Hotels endure the worst year

Covid sees revenue slump and jobs cull

COVID-19 meant Northern Ireland’s hotel sector suffered its worst year in 2020.

A closely-watched survey from ASM accountants revealed a slump in revenue and a swathe of jobs cuts.

Only Government support through the job retention scheme and a number of other targeted funding streams helped to temper the financial impact.

Still, the impact on operations was stark, with revenue falling by more than 90%.

Restrictions on opening left hoteliers hamstrung with most able to trade for just 230 days in 2020 while those in Derry and Strabane open for just 195 days.

That meant room occupancy was just 30% last year compared to just under 80% in 2019, a drop of 1.7 million overnight stays.

The result was felt in the job market with more than 2,000 hotel workers losing their roles.

A start has been made to recoup many of those losses as the May 24 reopening date approaches. Last week Hastings Hotels – which owns The Europa, Culloden and Grand Central – said it is taking on 100 staff while Galgorm Collection – the name behind the Galgorm Resort and Spa – has announced 180 jobs. Michael

Willamson, Director of Consulting at ASM and a hotel industry stalwart, said the pandemic has had a deep impact on society and, in turn, the hotel sector. He added further government support will be needed beyond the May reopening date if under pressure hotels are to survive in the short term and recover.

90%

fall in revenue for last year and just 30% occupancy rate