Welsh hospitality sector set for 20,000 job losses
MORE than 20,000 jobs in the hospitality industry in Wales could have been lost due to the Covid-19 pandemic by Christmas, a new survey suggests.
In a study carried out after changes to the Covid-19 rules in Wales, results showed that 50% of businesses have already shed jobs, and that losses to date across Wales could be as high as 12,000 posts.
The survey also showed that a further 8,500 jobs are expected to be lost before Christmas, and 36% of businesses feel their chance of still trading by Easter 2021 are 50-50 at best.
The Welsh Independent Restaurant Collective (WIRC), which represents over 300 registered supporting cafes, pubs and restaurants across Wales, has sent a letter to Welsh Government ministers and officials setting out the “increasingly fragile” financial position of the sector.
The letter says that unless changes are made to the rules on eating out and extra funds are found to help the industry meet rent and other costs, thousands more jobs will go and businesses will disappear.
Simon Wright, owner of Wright’s Food Emporium in Llanarthne and one of the founding members of the collective, said: “The WIRC recognises the swiftly changing trajectory of the virus, but emphasises that the speed of new controls needs to be matched by the rapid introduction of new financial support if the loss of further jobs, livelihoods and businesses are to be avoided”.
The WIRC is now asking the Welsh Government to reconsider its version of the ‘rule of six’, which allows groups made up exclusively of extended households.
Cardiff restaurateur and pub owner Cerys Furlong added: “The idea of the extended household bubble is both poorly understood by the public and is leading to bookings dominated by tables of two – as customers are unable to meet friends to eat. Coupled with the 2m rule, this means many restaurants are operating on 25% of turnover or less.”
Moreover, 77% of businesses surveyed by the WIRC viewed the Welsh Government’s communication of the existing rules as either having “significant room for improvement” or being “completely ineffective”.
The WIRC says rules and guidance serve little purpose unless they are widely understood.
The letter to Welsh Government ministers noted that most hospitality venues are operating in accordance with all rules and guidance, providing one of the safest environments in which to meet others – a point that has been made by local authorities, police and some politicians. The WIRC asks that ministers do more to support that case.
The WIRC also argues that the Scottish rule – which lets a changeable combination of two households meet inside homes or in hospitality venues – has similar regard for safety concerns, but will have a much less severe impact on the hospitality sector, and also allows individuals to enjoy more varied and rewarding social interaction.
Finally, the letter asks for urgent consideration of financial assistance to bridge the chasm caused by the steep decline in turnover, arguing that failure to do so will mean many businesses will go under. This will also have a consequent effect on their suppliers, meaning that they might not be around to help a swift recovery when the Covid 19 crisis comes to an end.