Hospitality industry playing 'critical role' in reducing youth unemployment, says new report
The Europe-wide study, which is backed by HOTREC and The Brewers, found that in 2010 Europe’s hospitality sector directly, or indirectly created one trillion Euro in output, equal to 8.1 per cent of the EU’s total economic output with the multiplier effect of one Euro being spent in the sector contributing to an investment of 1.16 Euros invested in the wider economy.
That same year Europe's hospitality industry contributed 126 billion Euros to government treasuries in excise duties, VAT and employment and social security taxes, supporting approximately 16.6 million EU jobs.
In the UK, the hospitality industry's output was 146 billion Euros and it supported 2.7 million jobs with a tax 22 billion Euros.
Impact
HOTREC president Kent Nystrom said the findings demonstrated why government policymakers should think carefully before making any major changes to policy affecting the hospitality sector.
He said: “This shows why policymakers should carefully consider the impact of VAT rates and hospitality taxes, employment costs and material costs like excise duties on the hospitality sector. Non-restrictive legal and fiscal measures could have a huge impact in terms of facilitating long-term high-level performance of the hospitality sector."
Pierre Olivier Bergeron, secretary general of The Brewers of Europe, said he hoped the study would encourage policymakers to 'think twice' before implementing other revenue generators or applying more burdens to jobs.
“These decisions not only impact the European hospitality sector, but also those sectors to which hospitality is closely tied, such as tourism, culture and brewing, for which bars and restaurants are a principal route to market for beer,” he said.
The study was supported by the British Beer & Pub Association (BBPA) who said it underlined the importance of the industry to the UK and European economies.
Brigid Simmonds BBPA chief executive said: “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.”
