One-third of pubs, bars and clubs may close before New Years Eve. Hospitality bosses ask for clarification from Ministers regarding Covid-19 restrictions.
This industry faces a ‘cataclysmic christmas’, and the bosses of Omicron have asked for financial support.
Peter Marks, chief executive at REKOM, told BBC Radio 4’s Today programme running a nightclub has been ‘really tough’ and called for ministers to cut VAT for venue entry.
He added, “If there are restrictions, we will need to live,”
A survey by the Night Time Industries Association (NTIA) of more than five hundred nightclubs, bars, pubs and hospitality venues has today revealed that the sector faces a ‘Cataclysmic Christmas’.
One fifth of nightlife businesses could lose their entire workforce, and one third fear closure within a month without urgent Government support following new Covid restrictions and omicron uncertainty.
On average, night time economy venues have lost £46,000 per unit in lost sales and cancellations during the festive period.
London’s streets are empty because Britons have opted to stay inside amid rapidly expanding Covid-19 Omicron.
As people stay put, the Duchess of Cambridge is still a very peaceful pub in Windsor.
Half of all businesses who required Covid Certification in order to enter their premises have reported seeing a drop of over 40% in footfall.
Half of businesses operating in nighttime will be forced to lay off half their employees if they don’t receive the appropriate financial support.
Marks stated that the shrinkage problems we have had over the past days could be attributed to both vaccine passports or fear of leaving. The fact that we are running at 41% is a critical time for our business. We will start thinking next weekend, “We’re likely okay till Christmas. But we won’t even be opening New Years Eve. Which is approximately 8-10 Percent of our annual profits.
He indicated that REKOM’s staff is on standby if there are any questions about whether nightclubs will remain open during Christmas.
He added, “Stock was another thing.” “Do you ever order stock for the new year and then suddenly discover it is going to be sitting in your cellar? It is impossible to plan.
People crammed the pavements. Although many people were hesitant to leave home because of concerns about this new variant, hundreds crowded Regent Street yesterday afternoon for their last-minute Christmas shopping.
We need to help. One thing you can do is add door admission into the lower VAT status that you gave pubs or restaurants that sell food. That’s helped them survive. It’s an easy way to target live music venues or nightclubs. You need to backdate.
Michael Kill (CEO of the NTIA) stated that “it really is chilling prospect for so many venues left to bleed. With a lockdown on everything except name and absolutely zero recognition of this by the Government.
These venues were subject to financial hardship for over 20 months. The Christmas trade period helped keep the businesses that survived the crisis financially in the new year.
“If additional restrictions must be applied, the Chancellor should step in to recognize the enormous damage cancellations caused by Covid protocol, expensive restrictions, and mixed Government messaging have actually done.
“The Government has been given twenty months to discover how the sector operates. It is hard to believe that they stand before us again in March 2020. We are asking for their attention, understanding how business works and realizing that inaction will be a fatal blow to our industry. This is truly a Cataclysmic Christmas.
Sacha Lord, Night Time Economy Advisor for Greater Manchester, said: ‘Whilst shocking and upsetting, these latest stats don’t come as much surprise. The entire industry has repeatedly urged the Chancellor to show leadership and provide support. Our appeals have been ignored and some say it’s too late. If the UK’s fifth biggest industry has any hope of survival, he must come forward, urgently.’