FINANCE & LAW
Brexit and the hospitality industry: the only certainty is uncertainty
At the time of writing, it is telling that one of the first words that come up when you type “uncertainty” into Google is “Brexit”. By the time you read this perhaps we will have more answers but it seems unlikely we will have all the answers and unlikelier still that they will please everyone – or anyone, given the way things currently are. Every industry has its specific concerns about the impact of Brexit, but the hospitality industry in particular has already taken some significant blows since the referendum. However, the prospect of leaving the EU has had a subtler impact on the in- ternational private staffing sector. Here, we examine some of the current trends and indicators.
Why would hospitality suffer more than most industries post Brexit?
A large number of hospitality employees, particularly in major cities such as London, are from the EU. Given the uncertainty, hospitality recruitment has become slower. In addition, regula- tory trading reviews have the potential for a loss of competitive edge for home-grown hospitality chains, while international hos- pitality chains may be discouraged from investing in the UK. There is also a fear that Britain will be seen as less welcoming by EU citizens which will result in a decline in tourism trade here.
But is it all doom and gloom?
Predictably, it largely depends on which papers you read. But the Office for National Statistics showed economic growth for ho- tels and restaurants is actually picking up by 1% or 2% after a slight slump in 2017. And there are things that we could do to boost our hospitality trade, with experts recommending that the government lower tourism tax to 5%, for example. Finding innovative ways to recruit within this sector is consid-
ered vital to its survival. Investment to attract talent is a key part of Greycoat Lumleys strategy to ensure we fulfil clients’ re- quirements. We continue to look at innovative ways to increase candidate attraction and flow through technology, social media, candidate engagement techniques, candidate care and network- ing events and most importantly, making the best use of a data- base of talent from around the world acquired over 23 years.
What about private staffing?
We have noticed a drop in European applications for house- keeper and nanny positions and this may possibly be due to uncertainty surrounding Brexit. However, we have not seen any significant decline on the client side. Childcare and house management professionals, private chefs, butlers and estate management couples continue to be in high demand, and we are able to fill these roles using our database of talented British applicants or international appli- cants who have already established lives and careers in the UK. Many domestic staffing agencies operate internationally, provid- ing specialist staff across Europe (such as yacht stewards and ski chalet staff) and the Middle East (including palaces). This may or may not be affected by any regulatory changes to visas, for ex- ample, when we leave the EU. However, like so many things, at this point it remains another uncertainty. So, while Brexit is most certainly never going to be beneficial to our hospitality sector, whatever decisions are reached over the coming months, we would hope that the government will be doing whatever it can to protect both the sector and the tal- ented international candidates who have helped it to thrive for so many years.
Debbie Salter is the managing director at Greycoat Lumleys,
www.greycoatlumleys.co.uk
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