Biggest threat to hospitality and tourism sector is future lockdowns and restrictions, says Tim Martin of JD Wetherspoon

In a trading update, JD Wetherspoon revealed that, for the 13 weeks to 24 April 2022 like-for-like sales decreased by 4.0%, in comparison with the same period in 2019.

Year-to-date like-for-like sales have decreased by 6.2%, the company said.

Commenting on the update, Mr Martin, said: “Since Covid restrictions ended, sales have improved, as previously reported.

"As many hospitality companies have indicated, there is considerable pressure on costs, especially in respect of labour, food and energy. Repairs are also running at a higher rate than before the pandemic.

“The company anticipates a continuing slow improvement in sales, in the absence of further restrictions, and anticipates a “break-even” outcome for profits in the current financial year.

"Since 13 March, the company has returned to profitability and to a positive cash flow, and is cautiously optimistic about the prospect of a return to relative normality in FY23.

“The biggest threat to companies in the hospitality, tourism and related sectors is the possibility of future lockdowns and restrictions. These sorts of actions were never previously

contemplated in the nation’s history - or, indeed, in the government’s own pre-pandemic plans.

“Many people, including those in the government and the medical establishment, believe that the UK response to Covid, which included a number of prolonged national lockdowns, was a success.

“This view is called into question by the outcome in Sweden, a more urbanised country than the UK, which did not lock down - and which appears to have had better health results.

“The collateral damage from lockdowns has yet to be quantified, but the economic cost, approximately half a trillion pounds, financed largely by “money printing” by the Bank of England, is a direct cause of the current inflationary crisis.”