Impact of COVID-19 on UK’s Hospitality Sector.

Introduction

Covid-19 — a pandemic that spread worldwide and impacts life so bad, it took millions of lives globally and had a very bad impact on the global economy. This essay critically evaluates how the Covid-19 situation has impacted how the UK’s hospitality industry operates.

Impact of Covid-19 on Hospitality Industry

The UK’s hospitality industry is considered the 4th largest industry in employment in the region, around 3.2 jobs directly, and 2.8 million jobs are indirectly connected with the hospitality industry. This industry is larger than the pharmaceutical and automotive industry of the region. In 2018 the sector had reached on the value of around 100billion Euros and showed expected growth in the coming years. The shortage of staff and the Brexit was expected to pose some negative impact on this industry. Still, things were growing better until the end of 2019but at the beginning of 2020, things changed, and the horrible spread of Covid-19 leads to lockdown all over the globe.

It has caused the mass cancellation of corporate events, sports, social gatherings, flights, and international meetings. Social distancing measures and international travel bans impact the whole hospitality industry. This leisure industry was adding up to 5% to the national GDP, and providing 10% of the whole employment needs. The previous issues already had some negative impact on the UK’s hospitality industry, and now the Covid-19 is having a profound impact on inbound tourism in the country. During the peak, the industry ground to the halt with more than 75% of companies closed in the sector and more than 85% furloughed during the beginning of lockdown.

People stop eating out or going to the places where they can be exposed to many people; some of them may have Covid-19 unknowingly. Many organizations layoff the staff, and many of them just remained close all that time, which cause a major footfall to the hospitality industry. However, the government is taking measures to reduce the impact, for instance, introducing the strategy like Eat Out to Help Out allows attracting around than 50% reduction on the dine-in meals in cafés, Pubs and other places but with the value of £10-a-head throughout August, which was said to be the best solution to cope up with the situation and keeping the industry alive. However, another even stronger wave of Covid-19 caused closing down everything again for the sake of people’s health. It is said that hotels are not expected to improve their situation even in coming four years, renewed lockdown and the disappearance of the business travelling activities have left the hospital industry struggling baldy to retain the customer base and that is causing some dramatic impact.

Conclusion

To conclude, the current situation of an economy, health crisis and the non-Brexit deal will have some really bad impact on the hospitality industry of the UK. The hospitality industry associations, the parliament, and the other important authorities have to work collectively and adopt some effective method to cope with the situation and ensure the industry’s revival.