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7: Tourism Economics continued Job Creation
• A new Full Time Equivalent tourism job is created with every £54,000 increase in tourism revenue. Tourism: jobs and growth, VisitBritain / Deloitte, 2013
• Since 2009, tourism employment has increased at almost double the rate of the rest of the UK labour market.
ONS, Employment in UK tourism industries, 2009-2013
Total UK Tourism Spend by Sector Sector
Accommodation services for visitors Food and beverage serving services Railway passenger transport services Road passenger transport services Water passenger transport services Air passenger transport services Transport equipment rental services
Travel agencies and other reservation services Cultural activities
Sport and recreation activities Exhibitions and conferences etc Other consumption products
| 25
Tourism Taxation Air Passenger Duty
VAT (estimate)
£3.2bn
* £21.5bn APD bulletin Dec 2015, HMRC *Provisional
• World Economic Forum’s 2015 study on international competitiveness shows that because of high travel related taxes the UK ranks 140th out of 141 countries in terms of price competitiveness.
Spend (£bn) 13.3 31.7 4.2 2.8 1.2
19.3 0.8
23.0 5.6 3.8 0.4
42.4 Tourism Satellite Account 2012, Office for National Statistics International Passenger Survey 2015 (*Provisional) Office for National Statistics 8: Tourism Employment
• Employment in UK tourism industries increased between 2009 and 2014, from 2.66 million to 2.97 million.
• The sector is the UK’s third largest employer, accounting for 9.5% of total employment.
• Tourism is one the fastest growing sectors in the UK in employment terms.
• There are 265,000 tourism businesses in the UK.
• Tourism businesses account for 10% of all businesses in the UK.
Tourism: jobs and growth, VisitBritain / Deloitte, 2013 DETI ,Inter Departmental Business Register 2014
Tourism Employment by Sector Accommodation services for visitors Food and beverage serving services Passenger transport services Culture, sport and recreation Total
• Almost 70% of tourism and hospitality businesses employ fewer than 10 people. Employer Skills Survey, UK Commission for Employment and Skills, 2013
• The sector is a significant incubator for entrepreneurs – 24,000 businesses started up in the sector in 2014, a 14% rise on 2013 start-ups. Business Demography, Office for National Statistics, 2014
• The sector is a significant source of employment for those unable to work full-time – almost 53% work part-time, compared with the UK average of 27%.
• The average UK business has 24% of its staff aged under 30. Hospitality and tourism businesses have 45%.
388
1,308 503 775
2,970 Office for National Statistics, Characteristics of tourism industries, 2014
• More than 74% of people working in the sector are British. Labour Force Survey, Office for National Statistics, 2013
• The average UK business has 9% of its employees from minority groups. Tourism businesses employ 14%.
• The average UK business has 23% of its staff with A levels. Tourism businesses have 25%.
• The average UK business has 11% of staff in skilled trades. Tourism businesses have 12%.
Employment Characteristics of Tourism Industries Office for National Statistics, 2013
The Travel and Tourism Competitiveness Report, WEF, 2015 UK Tourism Deficit
10 12 14 16 18 20 22
0 2 4 6 8
2008 2007 2006 2005 2004 2003
2009 2010 2011 2012 2013 2014 2015
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