Brexit: big trouble for British tourism

The author analyses the potential impact of the United Kingdom leaving the European Union on tourism - both outward and inward.

The author concludes 'that Brexit looks like trouble in all directions. It would have an overall negative effect on EU visitors coming to the UK – a feeder market that is just too important to antagonise. Outbound UK holidaymakers would also face cost rises and issues of access. And the inevitable period of transition and renegotiation would create uncertainty, which is not good for leisure or business tourism'.

Note that ABTA – The Travel Association had launched in March 2016 a comprehensive report ‘What Brexit might mean for UK Travel‘, [see related url hyperlink below] outlining what a vote to leave the European Union might mean for UK holidaymakers and travel businesses. With economic analysis from Deloitte, the professional services firm, the report assessed how the existing relationship between the UK and the EU hadaffected UK travellers and the travel industry, and looked at what the likely impact would be of a 'leave' vote on consumer confidence, expectation and behaviour, as well as on the industry.

The report said that there were currently many EU regulations that had been designed to benefit holidaymakers and business travellers. Although these regulations would not change immediately, Brexit could have a significant impact in the future. Current regulations include:

+ financial protection for package holidays
+ compensation for flight delays
+ access to free health cover through the European Health Insurance Card
+ caps on mobile phone charges
+ ‘open skies’ across the EU, resulting in more routes, more airlines, and lower fares

Of immediate concern was the impact that a period of uncertainty will have on the strength of the Pound versus other currencies. A weaker Pound has a direct impact on spending power overseas, making the cost of holidaying or visiting abroad more expensive, as well as adding costs for UK businesses to buy abroad.

ESO: In Focus: Brexit - The United Kingdom and the European Union http://www.europeansources.info/record/brexit-the-united-kingdom-and-the-european-union/

The Guardian, 14.04.16: Brexit risks higher fares and fewer flights for UK tourists, warns Abta http://www.theguardian.com/business/2016/mar/14/brexit-risks-higher-fares-and-fewer-flights-for-uk-tourists-warns-abta

ABTA: What Brexit might mean for UK Travel, March 2016 http://abta.com/eureferendum

---