Revealed: Full extent of the impact Covid on hospitality industry

It has emerged that the full extent of the damage done to the hospitality industry two years on from the start of the Covid pandemic now amounts to £115bn loss.

The new findings from UK Hospitality revealed that the sector suffered £114.8bn sales loss, compared to what was expected for 2020/21.

Some 45 full weeks of sales have been lost since March 2020, an unprecedented number considering the industry generated, on average, up to £140bn a year prior to the start of the pandemic.

A re-introduction of VAT, rent arrears having to be paid for outstanding amounts and the national minimum wage rising, hospitality is facing yet another challenging year as the country struggles to get back to pre-Covid levels.

UK Hospitality CEO Kate Nicholls, said:

“With thousands of businesses closed, many are on the brink of collapse and countless jobs lost. The last thing operators need – and which a lot of them simply wouldn’t survive – is a VAT increase.

“Who’d have thought two years ago that we’d now be looking at a once vibrant and dynamic industry brought to its knees?

“But with all restrictions about to end, there are signs of hope and recovery. With government support, hospitality – which is full of energetic, creative and entrepreneurial people – must be at the vanguard of the UK’s wider post-pandemic recovery.”

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