Administration cases within hospitality double, NTIA finds
In Q1 of 2024, hospitality emerged as the fifth worst-hit sector, following retail, manufacturing, real estate and construction
The hospitality and night-time economy sectors have experienced a significant increase in businesses going into administration, a recent report by Shakespeare Martineau for the NTIA has revealed.
The year-to-date data for April 2023 to March 2024 was concerning, with 193 administrations in the hospitality and night time economy industries accounting for 11% of all administrations.
This showed a significant increase compared to the previous year, where there were 74 administrations within hospitality between April 2022 and March 2023, representing 5% of all administrations.
Comparing the first quarter of 2023 with the same period in 2022, the report found that there had been a notable rise in administrations.
Between January and March 2023, administrations within hospitality accounted for 9% of all administrations during that period. This showed a stark contrast to administrations recorded in the same period in 2022, comprising only 4% of all administrations.
A monthly breakdown of the 2023/24 data revealed fluctuations throughout the year, with peaks in October 2023 (39 administrations) and January 2024 (20 administrations).
The report also revealed the hospitality sector’s position relative to other industries; in Q1 of 2024, hospitality emerged as the fifth worst-hit sector, following retail, manufacturing, real estate and construction.
Michael Kill, CEO of NTIA, said: “Navigating through highly unstable political climates, we must acknowledge the deteriorating conditions at the coalface of the hospitality and night time economy sectors, and more importantly, the true human impact on people’s livelihoods.
“With industries grappling with escalating expenses, the recent dip in inflation only marginally alleviates the cost burden.”
He added: “It’s imperative that we intensify our efforts to urge the government and the chancellor to bolster the industry through fiscal measures, notably by implementing a VAT cut, which would provide much-needed financial relief for the entire nation.”
