Opening a hospitality business in the Midlands, particularly in the wake of the region’s recent tourism boom, presents a promising opportunity for entrepreneurs. 

With the West Midlands experiencing “record visitor numbers” in 2022, it’s crucial to understand the market dynamics, consumer preferences, and regulatory landscape before venturing into this vibrant industry. Here’s everything you need to know to navigate the promising yet challenging world of hospitality in the Midlands.

Understanding the Market

The West Midlands conurbation, including vibrant cities like Birmingham, witnessed “record numbers” of tourists last year, with a 5% increase from the pre-pandemic data of 2019. This surge brought the area 141.2 million visitors, partly thanks to the Birmingham 2022 Commonwealth Games, highlighting the region’s capacity to attract large-scale events and international attention. 

Furthermore, visitor spending in the area saw a significant rise to £14.1 billion, up 7% compared to pre-Covid figures, with a notable 41% of this spending directed towards retail. This resurgence is not just a testament to the area’s appeal but underscores the potential for hospitality businesses to thrive.

Seizing the Opportunity

Given the influx of tourists and their willingness to spend, especially on retail, culinary, and recreational offerings, there’s a ripe market for new hospitality ventures. Whether you’re considering opening a hotel, restaurant, cafe, or entertainment venue, the key is to align your business concept with the preferences and behaviors of your target audience. 

Offering unique, high-quality experiences that cater to the diverse needs of visitors and locals alike can set your business apart.

Risk Management and Insurance

One critical aspect that cannot be overlooked when opening a hospitality business in the Midlands is securing robust hospitality insurance. Given the dynamic nature of the hospitality industry, which is susceptible to a variety of risks ranging from property damage and liability claims to business interruptions, investing in comprehensive hospitality insurance is essential. 

This type of insurance not only protects your financial investment but also ensures the continuity of your business in the face of unforeseen events. It’s advisable to consult with insurance professionals who specialise in the hospitality sector to tailor a policy that covers all aspects of your operation. Whether you’re running a hotel, restaurant, or any entertainment venue, having the right hospitality insurance in place provides peace of mind and a safety net, allowing you to focus on delivering exceptional experiences to your guests.

Embracing Innovation and Technology

In today’s fast-paced world, embracing innovation and technology is not just an option but a necessity for hospitality businesses looking to stand out in the Midlands. From streamlining operations and improving customer service to creating memorable guest experiences, technology plays a pivotal role in the hospitality industry. 

Implementing state-of-the-art management systems, online booking platforms, and digital payment options can significantly enhance operational efficiency and customer satisfaction. Moreover, technology such as social media and mobile apps offer powerful tools for marketing and direct engagement with your clientele, helping to build loyalty and brand recognition. By integrating the latest technology trends, your hospitality business can offer convenience, personalisation, and a level of service that meets the expectations of modern consumers.

Source: Funderlyst

Considerations for Success

  • Location and Accessibility: Choosing the right location within the Midlands is crucial. Proximity to popular attractions, ease of access, and visibility can significantly impact your business’s success.

  • Market Research: Understanding your target market’s preferences is vital. Tailor your offerings to meet the demands of both tourists and local residents, taking into consideration the area’s popular trends in culinary and recreational activities.

  • Regulatory Compliance: Familiarise yourself with the local regulations, licensing requirements, and health and safety standards specific to the hospitality industry in the Midlands. Ensuring compliance from the outset can save you from potential hurdles down the line.

  • Sustainability and Innovation: With increasing awareness around environmental issues, integrating sustainable practices and innovative technologies can enhance your appeal to a more conscientious consumer base.

  • Community Engagement: Building relationships with local businesses, participating in community events, and engaging with tourism boards can help increase your visibility and attract more customers.


The record tourism numbers to the West Midlands in 2022 offer a compelling case for entering the hospitality industry in the Midlands. However, success in this competitive sector requires careful planning, market insight, and adherence to best practices. 

By leveraging the region’s growing popularity, understanding consumer trends, and operating within the regulatory framework, entrepreneurs can tap into the burgeoning hospitality market. With the right approach, your hospitality business can not only contribute to the vibrant tourism landscape of the Midlands but also achieve sustainable growth and success.