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Hospitality in Wales: Driving Local Economies and Underpinning Communities a Report by the British Hospitality Association

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Hospitality in Wales: Driving Local Economies and Underpinning Communities a Report by the British Hospitality Association Hospitality in Wales: driving local economies and underpinning communities A Report by the British Hospitality Association OCTOBER 2011 Hospitality: economic driver Contents TheThe hospitality British Hospitality industry Association, plays a critically Forewordthe future – investment which will benefit almost every local1 economy. importantincorporating role Thein both Restaurant the economic Association, and is the national trade association for the hotel, Executive summary 3 social life of local communities throughout At a time of fragile economic recovery and intense restaurant and catering industry. It has in competition for demand and resources, the hospitality themembership United Kingdom. almost every publicly quoted SECTIONindustry’s 1investment needs to be matched by policy and hotel group, many independent hotels, regulatoryWhat is the support hospitality from government, industry? local authorities and 4 restaurants and clubs, major food and service LEPs. Providing a supportive framework is introduced and SECTION 2 management companies, motorway implemented in a timely fashion, hospitality businesses can What IS GVA? BHAcreate Wales’ 236,000 agenda new jobs for growthby 2015 and a further 239,000 jobs5 service operators and many local hospitality by 2020 - jobs which are spread throughout the country. Appreciatingassociations, the full as impact well ofas hospitality hospitality on educationlocal jobs, wealth, culture and heritage, is the first crucial step to SECTION 3 establishments. In total, it represents more Hospitality is thus a key element in the development of unlocking the industry’s potential for regeneration and BHA’s commitments 7 every local economy and, just as important, in its rebalancingthan 40,000 growth establishments across the UK. This with knowledge over also sustainable growth. In every local plan, a hospitality provide500,000s the building employees blocks across toward the local UK. hospitality SECTION 4 blueprint should be an essential part of an area’s policy- blueprints for competitive, dynamic and sustainable Hospitality and local economies 8 making and of its economic and social structure. This is the growth. The association promotes the interests of the challenge facing localism and the hospitality industry. It is a entire hospitality industry to government SECTIONchallenge that5 needs to be grasped by every local authority The BHA is committed to working with hospitality Hospitalityand every hospitality – impact businesson local ineconomies the UK. 9 businesses,ministers, local MPs communities and MEPs, and members local governments of the to realiseScottish the opportunities Parliament for and thriving Welsh economies Assembly, that can SECTIONAt a time of 6 fragile economic recovery and intense firmly advance the UK’s agenda for growth and that can the EU Commission, the City and the media. Localcompetition authorities for demand and the and tourism resources, industry the hospitality 11 ensure a healthy competitive position for the future. industry’s investment needs to be matched by policy and regulatory support from government, local authorities and This report sets the platform for dialogue between the SECTION 7 LEPs. Providing a supportive framework is introduced and BritishWhile Hospitality we have made Association, every attempt local to ensure authorities, the accuracy Local and Growth of hospitality jobs by 2020 13 implemented in a timely fashion, hospitality businesses can Enterprisereliability Partnerships of the information (LEPs), contained Destination in this document, Management we are create 236,000 new jobs by 2015 and a further 239,000 jobs Organisationsnot responsible (DMOs) for any and errors other or omissions local groups or for the – allresults of which obtained from the use of this information. Any reliance placed SECTIONby 2020 - jobs8 which are spread throughout the country. can onmake the contenta real differenceis therefore at to the the reader’s development own risk. of Britain’s What of the Future? 14 communities, economies and destinations. Printed copies of this report can be ordered by contacting: Hospitality is thus a key element in the development of APPENDIXevery local economy1 and, just as important, in its It [email protected] sets out vital research - commissioned by the BHA VATsustainable – barrier growth. to growth In every local plan, a hospitality 15 and undertaken by Oxford Economics – which identified Alternatively, the report can be downloaded in PDF format blueprint should be an essential part of an area’s policy- eachfrom local www.bha.org.uk authority in the UK and the contribution made to making and of its economic and social structure. This is the it by the hospitality industry in terms of employment and APPENDIX 2 challenge facing localism and the hospitality industry. It is a GrossPublished Value Addedby: – that is, net wealth creation. The value of hospitality to local authorities in Wales 17 British Hospitality Association challenge that needs to be grasped by every local authority Queen’s House and every hospitality business in the UK. The 55/56resulting Lincoln’s picture Inn Fields is clear: hospitality is a key contributor British Hospitality Association members 24 to almostLondon every WC2A local 3BH community’s economic livelihood and particularly to its job-creating and wealth-creating potential. Tel: 020 7404 7744 In onlyFax: 22 020 of 7404 the 7799UK’s 406 local authorities, does the industry’sE-mail: [email protected] of total direct employment featuring below fivewww.bha.org.uk per cent. The report also underlines the significant impact of hospitality on local investment. In the hotel industry in the last decade, capital investment has reached £25bn with the construction of over 1,100 new hotels, much refurbishment ofBHA existing would like properties to thank its key and sponsors the opening of many new restaurants and attractions. More investment is planned for 2 Hospitality in Wales: driving local economies and underpinning communities The hospitality industry plays a critically important and central role in the economic and social life of local communities in every part of Wales. This report demonstrates just how important hotels, guest houses, restaurants and cafes, pubs and clubs, self catering and Foreword attractions are to our country. In a study, commissioned by the British Hospitality Association (BHA) and undertaken by Oxford Economics as a follow-up to its earlier report on the economic contribution of the industry to the national economy (which the BHA published in October 2010), we identify each local authority in Wales and the contribution made to it by the hospitality industry in terms of employment and Gross Value Added – that is, net wealth creation. The resulting picture is clear: hospitality is a key contributor to every local authority’s economic Andrew Evans livelihood and particularly to its job-creating and wealth-creating potential. Chairman BHA Wales Fully appreciating the total impact of hospitality on local jobs, wealth, culture and heritage is the first step to unlocking the industry’s rich potential for regeneration and rebalancing growth. We intend to play a full part wherever we can to boost jobs, support communities and grow the economy. The BHA in Wales is committed to working with hospitality businesses, local communities, the National Assembly for Wales and local government to bring about full recognition of the value of the industry to the economy and realise all the opportunities to advance the agenda for growth. As the report shows, investment in the hotel industry in the last decade across the UK has reached £25bn with the construction of over 1,100 new hotels (52 hotels including 29 budget Ufi Ibrahim hotels, representing 3,800 rooms in Wales), much refurbishment of existing properties and the Chief Executive opening of many new restaurants and attractions. More investment is planned for the future. BHA But this continued investment needs to be matched by the support that hospitality businesses receive from government. If such an additional and dynamic support framework is introduced and implemented, we believe hospitality businesses can create up to 10,000 new jobs in Wales by 2015 and more than double that to over 20,000 by 2020. These are local, reliable, dependable jobs for local people, spread throughout cities, towns and villages in Wales, in every part of our magnificent coastlines and countryside, in every constituency and in every local authority area. This contribution to employment in Wales is part of a UK-wide initiative in which BHA believes that the hospitality industry can create 236,000 new jobs by 2015 throughout the UK and a further 239,000 jobs by 2020. That’s why, in any national and local economic strategy, hospitality should be seen as an essential part of an area’s economic structure and its policy-making. This is the challenge which is facing Wales. It is a challenge that needs a strong partnership between the hospitality sector in Wales, every local authority, and, of course, the National Assembly for Wales and the Welsh Government. We’ll play our part: the BHA in Wales is committed to making this partnership a success and is ready to deliver for Wales. Hospitality in Wales: driving local economies and underpinning communities 1 Lletygarwch yng Nghymru: Sbarduno Economïau Lleol a Chynnal Cymunedau Mae’r diwydiant lletygarwch yn chwarae rhan hollbwysig a chanolog ym mywyd economaidd a chymdeithasol cymunedau lleol ym mhob rhan o Gymru. Mae’r
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