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Hospitality 'key to economy's growth' in Europe

18 | 09 | 13

A new report suggests hospitality plays a big role in providing youth employment and investments.

The study - entitled The Hospitality Sector in Europe - by EY (previously Ernst & Young) concluded that the sector is also important for jobs and growth in other areas.

Hospitality was responsible, directly and indirectly, for an output of €1 trillion (£836 million) in 2010 - providing 8.1 per cent of the EU's total output that year. For every €1 spent in the sector, the wider economy was funded by €1.16.

EY claims that 16 million jobs are supported by hospitality, equalling one in every 13 jobs across Europe. This is positive news for all the sub sectors, such as restaurants, hotels and catering equipment, as it shows a very large, growing industry currently at work.

Looking specifically at the UK, the study reports an output of €146 billion from hospitality, contributing €22 billion in taxes. It also supported 2.7 million jobs and - between 2010 and 2012 dash created a further 153,000 roles.

The news is being met with positive response from other organisations. Chief executive for the British Beer and Pub association Brigid Simmons said the findings highlight the importance the hospitality sector plays in Europe, but more needs to be done to ensure longevity and success.

Mr Simmons said: "Policy makers need to focus on how they can allow [the] beer and pub sector to create jobs and provide new opportunities for business - not least through taxation, such as more action on business rates and beer duty."

The lead author of the report John Hopes also expressed concern for the future of the catering industry.

Mr Hopes said: "Measures adopted in times of austerity, which increase tax rates at a time when disposable incomes are falling, are likely to undermine the ability of the sector to generate growth."

He argues that the immediate response will be cost cutting followed by a decline in capacity.ADNFCR-16001031-ID-801638993-ADNFCR


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