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New cash registers boost Swede hospitality sector

TT/The Local/vt · 8 Jan 2011, 13:45

Published: 08 Jan 2011 13:45 GMT+01:00

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"I can see only one explanation frankly, and it is that the cash registers have had an effect," said Eva Östling Ollén, the president of the Swedish Hotel and Restaurant Association (Sveriges Hotell- och Restaurangföretagare, SHR), on Saturday.

"They have cleansed the industry and in this way, I think one can see a positive outcome in the bankruptcies," she added.

Last year, corporate bankruptcies on the whole fell by 10 percent in Sweden. However, the hospitality industry went against the grain, with bankruptcies increasing by 14 percent to a total of 474 in 2010, trade magazine Hotellrevyn recently reported.

Certified cash registers were introduced in the industry on January 1st last year. As a result, turnover in the industry has increased and at the same time, the number of failed companies.

"Many have suffered now that one must account for every krona, but it is a measure that is necessary," said Östling Ollén.

Story continues below…

Another possible explanation behind the outcome is that business travel and conferences have not recovered to the same levels they were at before the financial crisis.

"It can of course be a possible explanation, but it is not where the big change is," said Östling Ollén.

TT/The Local/vt (news@thelocal.se)

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Your comments about this article

02:21 January 9, 2011 by BarCode
A lot of employees lost their jobs as these businesses were taxed to death.
08:38 January 9, 2011 by Russ Cobleigh
now if you could just teach these hospitality industry workers to be more hospitable!
10:43 January 9, 2011 by Keith #5083

I presume you mean they were taxed to death on the income they declared - as opposed to the actual income they received. So I guess what you are saying is that greedy tax-fiddling employers didn't want to share the full benefits of their business with the workers who helped to make it but of course wanted the full benefits of the society?

Before you attempt to comment about 'my ignorance' know that I was in the accountancy profession for over 20 years, specialising in small businesses.

Keeping proper accounts is an important management tool and those that don't usually go to the wall - or to jail.

The greed that gives rise to tax-fiddling is the same greed that deprives employees of a reasonable share in the profits they help generate!!!
12:52 January 9, 2011 by Marc the Texan
High tax rates promote tax fiddling. Well documented across all societies and over history. Lowering rates also has the amazing effect of increasing receipts. Pretty amazing.
20:59 January 9, 2011 by Darwinder
Every restaurant now needs to be more clever in figure out ways to get "black" money into there business. After having worked in Sweden the past 5 years in various bars I can tell you that this whole business runs on "black", and all of these major new changes only force business owners to get more crafty. I believe tax should be paid, I really do, but unforunately the industry is just not set up for it that way currently, everyone demands to be paid in cash, musicians, dj's, security..on and on, with the level of wage that is paid in this country it is impossible to run a bar without using black, unfortunately that is a fact. The worst part of all of this though, is that prices will continue to rise higher so when you think about it, its not really the business owners who need to end up paying more tax, its the average joe paying 70kr for a pint when just 3 years ago it was 52kr.
09:20 January 10, 2011 by Borilla
@Marc the Texan

"Lowering rates also has the amazing effect of increasing receipts." Sadly, you are incorrect, as evidenced by the State of Texas itself. The state's budget is set every two years. Billing itself as "business friendly" and boasting of low corporate tax rates, Texas's budget projections (for a budget due this year) are for a $25 billion (US) deficit. This does not bode well for the state's citizens and small businesses. The only ones likely to benefit are the large corporations and the legislators they support. The only thing shown by the above article is that the hospitality industry in Sweden, as in every country, attracts a certain number of those who see these cash driven businesses as an opportunity to cheat the tax man and, therefore, their fellow citizens. As stated by the SHR itself, new cash registers have "cleansed the industry".
11:44 January 10, 2011 by Keith #5083
@Marc the Texan

Big hat, no steers? I guess your opposition to taxation is also a fundamental principle of your life and that you religiously avoid anything in society that has been

created as a result of taxation? Yeah, right!

Another 'I want the benefits but not the responsibility' philosophy of greed, ideally suited to this article.
11:47 January 10, 2011 by Rick Methven
"religiously avoid anything in society that has been

created as a result of taxation? Yeah, right!"

That would mean he could never go out on the roads, built by the money collected by those taxes he is so against
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