Global challenges have always been threats to the trading industry. Especially when these threats originate from developed countries, it creates a serious impact on the tourism or hospitality industry. In this paper, a trending global issue is chosen for analysis in terms of its global implications in the hospitality industry. Identifying the problems, recommendations are also offered to manage such situations in the future. The in-depth analysis of this serious global issue will list the critical strategies that should be followed by the countries for a better global presence and relationship with other countries.
The recent global issue that has actually shook the political, economic and social environment of several other countries is Brexit. It is actually an abbreviation that stands for British exit from the European Union. This is because of the results announced in June 2016 referendum that over 51.9% of votes were casted by people for UK to leave EU.
Article 50 governs the treaty on European Union and since 2007, it is the one to identify and process the withdrawal from EU. This article still gives an opportunity of invocation whereby any member can intimate the European Council. A country gets a maximum of two years since this notice is issued. The 2016 referendum case operated almost similar to 1975 referendum where government intervention was not the key to schedule the procedure as given by Article 50 (Hobolt, 2016). It was Prime Minister Theresa May who decided to follow invocation procedure and she also ensured that a bill will be passed to remove European Communities Act 1972 and all the existing laws of EU will be incorporated under UK domestic law.