Businesses in Bristol city centre businesses showed strong signs of recovery from the pandemic in the first half of this year in the face of higher costs and staff shortages, new research has revealed.
Hotels and clothes shops enjoyed the biggest rise in spending – up 43% and 33% respectively compared to the same period last year – with the city’s night-time economy also benefiting with an increase of 8%. 
However, the city centre economy has not yet returned to its pre-Covid position, with the research showing there was still a £50m shortfall in spending.
The figures are revealed in new data released by three of Bristol’s central Business Improvement Districts (BID).
The research identifies increased footfall as well as spend across the first six months this year, before the impact of recent rises in interest rates and sharp increases in energy bills were fully felt.
Commissioned, analysed and released by Bristol City Centre BID, Redcliffe & Temple BID and Broadmead BID, the research shows a total ‘in premises’ Visa spend of £274m across businesses in the BS1, BS2 and BS8 postcodes between 1 January and 30 June.
Total in-premises Visa spend was £131.1m in the first quarter and £142.7m in the second – a 9% increase from one quarter to the next and a significant improvement of 16% on the equivalent period last year.
The night-time economy, which takes in businesses operating between 6pm and 6am, enjoyed a significant boost across the first half, with a total spend of £39.5m, according to the research.
It experienced a positive start to the year with spending of £19m in the first three months. A key driver for this was the return of Bristol Light Festival, pictured, which brought 170,000 visitors to the event and triggered an additional £3.4m revenue to city centre businesses.
In the second quarter, restaurants, bars and clubs experienced an 8% increase as a whole, with £20.5m spending reported specifically in the city centre between 6pm and 6am. 
International spending also had a big impact on the city centre economy and its recovery with a total of £53.4m going into firms’ coffers during the first six months.
Visitors from US accounted for the highest international spend in the city, according to the research.
Head of Redcliffe & Temple BID Steve Bluff, pictured, said: “In Q1, the city centre economy started to show signs of recovery, with more people wanting to visit and spend leisure time in the city, we started on a post-pandemic upward trajectory.
“Whilst we are seeing reassuring signs of recovery and quarterly increased spend in the city, these is still more work to be done.
“We know that when comparing Q2 of this year to Q2 2019, there is a difference and shortfall of over £50m in spend. 
“If the city is to fully rebound and return to the levels seen before the pandemic then businesses need continued support through local, international, and online spend.”
Vicky Lee, head of Bristol City Centre BID, pictured, added: “This data shows that in Q1 we were heading in the right direction for a more prosperous year for our city’s businesses, particularly retail and hospitality that were hit hard by the pandemic.
“As we headed into Q2, the cost of living and inflation has had an impact on businesses and how they operate. But, thankfully, the data so far shows that these concerns have not affected consumer spend in the city centre.
“Whilst it is likely that consumers’ disposable income may have reduced, the importance of smaller ‘pick-me-up’ purchases and experiences such as shopping, meals out with friends and family and a night out in the city, are still high on people’s agenda.
She said the BIDS would use the data to understand and monitor the spend trends in the city centre, to ensure they can continue to support businesses in the second half.
“We need to ensure both day and night-time economies are supported, encouraging workers back to their offices will be a key driver for increased midweek, daytime spend, along with autumn and winter events to attract visitors into the city,” she added.
