UK hotel insolvencies has dropped by 18% in the post-Brexit market, according to new research by accountancy firm Moore Stephens.
The firm’s study shows that fewer than 1% of hotels in the country are at risk of becoming insolvent, due to the post-Brexit boost in tourism. Likewise, this was coupled with the drop in the value of the pound brought a 9% increase in international visitors in the first half of the year, statistics from the Office of National Statistics showed.
The UK has also seen an increase in the number of people choosing to take staycations and the number of inbound visitors has reached record numbers. Moore Stephens pointed out that despite the boost in tourism, Brexit has lead to uncertainty in the hotel sector with regard to staffing.
A KPMG report commissioned by the BHA earlier this year revealed that 24% of the industry’s current workforce is made up of EU workers.
Vincent Wood, partner and head of hotels at Moore Stephens, told The Independent: “The potential drying of this vital reservoir of staff is a problem hotels have faced for many years and it will be a real challenge for them in the coming period.”