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‘Bleak’ GDP figures highlight damage to UK’s hospitality sector and its potential to bounce back

kate-nicholls

Statistics published by the Office for National Statistics show the UK economy shrank by 9.9% in 2020 with the output of the accommodation and food services sector now 51.8% lower than last year.

Additional analysis from the Q4 UKHospitality Quarterly Tracker, produced by CGA, showed a 54% drop in sales across hospitality in 2020, equivalent to a drop of £71.8bn, making hospitality responsible for one-third of the UK economy’s annual £215bn contraction.

The ONS stats also show that hospitality acted as a brake on the UK’s growth rate for Q4, dragging quarterly growth down 0.95% to 1% as sector sales fell by a third.

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UKHospitality Chief Executive Kate Nicholls said: “These figures make for bleak reading, but also serve to drive home the point about the importance of hospitality as an economic force. When hospitality struggles, the entire UK economy struggles.

“The huge losses we have suffered this year account for one-third of the slump for the whole economy last year. This really hammers home the importance of, and need for, a healthy hospitality sector for the entire country.

“Hospitality must be prioritised for support and put at the heart of the Government’s plans for reopening the country. If we are given a chance to do what we do best, we can kick-start the economy and provide investment and jobs in every region of the UK.”

Tags : GDP figureshospitalityhotelsUKHospitality
Zoe Monk

The author Zoe Monk

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