Cost of living: Uncertainty for hospitality after good Christmas trade

Hospitality businesses in Northern Ireland face uncertainty in the coming months despite improved trade over Christmas, industry leaders have said.

Last month was the first Christmas period in which the sector was not affected by Covid restrictions since before the pandemic.

Industry bodies said spending and footfall returned to pre-Covid levels.

But pressure on household incomes caused by the cost-of-living crisis means some businesses are concerned.

Colin Neill, the chief executive of Hospitality Ulster, which represents pubs and restaurants, said most account for a dip in trade in the first quarter of the new year.

But he said they were worried about how soaring energy and stock bills would affect their profits.

“The profit we make in the Christmas period is what we use to keep the lights on in January, February and indeed up to March,” he told the BBC’s Good Morning Ulster programme.

“The worry is now profit has been reduced have premises made enough to keep them going there and what will the market now do?”

Many businesses will not know whether they have made enough money until the end of January, said Mr Neill.

He also raised concerns about how business rates in Northern Ireland could affect profits.

“We haven’t seen the same support around rates that our counterparts in England and now Scotland have got,” he said.

December 2022 marked the first time in two years that the hospitality sector had not faced pandemic-related restrictions.

Most measures, including the requirement to show vaccine passports at pubs and restaurants, were relaxed in January 2022.

A month later all remaining restrictions, such as the wearing of face coverings, were lifted.

Northern Ireland Hotels Federation chief executive Janice Gault said her organisation’s members reported strong performances at the end of 2022.

“I think it’s quite difficult to compare this Christmas to other Christmases,” she said.

“But I think overall people had made the decision that Christmas was going to be something they were going to put worries aside and go out and meet up with friends.”

She said the next three months would be an “interesting time” for many hotels because they would find out whether or not people would continue to spend on stays amid the cost-of-living crisis.

“The biggest challenge for anyone is going to be uncertainty,” she said.

“No sector likes uncertainty – our sector… tends to be something that people go to as a matter of choice… it’s not something you necessarily have to do.

“Uncertainty is not going to help any business through the next couple of months.”