Hotels in Northern Ireland will lose out on £500m of revenues as one million fewer hotel rooms are filled in 2020 than in 2019, according to a new report.
The Northern Ireland Hotels Federation (NIHF)’s report said overall trading for the hotel sector is expected to drop from £750m in 2019 to below £250m this year.
While the furlough scheme and VAT reductions helped, the return to tighter restrictions have made a “devastating impact”.
Janice Gault, chief executive of the NIHF, said: “The report reflects the simple but stark reality; the industry is in survival mode trading within a severely restricted framework.”
She added that while “trade held up in early September” the latest regulations have “restricted trading” and led to closures.
Gault added: “The industry’s inability to trade in the way it did prior to closure means that it is likely that the sector will lose between 15-20% if its direct work force through redundancies, re-deployment and natural churn.
“The final number will be determined by winter trading, the timing of a return to full trade and fiscal support for employees over the next six months.”