£80.8bn worth of sales wiped out in past 12 months

30-Apr-2021 - Last updated on 30-Apr-2021 at 15:45 GMT

No trade: it is estimated the industry lost 9m an hour in the past 12 months, as a result of lockdowns (image: Getty/Borislav)

The coronavirus pandemic has cost the hospitality sector more than £80bn worth of sales from April 2020 to March 2021, new research has found.

The latest edition of the UKHospitality (UKH) Quarterly Tracker with CGA found sales during the period was £46bn – a drop of 64% (£126.8bn) compared to the previous 12 months.

This fall is equivalent to £220m sales each day or more than £9m an hour, reflecting the impact regional and national lockdowns have had on the sector.

It follows data from CGA and AlixPartners’ Market Recovery Monitor, which found about 12,000 licensed venues closed in Britain, between January 2020 and March 2021.

Many companies face jeopardy

Of the sites remaining, some have been able to reopen for outdoor trading only since Monday 12 April but most will have to remain closed or reopen with restrictions.

UKH boss Kate Nicholls 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 Monday 21 June.

“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."

Stranglehold of restrictions

She added: “Hospitality can help power the national economic recovery, providing jobs to people who have lost them, bring people back together for safe socialising and continue to serve those most in need in communities all over Britain.

“To do this however, we need to operate without the stranglehold of restrictions, and for the Government to work with the sector on a recovery plan.

“Our sector has suffered about 660,000 job losses in the past 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.”