In a historic vote, Britain has finally decided to leave the EU. With the voting results out, there was a huge shock globally. The various global stock markets seen the tremendous decline and once it was hard to believe that people of Britain opted to vote out of the EU. It is believed by all the economist that there will be lot of effects on the business and the markets with the Brexit. In this article, we would focus some of the effect on travelers all around the world :
1 Travelling to UK may become Cheaper
With the results of Brexit, the pound witnessed a steep decline making US dollar stronger (other major currencies as well). This means that because of the exchange rate conversion, there will be decline in the cost of travelling to UK. However at the same time it will be costlier for the UK residents to travel the other parts of the world !!
2 Number of Services may go down
According to the report by Association of British Travel Agent, 70% of jobs in the travel and tourism sector in London, for example, depend on migrants. Assuming that the Brexiteers’ rhetoric on curbing immigration is followed through with action, that could well mean that jobs prove difficult to fill, with wages going up and service down.
3 Loss to UK Tourism Industry
According to a research published by global travel deals publisher Travelzoo, with Brexit, UK’s tourism industry will loose as much as upto £4.1 billion a year in international tourist spending alone. As per the report 75% of the UK’s international visitors come from within the EU and the survey among them reveal that they would be less likely to come to a post-Brexit UK. As per the report:
- Around a third of Italian (33%), Spanish (33%) and German (30%) travellers, and a quarter of those from France (24%), would be less inclined to travel to the UK in the event of a Leave vote
- 12% of Americans and 10% of Canadians say if the UK leaves the EU they would be less likely to travel here. American visitors currently spend more than £3 billion a year in the UK
4 Air Fares may go up
Currently there is a “Open Skies” agreement between the EU member countries and US which makes the air fare lower. With this agreement, there was high increase in the routes and fall in the flight prices (almost by 40%). However, now with the Brexit, Britain would loose this benefit and this may lead to increase in the air fare.
Currently there is no VISA requirement to travel any EU member country for a citizen of the EU country. However with Brexit, new VISA requirement may be created which may make the travel for UK citizen to EU country or vice versa costlier.
Mobile service for roaming will become costlier. As of now, there is a cheaper mobile roaming charges across the EU countries which was introduced by the EU with an aim to make it completely free by 2017. Now, with Britain opting out from EU, the communication service benefits in terms of low roaming charges will go off.
The European Health Insurance Card (EHIC) entitles UK citizens to free or reduced-cost treatment in other EU countries. It doesn’t have the same benefits as travel insurance, but if you have one, many travel insurance policies will waive the excess payment on a claim. Now the agreement will have to be renegotiated and the continuation of the current arrangements for Britons, will no doubt depend on us allowing EU citizens equivalent access to our own health service.
Although, it will take a minimum of 2 years to complete the separation process but the effects will start appearing soon. All the traveler should keep in mind the above points and should plan their travel to UK accordingly.Published in