Hoteliers have welcomed plans by the Government to make it cheaper to employ young people.
Proposals to abolish employer National Insurance contributions from 2015 for the under 21s were outlined by Chancellor George Osborne in yesterday’s 2013 Autumn Statement.
The British Hospitality Association said it would be a helpful boost for the hospitality and tourism industry.
CEO Ufi Ibrahim said it would "surely stimulate job creation in both the hospitality sector and beyond".
He said the hospitality industry, which accounted for nearly one third of new jobs created between 2010 and 2012, has moved to be one of the top four employing sectors in the UK.
The Autumn Statement will also help to control hospitality business costs by capping the increase in business rates in England at 2% in 2014-15, he added.
But campaigners to cut tourism VAT said the Chancellor had missed an opportunity to reduce tourism VAT and boost tourism export earnings from emerging markets.
Chairman Graham Wason said: "The UK remains alongside Slovakia, Denmark and Lithuania as the only EU member states with no reduced rate for tourism.
"The Chancellor spoke about boosting our exports – especially in the emerging markets – and tourism can play a huge role here. However it will be hard to compete as the only sector where VAT is applied on export earnings."
He said despite the setback, the campaign has made significant progress in 2013 and will be increasing its activities in 2014 in the run-up to the General Election.
