Page 37 - We Rave You Magazine | July 2022

EDITORIAL > THE DEVASTATING IMPACT OF COST INFLATION ON UK VENUES

THE DEVASTATING

IMPACT OF COST

INFLATION ON UK VENUES

BY: SAMANTHA REIS PC: RONDELL MELLING - PIXABAY

n 2020 the world was struck by the unthinkable. With no warning and no time to protect
ourselves from the impact, COVID-19 hit the world. The pandemic and its contours
ravaged the world as a whole and the entertainment industry was one of the victims in
particular. Culture, art, and entertainment were taken secondary and dropped to the
bottom of the priority list. Marginalised, nightlife and music events were labelled possi-
Ible disseminators and pulled the handbrake for practically two years. They dreamed
every day of the expected upturn, restart, opportunities, and the collective desire to dance
again. Inflation was not on the guestlist but it appeared as one of the first clients of the upturn
in the UK industry. Its impact has been devastating and a recent survey conducted by the Night
Time Industries Association (NTIA) shows frightening results, laced with gloom. What does the
future hold for UK venues? The current outlook becomes clear if you look at the alarming figures
obtained by the NTIA after surveying over 200 businesses in the UK.

‘Unsure’ was the word chosen by 44.7% when asked to think about the future of their business, being
sceptical about its survival beyond the next twelve months. Within the same universe, 20.8% are not
confident that they have a future at all. The feeling of helplessness is compounded when 48% of
businesses claim to be barely breaking even and 20.2% confirm that they are losing money every
day they open their doors. The big reason for this? Inflation. The businesses surveyed say they have
experienced a 30% increase in operating costs since the post-pandemic reopening.

The cost of living has skyrocketed in the UK in recent times. This is causing a two-way snowball effect,
affecting not only businesses but also their customers, in a spiral that seems to have no end in sight.
Operating costs suffer as the sharp rise in energy prices has also driven up supply chain costs. Staff
shortages are the other side of the coin. The lockdowns led to a massive layoff of staff, who has since
moved on to other areas that now offer more stability. The lack of staff, especially trained staff, is a
major factor affecting the smooth running of venues and events.

Ticket sales and the affluence in clubs and other entertainment establishments have decreased,
not only because people are forced to save as much as possible, but also because of the great
insecurity in the timely purchase of tickets brought about by the successive cancellations caused
by the pandemic.

Insecurity is the watchword and the feeling that unites the whole industry and its consumers.
Solutions are asked for and it is hoped that they will be enough to give breath to a relevant industry
that has managed to find the strength to stand up.
“Inflation was not on the guestlist but it appeared as

one of the first clients of the upturn in the UK industry”

36 we rave you.com july 2022 37