At the start of 2020, the world had no idea just how much life would change. As we officially enter the worst recession on record, thousands of businesses have been left struggling to survive.
One industry in particular that has been hit hard this year is the hospitality and leisure sector. Forced to close for months and dealing with significantly reduced numbers of tourists, here we’ll look at the challenges faced by the UK hospitality and leisure industry.
The Brexit effect
At the start of 2020, the main challenge the hospitality sector was facing was Brexit. It may feel like a lifetime ago, but the effects of the UK leaving the EU are still being felt by the sector.
The biggest concern for businesses is migrant workers. There are around 400,000 migrant workers employed within hospitality and leisure. Before Brexit, these workers could travel freely without a visa. However, in accordance with Brexit, these workers now have no idea if they’ll be allowed to keep working in the UK, or if their visas will be denied.
It’s a huge worry for the industry and there’s also the impact on the GBP which is causing concern. As the pound has become weaker after Brexit, it has made imports more expensive.
Covid-19 and social distancing
As the industry was still struggling with the effects of Brexit, the coronavirus came along. Forcing the sector to shut down completely, hundreds of thousands of people found themselves out of work.
Although financial aid has been provided, this is now coming to an end. It also hasn’t helped to save some leisure and hospitality businesses. With fewer tourists and social distancing measures to follow, it has posed significant challenges for businesses.
Many companies have had to try and come up with new ways to make money, adapting to new measures. However, it’s certainly not easy and the financial pressures caused by the pandemic are going to take a long time to overcome, if they can be overcome.
How businesses can protect themselves
There are a number of ways businesses can protect themselves against the challenges they are facing right now. First and foremost, having the right insurance cover is essential.
Choosing a reliable policy through Arthur J Gallagher ensures your business is financially protected.You’ll want to make sure your policy covers natural disasters and loss of income for example.
You will also need to ensure you are adhering to the new rules constantly being introduced into the sector. Seek help from an advisor if you need to. This will prove especially useful for those worried about the impact Brexit will have on their business.
As you can see, the hospitality and leisure sector have faced significant challenges so far in 2020. With six months left in the year, many are left wondering what other challenges will crop up before the year is out. The road to recovery is long, but by utilising local tourism and the financial help available, it is possible to overcome the challenges presented.