Industry shutdown represents 32.7% of UK’s lost GDP

The near total shutdown of the hospitality sector was responsible for some 32.7% of lost GDP for the country in March and April.

CGA’s UKHospitality Tracker reveals eating and drinking out turnover was down 90% in April, illustrating just how severely the sector has borne the brunt of the lockdown measures.

Total GDP in the UK fell by 20.4% in April, according to ONS figures released last week.

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

“The corresponding recovery can be as equally dramatic but we must be given a date to reopen by the 4th of 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.”

CGA Business Leader research 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.

Phil Tate, group CEO for CGA, said: “The UK’s hospitality sector employs over 3 million people and is a huge generator of revenues for the Government. Reopening is as soon as possible is vital not just for these businesses, but to enable the whole economy to be able to recover.”