ABTA: Brexit would have a negative effect on tourism
The Association of British Travel Agents (ABTA) recently published a comprehensive report on what the effects, if any, of Britain leaving the European Union (referred to as ‘Brexit’) would mean for the travel and tourism industry – and the ultimate conclusion is that it would have a negative effect. The report, What Brexit might mean for UK travel, includes economic analysis from professional services firm Deloitte, and looks at the impact that a vote to leave the EU would have on consumer confidence, expectations and behaviour, as well as the wider industry. Among the regulations that could suffer in the future – though not immediately – were financial protection for package holidays, compensation for flight delays, access to free health coverage via the European Health Insurance Card, caps on mobile phone charges, and ‘open skies’ across the EU, which would have a knock-on effect on routes, airlines and fares. A period of uncertainty following a vote to leave would also affect the strength of the British pound versus other currencies, which in turn will affect spending power for both consumers and businesses abroad.
“Our assessment of the report’s findings is that a vote to leave will lead to uncertainties and may lead to increased costs for travel businesses and the travelling public,” said ABTA’s chief executive Mark Tanzer. “We recognise that people will approach this referendum by considering many factors – personal, professional, and economic – before casting their vote. ABTA has considered what a vote to leave the EU might mean purely from a travel perspective. Our view is that the potential risks and downsides are not matched by an equal upside for the traveller.”
Monarch Group, Mediterranean tour operator Esplora, and travel agent Knock Travel have also expressed serious concerns about the potential impact of Brexit.