Northern Ireland

Tourism and hospitality firms report 1,300 permanent job losses with 9,000 furloughed

A deserted Portrush town centre over the Easter weekend. Picture By Justin Kernoghan.
A deserted Portrush town centre over the Easter weekend. Picture By Justin Kernoghan. A deserted Portrush town centre over the Easter weekend. Picture By Justin Kernoghan.

ALMOST 1,300 people have been permanently laid off across the north’s tourism and hospitality sector in response to Covid-19, with another 9,000 furloughed, a new survey has shown.

Tourism NI published the figures on Tuesday evening after surveying 1,300 businesses and organisations.

The body said the losses equated to half all new jobs created across the sector in the last 10 years.

It found that 427 businesses had furloughed nearly 9,000 staff. But a total of 418 firms said nearly 1,300 people had been permanently made redundant. Both sets of figures include full time, part time and seasonal workers.

Half of all businesses which responded confirmed staff numbers had been reduced.

According to the survey, 79 per cent of tourism and hospitality businesses have experienced a severe short-term impact, while two-thirds anticipate a severe impact in the longer term.

It also found that 73 per cent of firms have not been able to recover any loss of trade through their current insurance.

Tourism NI chief executive John McGrillen said: “The biggest health emergency Northern Ireland has ever faced has also caused an unprecedented economic crisis, and within that our tourism and hospitality sector has been hit hard and hit fast.”

A third of businesses stated they are not eligible for any of the three support schemes announced by Stormont to date, as they do not pay non-domestic rates.

Almost half (47 per cent) indicated they are not eligible for the UK wide coronavirus Job Retention Scheme, as they do not operate a PAYE scheme.

Mr McGrillen said that despite additional measures to support the sector, the survey had highlighted many businesses slipping between the cracks.

“It is clear that further, ongoing support and guidance will be required to allow many businesses to survive,” he said.

In a similar vein to surveys conducted by the Northern Ireland Chamber and Manufacturing NI, the report identified cash flow and access to working capital as a major concern for businesses.

A total of 447 businesses categorized themselves as self-employed, with eight per cent operating for less than 12 months.

“Our first thoughts must be with grieving families, people in hospital with Covid-19 or ill at home, and with the NHS staff who are working well beyond the call of duty to save lives,” said the Tourism NI boss.

“Yet this pandemic is having far-reaching consequences for society, the economy and for tourism in Northern Ireland."