It is estimated that pubs across Wales lost around 30 per cent of their income during a sobering two-week Christmas period for the hospitality industry.

Since December 26, Welsh pubs have been restricted to table service, with the rule-of-six in place, and business owners reported that fewer people were coming out as cases of the Omicron variant increased.

Welsh government restrictions on big events and businesses in December also meant events were limited to 50 people outdoors and 30 indoors, resulting in the cancellation of large events over Christmas and the New Year.

The Welsh government has announced that from Friday 28 January, nightclubs will be able to open and hospitality allowed to operate normally, although Covid passes will still be needed for clubs, large events, cinemas and theatres.

The lifting of restrictions has been welcomed by the hospitality and entertainment industries, but some businesses warn they face a struggle to overcome "a huge loss of trade" during the festive period.

Emma McClarkin, Chief Executive of the Welsh Beer and Pub Association said: “The news that restrictions in Wales will be lifted from the end of January is fantastic for pubs and brewers.

"Of course every day of trading counts, especially in light of the huge loss of trade over the festive period, and we would love to have been open earlier.

"The average pub in Wales lost more than 30% of income over the two week Christmas period, which has hit bottom lines incredibly hard.

“We will continue to work closely with Ministers in Wales to ensure that brewers and pubs in Wales, so vital to the visitor economy, can restart their recovery in earnest.

"The ongoing support of the Welsh Government will be important to make sure Welsh brewers and pubs bounce back as quickly as possible.”

UKHospitality Cymru also welcomed the announcement by the Welsh government that all restrictions imposed on the industry in Wales would be lifted from January 28.

David Chapman, Executive Director of UKHospitality Cymru said: “This is positive and keenly anticipated news following a truly devastating period of restricted hospitality that has wiped out millions of pounds of revenue in weeks.

“Businesses have been pushed to the brink and there has been a palpable collective sigh of relief as today’s news has sunk in.

"Our gratitude is extended to the hundreds of businesses, large and small, which helped furnish UKHospitality Cymru with the financial data that helped to influence the Welsh government Cabinet’s decision to speed up the lifting of restrictions.”

UKHospitality Cymru is calling for the Welsh government to top up the existing £120m industry support available to businesses, to help retain jobs, and for a new recovery fund to be introduced to begin the process of bringing the hospitality industry back.

“Hospitality is a cornerstone of communities across Wales and was a pre-pandemic economic powerhouse," said Mr Chapman.

"It has been damaged but not downed and now needs a helping hand to support its long term rebuild."