Business

Festive period presents prime opportunity for hospitality sector despite economic headwinds

Hospitality is facing into Christmas and its busiest trading period of the year, but the sector must see it as an opportunity to stave off the spectre of closure and get back to a degree of sustainability
Hospitality is facing into Christmas and its busiest trading period of the year, but the sector must see it as an opportunity to stave off the spectre of closure and get back to a degree of sustainability Hospitality is facing into Christmas and its busiest trading period of the year, but the sector must see it as an opportunity to stave off the spectre of closure and get back to a degree of sustainability

THE next couple of months are likely to see a couple of things that we haven’t had on the agenda for the hospitality sector for some time. After several failed attempts, we will have a Christmas free of covid restriction and, rather unusually, a winter World Cup.

Despite the challenges that the entire industry faces, we must use these moments as a means to trade in ways that will help business owners get back to a place where they can be relatively confident about the future of their own businesses and the overall sector.

The opportunity is in front of us and there is a real hope that people will have a good excuse to be able to meet with friends, watch some of the World Cup games and enjoy a festive period we have missed out on for so long. However, let’s not diminish the facts of the situation we all find ourselves in.

A recent joint survey with some of our colleagues at national level shows that spend per visit to the hospitality sector is down and that the frequency of outings are expected to reduce. This is indicative of the huge reduction in discretionary household spend in Northern Ireland highlighted by Asda and their Income Tracker research recently. It is clear that the cost-of-living crisis is having a material impact on people’s behaviours. Many are pulling back, and for good reason.

Only last week I attended a meeting which included four local economists. The picture that they painted of the first two quarters of next year was, in all honesty, worrying. The Westminster government has prioritised other issues over Northern Ireland, and that means we have to fight and fend for ourselves like never before.

However, these are not moments to stare at our feet. We are a resilient bunch and proven our worth repeatedly. This is the time to encourage everyone in the hospitality trade to be agile and adapt, and to keep track of their margins, for this is now a game of margins.

Our recent joint research shows that there is pent up demand, and that people are going out. We have to be competitive and drive the quality offer. The cost of doing business and the pressures that people are under at home will be with us for some time to come, but we must be optimistic.

We now face the busiest trading period of the year for the sector, but we must see it as an opportunity to stave off the spectre of closure and get back to a degree of sustainability.

:: Colin Neill is chief executive of Hospitality Ulster