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The Night Time Industries Association (NTIA) has said that businesses in the sector lost a fifth of their trade over the festive period.\u00a0<\/p>\n
While New Year\u2019s Eve performed better than expected with trading down by only 16% compared to 2019, the month of December was underwhelming for trade due to consumers having less disposable income, trade strikes and inflation.<\/p>\n
December\u2019s trading performance was down 21% compared to 2019.<\/p>\n
The findings are detailed in a flash poll of 200 members carried out by the NTIA to gauge the current state of the night time economy.<\/p>\n
With the continued pressures surrounding travel strikes and the subsequent disruption, the economic climate and even the weather, the NTIA found that 53.7% of respondents did not make enough profit to cover cash reserve requirements for the slower periods. The poll also found that 20.9% barely made enough to cover cash reserves and 25.4% did make enough.<\/p>\n
Some 46.3% of respondents felt trade had been impacted by customers having less disposable income, while 26.9% believed it had been impacted by cost inflation. Another 16.4% attributed the lull in trade to industrial action and 6% said the weather also had an impact.<\/p>\n
The NTIA asked respondents how they felt the UK Government could help in the current economic climate, with 85.9% suggesting a VAT reduction, 60.9% arguing for an energy freeze and 28.1% advocating for an alcohol duty freeze.<\/p>\n
Michael Kill, chief executive of the NTIA, said: \u201cFollowing a flash poll of members, over 50% of businesses have not been able to build the necessary cash reserves required to survive early 2023, with over 50% of respondents suggesting that they only have enough to survive the next two months, as night time economy businesses see a 20% drop in trade across the Christmas period.<\/p>\n
\u201cWith operating costs continuing to increase, rent and VAT due in January and the media talking about the government halving the current energy subsidy scheme, we are faced with a challenging Q1 2023, with many trying to find a pathway through the uncertainty.<\/p>\n
\u201cIt is clear that inflationary pressures, both business and domestic, have caused the most damage, with industrial action impacting cities and large towns reliant on consumer mobility at night.\u201d<\/p>\n
Kill added: \u201cThis is one of the biggest challenges the industry has faced, for many a greater crisis than the pandemic, with many businesses being left on the edge trying to survive.\u201d<\/p>\n
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