Is growth within the hospitality industry likely to be negatively impacted by Brexit?

05/04/2018 05:05


The impact of Brexit is far-reaching and is likely to negatively impact on a number of industries, one being hospitality. 

 

At present around 3 million EU nationals work in the hospitality sector in the UK and the changes that are set to take place could impact on legislation as well as individual’s right to work.

 

The current situation

Out of the 3 million EU nationals that work in hospitality, 700,000 are based in London, which is the equivalent of 1 in 7 jobs in the capital. When you compare these figures to the UK workforce as a whole, it becomes apparent that the hospitality sector is much more reliant on EU nationals than other industries. 12.3% of the UK hospitality workforce is composed of EU nationals, whereas the national average is much lower, at just 6.9%.

 

The hospitality industry relies on these EU nationals to help sustain growth and it is likely to be impacted by changes to legislation, which would mean that the flow of workforce would be restricted or would mean that those already employed would need to leave thanks to changes in legislation and contracts.

 

So, what can businesses within the hospitality industry do in order to continue to grow and succeed in light of Brexit changes?

 

Buckle down with training

It is already apparent that Brexit is going to result in a serious skills shortage and gap, so in order to remain competitive, hospitality businesses will need to invest in training members of staff that they are able to hold on to. Businesses should consider the merits of in-depth college courses for long-term employees.


Removing negative perceptions about the industry

One of the main issues that has blighted the hospitality sector over the years is the negative perception about the industry. Many deem it be full of zero hour contracts with long hours and poor rates of pay. Businesses should focus on promoting the potential for long-term and fulfilling careers by offering graduate schemes and paying more attention to creating a positive company culture.


Creating working partnerships

In order to remain successful, the hospitality industry needs to consider how teaming up with colleges and universities for working partnerships can help them to remain relevant. Government support will also be needed in the form of incentive-led schemes, enabling those who have been unemployed for a long time to return to work.

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