How seriously has the hospitality industry been hurt by the economic recession? In some cases, significantly; with consumer spend down, operators have had to cut hotel rates and restaurant prices, offer special deals to generate footfall and slash costs. Yet the action taken, combined with good judgment and a measure of luck, have enabled good businesses to survive the downturn not only in good spirits but, some, with protected profits.

The recent Best Western Investment conference, for example, showed the independent hotel sector to be in good heart, determined to expand and develop in what is generally considered to be a difficult sector in which to operate. And a quick glance at the entries for the 2010 Hotel Excellence Awards 2010 – the winners will be announced in the New Year – emphasises the fact that action taken to solve a problem has typically led to higher occupancies, higher yields, and higher profits even in these difficult times.

All this during the deepest recession in a generation.

True, insolvencies are up but they are still relatively small compared with the number of establishments in the industry. True, funding is difficult to obtain to expand and refurbish – but there are over 40,000 new rooms either being built or in the final planning stage. The next few months will be a testing time for many as we enter the traditionally poor trading period of January and February. But the industry has shown huge resilience in 2009 and has survived more or less intact through its own skill and efforts.

Yet there’s no doubt that trading will remain difficult. No-one knows whether consumer spending will pick up in 2010. Will the low value of the sterling encourage yet more Britons to stay at home; will it discourage more Britons from travelling abroad?

There are just too many unknowns for accurate prediction but what is certain is that costs are continuing to rise – and almost all have been caused by government decisions and regulations.

The level of VAT is about to increase back to 17.5 per cent in January - who knows what level it might reach after the new government takes office?

National Insurance rates are due to increase in 2011. The National Minimum Wage rises inexorably every year – dragging other wage rates up in its wake; as a result all payroll costs are constantly forced upwards by government pressure. Business Rates are rising significantly next year. There are plans for four weeks paternity leave from birth for fathers; only the recession prevented the current nine months maternity leave turning into 12 months. There is every prospect that energy and utility costs will continue to increase in the next 12 months – and thereafter.

It is inconceivable that the government does not recognise that all these costs represent an additional burden on businesses that are still fighting a recession. The hospitality industry – and hotels in particular – may have come through it so far in reasonably good shape but only by cutting costs to the bone, reducing jobs and offering special deals to boost demand (but at much reduced margins).

But now the government is piling on yet more cost seemingly unaware of the recession which has already forced operators to sacrifice jobs and endanger investment.

Businesses can take only so much punishment. Through their own foresight, quick action and skilled management, good managers are surviving the recession, but they already operate lean ships in terms of staff numbers and cost.

Now, these new government measures are about to impose yet more new burdens on those operators who have so far survived the downturn through their own talent and ingenuity. Can this continue? Without government understanding – and a moratorium on more regulations that just add cost for seemingly little benefit - the next 12 months could be more critical than 2009.