The UK Hospitality Industry: Economic Impact and Growth Prospects

The report examines the significant contributions of the UK hospitality industry to the national and local economies. It highlights the industry's role in generating employment, with approximately 2.4 million people employed as of 2017 and a substantial number of commercial setups. The industry contributes significantly to the UK's GDP, generating billions in revenue and supporting various sectors such as air travel, shopping, and tourism. The report also discusses how international tourism, franchising, and licensing of global hospitality brands further boost the economy by increasing tax revenues. Furthermore, the report emphasizes the growth prospects of the hospitality industry due to increasing tourism, which in turn benefits local, national, and international economies. The industry’s impact is analyzed in terms of its influence on GDP growth and overall economic development, with references to specific data regarding employment and revenue, and the role of VAT in job creation.

Contemporary Hospitality Industry
Contribution of Hospitality in Economy
Hospitality industry is having huge growth prospectus
because of increasing number of tourists and travellers.
This provides certain benefits to local, international
and national economies of country. There is major
contribution of hospitality industry in growth, survival,
GDP and development of economy. This is generally
concerned with travelling to place other than home
country for leisure, vacation, businesses etc. this
contribution led to increase in demand of products and
services.
Local and National Economy
The UK hospitality industry is very immense and it
has generated the large number of employment
opportunities for the local people. It has employed
around 2.4 million people as per the 2017 data and
1.2 million in around 170,000 commercial set up.
Therefore, it is fifth largest industry in UK that is
providing employment to many people and help to
raise their standard of living. This industry has
generated the revenue of £90billion and out of which
around £34billion become part of GDP and national
income of economy. Apart from this, VAT rate from
the restaurants has also created the 53900 jobs in the
country as government charge very high rates.
The hospitality industry has major contribution in UK
economic development because of creation of
employment opportunities, the vast number of people
are employed and contributes in per capita income
(GDP) of the country, which further helps to raise
standard of living of the people in the country. In
addition, there is creation of business in case of
shopping, travels, sightseeing and many more, which
further leads to overall growth, and development of
country.
International Economy
Similarly, the international tourist also
provides strong contribution in UK
economy, because they travel by air, which
increases the revenue for the airways and
travel and tourism industry. Then being
from the international countries, they will
also do shopping which will contribute in
the development and growth of the local
economy. Furthermore, the franchising and
licensing has an immense contribution in
developing global hospitality brands in UK.
Thus, they will generate higher level of tax
for the country and improves the overall
economic condition of the UK.