The Brexit referendum was held over a year ago and Article 50 was triggered at the end of March. Yet there is still a lot of uncertainty surrounding the Brexit effects on hospitality. Until all negotiations and plans have been put into place, there really is no sure-fire way to predict how Brexit effects on Hospitality sector will be translated. However we can take a look at what has happened since the referendum to gauge the current climate.
The number of EU nationals wishing to relocate and work in London has seen minimal effect since the referendum results. Pre-referendum as many as 55% of applications submitted to the company Change Group were from EU nationals. The number rose by 1% after the referendum results and has now fallen to 50% in the year since.
The company’s Founder and Director, Craig Allen, has expressed his views on this. Allen has said that it is a positive that the number of EU nationals seeking to work in London has not been hit drastically by Brexit fallout. He has however warned that we will not truly know the extent of Brexit on the industry until the process is resolved and negotiations have been completed. He advises that until we have stronger answers and projections for the future, it is important to encourage British nationals into the industry.
Initial Brexit Effects on Hospitality
After the referendum results were announced, the value of the pound took a sharp fall. This encouraged foreign tourism, especially in London. Edwardian Hotels London served over 30,000 guests from Sweden, France and Germany in 2016. This is a positive for the industry, though a failing economy cannot be relied upon to support tourism numbers. Therefore it is imperative that Brexit negotiations result in agreements which enable tourism between key markets to encourage a positive Brexit effects on hospitality.
An HBAA member survey states that 20% of hotels have seen an effect on their access to recruitment and the efficiency of recruitment activities, since the referendum result. 52% of conference venues and hotels have seen an impact on their company as a whole. 7% claim that Brexit has had a ‘major impact’ on their business.
Underlying Problems?
Some feel we were in trouble prior to Brexit results, separation from the EU will make the situation worse. Philip Allsopp, Sales / Marketing Director for Lee Marston Hotels, believes that Brexit is masking issues that already existed in hospitality recruitment. Allsopp believes that the industry needs to expand into new and more creative recruitment methods to solve those issues. Whilst Rajesh Vohra, from Sarova Hotels commented. “Recruitment was a problem area before Brexit. But now it is a major issue, and it is getting materially worse by the day.”
Strength in Unity
Since the triggering of article 50, London and Paris have jointly announced a tourist agreement. Sadiq Khan, Mayor of London and Anna Hildago, Mayor of Paris have made statements declaring the positive effects of partnership. Both are determined not to let Brexit affect the positive dynamic they are building.
New thinking, and further initiatives like this, will help the hospitality industry adapt to the changes ahead. Now is also a great time for candidates from the UK looking for new opportunities within the hospitality sector.