Lift restrictions to save sector, pleads Hospitality Ulster

Hospitality Ulster has urged the Executive to “lift punitive restrictions” and reopen nightclubs now with many businesses at real risk of going under.

The call came after its latest weekly survey of members revealed trading was in free-fall following a festive season impacted by cancellations amid fears over the spread of Omicron.

Chief executive Colin Neill said: “These findings paint a dire picture of where our industry currently is after almost two years of restrictions and closures.

“It’s no exaggeration to say our sector has never been in a worse position, with over 96% of trade down from 2019 in food, drink and accommodation sales.”

More than Upwards of 1,000 industry members – ranging from rural publicans to high-end hoteliers – have been responding to HU surveys  since November, with the findings analysed by leading economist Maureen O’Reilly.

The latest survey taken during the week commencing January 3, when fresh restrictions came into place, showed:

• 98% experienced a dip in beverage sales when compared to the same period in 2019;
• One in two have seen sales capitulate by more than 50%, rising to 70% for accommodation providers;
• Around two and a half times as many members are reporting a drop in beverage and food sales of more than 50% in the survey week compared to the week beginning November 15, when the Covid passport was introduced;
• 25% of respondents said food and beverage sales were down by 70%t (it was 49% for hotels).

Colin Neill, above, added: “The financial burden of the restrictions are also becoming apparent as a growing concern, with the cost of unused stock due to poor footfall and restrictions, looming tax bills and the cost of extra staff to monitor Covid passports and provide table service all placing a serious strain on businesses’ viability.

“Almost a month on, and without financial assistance, severe damage has already been done to hospitality, so the Executive must now take swift action to remove these punishing restrictions.”

Hospitality Ulster’s warning came as a £40 million grant scheme to support hospitality operators affected by the latest Covid restrictions in Northern Ireland was launched.

The Department of Finance’s Land and Property Services has begun contacting hospitality businesses to confirm their details to enable the Omicron Hospitality Payment to be made.

More than 3,200 businesses are eligible for the one-off grant payment of either £10,000, £15,000 or £20,000 based on their rateable value.

Eligible businesses include; restaurants, cafes, coffee shops, bistros, snack bars, nightclubs, pubs, social clubs and private members’ clubs, which will be contacted by email if they previously received a payment previously under the Localised Restrictions Support Scheme (LRSS).