- Just 6% of hospitality and leisure sector leaders are confident about growth this Summer, according to new research from Barclays Corporate Banking
- Businesses are predicting 41% year-on-year decline in sales, with two fifths (39%) saying they’ve been ‘kept afloat’ by VAT cut to 5%
- Confidence rockets to 83% in Winter 2020/21
- Industry leaders are innovating to open up new revenue streams and prepare for the long-term
As hospitality and leisure businesses prepare for the August Bank Holiday, research from Barclays Corporate Banking reveals just 6% of businesses in the sector are confident of growth across the Summer.
The significant challenges currently facing the industry are underscored in a new Barclays study1 of over 300 senior hospitality and leisure executives. On average, businesses predict their earnings will fall by 41% year-on-year when comparing 2020 to 2019, and nearly two fifths (39%) say they’ve been ‘kept afloat’ by the VAT cut to 5% - a figure that peaks at 55% for cafés. In addition, 40% of hospitality and leisure leaders say the VAT reduction has been a ‘lifeline’ for the sector.
And despite the ‘staycation summer’ providing a noticeable boost in earnings for over three quarters (76%) of the businesses surveyed, it’s not until the end of the year that confidence reaches substantial levels. Only three in ten businesses (30%) anticipate growth in the Autumn, but over four fifths (83%) think they’ll grow in Winter 2020/21.