Almost one in ten of all jobs in Caerphilly County Borough is reliant on the hospitality industry, which is worth £52m a year to the local economy – according to a new report.
Consultants Oxford Economics claims that 3,555 people in the county are directly employed by the hospitality industry, which includes hotels, restaurants, catering and events.
It calculates that as many as 9,981 new jobs could be created by the sector throughout Wales by 2015 and that this will rise to more than 22,040 new jobs by 2020 – around 4.6 per cent of the UK job growth.
The Oxford Economics report, “Local Economic Contribution Of UK Hospitality Industry” was commissioned by the British Hospitality Association, which represents hotel and restaurants across the UK. The Hospitality industry employs directly or indirectly as many people in Wales than the Agricultural and Construction industries combined.
Andrew Evans, chairman of BHA Wales Committee, said: “This comprehensive report shows more than 3,500 people in Caerphilly directly relied on our industry for their incomes last year and that could rise to 4,283 by 2020
“It clearly demonstrates the hospitality industry contributes massively to the economy in virtually every part of Wales and means families across the county have relatives or neighbours with jobs that are completely dependent on tourism- the industry is really that essential to driving the Welsh economy,” he said.
BHA UK Chief Executive Ufi Ibrahim said: “The Welsh Government’s decision to make tourism one of the country’s key priority sectors is very timely in the light of this report which highlights the critical importance of hospitality – and the wider tourism industry – to every local authority in Wales and to the Welsh economy in general.
“The report shows that hospitality has the potential to create more than 20,000 new jobs by 2020 providing it receives the right support. The BHA is very keen to work with the Welsh Government to grasp all available opportunities that are there in order to meet this job-creation target.”
The report showed that in 2010, a total of 5,364 people were reliant on the industry for their jobs (9.1% of total employment).
Hospitality was worth £52m Gross Value Added to the local economy, 2.8% of total GVA and the figure for associated employment GVA was £109m. The report projects dependent local employment in 2020 will rise to 4,283.
Welsh capital Cardiff earns a top twenty UK ranking with £320m a year in sector wages and profits, providing 17,200 people that are directly employed in hospitality. The report identifies Gwynedd has almost one in five jobs dependent on direct, indirect or induced hospitality employment and 13.8% involved in direct hospitality employment.
Andrew Diplock, chairman of Caerphilly Business Forum, said that Caerphilly’s hospitality sector needs to attract people from outside the county borough.
He said: “The hospitality industry is clearly important to Caerphilly and we have a broad range to offer and very high standards. While Caerphilly Business Forum steadfastly uses hospitality based in the borough – and I’m sure most of our members do too – the key has got to be to draw in people from outside the county borough to use it.
“We ought to be well placed for this with Cardiff just down the road and an excellent variety of facilities for those seeking hospitality. I think the challenge is to get this message across to people, organisations and businesses in the capital.
“Perhaps some are put off by the idea of going somewhere outside of the city but it’s often quicker to get from Cardiff Castle to Caerphilly Castle than it is to travel from one side of the capital to the other. And the standards of hospitality we can offer are not only a match for those in the city but often come at a significantly cheaper rate too.”
Hospitality in Wales: Driving local economies and underpinning communities