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 from all continents also declining (Barnes, 2022). The constrained labour market has resulted in many businesses reducing their trading hours or even ceasing operations, and the pandemic has only amplified pre-existing difficulties. Businesses must reconsider their procedures to guarantee compliance with the novel regulations, encompassing a reassessment of contracts and service plans, examining recruitment, retention and training strategies, and acquiring a detailed country-level cognisance of regulations. Furthermore, businesses may encounter hindrances where their service necessitates professional qualifications. Conversely, entertainment businesses and artists must re-evaluate their operational costs and contracts to protect their tour-based revenues. Thence, the need for appropriate legal precautions to guard their data and contemplate other potential sources of labour outside the EU, such as training trained personnel and procuring workers from other parts of the globe.
Strategies needed to address these challenges
The tourism sector’s challenges necessitate implementing a comprehensive and coordinated strategy. Organisations must reassess their contractual obligations, service plans, and training programs to remain compliant with the new regulations and explore the possibility of sources of labour outside the EU, such as training domestic workers or sourcing workers from elsewhere (Butler, 2021). Nonetheless, businesses must ensure the safeguarding of their data through the adoption of suitable legal provisions. Entertainers must also consider the cost implications of their operations and contractual arrangements to protect their tour-based revenues. To combat the dearth of labour, industry employers must unite forces and unleash focused, laser-guided training and development programs, which should be tailored to furnish fledgling talents with the necessary skills and experience to break into hospitality while concurrently providing lucrative incentives to those already in the game to stay put (Kis, 2016). Employers should dish out subsidies and tax breaks to nudge them into engaging in on-the-job learning programs targeting high-risk younglings. Simultaneously, greater emphasis must be put on sourcing and retaining individuals from diverse backgrounds, thereby quelling any risk of labour pool exclusion (GOV.UK, n.d.). A comprehensive overhaul of the immigration system is the need of the hour to guarantee that the hospitality industry can access the requisite manpower to retain its competitive edge. By implementing these strategies, the UK hospitality industry can be assured of adapting to the ever-changing post-Brexit scenario.
Analysing the resources needed to develop a successful strategy
A multi-faceted approach should be employed to address the various complications posed by Brexit successfully. To this end, enterprises must invest copious amounts of energy and attention into apprehending the novel mandates and prerequisites associated with commerce and hiring labourers from foreign lands. It is also necessary to re-evaluate current contracts, service plans, recruitment, retention, and training strategies to ensure compliance. Firms should also investigate alternative sources of labour domestically and abroad to counter the looming labour shortage. Still, industry organisations and employers must join forces to launch specific training and development initiatives that grant young people the skills and experience to join the hospitality sector and provide incentives to encourage existing members to stay. Besides, special attention should be placed on recruiting and retaining talent from varied backgrounds to guarantee that no group is excluded from the labour force. Furthermore, a thorough evaluation of the immigration system must be undertaken to ensure the hospitality industry has the personnel necessary to remain competitive. Finally, businesses must ensure that their data is protected with adequate legal safeguards.
Marketing
Brexit’s bearing on the marketing strategies of the hospitality sector has been extensive. As a result of the diminished labour pool from the EU, companies must adjust their contracts and service plans to comply with the new regulations. Also, with the devaluation of the British pound deterring foreign travellers, businesses must devise new approaches to lure customers. Due to the impact of the pandemic, companies must concentrate on preserving current customers and obtaining new ones. To maintain competitiveness, the industry must embrace digital marketing. This can include constructing a website and cultivating a social media presence, exploiting online marketing instruments such as email, search engine optimisation (SEO), pay-...