Hospitality sector lost £30bn in sales during Q2 2020: study
UKHospitality and CGA said this highlights the “urgent need for extended support”.
UK’s hospitality sector saw sales plummet 87% in the second quarter of 2020, equivalent to nearly £30bn in lost revenue, according to the latest UKHospitality Tracker collated by CGA.
Sales from April and June totalled just £4.6 billion, £29.6 billion less from £34.2 billion in the second quarter of 2019.
The hospitality sector contributed £133.5 billion to the UK economy in 2019, following 3.9% growth. However, the rolling annual value of the sector has now dipped below £100 billion, with 12-month sales to the end of June totalling £97.2 billion.
UKHospitality and CGA say the numbers signal "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. 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,” UKHospitality CEO Kate Nicholls said.
Phil Tate, Group CEO of CGA, added: “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.”
