Hospitality sector value grows by 4% to £102 billion

The hospitality sector hits £102 billion value in 2018 - growing by 4% year-on-year, a new analysis of ONS data has revealed.

The UK hospitality sector has shown resilience in the face of economic uncertainty with a total annual turnover of £102 billion and 4% year on year growth.

It is the first time that all businesses in the ‘Accommodation and Food Services Activities’ category have turned over in excess of £100bn (up from £98bn in last year’s data), according to the analysis of ONS data published from the past six years.

While some are predicting an employment crisis in the industry post-Brexit, analysis from hospitality recruitment platform, Adia shows that more than 2.35 million people are now employed in the sector, an increase of nearly half a million in five years.

Adia’s UK country manager Terry Payne said: "Although there is much to be encouraged by in these figures, the declining number of businesses operating in the sector makes for uneasy reading. 

"An industry that contributes more than £100 billion annually to the UK economy is significant and its role as a wealth and job creator needs to be protected.

"The significant growth in employment reflects both the demand from consumers and from those who want the working flexibility that the sector is able to offer." 

But as a note of caution, the number of businesses operating in the sector has fallen by around 8% in the last year, from 202,060 to 185,955 businesses now.

 For more features and breaking news sign up to C&IT Magazine's daily Newstracker here.  

Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Register now
Already registered?
Sign in

Andrew McCorkell recommends

Where is agency business coming from?

Read more

48 hours in... Istanbul

48 hours in... Istanbul

From a boat tour on the Bosphorus Strait to rooftop belly dancing, here are our top picks for two days in the Turkish city.

ILEA UK's new board announced

ILEA UK's new board announced

The International Live Events Association says it aims to be an inclusive and inspiring global community during a 'challenging time'.

LIVE UPDATES: Morocco to start reopening borders

LIVE UPDATES: Morocco to start reopening borders

Find out which countries are on partial or national lockdown, what travel restrictions are in place and what size gatherings are allowed.

Smyle appoints new managing director

Smyle appoints new managing director

Creative agency reshuffles its senior leadership team to support its new virtual and hybrid events business.

Hospitality industry welcomes VAT reduction in chancellor's summer statement

Hospitality industry welcomes VAT reduction in chancellor's summer statement

MICE sector continues to wait for further clarification on financial support and a date for restarting live events.

How have event apprenticeships been affected by coronavirus?

How have event apprenticeships been affected by coronavirus?

A group of apprentices share their experiences of learning about the industry during lockdown.

RSVP podcast Ep6: Jessica Rabbit, fraudsters and sleeping in army trucks

RSVP podcast Ep6: Jessica Rabbit, fraudsters and sleeping in army trucks

This week's special guest is Julia Charles, managing director of Julia Charles Event Management.

'Working on the inaugural Invictus Games was amazing'

'Working on the inaugural Invictus Games was amazing'

A-List 2020: Rachel Douglass is a senior event manager at Yellow Fish.

Venues #LightItInRed to show support for events industry

Venues #LightItInRed to show support for events industry

Campaign to draw attention to struggling events businesses and employees lights iconic buildings red.

Dear C&IT: Graphs and data are useful but they can’t measure feelings

Dear C&IT: Graphs and data are useful but they can’t measure feelings

Metrics are great but don't forget to create a memorable experience, says Phil Staines from FIRST.