Hospitality 'could create 500,000 new jobs by 2027' with right government support

The UK hospitality sector could offer a £29b boost to the economy and create 500,000 new jobs by 2027 with the right economic and policy environment, according to a UKHospitality report.

The study, produced by Ignite Economics, found that over the past six years hospitality has increased its annual economic contribution by £20b to £93b.

Employment in the industry has risen to 3.5m, making hospitality the third-largest employer in the country.

The Office for National Statistics (ONS) yesterday cited hospitality as one of the biggest drivers of jobs growth after UK employment hit a record high of 33 million.

In 2022 alone, when post-pandemic challenges continued to stifle growth, the sector contributed £54b in tax receipts to the Treasury, generated £20b worth of exports and £7b in business investment.

UKHospitality chief executive Kate Nicholls said it was “essential” politicians recognised the importance of the industry and tackled issues such as energy costs, food and drink price inflation and labour shortages that were stifling growth.

“This report shows what can be achieved if we can stimulate growth, bear down on inflation and have an enabling and supportive policy environment in place for hospitality,” Nicholls added.

“I’m incredibly proud of the resilience our sector has shown in recent years and the fact we continue to be a significant source of economic growth.

“Our sector has a long track-record of growing rapidly and driving the economy – these figures back that up and I hope the potential of hospitality is harnessed by the government.”

The report was released to coincide with the UKHospitality’s summer conference, which is being held in London today (14 June) and will see Steve Cassidy, managing director of Hilton UK & Ireland, take over as chair of the trade body.

Image: Alena Marchuk/Shutterstock