Impact of Brexit on Hospitality and Catering Sector: A Case Study on Thistle Hotel

This literature review analyzes the impact of Brexit on the hospitality and catering sector, focusing on Thistle Hotel. It discusses the positive and negative impacts of Brexit, changes in import and export, and measures for effective operation in the industry.

LITERATURE
REVIEW

Aim
“To analyse the impact of Brexit on hospitality and catering sector: A case study on:
Thistle Hotel”
Introduction
The given topic is impact of Brexit is on hospitality industry and catering industry. As the
news of UK exist from EU is concern, the uncertainty is sparked among in the UK. It is
particularly impacted hotel and catering industry. The great impact was seen on employees of
hospitality industry draw in from European migratory (Alberti, 2020). There are certain positive
and negative impacts of Brexit in the country. In this report the hotel which is taken is Thistle
hotel. It was founded in the year 1965 with a portfolio of 8 central London hotels. This report
covers literature review which is done through secondary research. In literature review, there is a
impact of Brexit on hospitality industry, then there is a positive and negative impact of Brexit,
then changes which have come on import and export due to Brexit. Also, it covers measures and
techniques which is used by hospitality industry.
Literature review
Analyse the Impact of Brexit on hotel and catering sector.
This report aims the impact of Brexit on hospitality industry. According to the views of
Farazad (2020), Brexit is the exit of UK from EU. As noe there is UK own rules a regulation and
they are independent to perform their activities. As soon as UK is exit from EU, this hits the
news and concern and uncertainness that spark among many of the people of UK (The Impact of
Brexit on Hotel Industry and Outlook, 2020). It is especially within hospitality industry which is
considers to be the fourth largest industry of Britain. The great cause of found on employees who
are working in a hospitality industry that attract from European migrants. In hospitality industry,
there are over more than 400,000 migrants’ workers. At the time of before Brexit, EU nationals-
many of the persons are employed in hospitality and catering industry, they were free to enter in
UK without a permit of visa. But now it has changes after the Brexit. With the impact of Brexit
on hospitality industry there is a well documented and acceleratory pressure level on staffing
levels. In addition, there is a attraction of new talents from UK local people. It is said that many
amount of EU workers are leaving from UK. It is resulting in serious problem. So many

organisation, take opportunity to educate people in wide range of opportunities who are looking
career in hospitality industry. In relation with effects on visitors numbers- as far as concern that
number of tourist who travel UK from EU countries are more than the double of any residents in
other countries. If Britain state green lights The Norway option and joins European economic
area, then the effect of EU- UK travel will be nothing (San-Martin, Jimenez, and Liebana-
Cabanillas, 2020).
According to the Bunnell (2019), However, Britain hospitality industry is highly affected,
if the Government settle to only free trade agreements without coextensive free move of people.
As with many of the industries, hotel industry is prostrate to suffer more due to Brexit existence.
There is a decreases in value of pounds which has lead to increase in cost of imported goods and
services. On the other hand, weakness of currency of Britain has sparked a Brexit bounce with
the increasing number of visitors. In context of Thistle hotel, company has faced so much of
losses at the time of Brexit but at the same time they also faces some opportunity for local people
to provide them jobs. In case of visa requirements of UK world needs to follow. The choice
between cheap and visa free movement like France to Italy and anti to limited entry to UK. In
context of economic effects, the hospitality sectors and progress has adversely affected because
there is a potential fall in housing cost and uncertainness about the UK economic mindset
(Bunnell, 2019). These economic effects can hits the food an beverages company but those who
are working in a hotels and organisation are benefiting from this. Hotel workers may reap the
rewards of exchange rate driver roar which world come from weaker superior, increasing
overseas and visiting power. However, it is uncertain that UK exit from EU, so it is difficult to
forecast of what demands will be the trends in future. A economic turn down, or increase in
indirect and personal taxes, would restrict discretional spending, making for tough environment
in the hotel of hospitality industry. In context of Thistle hotel, investments and private equity
funds are affected. Because global investors are choose to by pass UK funds there would be
decrease in new money economic process and some of the finances might put into crippled for
new investment. So, by this it is raised that Brexit has impacted a lot to hospitality industry.
Negative and positive behaviour impact of Brexit in UK market.
According to the views of Cassar, Whitefield (2020), Brexit starts with Britain exit which
is the decision of UK to leave European union. Brexit includes negotiation of trade deals,
borders, citizens registration rules and regulations. This announcement of Brexit has caused to

decrease in depreciation of pounds and decrease in car manufacturing of UK. However, it is
focused that Brexit has create a positive impact economically for UK. There are certain positive
and negative impacts of Brexit on hospitality industry. As there are positive impact of Brexit on
hospitality industry because now UK people achieve more freedom to create their own trade
deals, rules and regulations (Cassar, Whitfield and Chapman, 2020). Brexit is considered to be a
scenario in which UK gives individual market and custom union. In this regaining of sovereignty
which is seen as a win by those who are opted to stay in EU. As in relation with Thistle hotel,
they found opportunity to provide jobs to local people of UK and increase their living standard of
life. For example, in case of EU law, citizen of another EU nation can decided to move to UK
without any restrictions (BREXIT: the impact on the UK and the EU, 2020). So, this has increase
in a lot of immigration into Britain and this creates difficulty in providing and fulfilling their
services and needs. But now due to Brexit, UK has full control over the borders as no other
people of European countries can shift to Britain. There are also some of the negative impacts of
Brexit on hospitality industry is that UK being a part of EU has benefited at the time of trade
deal between European countries and other world.
From the views of Rodger (2020), As a entity, EU is considered to be the strongest
bargaining power because it is the largest group of economy. So, by departure EU, UK has leave
a power of negotiating and free trade deal with other countries of UK. As UK has tries much
more to do trade deal with other countries and this has results in less income of them (Rodger,
2020). As in context of Thistle hotel, most if the migrants who were before staying in the hotel
were left from UK and this has impacted a lot to hotel. They have decreased the some of their
profitability and revenues. The another positive impact of Brexit is that UK will have more
control over its rules and regulations without the risk of having forcefully applying of European
laws. In the leave camp, some of the said that Britain domestic industry should not benefit their
full border controls which they have gain outside the EU. Now most of their amount will be
spent on issues of local UK people. At that time EU has prohibited to small countries to do
business in UK. But now after the introduction of Brexit, small company can also do their
businesses in effective manner. In hospitality industry, managers are more focused on providing
jobs to local people of UK so that there living standard increases and it creates positive impact
on UK job market. Then negative impact is that now Britishers could not have a great influence
on international matters (Green, Sissons and Qamar, 2021).

Changes that has come of imports and exports due to Brexit in the country.
It has been evaluated from the views of Sastry (2019), hospitality is affected a lot after
occurrence of Brexit. This has impacted the export and import as well. UK has managed to
control the end reaches of Brexit transition period. There is a scenario planned in which after
Brexit, there is need to prepare for submitting custom declarations. When any company is
exporting, they have to prepare custom export declaration. They have to hire intermediary who
will be preparing declaration on their behalf. Hospitality exporters have to keep a check on new
regulations and rules implemented for exporting or importing products. There are some animals
and high priority plants that have to be prepared in order to submit additional documentation
check their destination point. When there is need of exporting or importing of excise products
like fuel, tobacco or alcohol then there is need to comply with additional needs and requirements.
The organisations which are importing goods on regular basis can have benefit from having a
duty deferment account. This provides help in custom charges which consist of duty, excise duty
and import VAT that has to be paid (Brexit and Its Impact on India’s Export Business, 2019).
Now hospitality organisations can charge customs VAT at 0%. There is need to pay customs
duty and tax on different impacts.
In the views of Heimann (2021), the UK hotel sector is all damaged by Brexit. There are
some steps taken for ensuring that the country is remaining friendly with investors and retaining
foreign staff. Now, there is need of having GB EORI number for moving goods to and from UK.
There is need of applying for a new one for starting a new travel journey. Thistle hotel is
amongst those organisations which is dependent upon non-UK, EU born citizens. That is why it
is exposed to grab organisational change in less time. There is approximately 37% staff of this
hotel who are from foreign countries. There is pound which is forecasted for depreciating value,
and this will mean an enhancement of cost of imported products. There are several purchases
within current account that provide fall in value of inputs and this is a disadvantage for the
company. In context of gambling, gaming market of EU is approximately 85 billion. There are
13 million which are associated with online gaming. Betting is presently governed at EU level
and the regulation is just a concern for member state. There is growth in appetite of fitness and
hive of investment activity within health club sector of hospitality industry. after leaving the
European Union, it is decided that UK will be no longer be subjected to move people or product
freely to any other country and vice versa. There are over 67% of the visitors who are going to

UK every year but after Brexit this situation has declined (Heimann, 2021). There are different
facet of EU legislation that regulate general commercial conduct are applicable to gaming
companies based in the UK and Gibraltar. This involves, such as, rules relating to data
protection, data secrecy and electronic discipline, cyber-crime, employment, distance selling, and
consumer rights.
Measures and tools that hospitality industry must take into consideration to operate effectively.
According to the views of Soria, 2021, there are certain measures and recommendations
which are to be given to hotel to able to operate effectively in the market. These are security,
flexibility and hospitality. In context of flexibility measures, hotel should update cancellation
policies, which includes new measures specially for epidemics, natural disasters and different
levels of international alert (Strategies for The Hotel & Tourism Industry, 2021). Hotels offers
free cancellation to the customers or against local, international restrictions. Then now a days
hotels are more focusing on safety, measures because of covid 19 pandemic. Because this has
affected so much of the hospitality industry. Hotels are providing modifications up-to 24 hours
before arrival for current and future prepaid reservations.
According to the Jarratt (2019), in context of Thistle hotel is offering 24/7 hours medical
care and also provide insurance and agreements for the guests. They are creating comprehensive
guide of hotel human action to save covid 19 infections. Hotel is transmission a message of
social situation that advanced covid pandemic without making differentiation between
nationality. Hotel is assisting guests with the preparation before their arrival so that they could
not face any difficulty in staying their hotel. In addition, it is important for hotel to convey to
their guest that they are constantly communicate with local authorities. At the time of Brexit,
hotel are providing various training and development programmes to new hiring people. They
are more focusing on their current staff members and this results in achieving their targets.
Hotels are using cleaning, cooking, chilling and cross- contamination (Jarratt, 2019). As now a
days they are more using these measures which helps them in achieving their organisational
gaols and objectives.
Conclusion
From the above report it has been concluded that Brexit is the exit from European
country. In context of hospitality industry, they have to face certain challenges and it creates a lot

of positive and negative impacts on them. As there is a positive impact is that hospitality industry
get the opportunity of being hire to the local people. And negative impact is that hotels should
have decrease their revenue and sales because of less in migrants. So, this creates a big impact of
Brexit on hospitality industry. This research is conducted because this will helps the investigator
in knowing about the concept of Brexit. Also, it contains recommendations which are to be given
to hotel to sustain in the market effectively.

References
Alberti, G., 2020. Migrant labour in London’s hospitality. Ethnographic reflections on
subjectivity, transiency, and collective action after a decade. Etnografia e ricerca
qualitativa, 13(1), pp.79-101.
Bunnell, T., 2019. The Characteristics of the Emerging ‘New Era’. In International Schooling
and Education in the ‘New Era’. Emerald Publishing Limited.
Cassar, J., Whitfield, J. and Chapman, A., 2020, January. Contemporary factors influencing
association conference attendance. In Journal of Convention & Event Tourism (Vol. 21,
No. 1, pp. 57-90). Routledge.
Green, A.E., Sissons, P., Broughton, K. and Qamar, A., 2021. Public policy for addressing the
low-skills low-wage trap: insights from business case studies in the Birmingham city-
region, UK. Regional Studies, 55(2), pp.333-344.
Heimann, C., 2021. Right places for intra-EU mobility. In Blessing and Curse of Intra-EU
Mobility (pp. 31-79). Springer VS, Wiesbaden.
Jarratt, D., 2019. The development and decline of Morecambe in the nineteenth and twentieth
centuries: a resort caught in the tide. Journal of Tourism History, 11(3), pp.263-283.
Paull, B., 2021. Robert Owen’s legacy… ice cream making, hotels, spas and charity trading.
Rodger, B.J., 2020. Application of the domestic and EU antitrust prohibitions: an analysis of the
UK competition authority's enforcement practice. Journal of Antitrust
Enforcement, 8(1), pp.86-123.
San-Martin, S., Jimenez, N. and Liebana-Cabanillas, F., 2020. Tourism value VS barriers to
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Żuk, P. and Żuk, P., 2018. Offshoring, labour migration and neo-liberalisation: nationalist
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Brexit and Its Impact on India’s Export Business, 2019. [online] Available through
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Strategies for The Hotel & Tourism Industry, 2021. [online] Available through
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The Impact of Brexit on Hotel Industry and Outlook, 2020. [online] Available through
<https://www.hospitalitynet.org/opinion/4096893.html>