Accommodation named North West’s fastest-growing sector in 2022

Accommodation and food is the fastest-growing industry in the North West, the new 2023 ‘Fastest-growing regional sectors’ list by Fintech company Iwoca has revealed. The latest statistics, which analysed ONS UK business data between 2018 and 2022, reported an 18% increase in the North West’s accommodation and food business, which reached 19,000 over the past five years. Last year alone, the hospitality sector in the same area saw 990 new businesses. Iwoca’s report shows that out of all local authorities in the North West, Bolton experienced the biggest growth in the sector, with a 38% increase in the number of businesses. This was followed by Bury and Chorley, both up by 37%. In total, 205 more hospitality businesses were created in Bolton since 2018, 155 in Bury, and 85 in Chorley. The growth comes at a time when vacancies in the hospitality sector continue to rise. Between November 2022 and January 2023 accommodation and food is the third-most sector experiencing staff shortages, with 146,000 jobs up for grabs across the country. Seema Desai, Iwoca’s chief operations officer, said: “Industries like accommodation & food have truly flourished in the North West over the past few years. This year however, uncertainty will likely hit SME growth across the country as businesses grapple with high running costs. “SMEs are a crucial part of life in the UK’s regions, and they need accessible finance to support their growth. Alternative lenders are this lifeline for smaller businesses, providing them with the options they need to emerge unscathed from 2023’s economic environment.” Despite the hospitality sector’s growth during the 2018-2022 years, the report paints a different picture for the past year, with only 200 more business opening in the North West compared to 4,000 the previous year. But with rent and food prices being more affordable than in cities like London, business owners remain positive. Nicholas Moo, who owns ChaTime in Manchester, commented: “Covid definitely hit our sector in the North West, but restaurants, cafés, and bars have bounced back since the pandemic. Although the current climate means some hospitality businesses are unfortunately closing in the short-term, they’re sprouting up at a much faster rate. “It’s a great sign that more local restaurants and cafés are innovating new products for the changing demographic of the North West, and finding creative ways to run their businesses despite rising costs. From a small business owner’s perspective, the North West’s hospitality industry has a bright outlook in the longer term, and many jobs to fill.”