Expert Insight
NEWS from
Kate Nicholls UKHospitality Chief Executive
Hospitality currently finds itself in two contradictory states; from the outside looking in you may be forgiven in thinking that the sector is back on track, allowed to reopen indoors again, a boom in bookings, the prospect of staycations dominating this summer and pictures across the media of busy pubs, bars and restaurants.
For those able to reopen, they are very unlikely to be turning a profit and balance sheets will still be in need of repair. This in the context of months of closure and over a year of severely disrupted trading, means that despite the majority of venues being permitted to reopen again, the sector remains in a fragile state, still no closer to tackling debts accrued during the pandemic and moving forward in earnest in its recovery.
This contradiction stems from current restrictions in place, there is quite clearly genuine pent-up demand from consumers, but with caps on capacity and the rule of six means that any sector recovery is stifled. The importance of 21st June and the dropping of restrictions is critical and will allow the sector to finally stop treading water, move forward and look ahead to the future with a degree of certainty not seen since before Covid reared its head at the start of last year.
Hopefully, it will also give consumer confidence a much-needed boost and see visitors and workers return back to city centres in greater numbers. The uncertainty that still hangs over the sector is
clearly having an adverse effect, and we’re seeing this play out not just in terms of sales and revenues but in recruitment. Many operators are currently experiencing acute staff shortages, with workers hesitant to return to a sector that is still operating under a cloud of restrictions. Our latest analysis highlights a vacancy rate of 9% which equates to roughly 188,000 workers.
An unrestricted sector will see busy venues translate into healthy revenues and profitability, and this is when hospitality will be able to be a key driver in the wider economic recovery, as it has been previously. This message is one we are repeatedly taking to Government –
that hospitality needs to be released from the shackles that are holding us back. By doing this, we will see hospitality drive job creation and economic growth just as we did after the economic crash in 2008.
Hospitality has proven itself over the past year a resilient and dynamic sector, able to adapt to unprecedented challenges. We have demonstrated our undoubtable value to not just the economy but wider society and the communities we serve. Now, there is light at the end of the tunnel with the success of the vaccination programme as well as trial events that should give Government the confidence to stick to the roadmap. With restrictions removed, we can get back to what we do best.
6
June 2021
www.venue-insight.com
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