From the start of the journey, one of the most immediately noticeable effects will be a rise in the cost of airfares.
With current Brexit issues again reaching the front-page, many are concerned about what effect this could have for international travel and tourism going forward. It’s no secret that the economic impact of Brexit will see significant downsides for the United Kingdom, at the very least in the short term, so what do tourists need to keep in mind?
Travel delays and difficulties
From the start of the journey, one of the most immediately noticeable effects will be a rise in the cost of airfares. Within the EU, there are certain restrictions that have been waived, and cooperation tactics have been set in place between various airlines. Outside of the EU, restrictions will again be put in place, and the increasing difficulties that these incur will trickle the cost down to the customer.
Difficulties here would also be seen at the border, with increased delays seen as an inevitability of Brexit. As with air travel, the lack of free movement within the EU would require greater processing time by travel authorities. While only predicted to add around 90 seconds of travel time per traveller, this adds up to hours over longer queues.
Increasing cost
Another aspect of this difficulty would come from increasing costs of insurance and medical access. Under the current EU membership, tourists are able to utilise their European Health Insurance Card, which gives them free access to medical care in any EU member nation.
Following Brexit, this may no longer be possible, meaning that travellers will either have to purchase additional insurance for their journey or risk incurring significant additional costs should a medical emergency arise.
In terms of financing a trip, tourists will also need to keep in mind that Brexit uncertainties have contributed to a decrease in the pound. While the exchange rate with the US dollar has been decreasing since 2009, where it sat at $2.02 US, Brexit uncertainty has contributed to further decreases, where at the time of writing it now lies at $1.30 US.
While this is a definite issue for those directly transferring their money, it should be noted that this also represents opportunities for investors with an eye for international finance. A good, recommended broker, can make the most of this situation, meaning it might be possible to come out ahead if sufficient investments are put in place.
For a more direct comparison, the following have been floated as predicted changes for certain goods and services:
• Airfares cost rise up to 40%
• Average holiday cost increase of £239
• European holiday price rises by 31%
• Pound value decrease of 3.4% compared to the Euro
Recovery post-Brexit
According to research from the World Travel & Tourism Council, there is considerable potential available for growth within the UK in its own tourism industry. With the fifth-largest tourism sector in the world, uncertainty has led recent performance to underwhelm, leaving speculators to believe this means there's nowhere to go but up.
Falling significantly below the world average of 3.9% growth in 2018 at only 1%, adaption is most certainly needed on this side of the market, but the opportunities will at least show increased promise once a Brexit path is set.
The lowering of the pound does at least mean that international tourists visiting the UK will get further with their money, which could reverse the lowered international spending of 9.7% seen from 2017-2018.
