UK hospitality sector suffers £80.8bn loss
The UK hospitality industry has seen sales plummet by £80.8 billion (US$112bn) over the last 12 months, according to new data.
Data from the UK Hospitality Quarterly Tracker with CGA reported sales from the start of April 2020 to the end of March 2021 dropped to £46bn (US$63.8bn), a decline of 64% from £126.8bn (US$175.8bn) for the previous 12 months.
UK Hospitality said the £80.8bn decrease was equivalent to £220m (US$305m) of sales lost every day, or more than £9m (US$12.5m) every hour.
The sales drop was due to Covid-19 restrictions with the on-trade being forced to close during a number of lockdowns.
Kate Nicholls, CEO of UK Hospitality, said: “It has been a catastrophic year for the sector and we are by no means out of the woods yet. Hospitality’s ability to reopen will remain massively hampered until the government delivers on its commitment to dropping Covid restrictions and measures on 21st June.”
Nicholls called on the government to provide further support and work with the industry on a recovery plan.
She added: “Even then, with so many companies facing rent debts and business rates bills, after more than a year with little trading, many companies – and thousands more jobs – will be in jeopardy unless further support is forthcoming, particularly on tackling the rent debt crisis that threatens our recovery.
“Our sector has suffered around 660,000 job losses in the last year. The increase in unemployment, particularly among younger age groups, underlines the importance of the government to drop further restrictions on our ability to socialise and do business.”
The Market Recovery Monitor from CGA and Alix Partners revealed that around 12,000 licensed premises shut across Britain between January 2020 and March 2021.