Today the UK’s economy is still negatively impacted by credit crunch which began in August 2007. Confederation of British industry expects the recovery for UK in 2010 to be slow, sluggish and remain subdued until the middle of 2011 (BBC, March 2010). So even though Great Britain technically is out of the recession the tourism sector continues to experience difficult times because people have been cutting back on taking holidays in the face of the economic uncertainty.
Spending at retail and leisure sectors is reduced too either due to the direct impact of unemployment, or the wider sense of a need to be more financially cautious.Caroline Bremner global travel and tourism manager at market research group Euromonitor International acknowledged that 2009 was a particularly challenging year. However she expects 2010 to be slightly better (BBC, November, 2009) The first sign of slow economic recovery that would have a positive impact on tourism retail and leisure sectors is the recent announcement about level of unemployment in UK. The number of unemployed people has fallen for a third month in a row (BBC, March, 2010).Secondly the British pound which has been weakening for the last two years against the euro and against the US dollar (Appendices 1 and 2) makes UK more attractive to European and overseas tourists. Therese Heslop the head of visitor services for Canterbury Cathedral confirmed the presumptions of this report. She certified that number of foreign visitors compared with the same time in 2008 raised significantly (Kentonline, 2009)Moreover the geographical position of Canterbury is another advantage that induces more tourists from Europe to spend weekend in very famous historical town of Great Britain . Finally more an expensive euro is discouraging big part of Britons from holidays abroad.
Evidence of that was the number of visitors at Canterbury Cathedral which soared to record levels during the Spring Bank Holiday weekend in May, 2009 (Kentonline, 2009).ConclusionsSo nevertheless the costs of establishing partnership would be much lower, no registration, no accounting records or publishing company’s information is needed, in particular a limited liability company is a better choice for customers. It is mainly because of essence of limited liability, the differences in amount owners personally invest, equity they hold as well as because of need for fixed and floating charge to operate smoothly and be able to continue to develop business operations as a separate legal entity despite the illness, retirement or death of its owners.From BCFS bank’s point of view it would prefer a partnership as the owners choice. It is mainly because of unlimited liability meaning customers would be personally liable for all business debts. Moreover it would be a bank’s as main creditors discretion to decide how it will recover the money and who it will sue: one or both partners. To minimize the risk of not being repaid BCFS bank will use the Georgian Town house as a direct security regardless of kind of business entity.
By dealing particularly with a limited liability company BCFS bank has to take an additional form of security called personal guarantee from company’s directors as well as put in place fixed and floating charge.This report has investigated a wide range of services which include account and accounting, money transmission services all of which are important for daily business operations. Without bank’s Lending services money business development would be much smaller and slower. Investing / saving services are not relevant to business in Canterbury since all the money is invested. Protection services cover various types of insurance policies to minimize the risks and avoid financial consequences. Finally advisory services may help the business improve its effectiveness and profitability. Finally even though Great Britain technically is out of the recession tourism, retail and leisure sectors continue to experience difficult times because peoples holiday budgets are tight.
But weaker GBP against euro or US dollar, induces more Britons to spend holidays in UK and attracts tourist from overseas and Europe. That would make a positive for customers business in Canterbury.RecommendationsIt is important for BCFS bank to ensure that all available securities are valid with legal documents settled. Even though the bank has approved to lend money for customers this report is rising the concern about difficult times for the business to face. Credible presumptions emerged from the final part of this report which provides evidence of reduced spending in retail, leisure and tourism sectors.
Since 50% of turnover is expected from retail part of the business (coffee tea room) and 30% form luxury B&B (which represents tourism aspect) the awareness of customer’s relationship manager should be intensified in case business operations start to show the slowdown.Because of this reason business report underlines the importance of good relationship build with business owners. That would serve as win-win situation. Customers will become loyal, use more and more services, recommend BCFS bank to other potential customers. Meanwhile BCFS bank will know what really is going on in business and may take appropriate measures if necessary.