1. Home
2. News

Hospitality responsible for a quarter of Britain’s GDP drop

The Tracker shows turnovers in the sector were down nearly 90% in April, with total GDP in the UK falling by 20.4% that month, according to ONS figures released at the end of last week.  

Taken with data from March, with hospitality being first into the downturn, the hospitality sector has been responsible for some 32.7% of lost GDP for the country since the crisis began, said UK Hospitality, with figures for trading in May and June “no better”.

The tracker highlighted the “urgent need” for the sector be be allowed to re-open, said UK Hospitality.

“This decline has been shockingly acute and graphically illustrates the importance of hospitality and tourism to the UK economy,” said UK Hospitality CEO Kate Nicholls.  

“The corresponding recovery can be as equally dramatic but we must be given a date to reopen by the 4 July and we must be given the right conditions, with a distancing rule of one metre, and the right on-going support by the government to aid hospitality’s recovery, and to enable as many businesses as possible to survive, protecting jobs and communities.”  

Separate research by CGA, which compiles the tracker, has estimated there would be an overall reduction in the number of pubs, bars and restaurants of some 20-30%. But, this could be “significantly worse if revenues continue to be affected”, said Phil Tate, CGA group CEO. 

“The UK’s hospitality sector employs over three million people and is a huge generator of revenues for the government. Reopening as soon as possible is vital not just for these businesses, but to enable the whole economy to be able to recover,” he said.

The tracker is compiled using data provided by CGA combined with hotel data supplied by STR and fast food market data supplied by NPD Group’s Crest Panel, direct company contributions and complemented with ONS statistics.  

• On-Trade
• CGA
• ONS
• GDP
• uk hospitality
• Coronavirus
• Covid-19