What Brexit Means For The Tourism Industry

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brexit

On June the 23rd, the UK will vote on whether to remain or leave the EU. The vote will affect all of us, but if you love going on holiday in Europe it could affect you even more. There are a lot of benefits to being in the EU that we take for granted when we go abroad, but they could be taken away should we leave. Here’s what effect a ‘leave’ vote could have on the tourism industry:

What could happen if we leave:

If the UK joins the European Economic Area:

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The European Economic Area is a free trade/movement agreement between the EU and member states. Iceland and Norway are two of the current members. The best way to describe EEA membership is that it is like being in the EU, but without the rights that EU members get (to be discussed further on!). If the UK left the EU but joined the EEA, there wouldn’t be a lot of change. However, if the UK enters into a free trade agreement, but not one for the movement of people and services, this is where tourism would struggle. A lack of free movement for people would mean Brits would be required to have a visa to enter EU states, and vice versa for Europeans. It would be difficult to employ EU citizens over here or go to work over there.

How being in the EU has shaped the tourism industry:

Open, affordable skies

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Regulation agreements from the EU means that the flight market is wider, resulting in cheaper and more regular flights to Europe.

Less stressful travel

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We can travel freely across Europe without being stopped and checked at each border.

Shop ’til you drop!

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We can bring home an unlimited number of goods from our European holidays, which is good news for us, but bad news for our bank balance!

Sanitised sunbathing

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Beaches and seas in EU member states have to reach the EU’s standards, meaning they’re cleaner and safer.

“He said me haffi work work work work work work…”

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You can work in any country in the EU without the need for a work permit. That summer season abroad or winter on the slopes wouldn’t be so easy if we needed visas!

Where would we see the most impact?

Healthcare

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At the moment, in the EU, if we need emergency healthcare whilst abroad, with the use of an EHIC card, we are given it for free. Failing that, we pay the same as a local. If we leave, there’s no guarantee this healthcare agreement would still be in place.

Air passenger rights

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If you’ve ever had compensation from a delayed/cancelled flight, or received free accommodation/meals, this could be affected by a Brexit. Currently, passengers can get compensation financially if a flight is delayed from departing a EU airport, or arriving with an EU carrier- if the reason is within the control of the airline, such as an engine error. However, under a Brexit, this wouldn’t apply when you fly out of a UK airport with a UK airline such as Easyjet or Monarch. This would mean an increase in airlines being taken to court over delayed flights.

Roaming charges

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It can be costly to use your mobile phone abroad. However, recently roaming charges have been reduced, UK networks have formed agreements with their overseas counterparts and it is getting cheaper. In 2017, roaming charges will be abolished completely and we will pay the same to use our phone abroad as we would at home. It’s unknown whether this would still be the case in the event of leaving the EU.

Currency

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Finance experts are predicting that the Pound will weaken following a Brexit. This will make the cost of going abroad, including converting your holiday money into Euros, more expensive.

Official stance from travel experts:

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Travel Supermarket say:

“It’s too early to say for sure the effect of the Brexit on the tourism industry. It’s pure speculation until we know whether we will be a member of the EEA or negotiate rules with the rest of Europe.”

Professor John Fletcher, Bournemouth University:

“The EU knows the significance that British visitors have in Europe, particularly the economy. Travel to Spain, Portugal and France is really important, so they wouldn’t want to do anything to jeopardise that. For that reason, I don’t think travel to Europe will be affected too badly by a Brexit.”

Holiday Travel Watch say:

“Any additional costs that airlines or tour operators receive as a result of the Brexit will be passed onto the customer, particularly if you fly with an airline based in the UK as they may have to pay a premium for landing at an EU airport.”

Willie Walsh, chief executive of the International Airlines Group (owner of British Airways) says:

“I am in support of the stay campaign, as I would prefer a reformed EU over leaving altogether.”

Esplora, a tour operator say:

“As a Mediterranean tour operator, we can currently employ UK citizens to work on our European tours. In the event of a Brexit, it’s likely UK citizens wouldn’t have the right to work as a tour leader, and would see their careers vanish overnight. We’d have to outsource our roles, increasing prices. In simple terms, Britain being part of the EU is crucial to our business as a tour operator.”

Should we stay or should we go?

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There’s no right or wrong answer. If we stay in the EU, we will continue to get all the travel benefits we currently get. If we leave, there will be a period of uncertainty whilst the UK adjusts to life riding solo, but it’s unlikely that on the 24th June 2016, following a leave vote, we all have to get a visa to go on our all inclusive week in Spain straightaway. Change will come over time, and as Professor Fletcher said, the EU knows we’re too valuable to the economy to cast aside like a forgotten old friend.

What do you think about the Brexit? Will you still visit Europe if we leave?