Post COVID world – what would the hospitality sector look like?
Blog by Aditi Banerjee, Magic Billion
Consider these statistics:
· France: In March 2020, lock down measures resultedin the closure of 75,000 restaurants, 3,000 clubs and 40,000cafes, affecting 1 million employees who have been placedunder technical unemployment. These numbers have gone up since.
· UK: 80% of workers in the hotel and food industries were reportedto be on furlough schemes and about a third of jobs were atrisk in the longer term.
· USA: 2020 projected to be the worst yearon record for hotel occupancy leading to immense joblosses. Since the beginning of the crisis, nearly 1.6 millionhotel workers have been laid off or furloughed and 3.9million hotel-supported jobs have been lost.
Suffice to say, the impact of coronavirus on the hospitality sector has been staggering.
National governments across the world have been announcing stimulus packages since March 2020. For example, Germanyis giving out a€130billion coronavirus recovery package, on top of a €750 billion rescue package agreed earlier. This includes a €25 billion loan support programme for small firms that have seen their sales drop by more than 60% for June to August – which could potentially be a boost for bars, restaurants, hotels and other hospitality businesses.
Local train from London to Cambridge
Punting in River Cam, August 2020
The expectation is: as the global lockdown reduces, people will be less interested in spending money on material possessions and instead are likely to spend on holidays, travel and experiences.
According to the International Labour Organisation (ILO) report from April 2020 https://www.ilo.org/sector/Resources/publications/WCMS_741468/lang--en/index.htm