Search
The Caterer

Study shows hospitality industry key to economic growth in Europe and UK

18 September 2013 by
Study shows hospitality industry key to economic growth in Europe and UK

The hospitality industry plays a key role in fighting youth unemployment and is essential for jobs and growth in other sectors, a new Europe-wide study by EY (formerly Ernst & Young) has found.

The study, called "The Hospitality Sector in Europe", found that the European hospitality sector directly or indirectly created a one trillion Euro output in 2010, which made up 8.1% of the EU's total economic output. It also found that for every €1 (84p) spent in hospitality, €1.16 (97p) was invested in the wider economy, and that more than 16 million jobs are supported by the industry. This amounts to one in every 13 jobs Europe-wide.

Breaking down the results by country, the 31-nation study showed that the UK's hospitality output totalled €146b (£122b), with a tax contribution of €22b (£18b), and supports 2.7 million jobs. The report also estimated that between 2010 and 2012, the industry created 153,000 new jobs.

Backed by European hotel, restaurant and café association HOTREC, and the Brewers of Europe, the report is also supported by the British Beer and Pub Association, which has highlighted how measures supporting the hospitality sector can help benefit the economy as a whole.

BBPA chief executive Brigid Simmonds commented: "The report shows the importance of the hospitality sector, for both jobs and the economy, throughout Europe and in Britain. 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."

Responding to the report, UK MEP Emma McClarkin said: "The brewing sector is a key part of the hospitality sector. At a time of stagnating economic growth and spiralling youth unemployment, and given the importance of the hospitality sector as a driver of growth and jobs, we need to be sure that policies are helping hospitality and closely linked sectors such as beer, not hindering them."

The BBPA campaigns on behalf of the hospitality industry, especially the brewing and pub sector. Particularly focused on reforming "red tape" laws and taxation levels, it has members in over half of Britain's 50,000 pubs.

BBPA sets out red tape gripes for pubs >>

BBPA distributes 20,000 new Challenge 21 posters to Sky Sports pubs >>

Follow Europe's lead and cut VAT to 5% >>

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.