OCCUPANCY levels across hotels in the north are down by a quarter in the first three months of this year and by a whopping 60 per cent in March alone as revenues plunged and beds lie empty.
And just one in 10 rooms are likely to be filled in the key April to June period while 90 per cent of hotel staff have been either furloughed or laid off completely.
The figures from umbrella body the Northern Ireland Hotels Federation (NIHF) largely mirror those published last month by the NI Statistics and Research Agency, which showed occupancy levels were down 14 per cent on the previous year as visitors from territories like the Far East had reduced to virtually zero.
And the NIHF says trading in the second quarter of the year "will be minimal".
Its data takes in the performance of 145 hotels which between them have 9,654 rooms and 21,639 beds and support 15,000 staff directly, indirectly and through the supply chain.
In the last five years hotel businesses have invested £600 million to create accommodation and hospitality product, borrowing money with repayment plans linked to projected income, which has now disappeared.
NIHF chief executive Janice Gault said: “Our hotels sector has a weekly payroll of up to £5 million, depending on the season, and right now needs government intervention just to survive.
“Throughout this crisis, staff and customer health and wellbeing have remained the number one priority. The sector has stepped up and delivered on its responsibilities as well as donating supplies and providing accommodation for key workers; it also wants to be able to meet its ongoing responsibilities.
“The restrictions required to tackle the pandemic mean that not only are businesses not achieving projected earnings, but many have absolutely no income yet are still responsible for meeting key payroll, loan repayments, security, utilities, insurance and services costs.”
Ms Gault added: “Furloughing, whilst a very welcome intervention, impacts on cash flow as payroll costs still have to be paid out. We would like to see a mechanism whereby staff could be returned to their positions on a staged basis as trade returns to a normal footing.
“Grants announced by the Chancellor are welcome, but have been slow to filter through, and the threshold of a £51,000 NAV also means the majority of hotels do not qualify for any assistance. A further fund of £40m has been announced but details are yet to emerge on how this will be distributed.”
NIHF president Stephen Meldrum is seeking a guaranteed minimum of £25,000 to be given to all certified accommodation businesses beyond the £51,000 NAV level, adding that as a heavily regulated sector, it is easy to identify those who meet this simple criterion.
He also reiterated the Federation's request for rate relief of 100 per cent in 2020-21 for all those in hospitality and tourism, bringing Northern Ireland into line with Britain.
“A rates holiday has been given to all businesses in Northern Ireland in April, May and June, regardless of whether or not the coronavirus has impacted on their ability to trade.
“But with concern looming over travel, occupancy levels for the remainder of 2020, hotels will simply not be able to generate the levels of cash required to meet future rate bills.”
