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

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