The European accommodation and restaurant sector is still reeling from the after-effects of the Covid-19 pandemic over 18 months after it first struck. Even though restaurants and bars across Europe began to reopen in recent months, the second wave drastically reduced revenues and turned 2021 into yet another arduous year.
According to research and projections from Stock Apps, the five largest accommodation and restaurant markets in Europe could make over $410 billion in revenue this year. Although this may seem to be a significant amount, sales are down by a whopping $132 billion from 2019.
The Top 5 Take a Hit
Data shared by StockApps.com indicates that combined revenue from the accommodation and restaurant markets in the United Kingdom, Germany, Italy, France, and Spain (making up the five largest European markets) will hit revenues exceeding $400 billion this year. However, this figure sits well below the $550 billion from the previous year.
UK: Suffering the Most Revenue Losses
At $41 billion below pre-pandemic levels, the UK experienced the most significant revenue losses. Compared to Germany, which makes up the largest part of the market but has only reported revenue losses of around $25 billion, the UK’s loss is tremendous.
Germany: Weathering the Storm
The strict Covid-19 restrictions and protective measures during lockdowns in Germany kept restaurants and bars shut for long periods. These closures and restrictions meant a considerable loss in revenue for this sector.
According to Statista.com, the German accommodation and restaurant industry experienced revenues of $106.5 billion in 2019. However, after the pandemic hit Europe in 2020, this figure plummeted to $81.5 billion.
Should the projected 6.3% rise in revenue in 2021 to $86.6 billion come into play, it would mean that the difference between pre-pandemic Germany and post-pandemic Germany will be around a $20 billion drop in revenue.
Spain: Experiencing a Drastic Decline
Spain’s accommodation and restaurant sector suffered a drop of 40% in just two years. In 2019, Spain generated $90.2 billion in revenue, but by 2020 this figure plummeted to $47.6 billion.
France: Anticipating a Full Recovery
In 2019, French restaurants and bars generated $118 billion in revenue. During 2020, figures dropped by around 20%. In 2021, the second wave of the Covid-19 pandemic once again forced thousands of businesses to close their doors. Projected numbers as of June 2021 stood at only $95.4 billion. However, statistics indicate that the French market can expect a full recovery in around three years with anticipated revenues of $125.5 billion by 2023.
Italy: Soldiering on Through Troublesome Times
Although the pandemic’s start was particularly challenging to Italy, the restaurant and accommodation market in the country only experienced a drop of around $11.6 billion between 2019—when revenues were $100.3 billion—and 2020, when projections indicated a drop to $88.7 billion.