The decision in June by British voters to leave the European Union could have major knock-on effects on the British hospitality sector, according to STR Global in a report released on the day the UK went to the polls.
While it’s impossible to quantify the exact impact, the report stated, the decision to leave the European common market – and the inevitable economic pitfalls of the financial uncertainly created by the Leave vote – could put a significant dampener on the UK’s 30 consecutive months of RevPAR growth.
"[We] believe the recent fluctuation of the pound on the currency market exchange is an early indicator of the overall impact that Brexit could have on the economy," an STR Global press release said. "Most of the impact is likely to be on travel confidence, especially business travel, which is likely to derive from the uncertain environment."
The day of the referendum results saw the pound fall to its lowest value in 30 years and, despite the British Government’s attempts to assure financial markets, many fear the vote could push the UK into another recession – an event that would have a dramatic cascade effect on tourism and hotels.