Lockdown leads to £30bn in lost revenue across hospitality sector during second quarter

By James McAllister

- Last updated on GMT

Coronavirus lockdown leads to £30bn in lost revenue across hospitality sector during second quarter of 2020

Related tags: ukhospitality, Cga, Restaurant, Sales, Coronavirus, lockdown

The hospitality sector saw a 'catastrophic collapse' in revenue during the second quarter of 2020 with sales plummeting 87%, according to UKHospitality's latest quarterly Tracker collated by CGA.

The losses, which are equivalent to nearly £30bn, follow the widespread Coronavirus lockdown of restaurants, pubs, bars, hotels, attractions and other hospitality venues mandated by the Government in mid-March.

As a result, sales across the industry from April and June totalled just £4.6bn, a loss of £29.6bn when compared to the £34.2bn in takings recorded during the second quarter of 2019.

The Tracker, which combines data from all segments of the hospitality sector, shows 'the enormous and disproportionate impact' the lockdown has had on the industry as a whole.

Hospitality contributed £133.5bn to the UK economy in 2019, following 3.9% growth, but the rolling annual value of the sector has now dipped below £100bn, with 12-month sales to the end of June totalling £97.2bn.

It adds that the cliff-edge drop signals the 'pressing need' for extensive and sustained support over the rest of 2020 and beyond.

“These latest figures highlight how precarious the present situation is," says UKHospitality chief executive Kate Nicholls. 

"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 Government, if we want to avoid more business failures and job losses.”

The Tracker is compiled by CGA, and based on its Trading Index and OPM data on food and drink sales across the on-trade.

“Our Tracker data is the clearest picture yet of the calamitous impact of the pandemic on hospitality," adds Phil Tate, group CEO of CGA.

"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.”

Related topics: Business

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