Latest ABS data shows continued financial impact on the drinks and hospitality industry

The latest data from the Australian Bureau of Statistics (ABS)* reiterates the ongoing financial hardship that the drinks and hospitality industry are facing in the wake of COVID19. The data shows that compared to this time last year the industry has had significant revenue losses across the board.

Ms Gohar Yazdabadi, Director of Policy and Government Relations, Alcohol Beverages Australia, said today “Our industry has been hit hard by COVID19 and the ABS data shows that the pain is far from over with our industry being the second hardest hit with 84% of business reporting a decrease in revenue compared to this time last year.

“Even more concerning, of the businesses reporting a decrease in revenue, 30% reported a decrease of more than 75% compared to last year, 33% reported a decrease of between 50% to less than 75% and 33% reported a decrease between 25% to less than 50%

“The data also shows that 42% of business in the sector believe that their current business operations can be supported for less than three months based on current available cash. This sentiment is a dire warning for what lies ahead for the drinks and hospitality industry in coming months.

“96% of trading businesses in the sector are operating under modified conditions. In order to get revenue and jobs back on track it’s important that these businesses get back to trading as normal as soon as possible.

“The hospitality sector lost close to half a million** jobs at the height of coronavirus restrictions, with an additional 15% lost from the workforces of beer, wine, and spirit producers.

“$8.5billion** has been wiped from hospitality business sales representing close to 10% of annual revenues for beer, wine, and spirits producers.

“It’s important that governments across Australia recognise the ongoing struggles of the drinks and hospitality industry and work with industry to help get Australia’s economy back on track,” the ABA’s Gohar Yazdabadi said.

Ends

*ABS Catalogue 5676.0.55.003 – Business Indicators, Business Impacts of COVID-19, June 2020
https://www.abs.gov.au/AUSSTATS/abs@.nsf/Latestproducts/5676.0.55.003Main%20Features1June%202020?opendocument&tabname=Summary&prodno=5676.0.55.003&issue=June%202020&num=&view=

** https://www.alcoholbeveragesaustralia.org.au/wp-content/uploads/ABA-Industry-report-oncoronavirus.

 

Media inquiries: Ms Gohar Yazdabadi, 0423 501 009

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