We may be tossing and turning at night, trying to recall what last-minute Christmas gifts we need to purchase, but one person is definitely getting less sleep than us. As Teresa May continues to burn the candle at both ends with ongoing Brexit negotiations, we are left wondering how our extraction from the EU is likely to impact our business.
In recent years we’ve seen a steady growth of tourists to the UK, and Visit Britain expect us to have welcomed 41.7 million visitors to our shores by the end of this year – 19.6million of whom were from the EU.
It isn’t just the number of visitors to the UK that have increased either. The amount they are spending has surged too, with an anticipated jump of £1.8bn in total spend between 2017 to 2018.
This week it has been announced that, following Brexit, there will be a charge for UK citizens to get into EU countries from 2020, but will there be a reciprocal fee for those entering the UK?
And is it possible that this additional cost will be enough of a deterrent that Brits will be increasingly inclined towards booking themselves a staycation?
The uncertainty that we face around Brexit at present isn’t all bad. The low value of the pound means that now is a great time for tourists wanting to visit the UK.
In 2014, Brits spent around £19.76 billion travelling in the EU. As holidaying abroad becomes more uncertain with the potential for travel chaos as borders transition, and the poor value of the pound increases the likelihood of Brits opting to stay in the UK, it’s forgivable to feel a pang of excitement at even a portion of this being spent here in the UK.
It isn’t all about tourism though. There are considerations that stretch this. For example, many B&B businesses and hotels rely on European staff for essential day-to-day operations. With the potential for restrictions being placed on the free movement of people, the industry could be impacted by a shallower recruitment pool or a lack of applicants with the right skill sets.
However, over the coming months, we will gain a clearer view on how the post-Brexit world is likely to look. Until then, we should make the most of the opportunities that present themselves right now.
If making the most of these opportunities means freeing up capital to invest in your business, speak to one of our team about how hospitality finance could help. From ensuring you have the right documents in place to give yourself the best chance of remortgaging or refinancing to secure funding, to finding the right finance solution for you, our specialists are here to help so call us today on 01488 684834.