Prime Minister David Cameron’s jobs summit with executives from leading companies emphasizes the importance of the hospitality industry as a jobs creator, says Ufi Ibrahim, chief executive of the British Hospitality Association.
“In our report which we published in October – Creating Jobs in Britain – A Hospitality Economy Proposition — we said that hospitality could create 236,000 jobs by 2015 providing the right supportive framework was in place,” Ibrahim said. “It’s critically important that government realizes that this cannot be achieved alone. We need a positive partnership with government that recognizes that policy and regulations can make or break this objective. Past governments have just not recognized the industry’s job-creating potential.”
Ibrahim said that, with the rate of VAT now at 20 percent, the British hospitality industry was operating at an even greater disadvantage to its European competitors than before, most of whom had reduced rates of VAT for hospitality services.
“We are very anxious to collaborate with government on a joint study on the economic impact of the rate of VAT on hotel accommodation, visitor attractions and restaurant meals.
Ibrahim believes that the study will show that lowering the rate of VAT will stimulate greater demand from both the home and overseas markets, boost growth in the industry generally and help generate those 236,000 new jobs. She also added that reducing the regulations that affect businesses and encouraging banks to take a more understanding approach to lending were critical to the creation of new jobs.
“Needless regulations are costly and time-consuming to implement while lack of funding holds back growth. The BHA has called for a cross-cabinet committee for hospitality and tourism to coordinate policy across Whitehall. We’ve got to get government to provide the right framework for industry to be able to create the jobs and skills that the country so urgently needs.”
