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The Agenda for 300000 New Jobs 300,000THE AGENDA FOR NEW JOBS MARCH 2013 A MID-TERM REPORT BY THE BRITISH HOSPITALITY ASSOCIATION Foreword This is the second of the British Hospitality Association’s biannual reports, providing an evidence-based proposition for partnership between one of Britain’s greatest industries for job creation - hospitality - and the policy makers who can make or break the agenda for 300,000 new British jobs. In August 2010, three months after the formation of in gross tax revenues. scale – and Britain triumphed. Now we must make the coalition government, the Prime Minister made a According to the research set out in this report, the sure that the opportunity afforded by the Games landmark speech on tourism in Britain. Looking ahead hospitality industry generated 153,000 new jobs is not lost. to the Diamond Jubilee and the Olympic and from 2010 to 2012, accounting for 27.7% of all new Today, young people are finding it harder than ever Paralympic Games, he outlined his personal vision for jobs created in the UK over this period. Now before to gain employment. Youth unemployment in the sector. He stated that he wanted to see Britain in responsible for 2.68 million jobs, hospitality is Britain is now higher than every OECD country the top 5 destinations in the world in terms of Britain’s fourth largest industry. With the right with the exception of Greece and Spain. inbound tourism revenues and to increase the regulatory framework, the potential to create a In 2012, the British hospitality industry advanced its proportion of British people who spend a holiday further 300,000 jobs (taking the total to 2.97 commitment to tackling youth unemployment through in the UK from 36% to 50%. million jobs) by 2020 is an attainable target that The Big Hospitality Conversation – a joint campaign We were enormously encouraged by the speech - should be harnessed for the successful future of the with Springboard and Business in The Community - the economic and social contribution of the sector had United Kingdom. aimed at creating jobs, work placements and never before been fully appreciated by the The hospitality industry has actively demonstrated apprenticeships for 18 to 24 year olds across the Government. In October 2010, we published two its commitment to powering jobs. Despite a weak United Kingdom. reports. The first, by Oxford Economics (OE), economy, over the past two years our industry has The changes and reforms critical to the realisation quantified the contribution of Britain’s hospitality continued to grow. Hospitality employment growth is a of further growth are set out in this report. The British sector. The second, Creating Jobs in Britain – a testament to the strength and entrepreneurial flair of Hospitality Association is not calling for ‘support.’ Hospitality Economy Proposition, set out the individuals and businesses in this sector and, in On the contrary, this report calls for a collaborative recommended changes in public policy designed to part, to the contribution of London’s Olympic and partnership in which everyone wins. see the sector grow and develop. In 2010, Oxford Paralympic Games. This report sets out what has been achieved over Economics calculated that hospitality was Britain’s 2012 saw Britain at its best. The Olympic and the last two and a half years. It’s now time for a fifth largest employer, directly employing more than Paralympic Games gave us a once in a lifetime forward look at what more can be done to harness 2.53 million people* and contributing over £34 billion opportunity to showcase our country on a massive and deliver growth. *As highlighted in the 2013 Oxford Economics report, this figure has been adjusted in light of data revisions. 0 2 THE AGENDA FOR 300,000 NEW JOBS Contents .EXECUTIVE SUMMARY: The agenda for 300,000 new jobs 04 .RECOMMENDATIONS FOR GOVERNMENT 05 1 Harnessing the value of the hospitality and tourism economy 06 • Accountability at the highest levels of government 10 • Cross-government ministerial taskforce 10 • Regionalism, LEPs and the Regional Growth Fund 11 2 Beating our international competition 12 • Price: cutting VAT and Airport Passenger Duty 13 ALAN PARKER CBE • Less expensive and more straightforward visa procedures 15 Chairman • Fast-track decision making on airport capacity and transport/tourism infrastructure 16 • Expanding the role of VisitBritain 18 • Incentivising hospitality enterprise 18 3 Some changes are already within reach 19 • Reducing the burden of regulation 19 • Providing a level playing field for outsourcing and procurement 20 • Collaborating on health, supply chain, government procurement and sustainability policies 21 .DELIVERING ON OUR COMMITMENTS : Achievements & Next Steps 23 .Economic Contribution of hospitality within UK Parliamentary Constituencies 24 UFI IBRAHIM Chief Executive .BHA membership 29 THE AGENDA FOR 300,000 NEW JOBS 0 3 Executive summary We present a clear choice for the Government and the hospitality industry. Either we are content with the ‘steady as she goes’ approach or we jointly pilot a path for a more ambitious strategy. The normal trend line of growth will be hard to maintain because of international competition and the continuing weakness in the economy. Putting the right policies in place offers us all a considerable prize - 300,000 more jobs. We are one of Britain’s most successful industries than 5% of total employment*. With and have displayed resilience and innovation in unemployment, particularly youth unemployment an exceptionally demanding environment for remaining a massive national challenge for this businesses – small and large alike. This success government, and the one to be formed in 2015, is set against a backdrop of the squeeze on we want all the political parties to study and disposable incomes, especially outside London respond to this report and set out a positive and the South East and the real difficulty in programme for growth in the sector. obtaining credit. It’s now time for a forward look and a clear SUCCESS BREEDS SUCCESS agenda on what more can be done to harness and Last year, Britain – and London in particular – deliver growth, working in partnership with had the greatest global advertising campaign Government to rebalance the national economy one could wish for. In organising and running and boost job creation in all parts of the country. the Olympic and Paralymic Games we showed the The figures speak for themselves. Hospitality world what a welcoming and hospitable country represents over 10% of total employment in more we are. We now have a great chance to build on than 20% of parliamentary constituencies and the Olympics momentum and see a transforma - there are only 14 where the industry provides less tional increase in visitors from home and abroad. * Source: Oxford Economics 2013 0 4 THE AGENDA FOR 300,000 NEW JOBS Recommendations for government Harnessing the value of the Beating our Some changes are 1 hospitality and tourism economy 2 international competition 3 already within reach • Hold an annual meeting between the Prime • Tourism VAT should be reduced to 5% to improve • Ministers should continue the active deregulation Minister and senior cabinet ministers with the UK's price competitiveness in Europe programme working collaboratively with the hospitality and tourism business leaders to shape • The UK’s visa application procedure and the Hospitality and Tourism Industry Regulation the long term strategy for our sector current perceptions of inbound visitors on the cost Taskforce • Establish a cross-government Ministerial Taskforce and complexity of UK visas need to be improved in • Favour a voluntary approach rather than regulation under the leadership of the Secretary of State to order that we can compete internationally across policy issues such as health, supply chain, deliver the strategy across all government • Increasing airport capacity is of vital importance to government procurement and sustainability departments the hospitality and tourism sector. The • The Treasury should extend the Enhanced Capital • The Government should outline a clear strategy for recommendations of the Davies Commission will Allowance Scheme (ECA) to cover more types of regional growth in England and in particular, clarify require decisive action from the next Government catering equipment. the future role of Local Enterprise Partnerships and maximising Convention and Event capacity is • Appoint a DCMS representative to the Regional an integral part of the ‘airport decision’ in order that Growth Fund Ministerial Panel and secure stronger we can compete effectively hospitality and tourism representation on the • Appoint the Chairman or CEO of VisitBritain to the Fund’s Advisory Panel. Board of UKTI as a permanent member • Review the funding of VisitBritain to ensure that the wider economic and employment advantages of higher visitor numbers are not lost due to marginal ‘departmental savings’ • Amend the rules governing the establishment of Real Estate Investment Trusts (REITS) to encourage hospitality businesses to take advantage of the flexibility they offer • End the exclusion of hotels from the Enterprise Investment Scheme. THE AGENDA FOR 300,000 NEW JOBS 0 5 Hospitality and tourism Fuelling jobs recovery in every region 0 6 THE AGENDA FOR 300,000 NEW JOBS Hospitality is now Britain’s fourth largest industry, this industry has experienced significant growth over across the entire skills spectrum and most importantly directly employing more than 2.68 million people, the last two years, with employment
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