The skills council was given an overall rating of "good", as part of the relicensing process that all 25 sector skills councils (SSCs) will undertake this year.
Six months ago, People 1st was told that it would have to prove it had the confidence and support of employers across the sector if it was to regain its licence to continue operating.
UKCES said it had been impressed by People 1st's approach to partnership working on the tourism agenda in England and felt the concept behind UK Skills Passport (now known as UKSP) was "highly innovative".
But it also highlighted the need for People 1st to continue on the delivery of qualifications reform, including implementing systems to ensure effective working with awarding bodies.
Brian Wisdom, chief executive of People 1st, said: "We are delighted to have received independent assessment of the progress we have made in our mission to transform skills in our industry.
"The relicensing process has taken over six months and we feel it is a very thorough evaluation of our progress. Since our formation in 2004, we have worked hard to put in place meaningful programmes that meet the needs of employers and will make a real difference to developing skills in the sector.
People 1st has worked with the industry to develop the Professional Cookery Diploma, and new apprenticeship frameworks, and is working on the forthcoming 14-19 Diploma for hospitality.
By Gemma Sharkey
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