The Hospitality Sector and No Deal Brexit

Posted on Wednesday, February 6, 2019 by XpressjobsNo comments

The on goings of Brexit have had many of us sat in confusion for quite some time now. While we may get some more answers as time goes on and more decisions are made, it will all fall down to what move is made next. With no significant progress towards any kind deal, many sectors - including the hospitality sector- are growing concerned.

A no-deal Brexit would mean the UK would leave the European Union immediately on the 29th of March 2019 with no agreements set in stone about the future relationship we would have with the EU. This brings a huge uncertainty to employers. Particularly those that rely on imports and exports within the EU. From the 200+ signatures to rule out this particular outcome, it is clear that nobody in Parliament wants this.  Though, it will happen if there isn’t an agreement made in time.

So, what are the impacts?

For the hospitality sector, we could see an increase of prices and some strain put on the small to medium sized suppliers and brands, especially on the food and beverage sector. Reportedly, 42% of employers are already struggling to find enough workers for their seasonal and temporary roles. These roles are often filled by EU workers.

It could also see a decrease in demand. EU citizens may be less likely to visit the UK due to excess charges and hassle. The bad blood created by Brexit could also be enough to put off EU tourists. With increased costs and the threat of a dwindling demand, the hospitality sector are understandably worried.

The beef trade could also collapse as it relies on EU imports.  The general consensus is that a lot of retailers, chefs and hoteliers may struggle in the new months if this no deal Brexit goes through.  But is there any good news for the hospitality industry?

With a lot of people intending to move in the events of a no deal Brexit, many jobs will be left behind. However, with job losses comes job vacancies! A possible silver lining to existing hospitality workers. This could be a prime opportunity to progress.  It will also open up many lower level jobs. Ideal for students and young people looking for their first jobs. There’s also the chance that we would go back to seasonal fruit and vegetables. This is because we would have to source more locally. It could offer farmers the opportunity to bring their industry back to life.

Also, with increased prices for UK tourists, a no-deal Brexit may encourage more stay-cations. This could be extremely beneficial for smaller, more rural resorts. Increased demand for staycations could also lead to more jobs created.

 

 

 

 

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