Hospitality sector claims leap 100% YoY in July
Tourism levels could continue to experience hardship after a number of countries issued warnings to travellers following the UK riots this August
Claims in the UK’s hotel and catering sector have spiked by 100% in July, compared with the same time last year, according to trade credit insurer Atradius.
This comes despite overall claims in the F&B sector declining by 75% in July, a pivotal time for tourism in the UK.
According to Atradius, tourism levels could continue to experience hardship after Australia, Sweden, Indonesia, Nigeria, the UAE, India and Hong Kong issued warnings following the nationwide riots this August.
However, the group’s data on late and failed payment claims has indicated that the hospitality market overall is performing well, partly due to the rise of staycations.
Some 42%of Brits are planning one this summer, which means that domestic tourism is expected to elevate the UK economy by more than £30.3bn.
With an 80% decline in late and failed payments month-on-month from July 2024, and an overall 75% decline in claims compared to this time last year, Atradius has found that the hospitality market is giving the UK economy “a much-needed boost” – particularly through the F&B sector.
Despite the challenges, UK tourism is still on track for a strong economic summer, bolstered by key sporting and entertainment events such as Wimbledon, London Fashion Week, and Taylor Swift’s Eras World Tour.
Faye Jones, tourism sector expert at Atradius UK, said: “As we progress through the summer season, our data shows that UK tourism has endured a difficult start. The ongoing cost-of-living crisis, political changes, and current events have resulted in many not knowing what’s next for the UK economy and so choosing to save money where they can.
“With the August riots creating an unsettling environment, it is important that hotel and hospitality businesses take appropriate safety precautions to reassure their customers and rebuild their revenue.”
She added: “Adaptability shown by the hospitality sector, with the ongoing popularity of staycations, offers hope for its resilience, as there are still opportunities for those who are more agile and can adapt to market conditions.”