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Hospitality: statistics and policy

The hospitality industry consists primarily of businesses which provide accommodation and food services. It includes restaurants, cafes, pubs, bars, catering, hotels, campsites and other accommodation.

Sometimes the term is also used to refer to leisure attractions and events services, such as convention and trade show organisers, and amusement and recreation activities.

The trade body for the hospitality industry is UKHospitality. The British Beer and Pub Association, the Society of Independent Brewers and Associates, and the British Institute of Innkeeping represent pubs and breweries.

Scale of the hospitality sector

There were 176,685 businesses in the hospitality sector in the UK in March 2025, according to data published by the Office for National Statistics. 

The chart below shows the number of hospitality businesses that opened and closed annually between 2010 and 2024.

99.6% of hospitality businesses are small or medium-sized enterprises (SMEs). 97.7% are small businesses.

According to data published by the British Beer and Pub Association, there were approximately 45,000 pubs in the UK in 2024. This was down from 60,800 in 2000, and 55,400 in 2010.

Issues affecting the hospitality sector

According to the Business Insights and Conditions Survey, the costs of labour and materials were the main challenges affecting hospitality businesses’ turnover in November 2025.

Government policy 

In August 2025, the government published its Small Business Strategy, which sets out government support for small and medium-sized businesses. It includes policies relevant to the hospitality industry, including on regulation and on access to finance, skills, and the high street.

The government is reforming business rates, planning and licensing rules, and the apprenticeship levy. There have also been recent reforms to alcohol duty and the furnished holiday let tax regime.