Affect of Brexit on Hotel Industry: Research Project

Running Head: The affect of Brexit on hotel industry 1
Research Project
The affect of Brexit on hotel industry of Britain

The affect of Brexit on hotel industry 2
Task 1
1.1 (a) Aim and objective of the research
The main aim of this research is to identify the issues on the Britain hotel industry due to
Brexit. The objective of this research is to search out the reason of the influence of Brexit on
the tourism industry.
(b) Research questions
The research question of this research is mentioned below:
 What are the major impacts of Brexit over the Britain hotel industry?
 In what manner the bad influence can be reduced to increase the demand of hotel
industry in Britain?

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1.2 justification
The research focuses on the evaluation of the impact of Brexit ion the Britain hotel industry.
An analysis has been carried out to evaluate the various factors which may the reason of
trouble in the travelling of the tourist to Britain.

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1.3 introduction and literature review
Introduction
Brexit is considered as the popular term for the perspective exit of United Kingdom from the
European Union. The impact of Brexit is heavy over the hotel industry of Britain because the
policies and rule are changed for the Britain which was same as other countries that is part of
the European Unions (González, 2016). This section will be able to give clear information
regarding the influence of Brexit on the Britain hotel industry. The literature review will be
reflecting with concise information and affect of Brexit.
Literature review
The scenario for the hotel industry is almost mirrored. The influence of Brexit on hotels could
be influenced by a more restrictive policy decreasing the flow of workforce. It is hard to
calculate the even estimated cost of the hotel industry as an entire as it hugely reliable on the
deal that is fulfilled between UK and the EU. The employees of the hotel industry are being
force to leave the job due to amendments in the legislations (Yukins and Bowsher, 2016). It
has been evaluated that in 2015 the contributions of EU country was 48% of the entire UK
inflow of Foreign Direct Investment. As per the report of PWC, the investments of hotel in
the term of ending 2016 were down 75% by reason of the uncertainty following the Brexit
referendum. There are some key deals are existed in the hotel industry that initiated at the end
of 2015 which have been delayed or incomplete due to the uncertainty of the Brexit. It consist
Grosvenor House Hotel, Birmingham and London Hilton Metropole hotels and the collection
of Shiva hotels. It has been analyzed that there were major issue has been arisen due to
uncertainty but the deflation of pound has enhanced the level of interest in inbound
investment from regions like Asia (Lathan, Green and Chagani, 2017). It has been discussed

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in the report of PWC that there is two alternative scenarios such as free trade agreement
(FTA) scenario and World Trade Organization (WTO) scenario. In FTA scenario UK exists
and negotiates a FTA with the EU, on the basis of trade free goods not for services. However,
this scenario shows the case where the government is able to protect greater flexibility over
the policy of immigration for the purpose of relaxing the rules for highly skilled migrants not
only for EU but also for non-EU countries. On the other hand WTO scenario reflects that the
UK would no longer enjoy tariff-free trade in goods with the EU. Unlike FTA scenario, there
is no relaxation in immigration rules for EU and non EU countries. The government would
attain a huge control over the rules and regulations, which could result in some regulatory
cost savings. It has been evaluated that there are number of impact such as uncertainty, trade,
regulations and fiscal can influence the economy of the countries.
Figure 1: Exit Scenario Results
Source: (PWC, 2016).
It has been evaluated that the major impacts of Brexit have on the travelling and spending
habit of customer. There are heavy flow of tourism and travel between UK and the EU
because EU is being the major destination of all the travelers of overseas to travel UK. The
sector of hotel is largely influenced due to the changed pattern. As per the national statistics
UK inhabitant made 9.4% more travel in abroad in 2015 and it has been evaluated that the

The affect of Brexit on hotel industry 6
spent money was £3.5 billion (9.8%) more than they did in 2014 (Arnold, Bently, Derclaye
and Dinwoodie, 2017). Spain was remained same to provide better contribution for being the
top destination for UK residents and was known to be the reason of attracting 13 million
visits which contributed to increase by 6% in previous year. The impact of Brexit is not only
to have an influence on hotel industry but also the changed policies were affected the
financial protection, mobility and health cover which is considered as the part of EU
regulations. Brexit impact the business adversely and the business of Britain should pay
customer duty and import VAT and associated customs declarations will be required which
affect the new customs border, which could considerably enhance the cost of trade with EU.
The increasing cost of business may influence the profitability and commercial
competitiveness which will enhance the direct tax. It is require to hotel industry to evaluate
the indirect tax impact to the supply chain structure, involving the import or export data. The
action plan of Brexit should be developed by hotel industry which will be able to identify the
zone of risks and opportunity (Barnard, et. al., 2017). There are certain areas are explore
which may impact due to Brexit, is roaming fees, package travel, passenger rights and
consumer right directives. The package travel for tourist has been changed from November
25th, 2015. The new instruction was to offer protection to clients who reserve other forms of
combined travel such as self chose of package on a web link of a convenience plus hotel
along with that reserve the traditional package holiday. The consumers of UK were free to
travel in all around the EU but after Brexit the travel of them is largely impacted. Roaming
fees for using the phone in the EU were meant to be removed. Business as well as corporate
travel has been adverse influence due to uncertainty around Brexit policies. Key cities
including Manchester, Cardiff and Edinburgh may experience the no profit of international
travelers due to weaker condition of pound. Brexit is not only the reason which may impact
the hotel industry adversely but there is another reason such as amplifying supply chain, fear
of terrorism also the reason of less interest of traveler towards international tour. It has been

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analyzed that hotel investments in the 2016 were down approx. 70% on the previous year due
to the uncertainty of the Brexit referendum (Vickers, 2017).
Figure 2: Hotel deal volume
Source: (Redefine, 2016).
The food zone of hotel is scrambling around for staff along with the supply of EU workers
starts to decline. The rate of pound got weak and the worry of the Britain hotels are increased
about the long term status in the UK which may lead to number of workers not to remain as
residents (Kierzenkowski, Pain, Rusticelli and Zwart, 2016).
1.4 project specification
1. Aims and objectives
a. What is the aim of your research?
The main aim of this research is to identify the issues on the Britain hotel industry due to Brexit.

The affect of Brexit on hotel industry 8
The objective of this research is to search out the reason of the influence of Brexit on the tourism
industry.
b. What are the objectives of your research?
Tot To provide better understanding about Brexit and its impact on the Britain Hotel industry
To critically analyze the main factors causing impact on the hotel industry of Britain.
2. Rationale/justification for selection of this topic
The research has been carried out to explore the factors causing impact on Britain hotel industry. People
of that country have to face so many challenges regarding earning and spending because they are not
aware about the certain policies and structure of Britain after withdrawing from European Unions. The
affect of Brexit can be reduced by maintaining the government policy and it is required for the
government of Britain to give information regarding the made policies whether it should be temporary
(Lockwood, Froggatt, Wright and Dutton, 2017).
3. Hypothesis or research question
 What are the major impacts of Brexit over the Britain hotel industry?

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 In what manner the bad influence can be reduced to increase the demand of hotel industry in
Britain?

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4. Plan (Gantt Chart)
Serial
number
Activities Starting
date
Duration Attainment
date
Description
1 Decision about
research topic
25 October,
2017
2 26 October,
2017
Selection of the
topic will be
done.
2 Making plan for
the research
27 October,
2017
3 29 October,
2017
Plans will be
made.
3 Implementation
of the plan
30 October,
2017
4 2 November,
2017
Plans will be
implemented.
4 Data collection 3
November,
2017
4 6 November,
2017
The methods
will be selected.
5 Analyzing
collected data
7
November,
2017
5 11
November,
2017
Data will be
analyzed.
6 Drawing
conclusion
12
November,
2017
2 13
November,
2017
The conclusion
will be made.

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1.5 &2.1 Gantt chart
Serial no. 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13
1
2
3
4
5
6
NovemberSeptember

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Task 2
2.2 Abstract
Brexit is being the reason of single market for the Britain and it is seen by its advocates in the
form of larger achievement of the EU. The impact of exiting Britain from the European union’s
brought so many challenges in the hotel industry of the Britain. It is done because the customers
as well as the entrepreneur do not have idea about the policies and procedures of paying ad
receiving transaction. After withdrawing from EU, it has to face so many challenges not only in
hotel industry but also entire Britain to deal with customers (Dhingra, et. al., 2016). The import
and export duty has changed along with the government structure is made in new way which
being the reason of confusion. It is the research which has been reflected entire position of the
hotel industry of Britain after removing from EU. The review of literature has been done
critically by focusing on various aspects which is necessary for researching.
Methodology
There are several methods which can be helpful to analyze the research topic in proper manner.
The used methods and techniques are listed below:
Research methods
There are various kid of research method is available to gather the information but to
accumulate the information regarding impact of Brexit on Britain hotel industry, the qualitative
data has been considered which is able to give information on the quality basis (Burgess, 2017).

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Research approaches
Qualitative as well as quantitative both approaches have been taking to gather the information
regarding topic on quality as well as quantity basis. Quality materials are fetched out with taking
help of primary and secondary sources (Lim, 2017).
Data collection
The main aim to gather the data is for implementing the research in proficient manner. The
relevant information is gathered from the primary and secondary sources and the main focus is
kept on the combination of both resources so that effective understanding about the research
topic could be revealed (Evans, 2017). The features of primary resources are fresh because it
contains questionnaire, survey and group discussion. On the other hand the natures of secondary
sources are used because it is fetched out by used material such as journal and article of author,
internet, websites and books.
Sampling size
Random sampling technique has been opted to gather the information regarding impact of Brexit
on the hotel industry. The major feature of this technique is its allocation of the population.
Research strategy
It is vital for the research to complete within time frame by following an adequate manner. A
systematic approach has been considered for the implementation of the research because it is

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able to provide the data in sequence manner (Cressey, 2017). The result of the research will
define in sequence manner which is applicable for the research.
2.3 & 3.1 results and analysis
The result has come that entire population of Britain is influenced due to Brexit. The gathered
data has been analyzed with the help of qualitative as well as quantitative data. For analyzing the
data in systematic manner, data listing is considered. The quality data is gathered from
qualitative data while quantity data such as statistics and graphs are collected from the
quantitative data. There were certain steps of leaving EU which started from November 2016.
Figure 3: Calculated effects of Brexit
Source: (Yukins and Bowsher, 2016).
It has been analyzed from above image that the impact of Brexit on the living standards of UK is
not effective and the citizens of Britain have to suffer adversely.

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Figure 4: Affect of Brexit
Source: (YouGov, e.d.)
The above image has reflected that due to Brexit only certain part are not influenced rather entire
population are affected. It has been interpreted from the above data that the effect of Brexit on
the hotel industry as well as the lives of people of Britain affects adversely. There are certain
areas are explored which may impact due to Brexit, is roaming fees, package travel, passenger
rights and consumer right directives.
3.2, 3.3 Discussion & Conclusion
It has been concluded that the entire hotel industry of Britain get influence due to Brexit. In the
terms of Britain hotel this is likely to maintain the balance between leisure and corporate travel
influencing ADR in the market. Furthermore, the impacts of Brexit have negative impact over
the employment and operations of hotel. It has been recommended that there should be proper

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temporary policy and procedures so that people of country could not get influenced adversely
and for some time until proper strategy is not made till then population of the Britain should
follow it. The value of pound is lesser which is the reason being of cheap rate of goods of UK
while exporting, but imported goods will be more expensive. It has been recommended to give
focus in efficient manner while researching. There can be various techniques which can be used
in sufficient time for further research. Although the structure of the Brexit negotiations is
appeared as unclear for some time, it is necessary to encourage the Commission for considering
the potential steps in the favor of people. I

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References
Arnold, R., Bently, L.A., Derclaye, E. and Dinwoodie, G.B., 2017. The Legal Consequences of
Brexit Through the Lens of IP Law.
Barnard, C., Johnson, P., Mitchell, I., Dhingra, S., Ottaviano, G., Sampson, T., Portes, J., Forte,
G., Sumption, M., Armour, J. and Vickers, J., 2017. Economic Consequences of Brexit. Oxford
Review of Economic Policy, 33.
Barnard, C., Johnson, P., Mitchell, I., Dhingra, S., Ottaviano, G., Sampson, T., Portes, J., Forte,
G., Sumption, M., Armour, J. and Vickers, J., 2017. Economic Consequences of Brexit. Oxford
Review of Economic Policy, 33.
Burgess, C., 2017. Managerial Competencies for UK Hotel Financial Controllers: Are They
Hospitality Managers or Accountants?. The Journal of Hospitality Financial
Management, 25(1), pp.27-43.
Cressey, D., 2017. Brexit offers rare chance to make Britain greener. Nature, 541(7636), pp.145-
146.
Dhingra, S., Ottaviano, G.I., Sampson, T. and Reenen, J.V., 2016. The consequences of Brexit
for UK trade and living standards.
Evans, G., 2017. Brexit Britain: Why we are all postindustrial now. American Ethnologist, 44(2),
pp.215-219.
Filimonau, V. and Mika, M., 2017. Return labour migration: an exploratory study of Polish
migrant workers from the UK hospitality industry. Current Issues in Tourism, pp.1-22.

The affect of Brexit on hotel industry 18
González, G.M., 2016. ‘Brexit’ Consequences for Citizenship of the Union and Residence
Rights. Maastricht Journal of European and Comparative Law, 23(5), pp.796-811.
Kierzenkowski, R., Pain, N., Rusticelli, E. and Zwart, S., 2016. The Economic Consequences of
Brexit.
Lathan, R., Green, M. and Chagani, E., 2017. Brexit: Its Passing and Reverberations. Cornell
Real Estate Review, 15(1), p.17.
Lim, W.M., 2017. Exiting supranational unions and the corresponding impact on tourism: Some
insights from a rejoinder to Brexit. Current Issues in Tourism, pp.1-5.
Lockwood, M., Froggatt, A., Wright, G. and Dutton, J., 2017. The implications of Brexit for the
electricity sector in Great Britain: Trade-offs between market integration and policy
influence. Energy Policy, 110, pp.137-143.
PWC, 2016. Leaving the EU: Implications for the UK economy, Retrieved on 22nd November,
2017 from: http://www.cbi.org.uk/news/leaving-eu-would-cause-a-serious-shock-to-uk-
economy-new-pwc-analysis/leaving-the-eu-implications-for-the-uk-economy/.
Redefine, 2016. The impact of Brexit and what it means for the UK hotel market, Retrieved on
22nd November, 2017 from:
https://www.redefinebdl.com/images/documents/RBH_Brexit_WhitePaper_November2016.com
pressed.pdf.
Vickers, J., 2017. Consequences of Brexit for competition law and policy. Oxford Review of
Economic Policy, 33(suppl_1), pp.S70-S78.

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YouGov, e.d. Brexit seen as least bad for the working class. Accessed on 14th December, 2017
from: https://yougov.co.uk/news/2016/04/20/brexit-class/.
Yukins, C.R. and Bowsher, M., 2016. Brexit and the Trump Election: Finding a Way Forward
for Transnational Procurement. Eur. Procurement & Pub. Private Partnership L. Rev., 11, p.258.

The affect of Brexit on hotel industry 20
Appendices
It has been analyzed by PWC analysis and the above image is described the timeline for possible
exit negotiation.
The above image is described the potential impact of an EU exit.