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Impact of Brexit on Tourism

August 16 2016
Impact of Brexit on Tourism

Planning a trip to Europe or UK post-Brexit? Here’s what you should know

The biggest news that shook the world in July 2016 has been Brexit (British Exit) where in the British citizens voted in the referendum to leave the European Union. This will impact Britain and EU in varying aspects such as political turmoil, border control, trade instability, regulatory overhaul, etc. many of which will be seen in the next two years to come.

Following exit, the value of British pound fell by 20% and Euro saw a consequential drop. This devaluation however is good news for travellers planning to visit the UK.

Travellers can benefit from cheaper travel accommodations and flight fares in the UK until the pound settles. So if you’ve been planning a visit, there is no better time.

Impact of Brexit on Travel

  • Costs get cheaper
  • The pound fell lower than it has been in the past three decades. As a result, the travel industry will be gearing up with better offers to encourage travellers across the world. Thus, tourists are bound to get better value for their money as the admission charges, hotel accommodation, shopping, and fares will be 10% cheaper.

  • Airfares
  • Although the airfare is relatively cheap today, the economy no-frills airlines to UK are bound to get costlier once the pound stabilises and UK parts its way from EU.

    Various airlines previously thrived on reduced fares and were enabled by EU’s removal of the bi-lateral restriction on air service agreements. This led to increase in competition among the UK and other European carriers, resulting in cheaper fly rates.

    Post Brexit, Britain will have to sign-up for new air service agreements as they cannot continue to freely operate across EU. Availing these restriction agreements will be costlier, which will increase airfares.

    Moreover, to get cheaper rates, the economy carriers will have to rethink their strategy. Travellers will find packaged tours to England or Europe to be a better alternative. It is recommended to watch rates closely to gain from price fluctuations.

  • More Queues
  • Previously the Brits could enter Europe without visa checks at various checkpoints. This will no longer be the case. What does it mean for Indian travellers? Indian travellers in UK will have to stand in longer queues to get through immigration checks.

  • Borderless Travel
  • At present, EU citizens can move freely in and out of UK and some other countries in the Schengen Zone. With Brexit, there is a high possibility of reinforced border patrol and visa requirement for EU nationals and Britons. Another major impact would be on the migratory workforce from Europe and UK.

    The issue of borderless travel however won’t have a great impact on Indians travelling abroad, as there is not much change for Indian citizens.

What’s next?

The travel might get costlier for British citizens wanting to travel to European Countries. There is a potential of them paying higher package tours and policies. Thus, the travellers in UK and Europe will be the first ones to bear witness to the effects of this exit.

The potential scenarios in the long term are a cause for concern in the global tourism market. While in the short term, travel to UK and Europe is cheaper for Indian travellers, the long-term effects of Brexit are still unclear.

Secure your travel plans during such uncertain times with a comprehensive travel insurance policy that safeguards you financially from life’s unpleasant surprises.

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