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Ten ways Brexit may affect tourism

By Richard Burkimsher

Hawsons Chartered Accountants

WEDNESDAY 29 March was the date when Article 50 was officially triggered, and with that marks the commencement of the two-year process at the end of which the UK leaves the EU. The implications for the tourist industry are far reaching and warrant consideration.

Mobile phone roaming charges

Using your phone abroad used to cost a significant amount but after pressure from the EU, costs plunged dramatically. Currently, under EU rules, roaming charges are set to be abolished completely in June 2017. Therefore, when the UK does eventually leave the EU, it is unclear as to whether these laws will still affect British travellers.

Increase in airfares

Low-Cost Carriers (LCCs) have helped in significantly reducing the cost of travelling and the opening of new routes has been made easier by the EU’s removal of old bi-lateral restrictions on air service agreements and the introduction of more open competition on routes between Union countries. However, with Britain leaving the EU, new agreements and arrangements will need to be made in order for LCCs like EasyJet to continue to operate within EU countries and for Irish airlines like Ryanair to continue to fly into the UK without any restrictions.

The array of routes coupled with low fares that we currently enjoy could be a thing of the past if no arrangements can be made during the negotiation process.

Health benefits abroad

Currently, UK citizens can hold a European Health Insurance Card (EHIC). This card entitles UK nationals to free or reduced healthcare services when travelling abroad. This is by no means the same as travel insurance, but does allow many travel insurance policies to waive the excess payment you make on a claim. However, this agreement will now have to be renegotiated and it is assumed that any deal will depend on the UK allowing EU citizens access to our own healthcare services.

Delayed flights

A good thing that comes from a delayed flight – the level of compensation you receive as a result of a EU directive. This could all change with British airlines likely to lobby for a reduction in compensation payments. Regardless of this, flights in and out of Europe will still be governed by the directive, but claiming compensation may prove more difficult, and you might even have to make applications to courts in other EU countries.

The strength of the pound

It’s no secret that the value of sterling has dropped significantly against the Euro and the US Dollar since the EU referendum and as a result of this, holidays have become more expensive. Expect a bumpy ride over the next two years.

Borderless travel

It is currently expected that once the UK leaves the EU, British citizens will not need visas to travel and will still have to pass through passport control just like we do now. One thing that will change is that we won’t be standing in the EU citizens queue so we may have to wait longer to clear customs. Under the Schengen arrangement, many controls for border-crossing have been removed but don’t rule out a tightening of procedures post our exit from the EU.

Holiday protection

Under current EU law, financial protection arrangements for package holidays were introduced to help holiday makers who were stranded abroad following holiday company collapses. It is unlikely that the UK Government will look to water down these rules, but they will now be free to do so if they wish. In 2018, the EU’s new Package Travel Directive is set to be implemented. It is unlikely that British travellers will see the benefits of this new scheme.

Duty free

In 1999, Britain’s right to buy duty free when travelling to or from another EU country were restricted. If you bring wine home from France, you will have only paid 23p of duty per 750ml whereas here in the UK the duty would be £2.08. Here’s hoping for some common sense in any trade deal.

Working in the EU

If you want to fund a trip around Europe by taking casual jobs, or if you want to work in holiday resorts, you can do so due to our EU membership. When we leave the EU, it is likely that there will be a rethink on these rules and that restrictions on freedom of work and movement will tighten. British citizens will also presumably face similar restrictions when they want to work in the EU.

Beach pollution

Under EU law, it is a requirement for member states to have high standards of water bathing quality The UK has seen a big improvement in the reduction of raw sewage polluting our beaches in the last 25 years. While this is a dramatic improvement, more still needs to be done. The question is: is that likely to happen now we’re leaving the EU?

If you would like to discuss the implications of leaving the EU on your business contact Richard Burkimsher at Hawsons Chartered Accountants on 01604 645600 or by e mail on

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