Hospitality Industry Statistics
With the global tourism industry having taken a huge hit during the global pandemic, the UK unfortunately was no exception. According to the ONS, In 2020 the UK hospitality industry was valued at £59.3 billion, down from £103.8 billion in 2019. This decrease was due to the vast and far-reaching negative impacts of the international lockdowns during the early Covid era. These negative impacts took a major toll on the UK economy overall with few industries prospering, in particular among these was the hospitality industry. Regardless however, some sources currently estimate that the total value of the UK hospitality industry amounts to 10% total GDP.
UK Hospitality Stats
Despite the negative economic impacts suffered by the UK hospitality and tourism industries during Covid, the good news is that the economic trajectory for the hospitality industry is one of recovery. In 2023 the estimated value for the UK hospitality industry is £71.3 billion. Whilst above the estimated ONS value for 2020 at £59.3 billion, the current value of the UK’s hospitality is still not at its pre-pandemic value of £103.8 Billion. The recovery in the hospitality industry is largely thanks to the easing of restrictions on international travel along with London’s tourism figures being a key driver. Whilst the hospitality industry benefited from business rates relief during COVID-19 in addition to business support schemes, the industry is still predicted to face some problems in the immediate future.
The consultancy firm Oxford Economics estimated that in 2022 the hospitality industry would be one of the fastest-growing industries in the UK economy for at least the next five years. So far this prediction seems to be on track, as hospitality leaders state that although the hospitality industry has faced some additional challenges of higher labour costs as well as fewer workers, many are optimistic about the future of the UK’s hospitality industry.
Here are some Key statistics for the UK hospitality industry
- Industry value: £71.3 billion
- Employment: 2.5 million people
- Contribution to GDP: 3%
- Number of businesses: 143,000
- Domestic tourism spending: £282 billion
- International visitor spend: £26.18 billion
- Average occupancy rate in hotels: 81%
- Average daily rate in hotels: £122
Reports by Deloitte UK indicate that the disruptions which have occurred as a result of labour shortages are expected to increase and even last beyond 2025. Despite this however, the UK’s insurance industry seems set to largely remain on the up.
Sectors in the hospitality industry
The British hospitality industry is made up of various markets that tend to interconnect. This means cash flow in one market can have positive or negative impacts on another. Generally speaking, good figures for the tourism industry mean good figures for associated industries such as the accommodation sector. Here are some of the key statistics on the areas that comprise the UK’s hospitality industry.
- The accommodation industry – Hotels, Hostels, Airbnb and campsites. This industry is estimated to be worth £25 Billion.
- Food and beverage – Restaurants, Pubs, Bars and cafes. This industry is worth an estimated £40 Billion making it the largest market of the hospitality industry.
- Tourism and travel industry – Tour operators, airlines, travel agents. This industry is worth £15 billion with destinations such as London, Stonehenge, Bath and many others proving to be popular attractions for international tourists.
- Entertainment – Cinemas, theme parks, leisure centres., This industry is worth £11 billion.
The revenue figures shown here are for each specific market within the UK’s hospitality industry. However these markets are heavily interconnected, as the hospitality industry benefits directly from large tourism numbers and the cash flow generated from this. The UK economy as a whole also benefits from this as tourists will also spend their money on other non-hospitality-based industries during their stay.
Insuring yourself when you travel
If you are looking at booking a holiday within the UK and enjoy what the hospitality industry has to offer, it can pay to have some form of travel insurance. Protect your belongings against theft, damage and loss when you travel. Our providers can also offer you coverage against cancellation and illness during your travels so you can have the peace of mind you won’t be left out of pocket.
This article is intended as generic information only and is not intended to apply to anybody’s specific circumstances, demands or needs. The views expressed are not intended to provide any financial service or to give any recommendation or advice. Products and services are only mentioned for illustrative rather than promotional purposes.
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