Purpose of the research
The main aim of the research was to find out the likely impacts of the withdrawal of the United Kingdom from the European Union on the migrant workers in the United Kingdom who are in the hospitality industry.
What are the current and future challenges of the hospitality industry in the era of post Bre-exit?
What strategies can be used to eliminate challenges of the hospitality industry in the post Bre-exit era
Objectives of the research
To find out the prudent strategies that can eliminate the United Kingdom hospitality industry post-Bre-exit challenges
To find out the future and current challenges of staffing in the hospitality industry of post-Bre-exit
To identify possible recommendations to support staffing needs in the era of post-Br-exit for United Kingdom based hospitality organizations
Brexit originated from two words exit and British (Atkinson and Donaldson 2017). The term Bre-exit is similar to the Grexit analogy which means the Euro zone hypothetical withdrawal by Greece. In the year 2016, it’s when Britain declared publically that it was leaving the European Union (Bryman and Bell 2015). However, following the above decision a number of consequencies have risen on its overall impact on free movement of factors of production like labor. The Bre-exit is likely to impact the freedom of movement which will affect the hospitality industry greatly. It is important to note that the lynchpin of the United Kingdom economy is the hospitality and tourism industry. The hospitality industry is ranked fourth and represents ten percent of the growth Domestic product. Currently the hospitality industry is improving and at the same time doubling its overall rate than other sectors which are non touristic (Bryson and Kinnaman 2018)
The industry employs ninety percent of the workforce and thus has contributed greatly in eliminating unemployment.15 percent of the work force employed in the hospitality sector originates from the European Union with immigrants contributing the higest percentage. By 2015, the overall level of unemployment in the united had declined from 8.1 percent to 5.4 percent. Therefore there been a significant increase in the overall total of European Union workers in industry. Thus more staff is still being needed to meet the needs of the hospitality industry given that the domestic market cannot effectively meet the demands from the hospitality industry. In the United Kingdom, the issue of European Union immigrant workers is a contentious one. Their efforts to control the movement of European Union workers following the June 23, 2016 referendum that paved way for the Brexit(Cable 2018).
There is a general claim that public service in the UK has been affected by immigrants .The principle of free movement is the main aspect that eases the working of non British citizens in the UK. European Union immigrant workers have entitlement to social security, wages and employment. The UK authorities have limited control over immigrants originating from the European Union(Campos and Coricelli 2017). It is important to note that all European Union citizens are entitled to freely move among member states without any restriction. The aspect of free movement is the main achievement of the founders of the European Union.
Also, the fundamental pillar of the European Union integration is the free movement of workers. Therefore, if Britain leaves the European Union, the freedom of movement of factors of production like labor will be the most importing factor. Factors of production liberalization paves way for the optimum allocation of capital and labor (Freytas 2018). In a common market entrepreneurs are capable of shifting their factors of production from high unemployment to high employment areas where production factors are absent in the market. More importantly the free movement Br-exit position in the United Kingdom has no capabilities to effectively impose limits on European Union immigration. Also the United Kingdom is subject to the fulfillment of the free movement protocols as long as it remains European Union member. As per the existing laws, it takes a maximum of two years to effectively with draw from the European Union. Therefore the Brexit is likely to affect the hospitality industry given that it relies heavily on relatively bigger numbers of European Union nationals(Gosden, 2018).
Given that in the united kingdom the tour and hospitably industry is ranked as the fourth largest including among others attractions, restaurants, self catering accommodation and hotels, it is likely to be affected by the Brexit. By the period 2011-15, the industry employed over four million and five hundred thousand individuals originating from the area of the European Union. Currently there is a general fall in the number of people applying to work in the hospitality industry due to Britain's decision to quit the European Union. Also there less European Union nationals that is coming to the United Kingdom. Therefore such declining trends posses a huge risk towards the sustainability of the hospitality industry that is largely dependent on European Union workers(Hudson and Rolfe 2016).
. Hence there is a strong need to put across strategies and tactics that can effectively address staffing challenges in the hospitality industry during the post Bre exit era. Given that the overall influx of workers from the European Union is falling, there a number of staffing and skills challenges that are likely to be created (Kauders 2016). Significant hostility on the immigrants has been the main driving force for the United Kingdom’s decision to live the European Union (Ransome 2013). Other reasons behind the Bre-exit decision include among others are mainly centered on cheap labor being offered by immigrant workers thus denying the UK nationals employments and higher pay and the in ability of the united kingdom to handle immigrants. On the other hand the perceptive of the public is quite contrary the wide spread view of practitioners of UK and public demand that European Union workers have a greater work ethics and offer solutions to the skill shortages in the UK sectors(Salto 2018).
The Brexit referendum was a result of the various political debates for European Union member ship that had lasted for decades(Saunders e tal 2015). Those against the membership of the European Union stated that the overall United Kingdom net output from the membership in the European Union was not in any proportional to the amount of contribution made by the UK to the European Union Budget(Sreejesh e tal 2014). So for purposes of eliminating wastages and the likely risks associated with European Union membership, it deemed effective to quit the European Union. It is important to note that the United Kingdom has been getting limited financial support from the European Union compared to its overall contribution to the European Union market(Adams 2016)
The claim by the British nationals of losing their jobs to European Union immigrants was another basis for the Brexit. None the less the above claim cannot be effectively supported by the empirical evidence as there exists marginal effects of European Union immigrants on the employability of the British citizens(Barnard 2017). In regards to the hospitality industry any slight reduction in the European Union immigrant workers has a huge negative effect on the overall level of performance of the hospitality industry. The hospitality industry is largely dependent on European Union immigrant workers, therefore any failure by the United Kingdom Government to diverse strategies and tactics that can ensure that the gap left by the European Union immigrant workers in the hospitality industry is filled may affect the overall level of progress being registered in the hospitality industry. Currently the effect of Brexit on the hospitality industry is already being experienced(Doherty 2016)
There has been a 40 percent fall in overall net immigrant levels from the European Union, the highest ever registered for various decades. The above declines are mainly due to the overall weakness of the pound sterling coupled by the current uncertainties about the European migrant workers legal status that may result into staffing challenges in the hospitality industry of the United Kingdom(Douglas 2016; Clements, 2014). Ever since the implementation of the schengen treaty, there has been a large influx of European union immigrants into the united kingdom mainly for looking for jobs in restaurants, cafes, hotels and other low skills jobs. As per the research conducted by the national statistics office, most immigrants originate from countries like Latvia, Estonia, Poland, Slovakia, Hungary, Czech Republic, Lithuania and Poland in Eastern Europe. These immigrants are critically significant to the prosperity of the United Kingdom economy. Also more studies carried out show that the immigrants from the European union have lower levels of dependency rations meaning that there overall impact on public finances is minimal(Davies e tal 2017)
Table1 showing the situation of Brexit(Menon and Fowler 2016)
The increased inflow and concentration of European Union immigrant workers has therefore created a strong concern in the UK over the overall possibility of displacing domestic workers with in the United Kingdom especially in semi skilled or low skilled employment (Gietel 2016). As per the studies carried out by the United Kingdom Government, minimal impacts are posed by European Union immigrant workers on the employability of the nationals. At the heart of the Brexit is the issue of immigration. As per the available studies carried out by the CIPD, talent will be the main determinant of employability by most human resource managers in the UK(Guild 2016)
Following the Brexit, many hospitality industries in the UK like Travel lodge, white bread and Hilton are already facing difficulties in recruitment. As per the available information from the British Government immigration control from the European Union will be the center to its decision to leave the European Union(Barnard 2013). As of the year 2016, a total of over one hundred thousand work permits were required by each employer on annual basis. It is important to note that the United Kingdom hospitality industry is one of competitive markets which are generally affected by supply deficiencies; therefore the Brexit is likely to pose a number of staffing challenges in the United Kingdom hospitality industry( Barnard 2014). Thus more urgent and prudent attention is needed to effectively cater for the likely supply of labor defies emanating from the British exist from the European Union.
Otherwise if there no clear strategy in place, the hospitality industry is likely to collapse. In a number of countries such as Italy, France, Australia, switerzland and Germany, hospitality is looked at a career of choice and profession(Bache e tal 2011). The above has northing related hours or pays rats and employee responsibilities. The United Kingdom is a cosmpolitant and diverse community with various ethnicities, races, nationals among others. Therefore such as an environment has made most European Union immigrant workers to progress effectively in their activities. There overall levels of language skills and diversity have been critically important in serving various customers nationals and non nationals. Therefore the Brexit will end the free movement of factors of production which is likely to affect the UK Hospitality industry(Craig e tal 2015).
Table2 showing the effect of Brexit on skilled labor(Craig e tal 2015).
UK Hospitality Industry
The failure to replace European Union immigrant workers with others workers is likely to increase the recruitment gap in the hospitality industry. The various combinations of sector employment attrition and the hospitality industry continued growth signifies that any yearly decline in the new workers inflow will result into a relatively huge effect on the hospitality industry overtime(Craig e tal 2015). It is important to note the hospitality sector is currently challenged with limited workforce to fill the available positions in the industry. When compared to any other sector, the hospitality comprises of a relatively large number of vacancies as the overall total employment share( Emmerson e tal 2015)
. In the last five years the trends of workforce availability in the industry have been alarming mainly due to skills gaps, lack of interest in the industry and high levels of employee turnover. It is should be realized that the current lower levels of unemployment in the united kingdom signifies less jobless individuals to fill the employment gap that will result from the Brexit(Brexit 2016). The overall levels of unemployment in the United Kingdom stands at 4.8 percent meaning that as of 2016, the UK had only 1.3 million unemployed individuals. Of the unemployed individuals, forty four percent were unemployed for a long term(Moussis 2016).
Also, the United Kingdom regions rely heavily on European Union immigrants to effective get employees from the various sectors. The inherent negative perception of the hospitality industry with in united kingdom job seekers, makes it difficult to attract workers in the industry therefore a lot of challenges are likely to be created following the suspension of free movement of factors of production. Compared to other sectors, restriction on European Union immigrant workers are likely to hugely impact the hospitality sector negatively. Already there challenges in recruitment with in the industry and also there is a high reliance of European Union workers, therefore the Brexit will cause a larger negative impact on the sector(Moussis, 2011). The European Union has 12.3 percent of its total workforce coming from the European Union which is higher compared to other sectors that stand at 6.9 percent. Cities like London rely heavily on European Union workers when compared to other regions. 38 per cent of the total workforce operating in London comes from the European Union. There exist relatively higher levels of employee turnover in the hospitality industry. The sector recruits and at the same time loses employees each and every year(Horspool 2005)
As per the available data from the United Kingdom commission’s employer skills, as of 2015 there were over 104,293 total vacancies in the restaurant and hotel sector in the United Kingdom (Brexit 2016). The restaurants and hotels consisted of the largest number of vacancies standing at 5.3percent when compared to other sectors in the United Kingdom. Since the year 2011 the available vacancies in restaurants and hotels have risen by 79.4 percent. The perceived lack of interest among workers from the UK is the main reason why the hospitality industry is flooded with European Union immigrants(Breinlich e tal 2017)
Figure 1 showing the total of United Kingdom nationals in European Union countries( Born etal 2018)
The United Kingdom hospitality industry is likely to be encountered with a number of staffing challenges due to the Brexit (Brexit 2016). Recent research shows that one in every five hospitality companies or bossiness’s are finding challenges in the recruitment of workers compared to the previous years before the Brexit( Savage and McKie 2018). There is also a prediction of 3 percent of the hospitality businesses shutting down due to the Brexit meaning that the United Kingdom is likely to make a loss amounting to over one billion British pound sterling. Also recent studies show that over fifty three percent of the workforce feel that the withdraw of the UK from the European Union has strained the working environment for non nationals. Therefore the United Kingdom is likely to face severe staffing challenges as a result from the Brexit. Also hospitality managers are more likely to shut down there enterprises following the Brexit given that over sixteen percent of the hotel managers think that there not capable of filling the staffing gaps with domestic employees(Portes 2016).
There is an estimated 60, 000 workers short fall in the hospitality industry as a result of the Brexit. This is a huge gap given that a quarter of the total workforce in the hospitality industry is filled with European Union workers (Brexit 2016). In the united kingdom over seventy five percent of the waiting staff, quarter of chefs and thirty seven percent of the house keeping are European union immigrant workers. Therefore the Brexit may cause a labor shortfall amounting to over one million. Information presented by sandwitch company show that of the fifty applicants only one is from the UK and over sixty five percent were originating from the European union
Free movement of workers
The free movement of factors of production such as labor is among the key fundamental liberties enshrined in the EEA(Mayhew 2017).This is the most fundamental liberty for all European Union citizens given that it offers all citizens with in the European Union countries to establish businesses, live and work in any of the member countries without any restriction. Therefore free movement of labor is fundamentally relevant towards enhancing the social and economic impact of the organization or community. The European Union legislations recognized the workers though in the past the right to movement from the various member states to seek for employment was not regarded as an economic function. As per article 39 of the EC all European Union citizens are entitled to free movement(Hjelmgaard and Onyanga 2016). The same article emphases that all European Union migrant workers are not supposed to be seen just as employers but also as human beings as well. Therefore since the foundation of the European Union, the four freedoms have been the cornerstone of the community. The removal of all obstacles to free trade, common market and single identity has been some of the main objectives of the union. Therefore the future of the European Union evolves around principle of free flow of factors of production. Therefore the Brexit strongly impacted the free movement protocol enshrined in the European Union treaties (Wilding 2012).
Following the Brexit, the other twenty seven member states of the European Union will able to enjoy free movement of factors of production in Switzerland and the EEA as well. In the Brexit the aspect of free movement was one of the key aspects and forms a very big part of all Brexit strategies and negotiations though it’s very controversial(Friederichsen 2016). As per their understanding and interpretation of the European Union leaders the freedom of movement of factors of production is non negotiable if the United Kingdom is interested in accessing the single market. Their reasoning is that free movement is among the four basic components that defines a single market, therefore any move to deny free movement contravenes the protocols and principles enshrined in the European Union treaties
Figure 2 showing nationals of European Union living in the United Kingdom(Morris 2018).
Free movement of workers legal rights
Article 45 (ex-Article 39 TEC) provides the right of free movement of labor with in the European Union(Morris 2018). As per the same article, in the European Union, free movement of workers is effectively secured. Also all European Union nationals are entailed to citizenship with in the union as per article 20 of the TFEU(Friederichsen 2016). Article 21 of the same treaty guarantees free residence and movement of citizens among the member countries of the European Union. For the purpose of understanding the effect of Brexit in on the rights of free movement, it is critically important to effectively understand what the term worker means. as per the decides cases like Lawrie-Blum v Land Baden, any individual obliged or required to offer services in exchange of monetary compensations is defined as a worker. In other words, a work is an individual that receives compensation and is under the direction of another person. Member’s states within the European Union can hire employees among each other. Among the duties of the workers may include among others performing the obligations of the contract in that given country(Morris 2018). All employers are required to provide equal and fair treatment to all employees in re-employment, dismissal, employment and remuneration. Just like nationals European Union immigrants are also entitled to pensions, life assurance and other terms enshrined within the employment contracts(Brexit 2016)
Figure 3 showing Directives as per residence (Morris 2018)..
Post Brexit era
The aspect of migration was one of the contentious issues during the debate for the referendum(Hjelmgaard and Onyanga 2016). Two important aspects provided by those who agitating for Brexit was the UK to regain control over its own boarders and immigration and the principle decisions being taken within the United Kingdom(Brexit 2016). The idea of the UK withdrawing from the European Union brings about a number of legal challenges to the United Kingdom. Also domestic laws will have to be uncoupled from the European Union law (Mayhew 2017).Therefore by Britain existing the European Union, it means putting aside and neglecting protocols and statues in the European Union. One of the important principles in the European Union is free movement of factors of productions. Brexit makes European Union nationals unable to enjoy the services they used to enjoy in the UK. Free movement will only continue in the twenty seven member states excluding Britain (Wilding 2012).
As per the available information, the Government of the UK has not yet come up with a clear position regarding the European Union immigrant workers in the UK(Brexit 2016). As per the domestic law, human rights law and international law, European Union immigrant workers are exempted from indefinite deportations from the UK through leave offers (Wilding 2012). As per section six of the British nationality act of 1981, European Union immigrants already working in the United Kingdom and posses the permanent residency right may be able to stay and work with in the UK. The main issue is determining individuals who are applicable for the United Kingdom permanent residency (Wilding 2012). Therefore free movement rights determination remains to be one of those complex issues. The European Union law will not be applicable to Britain following the Brexit. European Union nationals in the United Kingdom will be required to leave and go to their respective countries since free movement of factors of production will no longer be applicable. Also united kingdom citizens in the European union member states will be required to comeback to Britain or apply for visas if there to be granted permission to work. The United Kingdom is developing a work permit system to effectively cater for industries that have shortages (Wilding 2012).
Using the mixed methods approach, an inductive methodology was effectively developed. More importantly is that where the approach of mixed methods is utilized, it is similar to the third paradigm or methodological movement. The above approach uses a combination of both qualitative and quantitative methods in research. When using these two approaches there a number of palpable attainments that can be derived and they include among others; depth views, complete evidence, better findings, comprehensive analysis and capturing important data.
Pilot work, sample design and Data collection
The most popular used method in qualitative research is the survey method and more importantly it focuses on the present challenge as opposed to the past events or historical research. In this research, self administered questionnaires were used to find out the overall impact of the Brexit on the European Union migrant workers in the hospitality industry. The questionnaires comprised of closed ended questions that fetch a relatively greater percentage of completion as compared to questions that are open ended. The closed ended questionnaires or questions comprised of 2-5 items like very negatively, negatively, neutral, positively, very positively, strongly agree, strongly disagree, agree and neutral. Also the dichotomous questionnaires or questions consisted of the requirement of deciding to choose no or yes to the question presented for purposes of gaining a deeper understanding of the rationale for the various choices.
To pre test the overall collection instrument for the proposed research, a pilot study was undertaken for the research. For the pilot study, there was selection of opportunity sampling. In the study a number of five responses were obtained or sought from professionals in the hospitality industry namely1 HRS Department, two tour managers, and one site oversee and 1 tour guide. While delivering the questionnaires a number of methods were used such as email and hand delivery. A brief description of the proposed research was contained in the invitation to complete the questionnaires. In the research all the respondents effectively responded to the provided questions meaning that the questionnaires were interesting to complete, straightforward and at the same time easy to interprete.
Also for the main study, there was the utilization of the snow ball sampling technique. The main components of the snowball sampling technique include; identification of questionnaire respondents. In this case most respondents were obtained from Travel lodge, white bread and Hilton as some of the prominent hospitality companies in the United Kingdom. The utilization of snow balling was critically significant in enhancing network. The hotel and tour personally targeted included labor personnel, hotel managers, supervisors among others.
Review of the existing literature
There was a review of the existing literature on Brexit and united kingdom hospitality industry. Various articles, jounrnels, magazines and databases were reviewed to effectively obtain the neccessary information on the topic of study.
Data collection and analysis
Participants were not requested to provide their age specifications, name or details concerning their employment. This was aimed at upholding strict ethical considerations during the study. Further, study participants were given reassurance that all the collected data will disposed following analysis and publication, also they were given freedom to with draw from the study at any time they wanted and finally personal information was treated with high levels of confidentiality
Over 64 questionnaires were given out to personnel in the hospitality industry and over 52 respondents successfully completed the provided questionnaires. The data collection exercise lasted for 45 days and recorded an 81.95 percent rate of response. According to anecdotal evidence the high levels of response rate registered in the study have associations with current relevance of the Brexit from personnel in hospitality industry, interest and uncertainties. Moreover, the high response rate is also correlated with the various networks availed during the research process and the employment of the snow balling sampling method.
To afford simple and expedient data description there was the utilization of summary statistical analysis while dealing with quantitative data. Componential analysis was used while analyzing quantitative data. Focus group comprising of practitoners was effectively employed at one hotel to augment the qualititive component. Therefore the research findings were also validated by the feedback obtained from the small focus group
Findings and Discussions
All participants had experience in the hospitality industry of ≥5 yrs and were ready and confident to provide the likely effect of the Brexit and the overall labor supply. Most of the respondents were in the age group of twenty-five to thirty five years. The overall high levels of response rates from the above age group were due to an increase of interest from professionals in between young to middle aged. Managers and executives registered the highest levels of responses since the topic under study affected their occupation mostly. According to anecdotal evidence managers were focused to estimate whether the Brexit would affect the availability of workers in the hospitality industry
Table 2showing age and experience of respondents
Also on some of the import issues concerning the Brexit, set of dictomous questions were effectively answered by the respondents. Of the total participants 88% stated that the Brexit would affect the United Kingdom hospitality industry. 86 percent also stated the United Kingdom hospitality industry heavily relied on the unskilled workers from the European Union. The above statistics were as a result of the overall experiences of the respondents on the overall manpower shortages that have been affecting the United Kingdom hospitality industry. Therefore results from the survey clearly show the Brexit will affect the availability of workers in the hospitality industry (Wilding 2012). As per the academic discourse the Brexit is associated with a plethora of various negative implications on the hospitality industry. The findings obtained from this research clearly support voice of practitoners and the academic discourse that the hospitality industry in the United Kingdom heavily relies on skilled and unskilled workers from the European Union. The above study findings were effectively given to the participants from the focus group for purposes of getting their comments (Wilding 2012). In their comments, they all agreed with the study results and their overall views were substantiated basing on their experience in managing European Union workforce and working in the hospitality industry. Thus the study results notably disagrees the reasons put forword by the perpetuators of the Brexit. In other words the once polarized public opinion on the aspect of the Brexit should be looking at a well calculated and soft stance of Brexit due to the likely negative implications
Given that the most post brexit decisions are not largely reliant on the Government of the United Kingdom but also on the European Union lengthy negotiations, the overall impact of the Brexit for the European Union citizens is not very clear. In various scenarios the effect of reduce movement of European Union immigrants into the UK can be effectively be projected basing on a number of scenarios. Available evidence suggests that due to public opinion, immigrant may ne significantly curbed (Wilding 2012). Also there is likely to be lower level reductions of European Union immigrants, however such small changes will affect industries like the hospitality industry which heavily rely on European Union immigrant workers for labour. Due to the cutting down of immigrations, there is a likelihood of some businesses relying on augment pay, lying off staff or mechanization.
All these strategies are likely to be costly both to the economy and the final consumer as prices of goods and services may increase. Therefore the United Kingdom Government may undertake a migration policy that is very consistent basing on skills to effectively fill the staffing gaps. None the less low wage workers will be reduced in the post Brexit era which may affect the hospitality and the agricultural sectors in the United Kingdom(Brexit 2016). Therefore a policy aimed at not over cutting the European Union net migration could help relief the damage that may be caused by the Brexit. In other words the Government of the United Kingdom should formulate strategies and tactics that will allow relatively bigger numbers of both unskilled and skilled workforce for purposes of promoting the sustainability of sectors like the hospitality industry( Born etal 2018)
In addition, the hospitality industry needs to increase her overall levels of competitiveness for purposes of attracting more workers with in the United Kingdom. TO increase the overall levels of industrial competiveness, number of initiatives at various levels such as national, sector and business level will have to be employed. Examples of strategies that can lead to the attraction of UK labor force into the hospitality industry include : adopting of flexible and better working arrangements for all employees in the hospitality industry, improving the reward and pay packages, Introducing employment extension initiatives such as graduate schemes and apprenticeship programs, Increasing the overall levels of training offers for various jobs such chefs and other hard skill tasks, increasing the use of permanent contracts in the industry and formulation of initiatives for particular populations such as ex prisoners and long term unemployed labor force. Also the reduction of the labor intensively can be critically important in reducing the overall impact of the Brexit on the hospitality industry. It is important to note that more time will be required for the hospitality industry to effectively address the staffing gaps caused by the Brexit. Government and the hospitality sector need to invest heavily in training. Skilling and industrial promotion if the UK workforce is to be attracted into the industry (Savage and McKie 2018)
Table3 showing age group of participants(Brexit 2016)
There a number of costs that will face the hospitality industry in the Post Brexit era such as training costs, wage inflation and recruitment costs which will all require support from the various stakeholders in the UK government to the Hospitality industry that heavily relies on the European Union immigrant workers.
The increased net immigration to the United Kingdom from the European Union main land created a sense of anxiety among the British populations; however, practically there is no huge negative effect of the immigrants into the United Kingdom given that most of them are young and thus very productive to the UK economy. With the Brexit in place immigrant levels have started falling significantly. The various controls and restrictions on the European Union immigrant workers pose a huge negative implication on the UK economy.
According to economists from oxford backhole in the public finances is likely to emanate from the over regulation of migration following the Brexit. If the united kingdom Government has its need in mind, it will critically important for it to define migration policies in a sober manner. Otherwise a number of sectors are going to be affected from free movement restrictions. There exist a number of low skilled jobs in the hospitality industry that cannot effectively be filled by the British. As per the available research from the United Kingdom, fifty eight percent of the European Union immigrant workers obtain a good job following their arrival in the UK. This shows how European Union immigrants are not only important for the survival of the hospitality industry but also other sectors within the United Kingdom. Therefore the UK to effectively cope up with the post Brexit era, it will have to massively invest in trading and education of the British employees in order to fill the staffing and skills gaps which are going to be created by the Brexit(Portes 2016). Howe ever, for the low skills gaps in the hospitality industry they cannot be addressed through training, therefore this makes the Brexit one of the contentious issues that need to be handle with extreme care for the good of the UK economy.
To sum up a number of strategies, tactics, stakeholders, treaties and negotiations are needed to save the hospitality industry and other sectors which are likely to be affected by the Brexit. All stakeholders in the hospitality industry need to sit down with Government and agree on how best the Brexit can be handled with casing huge damages in the hospitality industry. The failure to smoothen on some policies of free movement of factors of production will definitely impact the hospitality industry in the short run. However, through adoption of technology, training and skilling staffing shortages in the hospitality industry can be solved in the long run(Portes 2016).
The industry should also be publicized and marketed so as young people in the UK can join it. It is imperative to note that long term planning by the UK government would reduce the overall effect of such economic wild perturbations; however as per the current economic trends in the global arena the above may look like a buffer. The main reason why there was support of the Brexit from certain sections of the population was that they wanted the UK to restrict immigration and at the same time have access to the European single market. This will a strong step in enabling the UK regain its sovereignty, money and control. There have been various intense discussions on the overall relation between the European Union and the UK ever since the 2016 Brexit referendum. The most important aspect during the UK referendum as free movement of factors of production like land, labor and capital. This research paper provided a comprehensive analysis of the overall impact of the Brexit on the hospitality industry European Union immigrant workers. It is very clear that in the UK there exist relatively huge numbers of European union citizens and at the same time there exits UK citizens in other European union member states. If there the European Union and the UK do not reach a clear consensus, there is likelihood that the rights of the citizens of the European Union will be greatly affected. These rights include health care, pensions, national health services, labor market, travel and tourism among others.
Conclusively, the questionnaire results and the extant literature clearly reveal that there is a strong opposition toward the Brexit strategy emanating from the hospitality industry due to the likely negative impact it will bring about in the entire industry. The Brexit will limit free movement of factors of production like labor thus causing shortages of manpower in the industry. Also the extant literature coupled with view points from the practitoners clearly underscore and substantiate the hospitality industry need for both skilled and low skilled manpower usually provided by the European Union members. Also, evidence from the practitoners show that the hospitality industry overall reliance on low skilled and skilled manpower from the European union and the overall Brexit negative connotations may hinder the overall influx of European union immigrant workers from joining the industry. Therefore to effectively get rid of the overall detrimental effect of the Brexit is likely to cause through exacerbating further the current shortage of skills, it will be critically important there to be retainance of free movement of factors of productions. This can effectively be attained when the United Kingdom remains part of the EEA and joins the EFTA. The above option would pave way for free movement of capital, persons, goods, services and at the same time encourage the overall sovereignty of the nation. Further the implementation of incentives like guaranteed over time opportunities, increased wages and fringe benefits will also attract and at the same retain the existing workforce in the hospitality industry. Also an embracing reform needs to be undertaken in the hospitality industry for purposes of attracting future generations of domestic workers. Further technological innovations should also be undertaken in future to reduce the demand of manual labor in the hospitality industry this will help in solving the staffing challenges.
Following the Brexit , there will be ceasing of all rights and treaties signed with the European union member states like live, study, move ,retire or work in the united kingdom. This will also apply to UK nationals leaving in other member states. The withdraw rights from the European Union are clearly granted in article fifty of the TEU. In this article there is a chance for negotiation before a withdraw can be made in a time of two years. The overall member of the states ends in cases where there is no agreement made in that period. Therefore the corresponding rights of the European Union do not apply to the withdrawing member state. However the same article fifty doesn't provide a clear clarification how respective state can work out a new relationship
Hence to effectively solve the overall aim of the research , a number of further directions and questions can be put forward and they include; measuring the overall impact of the Brexit on the workforce in the hospitality industry, Deriving of modern pragmatic and new policies and procedures to offset the skills and manpower shortages that may result from the Brexit, Deriving effective and attractive models that can encourage domestic workers to work in the hospitality industry and finally investigating the efficiency and effectiveness of Government grants in the UK hospitality industry.
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