The trade and security deal the UK Government struck with the EU is a bare-bones deal for tariff-free trade in goods. For many other business sectors that are not covered by the trade deal it means a no-deal outcome creating significant frictions and less EU market access from 1 January. Below we explore what it means for the Hospitality & Entertainment industry.
Snapshot:
Although a weaker Sterling makes Britain a cheaper holiday destination, the industry will face significantly higher costs recovering from the pandemic and face a workers crisis. 2021 will be a difficult year for the hospitality industry.
Overview:
The hospitality and entertainment industry has been severely hit by the pandemic and will need to rebound in 2021 to recover from a disastrous year. However, the end of the Brexit transition period will bring significant restrictions, so the outlook remains gloomy and might change the industry for the long-term. The greatest cause of worry is the number of employees that the hospitality industry attracts from EU countries. Hotel, restaurants, leisure and entertainment businesses employ over 400,000 EU citizens in the UK.
Pre-Brexit, EU citizens were free to enter the UK without a work permit or visa, which changed on 1 January 2021. Pre-Settlement, Settlement and other classifications around the residency and corresponding rights mean that many EU nationals will find themselves either doubting if they will manage to remain or be put off upon their arrival in the UK.
Would you like to know more?
If you would like to learn more about how Brexit may impact you, please visit our Practical Guidance: Brexit hub here.
And if you have any questions or would like to discuss your specific circumstances, please get in touch with your usual Blick Rothenberg contact or one of the partners on this page.