NI Hospitality Feels the Pinch

Most hospitality establishments in Northern Ireland are operating at under 80% of capacity due to rising costs, a survey has found.

It found that hospitality businesses have had to cut their workforce, with 87% of respondents operating below 90% of required capacity, with the majority (55%) operating below 80% capacity.

It also found that 72% of respondents have less than six months of cash reserves, with over one in five (21%) having no cash reserves at all.

The survey found that as a direct result of April cost increases, 68% have increased prices and half (50%) have cut staff numbers.

Members of Hospitality Ulster, the British Institute of Innkeeping (BII), the British Beer & Pub Association (BBPA), and UKHospitality were surveyed after 84,000 hospitality jobs were lost across the UK since the last budget.

Hospitality businesses are calling for a reduction in VAT, urgent delivery of meaningful lower business rates multipliers and amendment of April's changes to Employer National Insurance contributions.

They are also calling for an alignment of business/non-domestic rates in devolved nations to match incoming reforms in England.

Colin Neill, chief executive of Hospitality Ulster, said businesses are being squeezed.

‘This shocking data reinforces the urgent need for the UK Government and Northern Ireland Executive to recognise the incredible pressure hospitality businesses have been put under, particularly since April, and illustrates why it should come forward with measures to support this vital sector at the budget,’ he said.

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