Business

Pubs pump pounds into north's economy, new report shows

Pubs are a key lure to overseas investors in the north
Pubs are a key lure to overseas investors in the north Pubs are a key lure to overseas investors in the north

Pubs pump pounds into the north's coffers - and are often directly responsible for luring businesses to the region.

A study by Oxford Economics claims the region's £1.2 billion-plus hospitality sector has the potential to create up to 5,000 new jobs in the next decade.

That would bring the number of people employed in the food and drink element of the hospitality sector to 50,000.

And it also suggests that when blue chip companies from places like America, Europe and the Far East are considering investing here, one of their main considerations beyond the key financials is where to eat and drink - and what the evening economy is like.

An economic report looking the current state of the sector was commissioned to coincide with a rebranding from today of Pubs of Ulster (which has represented vintners since 1872) to become Hospitality Ulster.

It shows that one in 20 jobs in Northern Ireland are in the hospitality sector, which contributes £70.5 million a year in corporation tax (£16.2m by pubs,£19m by hotels, £35.1m from restaurants and £0.1m in event management).

The sector (the eighth largest in the north's overall economy) also weighs in with £17.9m in business rates and pays its workers £650 million in wages.

Hospitality Ulster, as Pubs of Ulster will now be known, will represent the entire sector (pubs, bars, café bars, hotel, restaurants and major visitor attractions) under one umbrella membership organisation and will provide a range of support services and resources such as legal advice, updates on regulation changes, property information and accountancy issues among others.

Its chief executive Colin Neill said: “The hospitality sector is a key pillar of our economy. Not only does it support around 60,000 total jobs of which 45,000 are sustained by the food and drink element, it supports £653 million in wages and contributes to the economy to the tune of about £1.2 billion.”

“Despite the loss of jobs during the economic downturn and sluggish growth recently, we've now the opportunity to really improve on a sector which has so much promise.

“We have set up a strategic advisory panel made up of key players from the hospitality sector to assist in developing the industry. We look forward to continuing to work with government to help create more jobs, more wealth and contribute even more to the local economy.”

“Our ongoing campaigns such on cutting tourism VAT, reducing red tape and business rates, licensing reform, promoting café culture and food hygiene ratings legislation, among others, will now be strengthened with the creation of the Hospitality Ulster umbrella brand.”