The latest UK Parliament research briefing on hospitality statistics and policy highlights key performance indicators for the hotel and hospitality sector, including business counts, employment data and economic contribution figures.
The briefing situates recent trends in the broader context of policy challenges such as labour costs, energy prices and regulation. It offers a snapshot of how hospitality businesses are faring and the policy measures shaping the sector.
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Hospitality business numbers and economic output
According to the briefing, there were approximately 173,515 hospitality businesses in the UK as of March 2024, with nearly all classified as small or medium-sized enterprises (SMEs).
Of these, 97.7% were small businesses, underscoring the dominance of smaller operators in accommodation and food services.
Within the sector, traditional hospitality sub-categories such as pubs have seen notable long-term changes, with around 45,000 pubs reported in 2024, down from higher levels in previous decades.
The economic impact of hospitality remains significant. The sector’s gross value added (GVA), a measure akin to economic output, was £69.5 billion in 2023, representing roughly 2.8% of total UK economic output.
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By GlobalDataHospitality accounted for a notable share of employment, with 2.7 million jobs in June 2025, or about 7.3% of all UK jobs.
Challenges affecting hospitality jobs and business performance
The report outlines how inflation, rising costs and labour challenges have shaped performance in the hotel and hospitality sector.
High labour and materials costs were cited as key drivers affecting business turnover in mid-2025 survey data. Energy costs have also been a persistent concern for hospitality firms, with average unit prices for electricity and gas remaining well above pre-pandemic levels.
Workforce issues remain a feature of the hospitality labour market. Hospitality jobs tend to have a higher proportion of part-time and lower-paid roles compared with other sectors.
Median hourly pay for full-time workers in hospitality is lower than the UK average. Payrolled employment data suggested a reduction in hospitality payroll numbers between 2024 and 2025, reflecting broader labour market dynamics.
Government policy affecting the hotel and hospitality industry
The briefing also summarises recent and forthcoming policy measures likely to affect the hotel and hospitality sector. Government action on business rates relief, introduced in 2021/22 and maintained through 2025/26, has provided targeted support for hospitality and leisure properties.
Plans are in place to transition to a new business rates structure from 2026/27, potentially affecting cost bases for hospitality operators.
Other policy areas highlighted include national minimum wage increases and changes to employer National Insurance contributions, both of which have implications for labour costs.
Reforms to planning and licensing rules, including initiatives such as ‘hospitality zones’ designed to streamline approvals for outdoor seating and extended trading hours, were also outlined as part of broader efforts to support local hospitality investment.
