Hospitality accounted for a third of the UK's GDP drop in March and April

Hospitality accounted for a third of UKs GDP drop in March and April, while industry leaders continue to be concerned that any recovery will be long and hard.

According to the Future Shock report from CGA and UKHospitality, only 16% of leaders were optimistic about the prospects of the market in the next 12 months, as just 23% of consumers are returning to venues with caution and a third only doing so if added precautions are in place.

The report employs research in China and the UK to predict changes in consumer habits, including an increase in use of local venues rather than city centres, a preference for booking ahead, and polarisation between the premium and value ends of the market.

UKHospitality chief executive Kate Nicholls said there was a huge amount of "graft to be done if we are to make it through this crisis in one piece".

She added: "We have all faced up to some difficult truths and learned some valuable lessons, and we're pleased to be able to share much of that insight and expertise in this edition of Future Shock."

Karl Chessell, business unit director, retail and food at CGA, said: "CGA's data shows how the pandemic caused a sudden and dramatic downturn in sales and had a seismic effect on consumer behaviour, and the big question now is how quickly the market can recover.

"There are clearly many tough challenges ahead, but with the backing of consumers and the right support from government, businesses can not just survive the pandemic but thrive in the happier times that lie ahead."

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