How Many Hospitality Establishments Are There in the UK?
The Prime Minister has set a roadmap for the sector to open up, which includes provisional dates for reopening settings. Nightclubs and other venues are to be reopened by 19 July, allowing people to enjoy themselves without worrying about health-related restrictions, the social distancing rules, or crowd sizes. But many businesses are still reluctant to reopen because of the recent outbreak of the Covid-19 virus.
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A recent survey from the Northern Ireland Hotels Federation found that 100% of all respondents will face staffing shortages by the end of 2021 – equivalent to over 1,400 unfilled jobs in the hospitality industry. Uncertainty surrounding job security has triggered an exodus of hospitality workers, with some choosing to leave the industry altogether, while others are reducing their working hours. Meanwhile, employers are feeling increasing pressure to limit trade in line with staffing levels.
Vacancies in the sector
Vacancies in the hospitality sector are higher than ever before, with a record high recorded in May. Despite a slowdown in growth in recent months, this sector has experienced a rise in new job opportunities due to the effects of the pandemic. The number of vacancies across UK hospitality businesses is up 83% year-on-year, with 174,000 vacancies available in May alone. Listed below are some of the reasons for the vacancy growth:
The economic impact of Covid-19 pandemic
The hospitality industry in the UK was among the hardest hit by the Covid-19 pandemic, with the industry suffering the highest economic declines across all sectors during the period of public health restrictions. By April 2020, economic output was almost 90% lower than pre-pandemic levels, while it fell by 21% in 2020 and 34% in 2021. In the wake of the pandemic, the UK hospitality industry’s share of the national economy fell from 3% to 2%, and its business confidence dropped to a five-year low.
Innovation and entrepreneurship in the sector
The hospitality sector experiences rapid changes, but the degree to which this change is positive depends on how quickly it is implemented. EO is more likely to occur if the firm has strong business networks and is willing to take risks. This environment is also highly interdependent and geographically fragmented. This paper examines the influence of networking on the entrepreneurial behavior of hospitality firms. Here, it is found that firm size and type have positive correlations with EO.
Impact of Brexit on the sector
The UK’s exit from the European Union on 31 December 2020 will bring a host of changes to our lifestyles. Perhaps the most significant impact on hospitality establishments will be the change in immigration. As a member of the EU, you are currently entitled to free movement within the bloc. Under the new laws, however, this will no longer be the case. EU citizens wishing to work or live in the UK must meet certain criteria under a points-based immigration system. The good news is that the people who came to the UK before 30 June 2020 can still apply for status.