Covid restrictions took huge financial toll on hospitality industry
Hotels, restaurants and cafés suffered incredible revenue losses in the past year. According, to a report published by Statistics Netherlands (CBS), the hospitality sector lost 44 percent in revenue in the last quarter of 2020 compared to the third.
The hospitality sector’s revenue loss was seven times larger in 2020 than it was during the financial crisis of 2009. Overall, compared to the previous year the sector suffered a 33.9 percent financial loss in 2020.
In total, hotels were hit the hardest by the pandemic with a 50.8 percent income decrease, followed by cafés and restaurants at 41.7 and 34.6 percent respectively. In comparison to other parts of the hospitality field, fast-food restaurants were least affected by the pandemic at a 13.5 percent overall revenue decrease.
The first dip in earnings occurred in mid-March of 2020 when hotels, restaurants and cafés were ordered to close their doors by the government in order to combat the coronavirus. The sector continued to lose income up until June 1, 2020 when the Netherlands loosened restrictions. Revenue in the third quarter, therefore, shot up averaging out at roughly the same amount as before the lockdown in the first quarter.
In the fourth quarter, hotels, restaurants and cafés were ordered to close again as the second coronavirus wave hit the country. During the last quarter of 2020, cafés were hit hardest at a 70.4 percent decrease compared to the quarter prior. Restaurants and hotels also took a large financial toll in the last quarter, losing 56.7 and 51.1 percent respectively compared to the third quarter.