Colin Neill, Chief Executive of Hospitality Ulster
In the last 300 days or so, our traditional non-food serving pubs were only able to trade for a limited period of 23 days. Those 23 days weren’t really normal trading days and were so heavily restricted for those business owners, the till simply didn’t ring.
Similarly, food-led hospitality businesses (food serving pubs, restaurants and hotels) were only allowed to open, again, under severe restrictions for just 119 days. It is no secret that these businesses have zero cash reserves left and it is becoming so difficult to remain afloat. Repeated closure and reopening has taken its toll emotionally and financially.
Before Christmas, statistics showed that half of hospitality businesses did not have sufficient cash reserves to make it to February, and only 1 in 5 were confident of survival beyond the first quarter of this year. This is worrying evidence that many of the hospitality businesses here who are in the small or micro category will simple be obliterated.
Last week we welcomed the announcement by the Economy Minister Diane Dodds on the further detail of the Business Support Scheme for non-food serving pubs to the tune of £10m. Although this might sound like a big figure, this grant funding will be used to offset debt which has accumulated over the months and months of closure. The cost of having the doors shut, no trade, but still having to keep businesses alive has had such a negative financial impact on owners.
It is now imperative that the Department for the Economy waste no time in getting in contact with those who are eligible and get money out to as many as possible in the shortest space of time. Hundreds of businesses are struggling and wholly reliant on even the smallest grant.
It is very clear that there is still considerable financial support that has been promised which remains outstanding from the Department for the Economy. Additional support has been promised for large hospitality businesses and company directors, but, many have received nothing with months and months passing since it was announced.
Our sector contributes around £2billion a year to the economy but has been the worst impacted of any business sector with extensive closures and restricted trading, even when open, and needs to be prioritised with a sense of urgency injected into getting money into the bank accounts of those who are in desperate need.
As draining as this challenge has been for the entire industry, we must now be looking to the horizon and a bespoke recovery plan for the sector which has the potential to reinvigorate and reignite the economy when we hopefully see the conclusion of the pandemic.