‘Catastrophic’ impact on accommodation sector
THE catastrophic impact of the pandemic and Covid lockdowns on the accommodation sector in Wales last year has been laid bare in new research.
Visit Wales has produced its Accommodation Occupancy Survey Annual Report for 2020, which highlights the slump in the industry last year.
It found hotels and hostels were worst hit – although hotels fared better than those in England despite longer periods in lockdown.
North Wales Tourism chief executive Jim Jones said it showed how firms had suffered and despite a strong bounce back that many businesses still had challenging times ahead.
Key figures from the report reveal:
room occupancy was 45% in 2020, whereas in 2019 it was 66% – a 32% drop. It ranged from 50% in north Wales to 42% in mid-Wales. England’s hotels recorded a steeper decline of 47% in room occupancy, from 78% in 2019 to 41% in 2020. Northern Ireland and Scotland hotels saw tumbling room occupancy (67% to 27% and 67% to 24%, respectively);
Covid-19 and its associated negative influence on travel had a catastrophic impact on the performance of hotels across Europe in 2020. By the end of the year occupancy stood at just 33%, which was a fall of more than 50%;
for guesthouses/ B&Bs room in Wales occupancy was 36% but sample sizes were small so no comparison is given on 2019;
occupancy levels in the self-catering sector recovered well when restrictions were lifted in early July. Unit occupancy was 52% overall (57% in 2019) and 74% between May and October – actually an increase on 2019 for that period. In North Wales it was 54% over the year, down from 64% in 2019;
for static caravan and Holiday Homes – average unit occupancy for the reporting period (May to October) was 89%, just 1% down on 2019. Touring Caravan and Camping Occupancy was 32% – down from 42% the previous year; and
hostels and bunkhouses were worst hit at 25% occupancy, compared with 54% in 2019.
The report stated: “The pandemic had a catastrophic impact on accommodation providers in Wales and elsewhere across the globe in 2020. It continues to inflict a heavy toll as lockdowns and travel restrictions coupled with other negative impacts of the virus have disrupted the flow of domestic and international tourism.”
Jim Jones, chief executive of North Wales Tourism, said: “It is quite clear from the report that all accommodation sectors have suffered during the pandemic. The stop-start approach to opening and closing made it extremely difficult for any business, let alone the accommodation sector, to fully reopen especially while Covid restrictions were still in place.
“Serviced accommodation was the slowest to reopen, with visitors opting to stay in self-catering and glamping style facilities, with very high occupancy rates. There has also been a boom in mobile touring homes, which has caused extra difficulties with lack of proper sites for them and this is an issue that needs to be addressed as matter of urgency.
“Since the most recent lifting of restrictions, we have seen all accommodation become very busy, with some businesses reporting that during July and August they were 20% up on 2019 bookings.
“However, the pandemic hasn’t gone away just yet and there some very challenging times ahead for many businesses.”