Following the Yes vote from the UK’s referendum, there have been serious implications that will affect the entire travel industry. With London being the largest gateway for international travel to Europe, the result will have adverse effects on issues from immigration to air travel regulations. So what does it mean for travellers? Read on to here our take on the Brexit.
Following the Yes vote, the pound fell to its lowest level in 30 years - what does this mean for travellers to the UK? Well you’ll get more bang for your pound in the short term and some savvy travellers are buying pound now to save for future trips, although its speculative as to whether the sterling will continue to fall against the US dollar which the AED is pegged to.
Increase in air fares between the EU and the UK
In the lead up to the referendum, airlines were fiercely opposed to the potential exit of the European Union. Airlines like easyJet and Ryanair benefit from the Open Skies agreement within the EU which opened up the flight market and increased competition which ultimately led to cheaper flights. The result? Experts are predicting higher air fares and fewer scheduled flights between the EU and the UK.
Travel insurance premiums
The European Health Insurance Card has allowed Brits to benefit from local health services while travelling within the EU. The Brexit would mean travel insurance will become an even more essential travel item, with premiums expected to increase within the UK. We always recommend travel insurance to all travellers, even those travelling with an EHIC card.
Tourism from the UK within Europe is a massive market so we doubt any EU countries will impose stricter rules for UK citizens; our prediction is UK passport holders will continue to show their passports upon arrival to EU countries.
For EU passport holders travelling into the UK, the current rules allow entering the UK with only a national identity card. This is expected to change to at least presenting a passport on arrival into Britain, however, wider conversations will undoubtedly commence on visa restrictions on EU passport holders - undoubtedly this will result in colourful debate from the tourism industry that will undoubtedly oppose any rules that will make it harder for EU passport holders to enter the country.
With an impending Brexit, EU passport holders will presumably join the queue for non-UK citizens, potentially heightening weight times at an already capacitated Heathrow.
With less spending power, UK citizens might hold back on the $28billion a year they spend on outbound travel - what does that mean for the rest of the world? With potentially less travellers heading to top UK vacation spots like Ibiza, Mallorca, Tuscany and Provence there could be a potential ripple effect with hotels and airlines looking to fill demand - chances are we’ll see this effect come into place in 2017/2018.