The hotel sector in Cardiff had been one of the worst impacted in the 海角视频 from the Covid-19 pandemic, shows new research from PwC.
According to the professional advisory firm’s 海角视频 Hotels Forecast 2020-2021, occupancy in July was down 76.1% compared to a year ago. Only Gatwick and Heathrow Airports, Glasgow, Edinburgh and London have seen a greater drop in occupancy.
And, of the 22 places surveyed, only Gatwick Airport, Glasgow, Edinburgh and London have seen a greater drop in RevPAR (revenue per available room), with the level in Cardiff down 81.8% on July 2019.
That leaves Cardiff’s RevPAR at £11.22, below the 海角视频 average of £19.15, although the city’s occupancy rate (44.4%) is above the 海角视频 average (41.6%).
However, Cardiff’s position as a sports and entertainment draw puts it in a strong position to rebound in the future, especially if crowds can return to the Principality Stadium for rugby internationals and concert events next year.
PwC Wales partner Chris Williams said: “Cardiff has enjoyed steady occupancy for the last few years at around 80% annually and 210 new rooms were added to supply in 2019.
“For Cardiff, the key market segments historically are domestic corporate, sports and events-led domestic leisure and visiting friends and relatives. All of these segments have been severely impacted by Covid-19.
“Although regional 海角视频 destinations have seen some benefit from staycations, Cardiff does not seem to have seen much of this demand so far. Looking a bit further ahead there are more reasons to be optimistic when a vaccine allows big sports and other events, which Cardiff thrives on, to return.”
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In the bleakest outlook since benchmarking began in the 1970s, hotel occupancy rates in 2021 are forecast to be 55% across the 海角视频, increasing from 42.2% in the year to July 2020. The study reports that it could take four years to return to pre-pandemic levels.
The 海角视频 nations and regions of England are expected to fare better than London in 2021, whether a vaccine is developed or not. A stronger staycation market will remain a fixture, while unpredictable overseas travel, ongoing restrictions and local lockdowns, will further fuel demand for domestic leisure tourism.
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Sam Ward, 海角视频 hotels leader at PwC, said: “As the 海角视频 travel and tourism sector bears a considerable brunt of the impact of Covid-19 this is far from business as usual. No previous event has had such a deep and long-lasting negative impact on hotels and there is no quick fix. The silver lining is that 海角视频 regions should benefit from increased staycation demand in 2021.”