JAKARTA - The hotel industry in England has been hit hard by the coronavirus pandemic or COVID-19. The sales of this industry collapsed by 87 percent in the second quarter of 2020 in the country, mainly due to the lockdown period which made many people stop their activities.
Reporting from Bloomberg, Tuesday, July 28, the UKHospitality Trade Association and research company CGA said, from the impact of COVID-19, income in the hotel industry from April to June only amounted to 4.6 billion pounds. In the same period the previous year, the industry's income in the UK was £ 34.2 billion.
The association said the drop in sales meant the hotel business needed broad support from the government in a sustainable period for the rest of 2020 and beyond.
As is known, the British Prime Minister, Boris Johnson urged citizens in the country to avoid public spaces such as bars and restaurants starting March 16. And since March 23, the total lockdown was carried out until it was partially lifted on July 4.
The hotel business is gradually reopening across the UK. The UK government is now seeking to support the hotel business with measures such as the Eat Out to Help Out scheme, where visitors can get a 50 percent discount on meals of up to a value of 10 pounds.
But with continuing concerns in the UK about the virus and doubts about using public transport, it is likely that the recovery will be slow.
"The latest figures from the impact of COVID-19 highlight how precarious the situation is," said UKHospitality chief executive Kate Nicholls.
According to him, the drop in hotel revenue reinforces the message that the business still needs support from the government if it is to avoid more bankruptcies and unemployment.
In the short term, the sluggishness of the industry will more or less benefit consumers because they can enjoy the discounts offered by restaurants. Hawksmoor, for example, this upscale steakhouse announced that it will serve a 300 gram rump & chip dish with a £ 20serling sauce as part of Eat Out to Help Out.
That price means a £ 10 discount for visitors. Also, tables at a high-profile restaurant like The Wolseley, in Piccadilly, may be easier to order than usual.
However, other popular restaurants gave up, including Le Caprice and Ledbury in London. In the coming months more restaurant closings are expected due to hefty bills for accumulated rents. They are calling for a nine-month #NationalTimeOut lease-free period for hospitality businesses.
UKH Tracker combines data from all hospitality segments. The industry contributed £ 133.5 billion to the UK economy in 2019, but that value is in danger of falling below £ 100 billion due to the COVID-19 pandemic.
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