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Hospitality drives growth

Data published by the ONS revealed the UK economy grew by 4.8% in Q2 2021 as coronavirus restrictions were lifted.

From May to June, output attributed to the accommodation sector grew by 27.8%, closely followed in the services industries by air transport with 25.4 percent.

According to the ONS output was still 24.3% below its February 2020 level. The organisation said: "As June 2021 was the first full calendar month where hotels in England were allowed to reopen under the government's roadmap, there was particularly strong growth."

“Today’s figures show that our economy is on the mend, showing strong signs of recovery,” said Chancellor of the Exchequer Rishi Sunak. “I know there are still challenges to overcome, but I feel confident in the strength of the U.K. economy.”

The UKHospitality Quarterly Tracker, produced by CGA, shows the significant contribution made by the sector; responsible for 40% of the UK’s total economic growth from Q1 to Q2 2021.

Commenting on the latest figures, UKHospitality Chief Executive Kate Nicholls said: “These figures not only show the importance of the hospitality sector to the UK economy, even in the severely restricted and beleaguered state it was in during the second quarter of this year, but also demonstrate its real potential to power a wider economic recovery now trading restrictions have finally been eased after almost 18 months.

“However, this was not a period characterised by booming sales and plain sailing for the sector, but many weeks where businesses were still operating under strict restrictions and experienced a multitude of challenges brought about by the pandemic. What should be remembered is that the sector collectively lost over £100bn in sales across the course of the pandemic – a truly staggering figure.”


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