Recent report reveals hospitality industry created 18% of UK jobs in 2022

Recently, UKHospitality highlighted the role of the hospitality industry in boosting the economy of the UK.

According to the June Edition of Ignite Economics' report titled 'Economic Contribution of the UK Hospitality Industry, the UK's hospitality industry can generate £29 billion in revenue for the economy, and make way for 0.5 million jobs by 2027. This sixth edition of the report underlined how the right policies can shape up this sector.

Hospitality industry contributions to the economy

The report was launched at the summer conference of UKHospitality where they spoke about employability and policies governing this sector.

The hospitality sector has added £93 billion to the economy annually in the last six years. This accounts for a £20 billion increase in the annual contribution from this sector.

The hospitality industry also indirectly generated £121 billion apart from its £93 billion Gross Value Added (GVA) to the economy.

In the 2009-2019 time period, this industry's GVA has grown better than any other industry in the country. Although this dropped down a bit after the pandemic hit.

In 2022, the total GVA of the hospitality sector to the UK economy stood at £214 billion after adding indirect and induced GVA. This accounts for 9 per cent of the UK economy. In recent times, the GVA of the industry has started to recover above pre-pandemic levels as the Q4 2022 GVA was 27 per cent higher than Q4 2019 GVA.

Not just that, the hospitality industry has become one of the top employment avenues in the UK in these years. Employment in this industry touched 3.5 million in the last six years which has made the hospitality industry the third largest in terms of employability. While the industry generated 3.5 million jobs in 2022 directly it also added 3.0 million indirectly at the same time.

Apart from the 3.5 million jobs created by the industry in 2022, 2.6 million jobs were also added in the 'Accommodation and Food Service Activities'. When counted together this accounts for 6.5 million jobs which is 18 per cent of all jobs in the UK

Ignite Economics speaks of how the industry lies at the heart of the UK economy in this detailed report, specifically mentioning how it generated £54 billion in tax revenue in 2022 despite challenges faced due to the post-pandemic slowdown. The hospitality sector also made £20 billion in export revenue and £7 billion in investment.

Time to unleash the potential of the industry

Speaking about the potential of the hospitality sector, the Chief Executive of UKHospitality, Kate Nicholls said that the industry is an economic powerhouse and the statistics show that.

Kate underlined how much important this report is as this cements the industry's position in the economy amidst a critical time when the country is reeling under the cost-of-living crisis and trying to recover from the pandemic slowdown.

Kate further stated that the political class needs to recognise the importance of the hospitality industry in building the economy, especially in terms of adding jobs in the country and strengthening communities. Both of which are crucial for nation-building.

She explained how a proper supportive policy environment is conducive to the hospitality sector. When coupled with effective policies to enhance growth and slow down inflation the hospitality industry can unleash its full potential. The industry has the capacity to add another £29 billion to the economy annually only if the government recognises it, said Kate.

Call for government support for short-term and long-term issues

On behalf of UKHospitality Kate made the pitch for closer ties with the government, urging them to seize the opportunity and encash the full potential of the industry. For this, the government needs to eradicate short-term issues that hinder the growth of the hospitality sector.

This includes the inflation in food and drink prices, shortage of labour and massive energy costs. The government should also focus on long-term issues like licensing, planning and business rates.

Kate ascertained the resilient nature of the hospitality sector as she highlighted the industry's long track record of enhancing the economy.