2.4 million people are employed in the hospitality industry, making it the UK’s fifth largest employer, according to a new report from the British Hospitality Assocation which aims to highlight the economic contribution of the sector.
“The hospitality economy is one of the country’s key industries with huge growth prospects in jobs,” said Sir David Michels, president of the BHA, adding that the “industry’s job creating potential” could not be ignored by the government.
Prepared by Oxford Economics, the report shows that many more people are employed in the industry than previously estimated. In addition to the 2.4m people directly employed by the sector – which includes 750,000 in contract and in-house catering for event venues and other areas as well as 20,000 in events management – it claims that a further 1.2m jobs are created in indirect roles such as the supply chain for function venues.
Furthermore the core hospitality economy – including hotels, restaurants, catering, corporate venues and events management – has an estimated turnover of some £90bn. This equates to a £46bn contribution to the UK economy in the form of wages and profits, as well as an estimated £34bn in gross tax revenues.
The hospitality industry also accounts for a substantial 4.2% of investment into the UK economy with the construction and expansion of facilities such as conference centres, event spaces and venues or other buildings. This is believed to sustain some 39,000 jobs in construction and related activities.