1、 2 FOREWORD Michael Kill CEO Night Time Industries Association “This benchmark report defines the true journey this industry has been on over the last few years,and the profound impact on the entire nightlife ecosystem across the UK.There is now little doubt that the Night Time Cultural Economy,SMEs

2、 and independent businesses were amongst the hardest hit during the pandemic,and beyond.These businesses make up over 70%of our industry,and are so important to economic and cultural recovery,as well as social cohesion,mental health and wellbeing,nightlife tourism and the survival of high streets wi

3、thin towns and cities across the country.This past year has been incredibly tough for the vast majority of hospitality and night time economy businesses.The legacy of the pandemic and the current cost inflation impact,with businesses seeing an increase in operating costs of up to 40%,coupled with co

4、nsumers having less disposable income,and market limitations to increasing prices.As we head further into a cost of living crisis,despite the bounce back in jobs and firm numbers,consumer spend,sector income,productivity and profitability,continue to struggle.My hope is that this report will be clos

5、ely considered by policymakers as they continue to chart the UK economys recovery from multiple crises.After the 2008 economic crisis,it was hospitality and night time economy businesses that led the recovery.The same can be true of the current economic crisis,where the night time economy will once

6、again need to be at the heart of the recovery.Jeff Smith MP Co-Chair of the All-Party Parliamentary Group for the Night Time Economy At the time of writing,its been three years since rumours of a virus moving west to Europe and the UK started to circulate.Within a few months,Covid had profoundly imp

7、acted our way of life,with far reaching and devastating effects.The night-time economy(NTE),one of the countrys greatest assets and one of the UKs most significant global cultural exports,was particularly hard hit.3 The complete and partial closures that affected this sector laid bare just how much

8、the NTE contributes socially,culturally and economically to our way of life.It is a sector that delivers-night in,night out-on both economic and social wellbeing.In 2021/22 we were still at the beginning of a long term recovery for the NTE,but we now also face the most serious cost-of-living crisis

9、in generations.As the data in this years NTIA NTE Report shows,in some ways the industry did recover quickly from the pandemic,particularly in re-hiring staff and starting new ventures.Thats no surprise to me:the NTE is an industry defined by its exceptional creativity,energy,and can-do attitude.It

10、is full of people with big ideas for great night-time venues and grand artistic visions,but it is also an industry with some of the best technicians the country has to offer.But as the research also shows,the sector has also struggled more than the economy generally to return to the levels of income

11、 generation pre-pandemic.The reasons for this are complex,but one critical factor is that the NTE was the sector most impacted by restrictions.The data doesnt yet show what effect the cost-of-living crisis is having on the NTE,but we cant wait around to find out.We need policymakers,both locally and

12、 nationally,to understand and support the sector it is the lifeblood of our towns and city centres,our high streets,our tourism industry,and most importantly,of our social wellbeing and cultural identity.Alistair Turnham&Ashley Cairns MAKE Associates/CGA Neilson “As the old saying goes,If you cant m

13、easure,you cant manage.Yes,its a clich,but like any clich its based on truth.But its not enough to just measure,its how you manage using the data youve produced that matters.Our hope for this second Study of the Night-time Economy is that it supports those advocating for our world class night-time c

14、ultural industries to make the case for more support,more understanding and more regulatory flexibility.Only with this support will our sector survive but also thrive after the pandemic,Brexit and the cost of living crisis.4 CONTENTS Executive Summary.5 1.Background to the report.8 2.FINDINGS.9 2.1

15、Background.9 2.2 Demand:consumer spend and GDP.10 2.2.1 About the Out of Home Leisure Economy.10 2.2.2 Consumer Spend.12 2.2.2 GDP.12 2.3 Jobs,firms,GVA and the supply chain.15 2.3.1 Jobs.16 2.3.2 Firms.19 2.3.3 Gross Value Added.21 2.3.4 Supply Chain.22 3.Conclusions.25 5 Executive Summary About th

16、e study This is the second Study of Night Time Economy.It has been commissioned by the NTIA to fully understand the economic contribution and significance of the night time cultural economy(NTCE)to the UK economy.It also situates the NTCE within the wider UK night-time economy(NTE)and the overall ou

17、t of home leisure economy(OHLE).The definition used here for the NTE includes all those sub-sectors within the OHLE that primarily serve the evening or night time consumer,i.e.,6pm to 6am.The NTCE focuses on those elements of the NTE that are driven by cultural and leisure activities-with less depen

18、dence upon retailing food and drink than the wider OHLE.As sectors that were amongst the worst affected by the Covid 19 pandemic(and are still recovering),the NTIA argues that the NTCE and NTE are still not accorded the importance economically(or indeed socially and culturally)that they deserve.The

19、leading leisure consultants CGA and night time economy specialists MAKE Associates were asked to re-model the data and update the baseline figures set out in the first Study of Night Time Economy,in order to build a picture of how the industry is recovering from the pandemic.It is too early to under

20、stand the statistical impact of the current cost of living crisis on our industry:this will be the subject of the next iteration of this study.Findings Over the decade prior to the pandemic the UK NTCE had shown a steady and sustained contribution to the UKs gross domestic product(GDP),generating 1.

21、64%or 36.9bn in 2019.However,this fell to 29.4bn in 2020 and to 24.1bn in 2021.This is significant.Whilst both the OHLE and the NTE sectors were also significantly affected in 2020,they recovered modestly in 2021.This was not the case for the NTCE.Here,consumer spending and share of GDP fell further

22、.This must be monitored before the next iteration of this report.In 2021 the wider UK NTE contributed 4.1%and 93.7bn to the UK economy.This was down from 5.1%and 116.1bn in 2019 respectively.6 In 2021 the entire OHLE contributed 6.3%and 143.5bn of income to the UK economy.This was down from 7.8%and

23、173.6bn in 2019 respectively.Despite the challenges,the NTCE remains a significant employment sector to the UK economy.The first NTE report showed that it supported approximately 425k UK jobs and 38k businesses in 2018.This fell to 392k jobs and 34k firms in 2021.However,estimates for 2022 suggest t

24、hat there has been a robust recovery with 424k jobs and 35.5k firms.The UK OHLE provided 2.92m of the countrys 32.75m jobs in 2018.In 2020 it fell to 2.69m albeit it bounced back to almost 2.87m in 2021.However,despite this,the industry still suffers from significant staff shortages and high vacancy

25、 rates,suggesting that growth is being held back despite the new jobs created in the past year.In 2018 the Gross Value Added(GVA)*of the UK NTE was 46.4bn and the GVA of the UK NTCE was 11.6bn.The GVA of the OHLE was 73.4bn.However,in 2021 GVA in the NTCE had fallen to 8.5bn,in the NTE to 34.5bn and

26、 in the OHLE to 58bn.*GVA is the key HM Treasury measure of how much value a sector or region contributes to the economy over and above its inputs.These GVA trends are similarly reflected in Supply Chain Spending by NTCE/NTE/OHLE businesses,which are also shown in the report.Simply put,business that

27、 are still operating in these sectors have hugely reduced their spending as part of their survival strategy.But(careful and strategic)spending is important to any industry to invest for the future(e.g.,venue refits,marketing,and PR to drive new audiences,lighting and sound installations,staff traini

28、ng etc).Conclusion Whilst other structural changes in the OHLE,NTE and NTCE cannot be ruled out,the pandemic appears to have set back the economic contribution of these vital industries to UK plc by about 6 or 7 years.Whilst consumer spend recovery has happened-to some extent-in the OHLE and NTE sec

29、tors,the NTCE has further lost consumer spend in 2021.This is highly concerning.It is likely the result of the extended shuttering and slower recovery of NTCE businesses that rely on mass audience participation nightclub,live music,theatre,cinema,and performance,all of which are the driving force of

30、 the NTCE.In terms of firm numbers and jobs for all our sectors,whilst these did dip modestly during and immediately after the pandemic,they have recovered to 7 pre-pandemic levels.Indeed,jobs are at an all-time high in some sectors.This is one potential positive to emerge out of the latest research

31、.However,as we head further into a cost of living crisis despite the bounce back in jobs and firm numbers,consumer spend,sector income,productivity and profitability,continue to struggle.This suggests that the industry is operating on ever smaller margins and a large proportion of firms are in survi

32、ve rather than thrive mode employing staff to operate but having to exist with much lower income and low(or no)margins.Whilst this is a deliberately narrow economic study,it is vital to recognise that the NTCE has significant impact beyond its pure economic outputs.It is vital to social cohesion,sel

33、f-identity,mental health and well-being and in creating a positive image for the UK on a global scale.8 1.Background to the report Welcome to the second Study of the UK Night-time Economy.In 2021 we published the first edition of this report which set a benchmark for the scale,performance and change

34、 over time of the industry that we exist to support.This report builds on that first study and helps us understand the impact the pandemic has had on consumer spend,jobs,firms and the value that the NTE brings to the UK economy.In particular,the Night Time Industries Association(NTIA)had wanted to c

35、ollect in one place the data that showed where the UK Night Time Cultural Economy(NTCE)lay within the UK Out of Home Leisure Economy and the UK economy more generally.The Night Time Industries Association believes that the NTCE offers a different perspective than the wider NTE or the overarching sec

36、tor of the Out of Home Leisure Economy.The NTCE is distinctive by its direct association to the creative and performing arts.It is these creative activities that the NTCE excels in and which provide the real point of difference in the night-time economy.The NTCE plays a vital role in driving footfal

37、l and spend to our high streets,towns and cities in the evening and at night.But crucially the NTCE also brings identity,pride and a unique sense of purpose to places.Night Time Industries Association wanted to investigate these sectors scale and performance over the past ten years.The expectation w

38、as to establish that the Night Time Cultural Economy has increased disproportionately.Furthermore,Night Time Industries Association wished to show how much the Night Time Cultural Economy has been increasing in importance and contribution to the national economy overall.9 2.FINDINGS 2.1 Background T

39、he following section shows the findings of the research divided into two sections.The first is the demand-led side of the night-time economy how much is being spent by consumers in the various subsectors that are of interest to the NTIA.The data is shown by three sectors:The Out of Home(OoH)Leisure

40、Economy(all expenditure in the relevant sectors that contribute to the night-time economy and at all times of day).This is the largest category and used mainly for context.The Night-time Economy/NTE(this is the broader night-time economy of activities and businesses that are driven by their night-ti

41、me trade between 6pm and 6am).The Night-time Cultural Economy/NTCE is those parts of the NTE that are driven by cultural,artistic and event activity,and where alcohol,food etc.,are secondary.The second section is more focused on the supply side.i.e.,the number of jobs,firms,value added and supply ch

42、ain value generated by firms in these sectors in support of the wider economy.The researchers have worked with the NTIA to develop a unique model that apportions activity levels throughout the day and night using known spending and trading patterns by industry and subsector across a 24hr period.Some

43、 data,particularly that from the ONS and government sources,is available only until 2021 and even sometimes this remains an ONS estimate.So where possible,provisional figures have been developed using data from multiple sources to create synthetic estimates for the purposes of this years report.It w

44、ill be possible to validate these when this study is repeated.10 2.2 Demand:consumer spend and GDP 2.2.1 About the Out of Home Leisure Economy Figure 1.The Out of Home Leisure Economy by operational channel segments The Out of Home Leisure Economy is widely recognised as having become one of the mos

45、t significant sectors in the UK economy.It is diverse and complex in its construction.It contains several distinct segments with an overarching commonality that is consumer leisure spending and behaviour.It had been growing steadily from 2000 and,based on the Blue Book 2022(the UKs National Accounts

46、),had been consistently the third largest market channel by consumer spend.Using a unique definition developed for the NTIA for this study(which includes further cultural,recreational and leisure services from attractions to casinos and bingo)-we have valued the Out of Home Leisure Economy,in 2021,a

47、t 143.5bn.This is a significant fall on previous years(see below).The graph below shows the headline figures for consumer spending in the Out of Home Leisure Economy and each of the categories within this.Of particular focus for the NTIA is the Night-time Cultural Economy(NTCE)where most of its memb

48、ers trade.11 12 2.2.2 Consumer Spend Figure 2.UK Consumer spend(M)by category Key points Out of Home Leisure Economy The value of the OoH Leisure Economy to the UK was 143.5bn in 2021.The OoH Leisure Economy,having grown consistently(and outperformed the UK economy)since the 2008 financial crisis sa

49、w a drop in consumer spending from 173.6bn 2019 to 122.7bn in 2020.This is a fall in spending of 50.9bn.This put spending back at the level it was a decade before in 2011.In 2021 there was a partial recovery in consumer spending in the OoH Leisure Economy of 20.8bn,taking the value of the sector bac

50、k to 143.5bn,around the same level as 2014.NTE The value of consumer spending in the NTE in 2021 was 93.7bn.The NTE saw a drop in consumer spending from 116.1bn in 2019 to 77.2bn in 2020.This is a fall of 38.9bn.This put spending back at the level it was well before our analysis begins.The crucial f

51、actor here is that the decline in spending in the Night-time Economy part of the OoH Leisure Economy was significantly more severe than the decline in spending during the Daytime segment of the OoH Leisure Economy.13 In 2021 there was a recovery in consumer spending in the NTE of 16.5bn,taking the v

52、alue of the sector to 93.7bn,around the same level as 2015.The recovery-once core elements of the NTE were allowed to open post-pandemic-was stronger than the OoH Leisure Economy more generally,reflecting a strong desire amongst consumers to experience the night again.NTCE In 2021 the NTCE was worth

53、 24.1bn.The NTCE saw a drop in consumer spending from 36.9bn in 2019 to 29.4bn in 2020.This is a fall of 7.5bn.This put spending back in the NTCE at the level of 2014.The most significant difference is to the OoH and NTE sectors,is that in 2021 the NTCE did not recover,and spending fell a further 5.

54、3bn to 24.1bn.It is impossible to be precise about the factors that underpin this,but given the NTCE is highly dependent on its core elements of nightclubs,live music,theatre,cinema and performance,the fact that restrictions on these venues were not lifted until well in to 2021 will be significant t

55、o the extended downturn.Further,there was a reluctance for consumers to return to key NTCE subsectors,for example in cinema and to a lesser extent theatre and live music.The graph below shows the percentage that each category comprises of total UK consumer spend.Figure 3.Share of UK consumer spend c

56、hange(%)by category 14 Out of Home Leisure Economy The OoHLE has,over the past decade,made up around 12-12.5%of all UK consumer spending.This fell two percentage points to around 10%in 2020.It has recovered slightly in 2021.NTE The NTE has,over the past decade,made up around 8%of all UK consumer spe

57、nding.This fell two percentage points to just over 6%in 2020.This fall was proportionately larger than the fall in the OoHLE,highlighting the likely disproportionate impact of the pandemic restrictions on after dark businesses.The NTE has recovered slightly in 2021 to around 7%of UK consumer spend.N

58、TCE The NTCE has,over the past decade,made up around 2.5%of all UK consumer spending.It has not historically shown the same consistent growth that the wider NTE has.Initially the NTCE was less impacted in 2020 than the wider NTE,but there is a clear lag here because in 2021 it declined further rathe

59、r than recovering.The NTCE now makes up the lowest proportion of UK consumer spend in our timeline,at 1.8%in 2021.It will be vital to examine 2022s figures as soon as they are available to understand if there has been further decline or at least some recovery.2.2.2 GDP The following table shows the

60、proportion that each of our sectors of interest contributes to the wider GDP(gross domestic product)of the UK.GDP,simply put,is the monetary value of all the goods and services that are bought by the final user,and which are produced in a country in a given period of time.It is a useful contextual e

61、xercise to help us understand the relative importance of an industry or sector to the UKs national income.15 Figure 4.Share of UK GDP(%)over time by category Out of Home Leisure Economy The OoHLE has,over the past decade,made up around 7.5%of UK GDP.This fell to below 6%in 2020.It has recovered slig

62、htly in 2021.NTE The NTE has,over the past decade,made up around 5%of all UK GDP.This fell 1.5 percentage points to just over 3.5%in 2020.The NTE has recovered slightly in 2021 to around 4%of UK GDP.NTCE The NTCE has,over the past decade,made up around 1.5%of all UK GDP.The NTCEs contribution to UK

63、GDP has declined further in 2021,rather than recovering and now makes up around 1%.2.3 Jobs,firms,GVA and the supply chain This section highlights the impact of the pandemic and the recovery.It is important to note that not all the negative impacts below can be causally associated with the pandemic(

64、there may be other structural changes taking place).But it is reasonable to assume that the large majority of 2020s changes will be due to both the 16 restrictions on trading in that year and 2021s results being impacted by the speed at which customers have come back to the various components of the

65、 NTE.2.3.1 Jobs Background The employment data below comes from the UK Governments BRES research(Business Register and Employment Survey).This is a survey of a stratified representative sample of around 80,000 UK businesses by size and sector and asks businesses about their staffing and recruitment.

66、BRES is generally considered to be more accurate for this purpose than the Labour Force Survey of workers.The researchers have built a composite model for the proportions of OoHLE,NTE and NTCE based on modelling of spend and turnover at varying times of the day and by type of business.This modelling

67、 more closely resembles the real-world conditions of how business in our industries actually trade around the clock.17 Key points Out of Home Leisure Economy The Out of Home Leisure Economy is the widest definition in this study and represents what most people would think of as the leisure economy,d

68、ay and night.It is slightly different to definitions used by other studies undertaken by government departments,UKH,the UK tourism industry bodies etc.so the overall figures will be slightly different.Figure 5.Jobs in OoH Leisure Economy The OoH Leisure Economy employed 2.92m people in 2019.In 2020

69、this was 2.69m,a loss of approximately 231k jobs.This was a fall of 7.9%.In 2021 the sector bounced back-to some degree-and created 180k new roles,leaving it around 51k jobs short of its high water mark in 2019.It is worth noting that the OoH Leisure Economy had been increasing the number of jobs it

70、 provided the UK economy year-on-year over the last decade.NTE Figure 6.Jobs in NTE The NTE employed 1.95m people in 2019.In 2020 this was 1.79m,a loss of approximately 155k jobs.This was a fall of 8%.18 In 2021 there was an uptick in NTE employment,with around 109k new jobs taking the total back to

71、 near 1.9m,but this was still 46k roles short of the pre-pandemic picture in 2019.It is important to note that while the fall in job numbers was of a similar percentage between the OoH Leisure Economy and the NTE(around 8%)the recovery in job numbers in the broader OoH Leisure Economy has been sligh

72、tly stronger.NTCE Figure 7.Jobs in NTCE The NTCE provided 425k jobs in 2019.In 2020 this was 391k,a loss of approximately 34k jobs.This was a fall of 8%,and in line with the other subsectors.However,in 2021 the NTCE returned to providing almost the same number of jobs it did pre-pandemic in 2019,wit

73、h around 33k new jobs in 2021,taking the total number of roles to 424k.The reason the NTCE industry has performed better than the NTE and the OoHLE in providing jobs(in relative not absolute terms)is predominantly due to it being composed more heavily of those venue types that we have classified as

74、drink-led such as pubs,bars and nightclubs.As the table below shoes,of all the business subsectors in the leisure and hospitality sector,it is the drink-led(and to a lesser extent the food-led subsector)that has driven jobs growth post-pandemic.Jobs by subcategory The table below breaks down the emp

75、loyment picture within the subsectors that make up the overall Out of Home Leisure Economy(which includes the NTE and NTCE).19 Figure 8.Jobs in the OoH Leisure Economy by category The key finding here is that in 2021 food-led,amusement and recreation and drink-led businesses(which includes those bus

76、inesses that are the mainstay of the NTE)have bounced back in employment terms and created a substantial number of new jobs.However,there are significant concerns about other key sectors such as culture and the arts,gambling and gaming,and accommodation where job numbers are still substantially down

77、 on their 2019 pre-pandemic position.Whilst it is likely that accommodation sector jobs will come back as international tourists return to the UK,culture and the arts may have seen a structural shift because it is a sector much more reliant on public sector funding which is increasingly in short sup

78、ply.Summary Overall,the industry was hit hard during the pandemic,but managed to keep many people employed.Those jobs it lost have been mostly created again(we are back to a picture of somewhere like 2018)and the NTCE has recruited more new employees(in relative terms)than the wider hospitality sect

79、or.In some subsectors employment in 2021 is actually up on 2019 figures but other sectors are down.The leisure and hospitality and NTE jobs market is a nuanced picture,and this is taking place in the context of broader staff shortages and the impact of the cost of living crises which has not yet bee

80、n seen in the figures.2.3.2 Firms Background Firm count is taken from the governments Interdepartmental Business Register(IDBR)and ONS datasets.20 Out of Home Leisure Economy Figure 9.Total firms in the OoH Leisure Economy 2011-2022 Key points Since the last NTE report(which included data to 2019)th

81、ere has been a slight increase in OoH Leisure Economy firms between 2019 and 2020(from approximately 220k to just over 224k).The rise in 2020s firms in the OoH Leisure Economy figures may appear surprising at first given this was the year most affected by the pandemic,but the figures are published i

82、n March so in reality represent business numbers a few months before this.Given the pandemic did not precipitate the first lockdown until March 2020 the impact of forced closure on business is likely to lag many months and,in reality,a number of years.For example,it is worth noting that firm numbers

83、 in this sector only start to rise again in 2012 again after the 2008 financial crisis.The pandemic impact is better represented by 2021s figures which showed a small 0.6%drop in total OoH Leisure Economy firms.(NB Again there are other reasons which may also have affected this number beyond the pan

84、demic).2021 shows some recovery and a new high in the numbers of OoH Leisure Economy firms,rising to over 230,000 businesses for the first time.NTE In 2022 we estimate the number of firms in the wider NTE to be 143,178.This was a rise from 137,374 in 2021(when the impact of the pandemic would have b

85、een most felt in the figures).In the March 2020 data,there had been slightly more firms that 2021,at 138,194.NTCE In 2022 we estimate the number of firms in the NTCE to be 35,476.This was a rise from 34,321 in 2021.In the March 2020 data,there had been slightly more NTCE firms,at 34,685.21 2.3.3 Gro

86、ss Value Added Gross value added is the UK Governments key measure of the UK economy and its sectors.It is preferred to the traditional measure of gross domestic product(GDP)because,as the name suggests,it measures value added to the raw inputs rather than the overall income.In simple terms it is us

87、ed because it is a better measure of the productivity and efficiency of the UK economy compared to other nations and of one sector to another.Figure 10.Gross value added of the OoH Leisure Economy,NTE and NTCE 2011 to 2021 Note.2021 figures are an estimate based on other settled data sets fig 10.ind

88、d Key points OoH Leisure Since the last NTE report in 2020,the OoH Leisure Economy fell from 75.4bn of GVA pre-pandemic in 2019 to 49.6bn in 2020.This was a contraction of 34.2%.GVA in the OoH Leisure Economy recovered somewhat in 2021 to an est.58bn.But this was still 23.1%behind where it was in 20

89、19.Between 2019 and 2021 the UKs GVA(all sectors)-whilst impacted by the pandemic in 2020-recovered to just 3%below its pre-pandemic levels by 2021.This is a much faster recovery than in the OoH Leisure Economy,the NTE or the NTCE.NTE The GVA of the NTE was approximately 29.5bn in 2020.This was a fa

90、ll of 37%on the pre-pandemic situation in 2019 when it contributed 46.8bn of added value to the countrys finances.Whilst the GVA produced by the NTE in 2021 recovered to 35.5bn,it remained 26.3%down on 2019.This recovery is slightly slower than the out of home Leisure Economy,probably because the NT

91、Es core components(clubs,live music venues bars and pubs)were shuttered longer than most other industries during the pandemic.Some NTE subsectors such as cinema and theatres are struggling particularly badly to bring customers back.22 NTCE The GVA produced by the night-time cultural economy was 11.5

92、bn in 2019.This slipped to 7.3bn in 2020 with a small recovery to 8.5bn in 2021.Summary In GVA terms,the legacy of the pandemic is still felt more strongly in the hospitality and leisure sectors than most other sectors of the economy which have recovered more quickly.This shows whilst the headline f

93、igures in other indicators such as jobs and firm numbers recovered well after the pandemic,the actual value being generated by the industry on its inputs is still below where it was in 2019.However,our sector is still an important industry to UK plc.For example,compared to other sectors in 2021 the

94、OoH Leisure Economys GVA contribution of 58.0bn was somewhere between the UK energy sector(36.6bn)and the transport and storage industry(77.4bn).2.3.4 Supply Chain The value of the supply chain is(simply put)calculated by grossing up the goods and services purchased by companies in a particular indu

95、stry,region,or country.It is similar to the fixed and variable overheads of an individual business(but minus expenditures such as tax,dividends and wages).The supply chain is important because the leisure and hospitality sector,and particularly the night-time cultural economy within it,are all consu

96、mer facing.As such,the more visitors these sectors can get through the door,the more businesses can support what is a highly interdependent supply chain,e.g.,food and drink suppliers,sound and lighting installers,marketing and PR,artists and DJs,security services etc.Many of the suppliers to the lei

97、sure and hospitality and NTE sectors are highly dependent on this one sector being heathy and able to trade as freely as possible.Figure 11.Supply chain spend by the OoH Leisure Economy,NTE and NTCE 2011 to 2021 Note.2021 figures are an estimate based on other settled data sets 23 Key points OoH Lei

98、sure Overall OoH Leisure Economy spend fell from almost 120bn a year to 72bn a year in 2020.This is a 40%reduction in purchasing in the main year of the pandemic.This is unsurprising as cutting stock and non-essential purchases was key to survival.Spending rose to 83.8bn in 2021.This was still down

99、29.7%on 2019.NTE Night-time economy businesses were spending over 58bn in 2019 and this fell around 37%to 36.7bn in 2020.Again,there was a recovery in spending in 2021 but this was still 26.4%down on 2019.This is(relatively)slightly weaker than the bounce in supply chain spending by OoH Leisure Econ

100、omy and may indicate that key components in the sector that traders mostly after dark,e.g.,nightclubs,cinemas,theatres etc.,are still not operating at levels they were before the pandemic.NTCE Spending by firms in the NTCE was most significantly affected.It was down from 24.4bn in 2019 to 13.2bn in

101、2020(a contraction in spending of 46%).Post-2020 this had recovered a little(from 13.2bn in 2020 to 15.5bn in 2021)but in relative terms it had not bounced back as much as the wider NTE or the OoH Leisure Economy(it was still also 37%down on pre-pandemic spending).It is important to note that spendi

102、ng on its own is not necessarily a sign of a healthy industry(for example businesses may be throwing money at problems or pursuing aggressive expansion which would not be sustainable in the longer term).However,in the case of the NTCE,because it is not a cash rich sector,these figures hint that busi

103、nesses were being extremely cautious in their spending during the recovery.This may be a double edged sword:yes it reduces exposure,but it also means funds to underpin growth may not be as forthcoming.24 25 3.Conclusions Overall,the pandemic has had a considerable negative impact on the Out of Home

104、Leisure Economy,the NTE and the NTCE within that.The impact on these sectors has been greater than that of the economy more generally.This is unsurprising given the level of restrictions placed upon them,particularly on the NTCE.However,it is a nuanced picture.For example,we did not lose quite as ma

105、ny businesses in these sectors in 2020 as we predicted in the last report and,in 2021,the number of businesses in all three sectors grew and are now above the high point of 2019.This has demonstrated resilience,risk taking and confidence in the future.However,the vast majority of these businesses wi

106、ll be significantly more stressed than they were in 2019.Job numbers have generally recovered across OHLE,NTE and the NTCE and are no more than 2%down on 2019.The NTCE has created new jobs faster than the other two sectors.This is one of the green shoots of recovery.This positive news is notwithstan

107、ding the well-known wider challenges in the hospitality and leisure sector around recruitment and high vacancy rates.However,its important not to overweight the importance of job numbers.They are not as strong an indicator of sector health as other metrics.Absolutely key is how much consumers are sp

108、ending.As sectors at the forefront of the consumer economy,businesses need consumers to be spending.Overall,consumer spending was down in 2020 and recovered only modestly in 2021.However,it is of particular concern that there was a continued decline in spending in the NTCE in 2021 where the OHLE and

109、 NTE have seen an uptick.Another concern is that the fall in GVA across all three sectors in 2020/21 was significant;and greater than falls seen in the UK economy.GVA is a strong indicator of how productive and resilient an industry is.Return to pre-pandemic levels of GVA in the NTCE seems a long wa

110、y off,particularly given the cost of living crisis.Likewise,the spending by OHLE/NTE/NTCE firms on their supply chains has reduced significantly.Cutting costs is crucial when you cant open your doors!26 But in turn this affects the viability of all those small businesses and freelancers who play suc

111、h an important role in the NTCE.Once they are gone,their knowledge and expertise is gone too.The latest figures in the report are,at first reading,unsurprising and remain difficult to swallow,particularly given the yet unmeasured impact of the cost of living crisis.However,there are green shoots the rise in firm numbers and the number of jobs being created in the last year.However,perhaps most important,has been the incredible resistance of the mostly small businesses and institutions that make up the NTCE to survive this far.They will continue to need significant support.