At just past the 2010 half-way stage, against continued economic uncertainty and looming public spending cuts, we take a look at whether the recovery is still on track or likely to be de-railed; the first-half reality for the UK hotel sector and the prognosis for demand in the second half of the year. We also summarise the latest economic data and re-visit what the scale of the new public sector cuts mean for hotels – there’s a lot to lose with public sector travel procurement estimated to be worth around £3bn.