‘Frustration morphing into exasperation’

Janice Gault, Chief Executive of the Federation, said any compensations those operating the sector have been able to claim to date didn’t even come close to covering losses endured during the various lockdowns, reopenings and forced closures of 2020.

A DUP proposal to keep restrictions in place for a further week before some services can start reopening was voted through on Thursday night without the support of either Sinn Féin, who voted against it, or the SDLP, who abstained. This followed a week in which the Executive could not reach any agreement over how to proceed in the days and hours before previously imposed restrictions were due to end, with the DUP using a veto mechanism to stop proposals which had the backing of other parties from going through.

Ms Gault gave an assessment of what all this uncertainty has meant for the badly hit hotel sector in the north.

She said: “At the 11th hour a deal was struck by the NI Executive to end the deadlock over exiting the current circuit breaker. For many in the hotel sector the decision was an irrelevant one as they did not have enough time to open. Others had taken a punt and made preparations for a return to trade. Either way, the sector was the loser in the long run, as hotels will remain closed for a further two weeks.

“From a hotel perspective, it has been a bleak month with frustration morphing into exasperation over the last week. The air of despondency at the start of the process has been replaced with one of disbelief and distress.

“Emotions aside, the pertinent facts of the hotel industry show a stark picture with all metrics under stress. Turnover is forecast to fall to less than a third of 2019 and the extended six-week closure will see a loss of sales in the region of £70M. Outlays including furlough, salaries and fixed costs will see hoteliers pay out over £10m for the six-week closure.

“To date, there has been limited compensation for the sector with the only monies provided under the Localised Restrictions Support Scheme. The maximum support under this scheme is £6,400, a paltry sum given the level of outgoings. It is understood that additional financial aid will be provided but after four weeks of closure, it is disappointing that these monies have not been agreed and paid out.”

Ms. Gault said that the sector now has a date to work to and is hoping to open for November 27, ideally that morning, so a full weekend’s trading can take place.

She said hotels have already invested over £5M in ensuring COVID-19 compliance and have always held the health of employees and guests as the most important aspect of all operations. “Given that considerable mitigations are already in place, it is imperative that the sector is allowed to trade in a viable manner. It is important that we offer some respite from the ravages that COVID-19 has wrought on our society,” she said.