Business

'North's hospitality sector can be £1bn industry by 2020' says business chief

Pictured at the Hospitality Exchange business breakfast are Brian Gillan, head of business and corporate Banking at First Trust Bank; Sarah Duignan, director of client relationships, STR Global; Gareth Hetherington, director, Ulster University Economic Policy Centre and Mark Simpson, BBC
Pictured at the Hospitality Exchange business breakfast are Brian Gillan, head of business and corporate Banking at First Trust Bank; Sarah Duignan, director of client relationships, STR Global; Gareth Hetherington, director, Ulster University Economic Po Pictured at the Hospitality Exchange business breakfast are Brian Gillan, head of business and corporate Banking at First Trust Bank; Sarah Duignan, director of client relationships, STR Global; Gareth Hetherington, director, Ulster University Economic Policy Centre and Mark Simpson, BBC

THE north's hospitality sector still has the potential to become a £1 billion industry by 2020 according to a local business head.

Despite significant challenges such as Brexit, head of business and corporate banking at First Trust Bank, Brian Gillan, believes the sector can still break the £1 billion mark in three years. Mr Gillan was speaking at the business breakfast at the Northern Ireland Hotels Federation (NIHF) annual conference and exhibition, the ‘Hospitality Exchange’.

“While the Hospitality Sector in Northern Ireland faces a range of unique challenges as it comes to terms with the implications of Brexit and the recent introduction of the National Living Wage, it still represents a significant growth opportunity for the Northern Ireland economy both directly and indirectly. Encouragingly, the trajectory of growth of tourism spend is still upwards and despite these unique challenges we believe the sector can still break the £1 billion target by 2020."

Gareth Hetherington, director of Ulster University Economic Policy Centre said there are "many reasons" to be optimistic about the sector.

"It is important however that the industry co-ordinates its efforts and speaks with one voice to help shape the outcome of Brexit and works with other stakeholders, including government to achieve its full potential.”

At the breakfast experts discussed the current business climate, the scale of opportunity the sector offers the wider Northern Ireland economy, latest market trends and challenges including Brexit, immigration, National Living Wage, skills and VAT rates. The latest report from the NIHF, released this week, was also a topic of discussion.

The report states that £500 million is being spent between now and 2020 to bring the rooms complement to more than 10,000 at 151 separate properties.