The accommodation and restaurant sector is still coping with the consequences of the COVID-19, more than a year and a half after the pandemic struck. Although bars and restaurants across Europe reopened in the last few months, the second wave of the pandemic significantly cut down their revenues, turning 2021 into another challenging year.
According to data presented by Stock Apps, the combined revenues of the accommodation and restaurant markets in Germany, the United Kingdom, France, Italy, and Spain, as the five largest markets in Europe, are expected to hit $418bn this year, $132bn less than before the pandemic struck.
The German accommodation and restaurant industry, the largest in Europe, has been hit hard by the COVID-19 lockdowns. Unlike in some other European countries, the strict COVID-19 protective measures kept German bars and restaurants closed until a few weeks ago, causing huge revenue losses for the entire sector.
The Statista COVID-19 Barometer 2020 also 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.
In 2019, the German accommodation and restaurant sector generated $106.5bn in revenue, revealed the Statista data. After the pandemic struck, this figure plunged to $81.5bn in 2020. Although revenues are projected to rise by 6.3% to $86.6bn in 2021, this still represents a massive $20bn drop compared to pre-pandemic figures.
However, as the second-largest in Europe, the UK’s accommodation and restaurant sector is set to witness even bigger losses. Statista data indicate that bars and restaurants in the United Kingdom are expected to generate $93.6bn in revenue this year, $41bn less than in 2019.
The revenues of the French accommodation and restaurant market are forecast to remain 20% below pre-pandemic levels. In 2019, restaurants and bars in the country generated $118bn in revenue. With thousands of caterers closing their businesses amid the first and second wave of the pandemic, this figure is forecast to reach merely $95.4bn in 2021. Statistics show the French market is expected to completely recover in the next three years, with revenues rising to $125.5bn by 2023.
The Italian accommodation and restaurant market is expected to hit $88.7bn in revenue this year, compared to $100.3bn in 2019.
However, the Statista survey revealed Spain had taken the hardest hit among Europe’s top five markets. In 2019, the entire Spanish accommodation and restaurant sector generated $90.2bn in revenue. After slumping to $47.6bn in 2020, revenues are set to grow by 14% YoY to $54.4bn in 2020, a 40% drop in two years.
Jastra has written for many other sites including BuyShares.co.uk, The Business Mogul, Inside Business, Business Today, Startups Magazine, and TradingPlatforms.com.
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