THE rapid spread of Omicron means the north’s hospitality sector is set to lose out on up to £300 million of trade over Christmas, an industry body has warned.
Calling for urgent financial intervention from the Executive, Hospitality Ulster said the sector faces collapse if no support is forthcoming.
The north’s £2 billion a year hospitality industry is heavily reliant on the festive period to support it throughout the rest of the year.
But Hospitality Ulster said economic analysis of its latest survey showed the industry could lose out on £250 million to £300m of income due to the impact of the latest Covid-19 variant and what it called “mixed messaging from government”.
It said some businesses have been forced to take the decision to close their premises over the Christmas period due to staffing issues, cancellations and overall down turn in trade.
Some of Belfast’s best known pubs and restaurants, including Mourne Seafood, Sunflower, The Duke of York and the Harp Bar and have already announced they will lock up over Christmas.
It’s understood Stormont has been allocated an extra £100m in funding from the Treasury to respond to the latest variant.
Ministers are due to discuss how to allocate the cash on Wednesday. Additional restrictions on hospitality, including the return of table service and the ‘rule of six’ as well as the closure of nightclubs, are also expected to be on the agenda.
Hospitality Ulster said its latest survey found at least one-in-three members reporting sales falling by more than 50 per cent in the last week alone, with the situation deteriorating week-on-week.
The trade body’s chief executive, Colin Neill described the latest figures as “absolutely horrific”.
He said the entire sector is now in a state of emergency.
“The feedback we are getting is horrendous, some have told us they are preparing for liquidation. The situation we are in will obliterate livelihoods,” said Mr Neill.
“The Executive needs to let us know right way what the plan is. The mixed messages are having a catastrophic impact.
“We are once again fighting for survival and trying our best to keep staff employed. Our sector is running out of time.
“We have hospitality business owners crying their hearts out during media interviews - what sort of situation is that to be in?
“This is the fourth largest private sector employer we are talking about here. These people need help, they need compensated.”
The industry representative claimed that industry has been “sacrificed” due to a lack of action by the Executive.
“There now needs to be compensation for this situation created outside of our control,” he added.
“The only other option, if no support is forthcoming, is that the Executive will allow for the collapse of the hospitality industry.”
