UK's hotel sector one of first to benefit from Brexit

By Emma Eversham contact

- Last updated on GMT

UK's hotel sector one of first to benefit from Brexit

Related tags: Hotel sector, United kingdom

The UK's hotel sector is expected to be one of the first to see 'tangible financial benefits' from Britain's intention to leave the EU, insolvency firm Begbies Traynor has predicted. 

Levels of financial distress fell 4 per cent in the hotel and accommodation sector (down to 3,382 struggling companies) in the lead up to the EU referendum on 24 June, according to Begbies Traynor's Q2 Red Flag Alert research, showing that the sector was already healthy ahead of the busy summer season. 

Coupled with Brexit triggering a weakening of the pound against the Euro, causing holidays in Europe to become more expensive, the UK's travel and tourism industries could benefit further as more Brits choose to holiday at home, said Julie Palmer, partner at Begbies Traynor. 

“Despite the typically unpredictable British weather over the past three months, our data shows that levels of ‘significant’ financial distress actually decreased across all key sectors of the UK tourism industry in the lead up to the Brexit vote, suggesting the sector is in rude health ahead of its vital summer season," she said. 

“Since then, while most sectors of the economy have started to batten down the hatches to wait for the Brexit storm to blow over, in contrast the UK’s domestic travel and tourism industry is expected to be one of the first sectors of the economy to see tangible financial benefits from the referendum result. 

“The significantly weaker pound has already made international travel for British families so much more expensive, which should encourage more to favour staycations on home soil. Meanwhile currency fluctuations have also made travel to the UK from Europe and the US in particular more affordable, helping incoming tourists to get a lot more bang for their buck.”

Independent hotel group Best Western​ was one of the first to report an uplift in bookings from international tourists in the weeks following the EU referendum and was hoping to see more than the current 5 per cent rise from UK-based guests in the coming weeks. 

Positivity across the hotel sector has not been echoed in the restaurant and pub sectors, however, with only 15 per cent of bosses​ in these industries feeling optimistic about prospects for the eating out and drinking market following Brexit. 

Related news

Show more

Related products

show more

Align reopening plans with customer expectations

Align reopening plans with customer expectations

Shield Safety Group | 15-Jul-2020 | Technical / White Paper

Understanding the customer is a key step in reopening your business. Customers want to experience a worry-free, relaxing environment and ultimately feel...

A Step by Step guide to higher Revenue & Margins

A Step by Step guide to higher Revenue & Margins

EatDirect | 19-Jun-2020 | Technical / White Paper

There are not many industries where the cost of customer retention is the same as acquisition. Unfortunately, in the online food ordering market, too many...

How to reopen safely with mobile ordering

How to reopen safely with mobile ordering

Yoello | 09-Jun-2020 | Application Note

There can be no denying that the rise of coronavirus has changed our industry - perhaps for a matter of months, or perhaps forever.

The Future Of The Electronic Point of Sale (ePOS)

The Future Of The Electronic Point of Sale (ePOS)

Revel Systems | 29-May-2020 | Technical / White Paper

As customer expectations reach unprecedented heights, it’s imperative for operators to have a dynamic ePOS solution to thrive in today’s constantly changing...

Related suppliers


Follow us

Hospitality Guides

View more

Featured Suppliers

All suppliers

Free Email Newsletter

Subscribe to BigHospitality

The trusted industry reference point

Get the latest news & analysis from the UK hospitality sector straight to your inbox!