ABN-AMRO writes in their report that the leisure sector will not recover next year yet

Turnover losses for the Dutch leisure sector also in 2021

The leisure sector is being hit hard by the lockdown and will not return to pre-pandemic level next year yet. The recovery will be gradual and not complete by 2021. Fast food, holiday parks and campsites are going reasonably well through the crisis. However, travel companies, cafes, restaurants, museums, theme parks, zoos and cinemas are suffering a lot. ABN-AMRO writes this in its latest Sector Forecast Leisure report.

Experts from the bank do not foresee a quick solution to the pandemic. Higher unemployment and corporate bankruptcies, among other things, will extend the recovery period. In addition, we have to take into account a third wave at the beginning of 2021. The bank expects that, with the exception of holiday parks, campsites and fast food, all sectors will suffer significant revenue losses.

Source: ABN-AMRO

Travel 

Travel entrepreneurs are faced with an 85 percent drop in turnover this year. In addition, they incur high costs as a result of cancellations and repatriation. No other industry within the leisure sector has had such a hard time. Although a strong recovery is expected for next year, the pre-crisis level is still a long way off. Especially holiday traffic by plane will be affected by the coronavirus for a long time. From a survey among 10,000 Europeans (at the beginning of October 2020), it shows that only 51 percent feel comfortable enough to enter an aircraft. On the other hand, 78 percent of Europeans would go on holidays by car. The recovery will therefore occur earlier with travel agents who provide bookings to the countries accessible by car.  For travel entrepreneurs who focus on long-haul travel, the recovery period is longer.

Hotels

The hotels located in the major cities have been doing poorly since the outbreak of the corona crisis. The reasons are less foreign tourists, lower international business traffic and the cancellation of conferences and events. Previously, 40 percent of all hotel guests had a business motive. The hotels in periphery are doing reasonably well this year as they are less dependent on business guests and international tourists.

Holiday parks and campsites

Although campsites and holiday parks had to be closed during Easter and May holidays, they were able to limit the damage in the summer months. Last summer, an average of 21.2 percent more reservations were made than a year earlier. Holiday parks did even better with an increase of 24.7 percent. 2021 is expected to be a good year for holiday parks and campsites.

Museums 

Museums are expected to receive only 8.7 million visitors this year (24 million fewer than last year’s 32.7 million). Important cause of this decline is the decrease in foreign tourists, which accounted for 29 percent of the total museum visit in 2019. Furthermore, a quarter of the visitors are over 65 years old and they are also staying away during the outbreak of corona.

Amusement parks and zoos 

Amusement parks and zoos are also seeing their turnover drop sharply due to the lockdown and the capacity-limiting measures. Turnover of this year is expected to be one third of the previous year. Staff costs are increasing as more people are needed to ensure that visitors keep their distance from each other. Visitors are increasingly choosing a time slots which also help the parks to spread the visit. That is an interesting development, especially as a result of the crisis. Visitors have more time to visit a park or zoo during the day because many are working from home.