At the start of each new year, certain members of the DTB team are tasked with forecasting what the next 12 months will be like for the purposes of strategic planning. This year is no exception.
The one main difference between 2017 and years past is the amount of uncertainty that currently exists across many sectors of the UK economy. Until we know what Brexit is going to look like (i.e., whether it will be soft or hard) it is nearly impossible to say what direction the economy will go.
Our own research coupled with past experience tells us that there is no reason to panic. We believe corporate hospitality will, at the very least, maintain sufficient stability over the next 12 months. We are very optimistic that it can go beyond mere stability to show significant growth for 2017.
Our Optimistic Reasons For Corporate Hospitality
In the months leading up to the Brexit vote, those on the 'remain' side were forecasting economic doom and gloom should 'leave' prevail. That doom was supposed to be felt immediately following the vote. Well, it hasn't materialised. And, in fact, the economy is doing better today than it was a year ago.
While a weaker pound is generally seen as a bad thing across the board, it does have a limited number of benefits. Where corporate hospitality is concerned, companies are less likely to spend money overseas due to the poor exchange rates. The opposite is also true, meaning domestic spending should go up in direct relation to a drop in foreign investment. That is always good for corporate hospitality.
Across the UK we see organisations, particularly sports teams, investing millions of pounds in corporate hospitality expansion. The availability of more corporate hospitality options means greater opportunities for us to provide the kinds of events our clients are looking for.
It could be that a hard Brexit would be so devastating to our economy that corporate hospitality would have a bad year in 2017. We do not anticipate that happening.
We are confident that when plans are revealed later this spring, cooler heads will prevail on both sides. We are also confident in the ability of negotiators to work out a compromise that is good for everyone. Corporate hospitality will benefit as a result.
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