Study shows EU hospitality sector is key economic driver, sparking calls for more political support

A new Europe -wide study, released on 17 September, shows the hospitality sector plays a critical role in fighting youth unemployment and is essential for jobs and growth and the health of other sectors.

MEPs and the sectoral associations HOTREC and The Brewers of Europe are calling for more supportive EU policies to boost the sector’s performance. The EY study, backed by HOTREC and The Brewers, found that Europe’s hospitality sector in 2010 directly or indirectly created €1 trillion in output, equal to 8.1% of the EU’s total economic output, and that the multiplier effect of €1 spent in the hospitality sector means another €1.16 invested in the wider economy.

According to the study, which includes country - by - country reports, the sector in 2010 contributed €126 billion to government treasuries in excise duties, Value Added Tax (VAT) and employment and social security taxes, and supported approximately 16.6 million EU jobs, or one in every 13 jobs.

“Measures adopted in times of austerity, which increase tax rates at a time when disposable incomes a re falling, are likely to undermine the ability of the sector to generate growth,” said John Hopes, lead author of the study. “The short term response to this is likely to be cost cutting measures, and later, a loss in permanent capacity.”

Speaking at a lunch event in the European Parliament in Brussels, event host UK MEP Emma McClarkin said: “Beer is more than just a refreshing drink. The brewing sector is a key part of the hospitality sector. At a time of stagnating economic growth and spiralling youth u nemployment, and given the importance of the hospitality sector as a driver of growth and jobs, we need to be sure that policies are helping hospitality and closely linked sectors such as beer, not hindering them.”

Any reduction in the hospitality sector would disproportionately affect Europe’s youth, as the sector provides many of Europe’s first - time jobs, the study said. The hospitality sector provided 29% more jobs in 2010 than in 2000, whereas in the wider economy during the same period, the total num ber of jobs increased by just 7.1% or less than 1% per year.

Lukáš Veselý, representing Employment, Social Affairs and Inclusion Commissioner László Andor, said: “This new study reminds us of the hospitality sector's importance for Europe's GDP - and even more for European jobs. We definitely need to think how we can best support this sector's recovery and how it can help in the fight against unemployment, including by providing quality work opportunities for young people.”

Share this article: