The first week of the new year started with some stressful news for people in England, especially those who are working in the hospitality industry. There is a new restriction on hospitality venues in England announced on January 5th 2021, making everything for property managers more difficult.
Thanks to COVID-19, 2020 was not the perfect year for people in the hospitality business. We were hoping that 2021 would bring us more opportunities to attract more bookings, get back on the track, and have the chance to expand our businesses. However, new laws on businesses and venues in England on the 5th of January, show us something different that every property manager must be aware of right now.
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What Is the New Restriction on Hospitality Venues in England on 5 January 2021?
According to GOV.UK, all businesses that provide guest accommodation such as hotels, serviced accommodation, caravan parks, B&Bs, and any other kinds of short-term rentals need to get closed to prevent more coronavirus cases.
However, this is not the end of the story; the hospitality industry needs to survive and find its way out of the pandemic and new rules. To do so, there are some exceptions to this restriction on hospitality venues in England that you need to be aware of.
What Are the Exceptions to the Guest Accommodation Businesses Restrictions?
Because of this new rule, travelling inside and outside of England is not possible. If you are looking for more information about new restrictions on travelling after 5 January 2021 in England, you can check out this page.
Because of the restrictions, all the people who are on holidays must go back to their homes as soon as possible and follow the protocols.
As a property manager based in England, you need to know the following points to change your business plan and strategies for these days that England is in a strict lockdown:
If you are a owner of hotels, hostels, guest houses and campsites, or other types of short-term rentals, you have to close them, unless:
- Your guests use the property as their main residence.
- People who are staying in your short-term rental cannot return to their home or main residence.
- Your property is an accommodation for homeless and supports them.
- Your guests have to stay there for work-related purposes.
- They need to be self-isolated which is required by law.
- If they are moving house and need accommodation.
These new restrictions apply to hospitality venues as well. Cafes, restaurants, pubs, bars and social clubs cannot be open unless:
- They are serving food and non-alcoholic drinks until 11 AM for takeaway.
- They are offering any “deliver only” food and drinks.
What Happens to the Hospitality Business During New Restriction on Hospitality Venues in England?
This is a critical time for people who are working in the hospitality industry. Many property managers cannot implement their regular marketing and business plans, and the loss in their budget and business may not be fully recovered. However, there are some tips that you, as a property manager, can consider during this situation:
- Invest in acquiring more knowledge for after lockdown.
- Try to think outside the box.
- Work on your social media platforms to get people to know your brand and business.
- Work on your blog and create a strong content strategy.
- Get in touch with people in your industry.
- Create a direct booking website and make it rank well on Google.
What the UK’s Government Does to Support Guest Accommodation Businesses?
To minimise damages to the vacation rental companies during this restriction on hospitality venues in England, The UK Chancellor announced that there are going to be some financial support for companies in the hospitality industry, as follows:
- There will be one-off top-up grants of up to £9,000 financial support per property, for retail, hospitality and leisure businesses, to help them during the spring.
- There is going to be a discretionary fund with a value of £594 million to support businesses that are impacted due to this situation.
According to theasap.org.uk, businesses that need to close their company due to this lockdown will be granted with the following one-off top-ups:
- £4,000 for businesses with a rateable value of £15,000 or under
- £6,000 for businesses with a rateable value between £15,000 and £51,000
- £9,000 for businesses with a rateable value of over £51,000
Also, the governent will support devolved nations with funding to distribute:
- The Scottish Government will receive £375 million.
- The Welsh Government will receive £227 million.
- The Northern Ireland Executive will receive £127 million.
Besides these financial aids from the UK’s government, there are different ways that can help you find your way around this difficult time and boost your performance. You are welcome to share your ideas below.