A Market in Flux As London emerges from lockdown, the hard-hit hospitality sector reviews performance, profit and pipeline in the hope of a post-pandemic rebound. Words: Catherine Martin
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hen a little-known virus
A VALUABLE ASSET
“Getting our world-leading hospitality industry
began its spread across a
With its shopping, sporting events and world-
back on its feet will be vital for London, but also
far-flung city in China, the
class tourist attractions, London has long been
the UK’s economic recovery as we emerge from
rest of the world could be
on the bucket list for travellers. From heritage
lockdown,” Khan said in a statement regarding
forgiven for passing over
sites and royal connections to some of the most-
staff shortages.
the news item with little
visited museums and galleries in the world,
UKHospitality has been vocal on the impact
concern for their everyday life. Back in the
the UK capital has plenty to offer the leisure
the pandemic has had on business too, and has
early part of 2020, no-one could have predicted
traveller, while exhibitions and conferences
been busy producing guidelines and FAQs to
the impact that SAR-CoV-2 – now commonly
cement its place as a hub for global business.
help those struggling to navigate the changing
known as Coronavirus – would have. Not in
In 2019, London welcomed a record-breaking
regulations. CEO Kate Nicholls was hugely
living memory has there been such a deadly,
21.7 million inbound visitors, accounting for
disappointed at the recent delay to easing
disruptive turn of events.
53% of all visits to the UK. Tourist spending
restrictions, stating: “The hospitality sector
Away from the devastating cost to human life
also hit a new high with accommodation and
has already lost more than £87bn in sales in
and the personal challenges so many have faced,
dining amongst those benefitting. As such, the
the pandemic leaving businesses deeply in debt
the impact on business has been far-reaching.
value of the sector to the economy shouldn’t be
and at risk of suffering economic long-Covid
The hospitality sector has been particularly hard
underestimated. According to UKHospitality – a
without further support. Hospitality is desperate
hit. In fact, it’s been catastrophic. In the UK,
trade body that represents independent hotels
to get back to what it does best and can play a
lockdown after lockdown has seen businesses
and large multi-national groups as well as
key role in the economic recovery of the UK.”
encourage working from home, dramatically
bars, restaurants and visitor attractions – the
reducing footfall in major cities and therefore
wider sector has a £130bn turnover representing
POOR PERFORMANCE
demand for high street dining; mixing with
5% of GDP – a greater contribution than the
Steady growth in tourist arrivals over the past
others was banned, causing bar and restaurant
automotive, pharmaceutical and aeronautic
decade has been the driving force behind new
bookings to plummet; and holidays have been
sectors combined. It is also the UK’s third
hotel development in London, and despite an
cancelled, forcing hotels to scale back services
largest employer with 3.2 million workers –
increase in supply, the city has historically
or close their doors altogether. It came as no
that’s 9% of the total workforce.
performed well in terms of the key performance
surprise then when analysts and hoteliers
These figures, coupled with the fall in
indicators. According to data from STR,
declared 2020 the worst in living history. What
spending, has prompted action from Mayor
occupancy has stayed above 80% for the past
should have been a record year for performance
of London Sadiq Khan, who has pledged to
decade, peaking at 83.4% in 2019, while RevPAR
and new supply, became record-breaking for a
use all the powers at his disposal to tackle the
averaged £115.99, again recording its highest
very different reason.
challenges facing the city’s hospitality industry.
rate (£128.44) in 2019.
