Tough times ahead but hospitality and accommodation sector showing resilience - Sensis Business Index
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Tough times ahead but hospitality and accommodation sector showing resilience - Sensis Business Index
Sensis CEO John Allan says the hospitality and accommodation sector had demonstrated "amazing resilience" in the wake of COVID-19, following the release of new data from the company showing businesses had been "hit from all sides" during the pandemic.
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SensisSensis CEO John Allen.
Despite all the turmoil of the past six months, the hospitality and accommodation sector does not have the most pessimistic outlook for the next 12 months, according to the August Sensis Business Index.
Whilst 6 per cent of Accommodation/Cafes/Restaurant businesses surveyed as part of the research said they believed they would close in the next year, there were other sectors with a worse outlook.
Transport/Storage believed they would be the hardest hit at 13 per cent, followed by Cultural and Recreational and Other Services at 12 per cent and Retail at 11 per cent.
Source: Sensis
August Sensis Business Index - At a glance:
- 35 per cent of those in the hospitality and accommodation sector said Covid-19 had led to a 50 per cent or more reduction in sales.
- 17 per cent said Covid-19 had forced them to reduce their staff by 50 per cent or more.
- 44 per cent laid off between 11 and 25 people
- 38 per cent of businesses are either Fairly Worried or Extremely Worried about the next 12 months.
According to the index, the industry average was 8 per cent.
The data also revealed a small number of hospitality and accommodation businesses (11 per cent) believe the next 12 months will be better, with 66 per cent saying the economy will be worse, while 23 per cent believe it will be the same.
Sensis CEO John Allan said the sector had been hit from all sides but were showing amazing resilience.
“There are some sectors that were less affected, but the hospitality and accommodation sectors were virtually shut down over night,” he said.
“And that continues to be the case in Victoria.
“Of all the businesses we surveyed, nearly half (49 per cent) of those in hospitality and accommodation said Covid-19 had had a severe impact on their business.
"That was easily the highest figure of the 10 sectors we surveyed.
"To put that number in perspective, the Construction sector figure was 22 per cent, Health and Community Services at 19 per cent and Wholesale at 15 per cent."
Source: Sensis
Mr Allan said businesses believed the impact was most noticeable across the sales and staffing.
“When looking at their sales figures impacted by Covid-19, 60 per cent of the hospitality and accommodation sector said sales had reduced significantly," he said.
"In comparison, the Health and Community Services sector was at 24 per cent.
“The sector also laid off the most staff at 35 per cent, with Transport the next highest at 26 per cent.”
Source: Sensis
Mr Allan said what had not helped the hospitality and accommodation sector was that it had been difficult to get finance.
“More than 40 per cent said it was more difficult to get finance," he said.
That was well ahead of any other sector with the industry average at 36 per cent.
"One in three also said they were knocked back for finance compared to the industry average of 26 per cent.”
Click here to download the report.
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