19 January 2021 Adrian Leopard 372 Uncategorized Christmas and New Year are over. Now into the bleak mid-winter? Previous Article As the vaccinations proceed everyone wants to know when the lockdown will be over Next Article End of an era – Mr Marmite departs for Florida 2021 is going to be a very hard year for the hospitality industry; there is just no indication of when things could start to improve As we all know, December is generally one of the best months of the year for trade in the hospitality industry. People all have their office Christmas parties and over Christmas families go out drinking and eating and at new year, yes getting well oiled is definitely the order of the day. And then comes January and everything collapses; indeed many hotels close for some or all of January to give the staff time off at a time when there is next to no business. And it has been like that this year – yes? Well of course we know that it has not. Hospitality has been all but brought to its knees during the pandemic and without doubt it is the sector of society which is worst affected by a pandemic such as we are undergoing at the moment. A report issued by EY, their Regional Economic Forecast issued in December covering England, tells us that the hospitality industry came into 2020 in robust health. It comes out the other end broken and seriously weakened. That Christmas trade which is what sets a pub or hotel up for the next year just did not come. Now these businesses come into the fallow months of January through to March with no fat on the bone at all. Many will not open after the lockdown. EY go on to say that hospitality is one of the sectors worst affected by the pandemic and that the Gross Valued Added, “GVA” of the sector will be smaller in 2023 than it was in 2019 with a consistent annual reduction. It is also considered that there will be considerably fewer jobs in 2023 with the South West of England and West Midlands bearing the brunt of the problem. Putting aside that these speculations are not entirely unexpected, the pessimism expressed by the report and other data which is emerging at the same time must mean that the hospitality industry is going to have to go through a complete overhaul. We are back to what we have been saying for many months – it will be a case of survival of the fittest – and we have already seen more than 800 branded businesses closed with well over 6000 businesses affected. If you are a proprietor of such a business, what can you do? Well it depends on your level of debt. Your debt may already be too great to sustain and you do not even know when you will be able to re-open for business. This early period of the year is traditionally the one when the greatest pressure is felt on ailing businesses in the hospitality industry and when the end of March comes, the quarterly bank interest or rent demand is often just enough to finally sink the ship. If you think you may find yourself in this situation, take professional advice before you get to the point of no return. You may be surprised at what you can do to improve things. Adrian Leopard 19-01-21 Photo Nick Karvounis Rate article No rating Rate this article: No rating Tags mediation hospitality hotels local pub insolvency accountancy advice bankruptcy Share Print Switch article As the vaccinations proceed everyone wants to know when the lockdown will be over Previous Article End of an era – Mr Marmite departs for Florida Next Article Comment Collapse Expand Comments (0) You don't have permission to post comments.