The Impact of Brexit on Hospitality
There has been plenty of talk and many views aired with regards to Brexit and what it means for the food and hospitality industries. Amongst these articles and their various findings what stood out was a study conducted by William Reed.
Potential Brexit issues
The study revealed that if Brexit wiped out 20% from the pound, many more Brits will be opting for “staycation” options, and this would put money back into the UK economy. The second revelation was that continental European staff are in the majority when it comes to employment within the hospitality industry. This could translate into an alteration in employment contracts, reflecting various laws in various jurisdictions that may have to be changed. There is also the potential shortage of skills. One such example would be the possibility that skilled chef positions may become difficult to fill, as many of these are currently filled by EU migrants. This may have a negative impact on business, and pose a larger recruitment issue. Another complication that would affect the industry would be the possible requirement of work permits, which would increase costs for hiring business within the hospitality industry significantly.
Not all bad news
On a positive side, travel to the UK will be less expensive for those visiting from the EU and US, which will likely bring visitor numbers and revenue figures up, allowing the UK to reap the rewards of investment within the industry. This could allow industry leaders to put more money into training and apprenticeships, allowing them to build skilled workforces from the ground up.
While implications at this stage are difficult to assess, especially as no agreement has been reached between the UK and EU, it is business as usual for the majority of travel suppliers – but always with one eye on the latest news.
If you’re ready to take the next step in exploring the potential for your business? Then contact me for a free consultation.
Paul Strachan M. 07793 447961 T. 01307 460667 E. firstname.lastname@example.org