Eurostat has published an interesting study showing the trends in the accommodation and food services sector in Europe in 2021. We know that the Covid-19 pandemic and the resulting restrictions imposed by governments to limit contagion (such as border closures and temporary shutdowns of some business sectors, many of which in the accommodation and food services sector) led to an unprecedented drop in tourist demand. However, in 2021, tourism began to show the first significant signs of recovery, which are now detailed in Eurostat’s study.
Almost 10 million employees
The analysis is specifically dedicated to the accommodation and food services sector and assesses its contribution to the European economy both in terms of employment and its actual contribution to the EU’s overall wealth. In 2021, the sector’s value added amounted to €203.6 billion in the EU, an increase of 39.1% compared to 2020 (€146.4 billion), but still almost 20% below the pre-pandemic level (€252.4 billion in 2019).
Also, the number of employed persons (9.9 million), while showing a 6% increase compared to 2020, remained 10% lower than pre-pandemic levels in 2019. Enterprises operating in the accommodation and food services sector in the EU in 2021 were approximately 1.90 million (6.1% of the total enterprises in the European economy), a slight increase compared to both 2020 (1.84 million enterprises) and 2019 (1.89 million).
Food segment larger than accommodation
In 2021, within the entire European accommodation and food services sector, the food and beverages segment – which includes restaurants, fast food, canteens, catering services, bars, cafes, and mobile beverage vendors – was larger than the accommodation segment, accounting for 80.1% of enterprises (1.5 million), 78.0% of employed persons (7.7 million), and 68.9% of sectoral value added (contributing to the EU economy with a value added of €140.2 billion).
The accommodation segment – which includes hotels, hostels, mountain refuges, campsites, student residences, and railway sleeping cars, among others – employed 2.2 million people and generated €63.4 billion in value added in the EU.
Country overview
In 2021, Germany recorded the highest level of value added with €43.4 billion, equivalent to 21.3% of the EU total. Following were France, Spain, Italy, and the Netherlands with 19.0%, 13.6%, 13.1%, and 4.9%, respectively.
Even in terms of employment, these 5 member States played a significant role, employing a total of 68.3% of the workforce in the accommodation and food services sector (with Germany leading again, but this time followed by Italy and Spain, which employed more people than France, and finally the Netherlands).
Greece, Cyprus, Spain, Malta, Portugal, and Croatia also recorded a high share of employment in accommodation and food services. In Greece and Cyprus, in particular, the sector made a significant contribution to the European economy, accounting for 6.5% and 6.0% of value added, respectively.
