are working to help prevent this happening, but as ever it’s only with the support of our members that we can have a real impact.