Thousands of hospitality jobs ‘at imminent risk’
THOUSANDS of jobs in the hospitality sector – which employs a higher proportion of younger people than many other sectors – are at imminent risk, an industry body has warned.
From yesterday non-essential shops in Wales have been able to reopen, but the Welsh Government has yet to confirm when the hospitality sector, which includes bars, restaurants and cafes, will be able to do so.
The Welsh Government’s next review on its lockdown restrictions is on July 9, when the reopening of selfcontained holiday accommodation and personal care services such as hairdressing and beauty by appointment will be looked at.
In England, Prime Minister Boris Johnson is expected to announce today if the hospitality sector can reopen on July 4, if, as is also expected, the two-metre distancing rule is relaxed.
The Wales Independent Restaurant Collective (WIRC) said that although many firms have shown innovation through online and takeaway orders, the hugely damaging impact from the lockdown could mean it takes years for the sector, which employs 135,000 in Wales, to recover.
Formed last month, the WIRC already has more than 200 members.
It warns that without further urgent support there will be job losses in the coming weeks as restaurants, pubs and cafes close for good.
This it said would create a “lost generation of entrepreneurs” as well as unemployment for thousands, many in the 18-30 age group.
In a survey of hospitality businesses undertaken by the WIRC, only 7% of respondees were confident their business would still be operating at the end of the year.
Some 72% of businesses are considering redundancies as a result of lockdown.
Of those considering redundancies, 45% said they are going to make those decisions in June or July, with 23% considering closing their business permanently.
Speaking on behalf of the group, Natalie Isaac, director of the 44 Group, which owns Bar 44 and Asador restaurants in Cardiff, said: “We’re disappointed that Welsh Government has not given any indication to the hospitality sector when the easing of restrictions will begin.
“This puts thousands of jobs imminently at risk for businesses who have been hanging on by their fingertips over the last three months.
“We have called Welsh Government to engage with us in planning for a safe and sensible reopening of the hospitality sector, and an ongoing dialogue with us.
“However, we remain concerned that they do not seem to have recognised the contribution our sector makes to the Welsh economy.
“We are integral to the foundation economy, to tourism and we support the kind of local sustainable economy Welsh Government has been promoting.”
“The hospitality sector is also integral to the tourism industry in Wales, so it is surprising that the link between tourism and hospitality has not been recognised.
“This also makes the need for sector specific support ever more urgent for our sector, to prevent jobs losses and businesses from closing and we are calling on the First Minister and Ken Skates [Economy Minister] to commit to additional funding from the next tranche of Economic Resilience Fund to ensure our sector is able to re-open whenever Welsh Government does allow that. Without that, our sector may never recover.”
Edmund Inkin, one of two brothers running The Felin Fach Griffin near Brecon since 2000, said: “The support to date from UK and Welsh Government in the shape of business rate relief, grants and the furlough scheme has been welcome.
“However, now we face an existential battle.
“How long can we carry our fixed costs with no clear time-scale for when we might reopen? As we speak, business-owners’ only options are becoming job losses or closure.
“As forced closure is extended for hospitality, further financial support is needed urgently to prevent this happening. If we don’t sort this out now, the impact on all areas of Wales and on the life prospects for thousands becomes very grim indeed.”