According to the latest UKHospitality Quarterly Tracker and CGA Hospitality Scoreboard, the sector’s revenues have fallen by nearly two-thirds since the start of the coronavirus outbreak.
Between April 2020 and March 2021, businesses could lose around £220 million (over £9 million per hour) a day in revenue, with an additional £80.8 billion taken from hospitality turnover. In just 12 months, the pandemic generated a total of £46 billion in sales, a 64% drop on the £126.8 billion recorded in the same period last year. The figures show that the hospitality industry still needs financial support if it is to help the UK recover from the effects of the pandemic. The Market Recovery Monitor, produced by the CGA and AlixPartners, shows that around 12,000 licensed premises closed in the UK between January 2020 and March 2021. Of those that remain, some have been able to reopen their outdoor capacity from 12 April, but the vast majority will not be able to reopen for weeks and then only under restrictions until at least 21 June.
Our partner association, UKHospitality said in a statement following the publication of the study that it has been a disastrous year for the industry and is far from over. The ability of the hospitality industry to reopen will remain severely limited until the government delivers on its commitment to end Covid restrictions and measures by 21 June. With many businesses still facing rent arrears and business rates bills, after more than a year of poor trading, many businesses – and thousands of jobs – will be at risk unless further support is forthcoming, particularly in tackling the rent crisis that threatens our recovery. The sector has suffered around 660,000 job losses in the past year. The rise in unemployment, particularly among younger age groups, highlights the importance of the government dropping further restrictions on its ability to socialise and do business.
Source: UKHospitality