Hospitality Proves Growth Isn’t Just About Output

When we talk about growth, we usually reach for GDP. It’s a blunt measure – one that tells us how big the economy is, but not how it works for people. It doesn’t tell us who gets the opportunities, where the jobs are, or which sectors are building careers for people in every corner of the UK. It certainly doesn’t tell us anything about social mobility.

That’s why UKHospitality has launched the Social Productivity Index, a new way to measure growth. It starts with the idea that a successful economy is one that spreads its opportunities, supports resilient communities, and creates good jobs for people from all backgrounds.

The findings are striking. The Index ranks sectors not just by raw economic performance, but by their ability to deliver for people. It looks at how well a sector creates accessible jobs – for non-graduates, for part-time workers, for people living with disabilities, for younger and older workers alike. It considers where the jobs are and whether they offer routes into leadership.

Hospitality comes out on top. It is the best-performing sector across all of these measures, and that matters. Because hospitality has often been overlooked in policymaking, despite the role it plays in supporting communities and building places people want to live, work and invest in. It’s one of the most geographically dispersed sectors in the economy. It’s a major employer of school leavers and people whose parents weren’t in professional or managerial roles. And it’s second only to two other sectors in offering routes into management for those without degrees.

These are not abstract statistics. They are about real people. I think of my mum, who worked part-time in the local pub while raising us as a single parent. It gave her the flexibility she needed, but it also gave her a role in the community and a path back into work. We need more jobs like that – and more careers that start with them. The reality is that very few sectors offer these opportunities. Hospitality does.

It also drives growth in places that have often struggled to attract high-investment industries. I was in Aberdeen last year, where a group of locals transformed an old dockside area into a hospitality-led cultural quarter. They weren’t trying to attract banks or tech firms – but now that it’s become a thriving, liveable area, other businesses want to be there. Hospitality was the first step.

You see it elsewhere too – in villages where a great restaurant has drawn in visitors, investors, and new energy. The example of Gareth Ward’s Ynyshir restaurant in North Wales is a good one. It’s created ripples of economic activity, from pubs and B&Bs to hotels and local suppliers. It shows how hospitality doesn’t just create jobs – it creates momentum.

This isn’t just about place-making, though that’s a big part of it. It’s also about how hospitality supports other sectors. I used to run the global trade and investment agency for

London, and whenever we spoke to tech companies overseas about setting up in the city, we made two arguments. One was about growth potential. The other was about quality of life – the fact that it was a great place to live, eat, and socialise. Hospitality plays a foundational role in making places investable. If we want to bring high-growth sectors to cities like Cardiff, we need to show that they are good places to build a life. Hospitality helps us do that.

There’s more we can do to unlock its potential. We know that parts of the tourism sector are seasonal. But instead of seeing that as a weakness, we should see the summer peak as a starting point – and help workers pivot to winter roles. That’s why we trialled an early skills passport in Wales, allowing workers to carry proof of their training and experience from one role to another. It’s a small change that makes it easier for people to find work year-round, and for employers to hire with confidence.

But all of this is at risk if we don’t get the policy environment right. The recent rise in employer NICs will hit lower earners disproportionately, and could cost the UK between 50,000 and 100,000 jobs. At a time when we should be backing sectors like hospitality and retail – sectors that create opportunity everywhere – we’re instead making it harder for them to invest in their people. That has to change.

What the Social Productivity Index shows us is that growth is about more than just output. It’s about who benefits and how widely those benefits are shared. Hospitality leads the way in that respect. It deserves to be recognised not just as a contributor to the economy, but as a model for how growth can work better for everyone.