A no deal or delayed Brexit could cost the hospitality industry £1.8b a year by 2024, according to new research.
Some 60% of hospitality businesses said in a report published today by software management company Quinyx that leaving the EU will negatively impact their ability to hire blue-collar staff.
The research, carried out in collaboration with Development Economics and Censuswide, was compiled following the analysis of data from the Office for National Statistics and a survey of 1,008 senior decision makers in the hospitality sector. It highlights the importance of hotel and restaurant staff on the UK economy.
A disorderly Brexit could result in a decrease in economic output which would stem from a lack of access to hospitality workers in manual or elementary service roles. It is expected that London, the east of England and the south east will see the greatest reduction in available workers and economic output.
The research also found that under any Brexit scenario, hospitality businesses can expect to lose an average of 23% of manual workers, while 11% said they expect to lose 31% or more.
Mansoor Malik, managing director UK & international at Quinyx, said: “The impact that a disorderly Brexit will have on the UK’s kitchen staff, restaurant workers, and cleaners as well as the hospitality businesses that employ them is concerning. Access to manual workers or those in elementary service roles is crucial for ensuring the UK’s economic wellbeing – and employers need to make plans to avoid staff shortages in the future.
“A first step for employers facing staff shortages is looking at ways that they can bridge the gap between supply and demand. Given the degree of uncertainty on the horizon, seeking out new ways to attract and retain domestic workers should be a primary focus.”