With the 2012 Olympic Games fast approaching, the hospitality sector is getting ready for a boom in business; tourism figures are set to rise, jobs will be created and new developments will be springing up across the country.

But there are fears that the UK economy will feel the impact once the closing ceremony draws to an end and spending revenues plummet.

Earlier this year the British Beer and Pub Association (BBPA) called on the government to drop VAT rates in the hospitality sector, arguing that it would help the sector recover from the effects of the recession and help boost economic revival.

An e-petition has since been created, encouraging the country to back the proposal to drop the VAT rate for the hotel industry to 5% and the hospitality sector to 13%. More than 3000 people have signed the petition so far and if it receives 100,000 signatures then it will have grounds to be discussed in the House of Commons.

So, is this dramatic drop in VAT even a realistic request?

21 countries in the EU have a lower VAT rate for the hotel sector and 13 for the overall hospitality sector. In France, tax was reduced from 19.65% in the hospitality sector to 5% and led to the creation of 21,700 jobs in the first year alone.

The chief executive of Merlin Entertainments Group, which owns theme parks across Europe including Alton Towers and Thorpe Park, spoke to bighospitality.co.uk. He suggested that the drop in VAT could create 80,000 jobs, predominantly for 16-24 year olds, of which one in five is currently out of work and that this in turn could help to kick-start the economy.

If the e-petition is successful it could possibly cushion the blow to the hospitality sector in the post-Olympic years, helping to create 320,000 jobs and saving pubs, restaurants and hotels from closure.

Do you think the hospitality sector will benefit from a decrease in VAT? Will more problems be caused once the inevitable happens and VAT rises again? We welcome your comments.

Click here if you would like to sign the e-petition.