Today the population of the United Kingdom voted in favour of leaving the EU. The devaluation of the pound is already affecting how much UK citizens will spend on their holiday. What other knock-on effects could Brexit have on travel? We explore possible scenarios.
The joys of budget airlines and cheap travel within Europe may be affected by Brexit. Here’s why:
A fall in the value of the pound (which the Bank of England predicted could drop as much as 20 per cent) may push up the price of petrol, diesel and aviation fuel, resulting in increased airfares. The ‘open skies’ policy of the EU states that any EU airline is free to fly between any two points in Europe. This allowed budget airlines to flourish and encouraged larger airlines to lower their airfares. New rules will have to be drawn up if British airlines are to continue to operate freely across the EU. That being said, if the UK negotiates a similar arrangement to Norway within the European Economic Area (EEA), little will change.
For as long as the pound is devalued, UK will receive an increased number of tourists from the United States as each dollar they spend will take them further during their holiday – a lot more bang for your buck!
While it is unlikely that British citizens will need visas to travel into the EU, they may need to pass through stricter passport controls.
Travellers would need to cover additional health insurance costs if the UK exits the European Health Insurance Card scheme.
If duty free regulations revert to those of non-EU countries, travellers will have an allowance of 200 cigarettes, 16 litres of beer and four litres of wine, plus an added £2 per bottle
Remember how exciting it was to have EU roaming that didn’t cost you an arm and a leg? And the fact that those charges were to be abolished entirely in June 2017? The UK government will no longer be bound by EU rulings so UK citizens may no longer be privy to reduced data roaming charges.
While EU membership allowed British citizens to work in other EU states, these rules will need to be re-drawn with Brexit. A key argument in the leave campaign was the need to instate a quota system for migrant workers entering the UK. It is likely that British citizens will now face similar restrictions if they wish to work in the EU.
The tourism sector employs a high number of migrants. Any changes to regulations about employing foreign nationals could affect the ability of businesses to fill their roles and result in a shortage of skilled workers in the travel industry. A deterioration in the value of the pound will make travel more expensive across the board for British travellers (because their pounds will be worth less) but may also have a knock-on effect on the tourism industry worldwide.
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