UK hotel insolvencies reduced upto 18 per cent in the last year owing to the fall in the pound value which attracted more tourists both domestic and international, as revealed by a new study.
Accountancy firm Moore Stephens published the research showing that fewer than 1 per cent of hotels are now deemed to be at significant risk of becoming insolvent – majorly for the influx in tourism.
The pound has lost around 10 per cent of its value against the US dollar, and around 13 per cent of its value against the euro, since the June 2016 Brexit vote. Office for National Statistics showed that this translated into a 9 per cent increase in international visitors to the UK during the first six months of the year.
What added to the fact is that British people also opted for staying at their home destination for holidays as travelling involves a higher cost now.
Vincent Wood, partner and head of hotels at Moore Stephens, however, thinks that despite this uplift, Brexit vote hasn’t purely been good news for the sector. He said that the travel industry is already suffering from a shortage of staff as a result of the referendum, because fewer European nationals are eager to work in the UK.
