A Critical Analysis of the UK Hospitality Industry

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A Critical Analysis of the UK Hospitality Industry
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Introduction
The UK hospitality industry is an ever-changing sector comprising accommodation providers, food and beverage outlets, and other related services. All establishments and services that facilitate the reception and satisfaction of visitors and guests constitute this industry (https://prenohq.com/, n.d.). The sector breathes life into the UK with its diverse offerings of mouth-watering cuisine, tantalising beverages, cosy lodgings, entertainment, and seamless transportation. The Office for National Statistics (ONS) reports that hospitality - a pillar of the UK economy - contributed a staggering £59.3 billion to the gross value added (GVA) in 2019, amounting to 3% of the total output. The industry also had the honour of employing 2.53 million people in 2020, making up 7.1% of the workforce (Hutton, Foley and Irvine, 2022). The industry's core focus is crafting unforgettable guest experiences, leaving no stone unturned in its quest for customer service excellence. Likewise, the sector has a big cultural impact ingrained in its association with the country's history and traditions.
Problem Background
The consequences of Brexit on the UK's hospitality sector have been far-reaching, with increased uncertainty and trepidation amongst business and recreational travellers, augmented costs for commodities and services, decreases in occupancy rates and income, and staff shortages. An article on CNBC reported that a long-term debilitation of the pound has a range of ramifications for the UK economy, amongst the most fundamental being that imports become pricier, leading to higher consumer charges for foreign products. This can pointedly impact business and recreational tourism, as foreign visitors may find visiting the UK less appealing due to the pound’s devaluation (Reid, 2022). Subsequently, this tapering fuel in the economic engine can result in reduced occupancy rates and an ensuing plunge in revenue. Besides, the apprehensiveness caused by Brexit has prompted numerous EU personnel to exit the hospitality sector, causing a deficiency of workers. The ramifications of Brexit have been intensified by the COVID-19 pandemic, leading to unprecedented disruptions and losses for the industry. The sector has no option but to anticipate further price hikes, declining service standards, and a potential revenue decrease. To address these issues, organisations such as HOSPA have been striving to educate people on the advantages of a career in hospitality and to draw in new talent from within the UK (Smith, 2022). This paper assesses how Brexit has influenced the UK’s hospitality industry and its ramifications for its strategies and prospects.
Challenges that may be facing the industry due to Brexit
The challenges the hospitality industry faces range from a loss of nearly 200,000 overseas workers since 2019 to restrictions on freedom of movement, stricter customs regulations and visa requirements, and implications for data protection regulations. This has posed a considerable impediment to commerce since the EU labour pool has contracted by 41%, with the number of international workforces f...