Lloyds Bank says recreation and tourism is fuelling UK recovery

Woman Standing in An Office Placing Glass of Water on a Table and Using a Mobile Phone

According to a new survey by Lloyds Bank PLC, the United Kingdom experienced the beginning of significant economic recovery in May. Lloyds Bank went on to state that this was led by the recreation and tourism sectors.

Tourism and recreation recorded the sharpest rise in output growth – from 51.9 in April to 62.4 in May – since the century began. This is directly due to British hotels, pubs and restaurants experiencing a release of pent-up consumer demand.

In fact, tourism and recreation recorded a net gain in terms of employment growth for the first time since January 2020. This growth was closely followed by the transportation sector, as people were encouraged both to go back into the office, and to explore different parts of the UK.

Scott Barton, the managing director of corporate and institutional coverage at Lloyds Bank Commercial Banking, said: “May’s results show consumer demand is pushing the UK’s economic recovery forward. It’s particularly encouraging to see the performance of tourism and leisure businesses improve again.”

He added: “Even though the next step on the Government’s roadmap out of lockdown has now been delayed, we are hopeful that consumer-facing businesses will continue to recover over the summer months.”

According to the tracker, growth within health care slowed most notably month-on-month – down to 52.5 from previous highs of 58.5. This has caused health care to be classed as the worst performing segment monitored by the tracker for the first time since April 2019.

The tracker includes indices collected from responses to IHS Markit’s U.K. manufacturing, services, and construction, PMI survey panels. This covers over 1,500 private sector companies. A reading of 50 is the divider between expansion and contraction.

This data directly corresponds to what leading figures in the industry have been saying over the past month; that the hospitality and nightlife industries are instrumental to economic growth, and that the securement of these businesses’ futures will directly lead to the furthering of the UK’s post-pandemic economic landscape.

Words by Rebecca Clayton

Take a Look at our Booking Solutions:

Integrated Mobile Travel Application

Online Booking System for Travel

Booked.it offers an excellent online booking system for the travel industry that can help businesses attract and retain customers while improving payment efficiencies. With this system, you can integrate with airlines, flight providers, and hotels, creating a seamless and convenient one-stop solution for your customers. The customised search and checkout pages can be added directly to your website, providing a smooth customer journey. The dashboard offered by Booked.it provides real-time reporting and analytics to uncover key insights. Not only that, but this booking system also integrates with loyalty programmes for insightful marketing campaigns. With options to include full ATOL and TTA protections on all travel bookings, your customers will have peace of mind knowing they are in good hands. Increase your revenue by over 20% with Booked.it.

Line of Wine Glasses hanging upside down at a bar

Online Booking System for Hospitality

Our online booking system is tailored to meet the needs of the hospitality industry, including hotels, restaurants, bars, cafes, and takeaways. With customisable software solutions designed to increase sales and improve customer retention, our system can manage online table reservations, group bookings, pre-orders, deposits, and up-selling. We offer free website and app design services to provide simple and customisable solutions in addition to our bookings management software. Our comprehensive takeaway ordering system eliminates the need for phone orders, freeing up staff for other activities. Integration with your loyalty programme and real-time order management through the dashboard allows for insightful marketing campaigns. Choose from a fully customisable integration into your website or your own branded URL.