SALES in the U.K. hospitality industry slumped 87 percent in the second quarter, hurt by the lockdown for the coronavirus pandemic, and the outlook is no less troubling, according to an industry group.

Revenue from April through June totaled £4.6 billion (US$5.9 billion), compared with £34.2 billion a year earlier, the New Quarterly Tracker from the UKHospitality trade association and research firm CGA said yesterday. Given what the industry group called a “catastrophic collapse” in revenue, businesses will need “extensive and sustained support over the rest of 2020 and beyond,” it said.

Businesses are gradually reopening across the country, and the government is now seeking to support them with measures such as the Eat Out to Help Out Scheme, whereby diners can get a 50 percent discount on food up to the value of £10. But with continuing concerns about the virus, and hesitancy to use public transport, recovery appears likely to be slow.

“These latest figures highlight how precarious the present situation is,” said Kate Nicholls, the chief executive of UKHospitality, which represents more than 700 companies and 65,000 venues employing 3.2 million people.

(SD-Agencies)