Hospitality restrictions half UK economic growth

Restrictions on the UK's hospitality sector have effectively halved the country's economic growth, says trade body UKHospitality, with the situation only likely to get worse 'unless the crippling measures are rethought'.

New figures released by the Office for National Statistics show that GDP grew by 0.4% but accommodation and food services declined by 0.37% compared to September.

“The impact of the restrictions on the hospitality sector has been so severe that it has effectively halved the country’s economic growth," says UKHospitality chief executive Kate Nicholls.

"Ours is the only sector seeing real negative growth. As a country, we could have seen almost double the growth had our sector only been able to stay on an even keel. Some of these restrictions, we heard only yesterday, were brought in without hard evidence to support them. The evidence for others is weak at best.

“These figures should leave nobody in any doubt that the restrictions being placed on us are having a devastating effect and go well beyond anything being experienced in other sectors. The frightening reality is that these figures are going to look tame compared to those for November and December when the lockdown was in effect and as the new, harsher tier system began to bite.

“The government needs to look carefully at these figures before making a decision to plunge more areas into higher tiers – the burden of which falls almost exclusively on hospitality businesses.

“If we can take a positive from this, it is that the stats make the case for the importance of our sector economically plain for all to see. If we are supported adequately through the tail of this crisis, our businesses can spearhead the country’s economic recovery. But, it will only be able to do so if it survives the next few months.”

Hospitality must be central to Welsh economic recovery

The sector must be made of the five centre point 'beacons' in Wales' strategy that will decide the country's approach to economic reconstruction and recovery, demands UKHospitality Cymru.

Welsh government economy minister Ken Skates told Wales’ Senedd Members of initial plans for a 'Five Beacon' recovery strategy during Wednesday’s Senedd Plenary session.

“The Welsh government has made it very clear to us in its weekly ministerial discussions that, following the impacts of the last nine months, it now recognises just how vital hospitality is to the Welsh economy, it’s communities and its culture," comments UKHospitality Cymru executive director David Chapman.

“Hospitality can be the phoenix-like provider of a resilient resurgence if backed strongly by government across Wales. We are battered but not broken and can bounce back from the seismic shocks and commercial catastrophes of 2020 to be the solid and reliable cornerstone of the new Welsh economy.

“So, let’s build on our indigenous excellence and together make hospitality the lynchpin of the economy of the new Wales. We can weave sense of place, local food and drink suppliers, local employment and the international visitor economy into the heart of the tapestry of a new, vibrant foundational economy.”