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Hospitality Sector Hits Five-Year Low as Confidence Crumbles in 2025

From pandemic recovery to profit plummets—why 2025 is the toughest year yet for hospitality. Can policy changes turn the tide before it’s too late?

,   and  Administrator
1 min read
This picture is clicked inside the hotel and in front, we see a table on which white color cloth is...
This picture is clicked inside the hotel and in front, we see a table on which white color cloth is placed. On table, we see plates, fork, spoon, glass, branches of tree. Around the table, we see chairs and behind that we see the other table which is like green in color and behind that, we see a man wearing black blazer. Next to him, we see the girl standing and behind them, we see door on which exit is written on it and behind that door, we see two men standing.

Hospitality Sector Hits Five-Year Low as Confidence Crumbles in 2025

The hospitality sector is facing its toughest period in years, with business confidence hitting a five-year low. A new survey reveals that leaders are struggling with falling profits, rising costs, and shrinking teams—all while calling for urgent government action.

The October 2025 Business Confidence Survey by CGA through NIQ and Sona paints a bleak picture. Only 26% of hospitality leaders now feel optimistic about their business prospects over the next 12 months. This marks the lowest level of confidence since October 2020, when the industry was still reeling from pandemic restrictions.

The latest figures show a sector under severe pressure, with falling profits, reduced workforces, and dwindling confidence. Leaders warn that without policy changes, the challenges facing hospitality will only deepen in the coming year.

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