Brexit: Challenges & Opportunities for the Hospitality, Hotel and Food Service Industries

Brexit: Challenges & Opportunities for the Hospitality, Hotel and Food Service Industries
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Brexit: Challenges & Opportunities for the Hospitality, Hotel and Food Service Industries
Brexit refers to the withdrawal of the United Kingdom from the European Union. According to various reports, Brexit withdrawal would cause adverse effects on the hospitality and leisure sector. Globally, most of the hospitality industries, especially in the United Kingdom, depends heavily on European union workers (Murray, 2020,3). Most of them work as casual laborers or on the zero-hour contracts. The implementation of this exit would cause adverse impacts to these countries. First, it would negatively affect the movement of people in different regions of the world.
Globally, most of the hospitality industries rely heavily on European union immigrant workers. According to research, most of the workers in London and the United Kingdom are from the European Union as percentages standing at 40 and 15 %, respectively (Collins, Matheson and Elliott, 2018, 12). Brexit seems to be a significant threat to these countries since one of its referenda indicates that after the passing of the referendum, immigration will be strictly restricted. These restrictions would significantly affect the hospitality industry, which depends on cheap labor from low skilled workers. Thus, it means the blocking of these laborers would force the hospitality and leisure industry to recruit skilled laborers at high salaries and wages. This would result in high labor costs, which would lower the industry revenue (Murray, 2020,6). The hospitality industry is one of the sectors that earn the country, and its failure would lead to a decrease in the country's GDP.
Secondly, Brexit would affect the employment policies in different states. These changes would result in high rates of job loss for many workers in the United Kingdom. As demonstrated by Switzerland, if the United Kingdom left the European Union, the hospitality employment laws could remain the same. But they would be forced to work under the European umbrella law. Thus, this could harm the industry since the employees would need to go for more training to join the skilled laborer's group. Furthermore, the European union employment laws would demand them to add work permits to fit in the industry (Farazad, 2020, 6). Hence, the process of acquiring this permit would cost them more time and money since it is a complicated procedure. Therefore, most of the workers would give up along the way and lose their jobs.
Additionally, the European Union law of allowing people to go and work outside their countries without visas and job permits would be suppressed. This could affect most of the low skilled workers who work in the United Kingdom and other states (Levy, 2016, 11). Since suppression of this law would mean that the hospitality industry should employ high skilled laborers in the future and pay the high wages and salaries. Thus, this could leave most of the immigrant jobless, which can cause them more suffering.
Thirdly, if there will be no trade deal between the United Kingdom and the European Union, the terms...