Current Affairs

Brexit to cause hospitality sector ‘great deal of uncertainty and concern’

In a dramatic night for political history the UK has voted to leave the EU, 43 years after joining the union.

The Leave campaign edged the Referendum with 51.9% of the votes (17,410,742) to Remain’s 48.1% (16,141,241), sparking the pound to slump to a 31-year low as financial markets were hit.

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The result of the Referendum has also seen Conservative leader and Prime Minister David Cameron announce he is to resign later this year, with pressure also building on Labour leader Jeremy Corbyn.

Will Hawkley, UK head of leisure at KPMG UK, has claimed that the decision to leave the EU is “likely” to cause CEOs within the leisure and hospitality sector a “great deal of uncertainty and concern”.

He said: “Not only are there vast numbers of EU nationals working in the hospitality sector, but EU supplier and commercial contracts will need to be reviewed, and there will also be concerns over foreign visitor numbers within the industry.

“All of these factors could have a material impact on operations and revenues.

“On an economic level, it’s fair to predict that today’s result will probably impact consumer confidence, driving down discretionary spend on leisure in the short to medium term while consumers evaluate the full impact of what the UK’s exit from the EU means for them and their wallets.”

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