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8 November 2024

Hospitality is Resilient – With the Right Support We Can Thrive Again


GUEST COLUMN:

David Chapman
Executive Director
UK Hospitality Cymru

As we look at the state of play within the hospitality sector in Wales, it’s clear that recovery has not been uniform. There are marked differences across the regions, and hearing from operators paints a varied picture. From large businesses to small independents, all are key to the Welsh economy, but their paths to recovery are distinct. 

One worrying statistic from last year is that Wales was among the worst-hit areas in the UK for pub closures. This is deeply concerning, as pubs are not only businesses but social anchors in our communities. A major factor in this disparity is the difference in rate relief – our pubs in Wales received a 40% reduction compared to the 75% offered in England. This difference amounted to around £6,500 annually per pub, which is a significant advantage that pubs across the border enjoyed. 

Heading into this Christmas season, whilst the restrictions of the Covid-19 pandemic are thankfully well behind us, we are still in new territory. Lifestyle changes brought on by Covid-19 continue to influence consumer behaviour, from how people plan their holidays to how they choose to celebrate special occasions. There is a noticeable trend of late bookings, with many making last-minute decisions based on factors like weather. This shift adds another layer of unpredictability to an already challenging environment. 

We're also seeing a change in what customers seek from hospitality experiences. It’s no longer just about functionality – people now want something more special. They are choosing to visit places where the experience itself is a key draw, making hospitality venues not just meeting points but destinations for creating memories. While this is a positive trend, the external pressures we continue to face, from rising costs to ongoing challenges around recruitment and retention, are making it hard to deliver these experiences consistently. 

The resilience and creativity within the Welsh hospitality sector are something to be proud of. I recently attended the Abergavenny Food Festival, and the passion from the people in our industry was palpable. These are driven, enthusiastic individuals who pour their hearts into their businesses. Yet, despite this spirit, the external environment remains tough. What we need now more than ever is recognition of the economic power of hospitality, which for years has been underappreciated in political and economic circles. 

Before the pandemic, our industry was delivering 5% growth year on year. That’s the kind of performance that governments at all levels should be championing. With the right support – particularly in the area of business rates – there is no reason we can't return to that level of growth. Business rates remain a crucial issue for us and, without reform, many operators will continue to struggle. 

We need external circumstances to align so that we can fully bounce back. With the right levers of support, particularly from government, hospitality can thrive once again. Now is the time for decisive action to ensure that this vital sector can continue to grow the economy and support our communities. 



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