Coronavirus

Hospitality sector loses £30bn in Q2

Sales across the UK’s hospitality sector plummeted by 87% in the second quarter of 2020, equivalent to nearly £30bn in lost revenue, according to the latest UKHospitality Tracker.

The “catastrophic” loss follows the widespread lockdown of restaurants, pubs, bars, hotels, and other hospitality venues from mid-March. 

In light of this, sales from April and June alone totalled £4.6bn, down by £29.6bn from £34.2bn in the second quarter of 2019. 

The latest date confirms the “enormous and disproportionate impact of lockdown on the industry”, according to UKHospitality and CGA. 

While the industry contributed £133.5bn to the UK economy in 2019, the rolling annual value of the sector has now fallen below £100bn, with 12-month sales to the end of June totalling £97.2bn. 

Kate Nicholls, CEO of UKHospitality, said: “These latest figures highlight how precarious the present situation is. While it’s great that some businesses are trading again, for many opening their doors remains unviable, while some parts of hospitality are still legally required to stay closed. 

“We are only on the very first steps in a long recovery. These figures substantiate our message that businesses still need support from the Government, if we want to avoid more business failures and job losses.”

Phil Tate, group CEO of CGA, said: “Our Tracker data is the clearest picture yet of the calamitous impact of the pandemic on hospitality. Hospitality was one of the first sectors to go into full-on lockdown and one of the last to come out, and the result was a virtual wipeout of sales in the second quarter. 

“This is a resilient and dynamic industry, and its reopening in July has given the whole country a lift, but COVID-19 has brought unprecedented and existential challenges. Hospitality needs and deserves the support of the Government and public as it begins the long road to recovery.”

Back to top button