Econometric forecasting models were used to forecast employment levels in the hotel and catering industry in Great Britain through 1993 under several different forecasting scenarios. The growth in employment in the hotel and catering industry over the next 5 years is likely to be broadly based, both across income levels of domestic consumers, sources of expenditure (business, foreign tourists, and domestic consumers) and, increasingly, regions of the country. This is in contrast to other sectors of the service economy, where growth can be expected to be both slower and more cyclical than recently. The forecasts suggest that the industry needs to plan for higher numbers than previously expected. These labor force forecasts have profound implications for labor force policies throughout the industry, particularly in view of the demographic forecasts of a decline in the number of young adults, the traditional recruiting ground for many parts of the hotel and catering industry. They also suggest a need for increasingly skilled staff, particularly in the management and craft areas of the industry. Much of the growth in hotel and catering employment will come outside London. Substantial increases are expected in the northwest, Yorkshire/Humberside, and East Anglia, with lower growth in the more traditional, established tourist areas. (The document includes discussion of key economic factors, such as incomes, exchange rates, marketing factors, and supply-side factors; growth by job category; growth in full-time and part-time employment; and growth by region. Forty figures appear.) (CML)