Useful facts from People 1st

There are currently around 146,000 businesses in the hospitality, leisure, travel and tourism sector in Great Britain, operating from 206,000 outlets. The hospitality, leisure, travel and tourism sector is one of the UK's largest employers. It employs almost two million people which equates to 7% of all UK jobs. The sector accounts for 4.5% of the UK's total economic output. The economic significance of the wider 'visitor economy', in which many sector businesses operate, is even greater. The visitor economy is estimated to contribute over 8% of the UK's Gross Domestic Product (GDP), approximately £114 billion. The economic climate Whilst the UK has officially emerged from recession, the ramifications are still being felt across the sector and the recovery is at an early stage. The proportion of sector businesses reporting failing turnover fell from 47% in 2009 to 36% in 2010. 20% of businesses experienced an increase in turnover in the 12 months to March 2010, compared to 15% the previous year. Whilst this suggests movement in the right direction, some increases were achieved by heavy discounting and have therefore been at the price of profitability. The workforce Employment levels in the hospitality, leisure, travel and tourism sector have fluctuated over the last six years. Between 2009 and 2010, total employment across the sector fell by 5%. In the 12 months to March 2010, 23% of sector businesses reduced the size of their workforce. Hotel and restaurant employers were most likely to have decreased their workforces with 30% doing so. Businesses which operate as part of a chain and those in coastal settings were most likely to have increased staffing levels. There has been a 30% decline in the number of bar staff in the UK over the last five years and a 22% decline in the number of publicans or managers of licensed premises. At the other end of the spectrum, the number of conference and exhibition managers virtually doubled over the same period, whilst the number of people working as hotel and accommodation managers rose by 14%. The overall number of people working as travel agents and chefs in the UK has remained relatively stable over the last five years. Whilst employers continue to rely heavily on young people, there are signs that the workforce is ageing. In 2009, 16% of the workforce was aged between 16 and 19, and 16% was over the age of 50. In 2010 the proportion of 19 to 19 year olds fell slightly to 15%, whilst the proportion aged over 50 rose to 19%. The overall proportion of migrant workers working in the sector remained steady between 2009 and 2010 at 20%. However the number of Accession State workers entering the sector fell from 7,555 in the first quarter of 2008 to 4,345 in the first quarter of 2009. Skills and training Despite significant investment by employers and government, skills gaps within the existing workforce appear to be growing. Worryingly, more businesses are reporting that they employ people who lack the required skills than they did two years ago. In total, employers believe that approximately 180,000 of those working in the sector are not fully proficient, an increase from 140,000 in 2007. Customer service skills remain the most common skills gap across the sector. 65% of businesses who reported skills gaps in their workforce stated that their staff lacked the required customer service skills, an increase from 57% in 2007. More sector employers are providing training for their staff than ever before. 67% of employers currently provide training, compared to 60% in 2003,04. Investment in training is high and rising. Sector employers spend £2,575 per employee on training a year, compared to the average across all industries of the economy of £1,725. Looking forward to 2010, 54% of employers believe they will provide the same amount of training, 21% believe they will provide more and only 8% less. The qualification levels of the workforce continue to rise. In 2009, 67