"Battered and bruised" was how a hospitality boss described the state of the sector after extra restrictions were imposed on the industry by Welsh Government today.
First Minister Mark Drakeford announced a new set of rules for after Christmas that will throw many bookings into disarray with the return of the rule of 6 and 2m social distancing.
There are also many questions about the new rules with swift guidance wanted.
This comes after weeks of cancellations over concerns about the highly transmissible Omicron variant and the potential measures to control it.
海角视频Hospitality Cymru has warned new restrictions on hospitality businesses in Wales will have devastating financial impacts and could still preface early year closures and job losses, despite a £120m package of Welsh Government cash support.
“The new restrictions virtually close Wales’ events industry and take all other hospitality businesses much further into sub-viable trading,” said David Chapman, Executive Director for 海角视频Hospitality Cymru.
“Hundreds of millions of pounds of business have been lost in the run up to a very quiet Christmas and things will now get worse from Boxing Day.
“Our members are battered and bruised and at the end of their tether. Morale, alongside customer confidence, is low. Our customers have dwindled to a trickle and this news will only make matters worse.”
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He noted Welsh Ministerial calls for furlough to be reinstated and said that the sort of firepower that furlough represented was vitally needed to top up Welsh Government funding help.
He added: “The Welsh Government - like the 海角视频 Government - recognises the dismal trading conditions we have had to endure pre-Christmas and has made some more money available today to compensate for losses to date.
"Welsh Government tells us it has pushed its own financial boundaries as far as it can.
"The new packages amount to £120m, an additional £60m, but this falls way short of the huge scale of the business that will be lost.
“Cash reserves are long gone; loans are being repaid and costs are soaring.
"Today’s news here means we need the 海角视频 Government to help our businesses in Wales immediately and make more assistance available - and do it quickly. If not, there could be very serious permanent damage done to this industry in just a few weeks."
Night Time Industries Association, Wales Commission said: "In a survey this week of the sector, it was found that the financial impact across hospitality and the late night sector in Wales is already much greater than the provisional support being made available.
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"While it is appreciated that Welsh Government is constrained in their ability to provide funding, it remains the case that the provisional support provided by government both in Wales and Westminster remains woefully short of addressing the economic harm and sectoral need already experienced.
"We urge the 海角视频 Government to immediately reimplement the furlough scheme and provide further proportionate support to the devolved nations so that businesses across the 海角视频 can survive what is now looking like the toughest point of the pandemic to date.”
Ben Francis, FSB Wales Policy Chair, said: "We fully recognise the challenges posed by the current situation and concerns about the future spread of Omicron as outlined today by the First Minister in the press conference.
"However, the measures announced today undoubtedly pose a significant challenge for businesses throughout the economy, most particularly in hospitality – a sector most feeling the pressures of this latest public health crisis and facing the greatest uncertainty.
"While we welcome the fact that many businesses will be able to continue to trade, from previous experience, we know that the return of the ‘rule of six’ and social distancing as well as table service in licensed premises will place a limitation on the capacity of these businesses and added to the reduced trade in the run-up to Christmas, this will cause concern for many."
He welcomed the new financial package offered.
He added: "It is essential now that the Minister for Economy sets out the details of this new package, ensuring that it takes into account the pre-Christmas pressures, is available to supply chain businesses and is delivered as soon as possible and as easily as possible to ensure that businesses are supported soon.
"As ever, with any new or amended measures, it is essential that Welsh Government delivers timely and clear guidance to businesses urgently.
"The timescale for businesses to adapt to these measures is exceedingly right – particularly with the Christmas break in the way - and Ministers and agencies need to show forbearance and understanding towards businesses while they work hard to adapt to the changes during what is a very busy period for many."
Aberconwy Conservative MS Janet Finch-Saunders said: “Given that the number of identified Omicron cases in Wales grew by 204 on Tuesday, with approximately 941 cases to date, it is clear that this variant is more transmissible threat. Nonetheless, it remains a paradox that the part of the 海角视频 with the least Omicron cases has acted hardest to combat it.
“Whilst I welcome the news that the financial assistance on offer will be doubled, many of the hospitality and tourism businesses across Aberconwy have already witnessed a tsunami of cancellations and have taken a significant hit to their finances. This is putting livelihoods and jobs at risk.
“Ahead of the funding announcement tomorrow, the Welsh Government must ensure that the support will be backdated to cover the wave of cancellations already witnessed. Given that I have previously raised concerns about how these measures are conducted, Ministers must also ensure that it does not operate on a first-come-first-served basis but rather on need.
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“Businesses will need time to gather the evidence required, balancing with the restoration of restriction signage with demands on rescheduling.
"As such, I will be pressing for as simple a process as possible. In acknowledging that this scheme will also be rolled out across the busy Christmas period, additional staffing support must also be supplied to Business Wales to ensure that they can appropriately handle the demand for answers via their telephone and email channels.”