A national lockdown in England would be « absolutely devastating » for the hotel industry, leading industry spokespersons have said
Kate Nicholls, managing director of UKHospitality, said it was likely that some businesses would lose all of their trade due to tougher measures and the industry would need considerable additional help to survive another lockdown
“A third of our revenue would normally be generated between Halloween and Christmas Eve. We’re going to lose almost all of this,” said Nicholls, who represents 800 companies operating 90,000 sites « These are companies already hanging on with their fingertips A new national lockdown will only accelerate the rate of closure and the rate of business failure unless we get significant additional support »
According to UKHospitality, the industry achieved a turnover of £ 130bn in 2019, but was on track for just £ 80bn this year, ignoring the impact of a second lockdown, which Nicholls says could cut revenue to £ 65 billion or less So far, nearly 500,000 jobs have been lost in the industry due to the pandemic
« It’s hard to predict the impact until we know the details, but if it is a complete foreclosure for four to six weeks, the current system of grants and the support program to jobs will not be enough for companies on the front lines of these restrictions, especially hospitality, ”she says
She called for an extension of subsidies, an extension of VAT relief and business rates and more testing to allow businesses such as nightclubs to reopen
New national lockdown restrictions – including the closure of pubs and restaurants – are expected to be announced for England early next week, after a surge in cases Scientists have warned that the coronavirus is spreading more faster than their worst-case scenarios predicted and could result in 85,000 deaths this winter
Hotel organizations, however, believe that a nationwide lockdown could cause even greater damage to businesses, which will lose profits during the holiday season – usually their most lucrative
Emma McClarkin, managing director of the British Beer and Pub Association (BBPA), said shutting down pubs across the country would be « counterproductive and extremely damaging »
« It is clear that pubs are protected by Covid, especially in areas with lower infection rates, » she said « Without the right support, thousands of our pubs and our jobs would also be doomed to full shedding, as well as a major disruption to UK supply chains and brewers »
With a national lockdown looming, McClarkin called for more financial support for pubs « If the government is even considering another full lockdown, it needs to ensure that the same levels of support, if not more, are provided as they were the first time, ”she said
Federation of Small Business President Mike Cherry described the government’s message on the issue as confusing He suggested the action was taken on too short a timeframe for businesses to plan ahead
A study by UKHospitality, the British Institute of Innkeeping and the BBPA found last week that more than three-quarters of the organization’s member companies said they had suffered a loss Agencies said without more government support Importantly, by February 2021, there would be 750,000 fewer jobs in the sector compared to the previous year without more government support
National hospitality manager at Unite, Dave Turnbull, said the union has seen a dramatic increase in layoffs, imposed zero-hour contracts and unpaid layoffs following the end of the leave program
“While a small number of employers in the hospitality sector seek to protect their jobs by using the new provisions of the employment assistance scheme, it is shameful that more, who have taken millions of dollars in taxpayer dollars from the job retention program and other government provisions, are now seeking to shed any liability to the low paid workers who have generated huge profits for them during the good moments, ”he said
Frances O’Grady, general secretary of the Trade Union Congress, called for wage subsidies for people unable to work to be increased to 80% « The lockdown will only work if people don’t care about their work and livelihoods If the country is locked down again, government support for workers and businesses should not be lower than it was in March, ”she said
Lockdown, hotel industry, England
News from around the world – UK – National lockdown in England ‘would devastate the hotel industry’
SOURCE: https://www.w24news.com
