Setting a Table for Dinner

Hospitality industry’s rapid growth under threat without Government support

The hospitality industry’s stellar growth since the financial crisis could be halted and start to fall by 2021 if the Government continues to overlook it, a new report has suggested. Research by Ignite Economics carried out for the British Hospitality Association, has predicted the sector’s workforce could begin to drop by 2021 with the contribution it makes to the economy also falling as cost pressures from wages and business rates bite alongside a potential labour squeeze once the UK leaves the EU.

Any weakness in the industry would be a concern given it employs almost 10% of the entire UK workforce and has grown its contribution to the economy faster than any other sector since the economic crisis. “The hospitality sector has been largely overlooked by successive Governments, and was notable in its absence in party manifestos ahead of the General Election, as well as its absence from the Government’s Industrial Strategy,” the report said.

Ufi Ibrahim, the chief executive of the BHA, said the growth outlook for the hospitality sector was “highly uncertain”.