John Wigfield, director at Cubley Hall hotel, Penistone, says it is vital to spend on improved facilities and marketing.
The hotel, which John has run with business partner David Slade for 31 years, said: “It is a false economy to cut spending or to just stay stuck in a rut.
“We have decided to move more into business tourism and have spent money on new equipment and new branding and we are optimistic about the future.”
He has recently taken on a new chef and two other new members of staff to add to the 70-strong team.
The hotel has been given free advice from business support programme Enterprising Barnsley.
Adrian Waite, of Enterprising Barnsley, said: “Over the next four years £20 million is being invested in the Barnsley visitor economy in a variety of public and private sector projects, including Experience Barnsley and Cannon Hall Farm.
“Every pound invested in tourism in Yorkshire delivers £40 into the Yorkshire economy, making it worth £7billion a year.”