Impacts of Brexit on the Hospitality Industry
FTI Consulting is an independent global business advisory firm dedicated to helping organisations manage change, mitigate risk and resolve disputes.
With dedicated teams in key political and commercial capitals, FTI Consulting is well placed to help you navigate your Brexit challenges and manage commercial risk. Our Brexit Leadership team outlines the key issues facing the hospitality industry and what companies should be focusing on amidst the political uncertainty.
The Hospitality industry covers a broad range of businesses that straddle the service and tourism industries, including hotels, restaurants, travel and events:
Work Force Pressures
- Substantial number of European staff employed in hospitality industry (particularly in large cities like London)
- Heavily dependent on immigrant labour
- Recruitment of skilled labour has been an issue
- Reported slow down in staff recruitment since Brexit vote
External Business Pressures
- Increasing rents, business rates, inflationary pressures on disposable incomes is a growing threat to the hospitality industry
- Industry must evolve to maintain market share and meet changing customer demands
- Industry must innovate rapidly to keep up with technological advancements
- Following Brexit, UK will operate under different principles of EU contract law, requiring:
- Amendment of clauses relating to restriction-free trade across a single market
- Review of commercial contracts with suppliers