A combination of Brexit-related administrative headaches and high inflation has not been kind to one of the four countries that makes up the United Kingdom: Northern Ireland.
A new trade agreement reached last week between the U.K. and the European Union will lead to more goods at cheaper prices entering the region and reduced paperwork.
For hotels, that will mean easier importation of food and a reduction in alcohol duty.
There might even be some benefits in terms of easing the pressure from value-added/sales taxes.
I am sure hoteliers would rather spend their time greeting guests than satisfying procurement regulations.
Northern Ireland is the only part of the U.K. that has a land border with a member country of the European Union, the Republic of Ireland, and it is an extremely sensitive border.
No one wanted to see the return of a “hard border,” with customs and passport checkpoints over a stretch of more than 300 miles. Under the old deal, some companies simply decided not to trade in Northern Ireland, which has a population of approximately 1.9 million.
The lack of a land border meant, in effect, the creation of a “sea border” for customs checks, and that was never going to have a solid foundation.
It is all so very complicated, what was in place and why what is now being proposed will or will not make things easier. Certainly, I lack the legal mind to explain it fully … actually, even partially.
U.K. Prime Minister Rishi Sunak seemed very animated by it all when he revealed the details of the new deal, named the “Windsor Framework.” Why he chose the Berkshire town of Windsor as his setting to unveil the deal and not Brussels or, indeed, Belfast, I do not know. I assume it was more convenient.
Sunak's deal has produced a “green” lane for goods coming from the U.K. and staying in Northern Ireland. A "red" lane is for goods going into Northern Ireland but ending up in the Republic.
Oh, and now guests traveling between hotels in Northern Ireland and hotels in England, Scotland or Wales can take their pets without a mountain of forms to be filled in, administered and returned.
Hotel and hospitality membership organization UKHospitality is cautiously optimistic, a phrase we want to ban at Hotel News Now if hoteliers use it but one that very much can be used in this situation.
“The initial details of the new deal for trading in Northern Ireland are encouraging and appear to address the key concerns of hospitality businesses,” said UKHospitality CEO Kate Nicholls.
“The breakthroughs on easing trade flows, VAT, excise duty and state aid would seem to resolve many of the major sticking points raised by UKHospitality. The people and businesses of Northern Ireland should see the benefit in this as soon as this summer through the planned cut to alcohol duty in August, which previously would not have been the case,” she said.
It is also hoped this deal will be one more step in helping to bring Northern Irish politicians back together in its parliament, Stormont.
Not only is the deal called the Windsor Framework, in the Windsor Framework is a Stormont Brake, which allows the Northern Ireland Parliament to have a say, although the U.K. Parliament has a veto to any braking.
Politics is often difficult, but such language is manna to commentators and comedians.
Stormont, more accurately, the Northern Ireland Assembly, has largely been inactive for several years now, since 2017.
Disagreements between the main political parties have included the so called “cash for ash” scandal that derived from a scheme for promoting renewable energy. This was the last straw on the camel’s back that ended the power-sharing agreement that came out of legislation following the Good Friday Agreement in 1998 that paved the way for the ending of the Troubles.
Sensible heals prevail in Northern Ireland, but it is not far-fetched at all for politicians to say they are very wary that any mistake or miscalculation over borders, checks and alleged advantages and disadvantages could lead to a return of the level of violence seen in the 1970s and 1980s.
It would not be an easy task for Sunak or any U.K. politician, as there remains antagonism to anything resembling a U-turn to be closer to the EU.
I would love to hear from Northern Irish hoteliers what all this means in practical terms for their hotels.
Northern Ireland is a beautiful country, and I recommend visiting its Giant’s Causeway; The Sperrins mountain range; Carrick-a-Rede; and Mussenden Temple and Downhill Demesne — four places I loved.
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