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UK GDP grows 0.4% in August amid hospitality boost

UK GDP grows 0.4% in August amid hospitality boost

In this episode we speak to brothers Alex and Adrien Grosjean, young entrepreneurs who have recently acquired The Residence Inn by Marriott Manchester Piccadilly. We discussed the reasons why Manchester’s visitor market is booming, and their decision to invest in this area, why they see extended-stay accommodation as a major opportunity in what is one of the UK's fastest-growing cities, how they plan to enhance their portfolio of hotels, and their advice for the next generation of hospitality disruptors.

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Gross domestic product (GDP) is estimated to have grown by 0.4% in August 2021, and was boosted by the hospitality sector, according to the latest Office of National Statistics data.

Services output grew by 0.3% in August 2021 with output in consumer-facing services increasing by 1.2%, while all other services rose by 0.1%.

Most of the growth seen in the August month was because of a 5.9% increase in food and beverage service activities, and a 47.9% increase in travel agency, tour operator and other related reservation services (growing from historically low levels).

There was particularly strong growth in accommodation, which grew by 22.9% boosted by hotels and campsites.

Meanwhile, arts, entertainment and recreation was the second-largest contributor to services growth, growing by 8.5% in August 2021.

Darren Morgan, director of economic statistics, ONS, said: “The economy picked up in August as bars, restaurants and festivals benefited from the first full month without Covid-19 restrictions in England. This was offset by falls in health activity with fewer people visiting GPs and less testing and tracing.

“However, later and slightly weaker data from a number of industries now mean we estimate the economy fell a little overall in July.”

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