German, UK and French accommodation and restaurant sector to lose $95.7 billion in 2020

The year 2020 has been a rough one for the accommodation and restaurant industry. After the COVID-19 lockdown in the first months of 2020, many restaurants reopened in the second half of the year, but their daily traffic dropped sharply compared to a year ago.

However, with governments closing down bars and restaurants amid the second wave of the pandemic, the much-expected holiday season, which usually adds up big profits for the restaurants, will bring new staggering losses for the entire industry

According to the latest data, the combined revenues of the accommodation and restaurant industry in Germany, France, and the United Kingdom, as the three largest markets in Europe, is expected to plunge by $95.7 billion amid the COVID-19 crisis.

UK’s Accommodation and Restaurant Revenues to Plunge by $43.8 billion in 2020

Measures to reduce the spread of the coronavirus caused enormous losses for the UK restaurant industry. On March 16th, Prime Minister Boris Johnson advised the public to avoid bars and restaurants, though no ban was yet enforced.

The year-over-year drop in seated diners in UK restaurants plunged by 52% that day and 82% on March 17th. Only a few days later, all restaurants were forced to close.

After almost three months of lockdown, restaurants in the United Kingdom were allowed to reopen on July 4th, providing they followed strict hygiene conditions to prevent a second wave of the virus. A week later, the number of seated diners in UK restaurants was still down by 45%, but it gradually increased.

However, as the country reintroduced lockdown measures on November 5th, following an increase in the number of new COVID infection cases, the percentage of seated restaurant diners in the United Kingdom was almost 95% lower compared to last year’s figures.

The Statista data also revealed the revenue of the United Kingdom’s accommodation and restaurant market, as the largest in Europe, is expected to plunge by almost 40% YoY to $74.5bn in 2020. In the next two years, this figure is forecast to rise to $100.7 billion. Still, 17.5 billion less compared to 2019 figures.

The German accommodation and restaurant industry has also been hit hard by the COVID-19 crisis. The Statista COVID-19 Barometer 2020 data from June showed Germans changed their opinion about the restaurants drastically amid the pandemic. Almost 50% of respondents stated they planned to avoid bars, pubs, and restaurants even once the restrictions are lifted.

Statistics show the German market is expected to witness a 25% drop amid the COVID-19 crisis, with the revenues falling from $104.9 billion in 2019 to $80 billion in 2020.

French accommodation and restaurant industry is also expected to witness a 25% revenue drop in 2020. In 2019, restaurants and bars in the country generated $117.8 billion in revenue. With thousands of caterers closing their businesses amid the COVID-19 lockdown, this figure is forecast to slump by $27 billion in 2020. Statistics show the French market is expected to fully recover in the next three years, with revenues rising to $125.3 billion by 2023.

Spanish Revenues Halved Amid COVID-19 Crisis, the Biggest Drop Among the Top Five Markets

As the fourth largest in Europe, the Italian accommodation and restaurant industry is expected to lose $15.5 billion amid the COVID-19 crisis, with revenues falling to $84.8 billion in 2020.

However, statistics show the Spanish restaurant sector has taken the hardest hit among Europe’s top five markets.

In October, Spain became the first European country to report one million coronavirus cases since the pandemic started. To curb the spread of the virus, the Spanish region of Catalonia, which includes the city of Barcelona, ordered bars and restaurants to close for 15 days.

In 2019, the entire Spanish accommodation and restaurant sector generated $90.2 billion in revenue. Statistics show this figure is forecast to slump to $47.6 billion in 2020, a 49.6% plunge year-over-year.

The information on this page may have been provided by a contributor to ChinaGoAbroad, and ChinaGoAbroad makes no guarantees about the accuracy of any content. All content shall be used for informational purposes only. Contributors must obtain all necessary licenses and/or ownership rights from the relevant content owner(s) before submitting such content (including texts, pictures, photos and diagrams) to ChinaGoAbroad for publication. ChinaGoAbroad disclaims all liability arising from the publication of any content/information (such as texts, pictures, photos and diagrams that infringe on any copyright) received from contributors. Links may direct to third party sites out of the control of ChinaGoAbroad, and such links shall not be considered an endorsement by ChinaGoAbroad of any information contained on such third party sites. Please refer to our Disclaimer for more details.