Northern hospitality industry hit with huge losses amid concerns businesses will not survive

That is according to a survey undertaken by NatWest, which tracked changes in employment, trends in revenue and overall business confidence.

The study commenced in mid-July when the UK was emerging out of lockdown and covered a period up to and including the introduction of the government’s three tier alert level in late October.

It found that half of hospitality and leisure businesses saw significant losses to revenue.

More than 31 per cent of businesses reported a revenue loss of over 60 percent, even at the peak of resumed business activity in late August.

This was when the visitor economy had largely reopened after the first lockdown and initiatives such as Eat Out to Help Out were having a positive impact.

Overall, around half of businesses were trading at a loss of over 60 per cent for ten out of the sixteen weeks of the study.

Businesses reported having to make significant reductions to permanent and temporary staff.

From the end of September and throughout October half of businesses reported that they were downsizing their permanent staff over the next month.

A third of businesses report forward bookings for first quarter of 2021 are significantly down

A fifth of businesses surveyed unsure that they will be trading next summer

Leaders from Yorkshire's tourism boards joined Natwest representatives to discuss the findings at a roundtable event on Friday, November 20.

The tourism boards included Make It York, Visit Leeds, Marketing Cheshire, Marketing Lancashire, Marketing Liverpool, Newcastle Gateshead Initiative, Visit County Durham and Cumbria Tourism.

Lead of Leeds City Council, Judith Blake, praised the "tenacity and resilience" shown by the hospital sector in the city.

She said the council will continue to "work closely" with them.

Councillor Blake said: "Hospitality is integral to our city’s economy, supporting thousands of jobs.

"Leeds is well known for community spirit and collaboration and our tourism businesses have worked extremely hard to put all measures in place to make them covid-safe environments.

"The tenacity and resilience they have shown during these incredibly difficult months has been inspiring.

"We will continue to work closely with local businesses in our hospitality sector throughout the pandemic and during the recovery, supporting them however we can to continue to operate as viable businesses.”

Sean Bullick, Managing Director of Make It York, said: “York has a world-class tourism and leisure industry and ensuring its continued success is vital.

"We are committed to championing a city-wide recovery plan that will support the sector to rebuild as we look ahead to 2021.

"York businesses have worked incredibly hard this year to adapt to the challenging impact of Covid-19, ensuring the city remains a safe place for visitors and residents to enjoy.

"Our focus now is to deliver a tourism recovery plan that ensures the industry continues to thrive in York for many years to come.”

Richard Topliss, Chairman of the NatWest Regional Board, North, said: “Tourism and the wider hospitality and leisure sector has faced and continues to endure unprecedented challenges as a result of the COVID pandemic.

"The tourism barometer has charted the ups and downs of businesses in the sector over the last four months and the final survey points to low confidence for the immediate future, and hence, the need for central and local government support, alongside business leaders and providers of finance, to work together to help the sector rebuild for the future when it becomes clear that widespread vaccination will permit a new normal to emerge for tourism.”