Tourism industry reaction after UK votes to leave the EU

Α Decrease font Enlarge font
Tourism industry reaction after UK votes to leave the EUTourism industry leaders reacted to the vote to leave the EU by insisting it should have little immediate impact on travel

Tourism industry leaders reacted to the vote to leave the EU by insisting it should have little immediate impact on travel, travelweekly.co.uk reports.

EasyJet, which identified strongly with the campaign to remain, issued a statement saying it is confident the vote "will not have a material impact on its strategy or its ability to deliver long term sustainable earnings growth and returns to shareholders".

British Airways’ parent IAG said the same but also downgraded its profits forecast for the year.

In a statement IAG said: “IAG believes the vote to leave the EU will not have a long term material impact on its business. However, in the run up to the UK referendum during June, IAG experienced a weaker than expected trading environment.

"While IAG continues to expect a significant increase in operating profit this year, it no longer expects to generate an absolute operating profit increase similar to 2015."

An easyJet spokesman said: "EasyJet has been preparing for this eventuality in the lead up to the referendum vote and has been working on a number of options that will allow it to continue flying in all of its markets.

Carolyn McCall, easyJet chief executive and a business advisor to David Cameron, said: “We have today written to the UK Government and the European Commission to ask them to prioritise the UK remaining part of the single EU aviation market.”

Economic and political stability

TUI group chief executive Fritz Joussen, said: “The EU without the UK is barely conceivable but we respect the democratic decision of the British people and trust the UK government will take all steps necessary to ensure economic and political stability.

"We are well prepared and confident that TUI Group will not be significantly affected by the decision. It remains to be seen how the decision will affect consumer sentiment."

Heathrow Airport issued a statement saying: "Anyone travelling through the airport will find it operating normally with no changes to security and immigration."

Deirdre Wells, chief executive of inbound travel association UKinbound whose members voted overwhelmingly to support the Remain campaign, described the result as "disappointing".

She said: "Inevitably it will have far-reaching consequences for our members. However, we have proved time and again that we are a resilient industry and the Government must now work hard to secure a deal which supports our vibrant industry, which relies on the EU for two-thirds of its business."

Pound plunges to 1985 levels 

The referendum result saw the pound plunge to levels not seen since 1985 and prime minister David Cameron announced he would resign in October.

Tim Alderslade, chief executive of the British Air Transport Association (BATA), said: “The Government must urgently confirm that the UK will seek to remain a member of the European single aviation market once we leave the EU.

"We also call on the Government to prioritise all aviation-related negotiations, agreements and decisions during the EU withdrawal process."

Airline BMI Regional warned that it may quit the UK. Chief executive Peter Simpson described the vote as creating “a lot of uncertainty”.

He said: “For a business such as BMI Regional, being heavily influenced by the freedom of trade and traffic, this uncertainty will undoubtedly add a layer of complexity to our business.

“Our continued business domicile as a UK entity is less than clear at this point in time.

“Should the dynamics that unfold prove too challenging to pursue these opportunities, our base as a UK airline may have to be reviewed.

“Any decision regarding a move to another domicile will not be taken lightly and will be carefully considered. Ultimately, the best interests of our customers, employees and shareholders will guide that decision.”

Difficult to predict the exact impact

Travelzoo UK managing director, Joel Brandon-Bravo, said: “With so many variables in play it’s difficult to predict the exact impact the Leave vote will have on the tourism industry, but research suggests it will be a negative one.

In order to ensure UK travellers and the UK tourism industry do not suffer as we enter the busiest months for travel, the UK government has got to enter negotiations with Brussels immediately over the EU policy which impacts travel.”

He described the next 24 months of negotiations as being crucial for British travel - particularly if the government wants to maintain inbound tourism from the EU and avoid a price hike for Britons wanting to travel abroad for holidays.

Obviously top priority is dealing with the impact the referendum result will have on the value of the pound, but there are other factors that could make the result a big blow for the travel industry,” Brandon-Bravo cautioned.

As such, we’re now urging the government to act quickly to renegotiate how an independent UK operates in The European Common Aviation Area.

“UK airlines seem unanimous in the opinion that a Brexit will lead to reduced competition, reduced routes and higher travel prices. A concern shared by UK consumers with over a quarter (28%) saying they’re worried a Brexit will lead to more expensive holidays.

“Other factors now also up for negotiation, that could lead to a price hike for British tourists include the loss of the EHIC card - which gives EU members the right to health treatment in any EU country, a potential increase in roaming charges following a recent EU initiative cap on charges, and, inevitable changes to visa regulations for Britons travelling to the EU.

Last low fares  for a very long time

Meanwhile, a presumptive plan by Ryanair last night to run a 24-hour sale of seats from £9.99 to ‘celebrate remain in Europe’ backfired as the final results counted in the early hours of this morning resulted in a ‘leave’ vote with a turnout of 72%.

Chief executive Michael O’Leary, a vocal supporter of the Remain campaign, said: “If the Leave side do win, then these will be the last low fares the UK will enjoy for a very long time.”

The hospitality sector is well placed to remain in a robust position following the Brexit vote, a hotel chief claimed this morning.

John Brennan, chief executive of Amaris Hospitality - one of the UK and Ireland's largest hotel investment and hospitality groups - admitted that there would be an immediate period of uncertainty after the vote to leave the European Union.

"We are now entering a period of uncertainly as Britain prepares the ground for exit,” he said.

“While the negotiation period could have an affect on the markets overall in the short-term, the hospitality sector is well-placed to remain robust during this period.”

Most rapidly growing sectors

However, Brennan added: "International tourism is one of the most rapidly growing sectors of the UK economy as disposable incomes increase around the world.

“With sterling weakening on this news, the rest of the world will get more pounds for their currency, making the UK a cheaper destination to visit, and conversely making it expensive for Britons going abroad.

"We would, however, encourage government to provide clarity on the exit process and address the areas of uncertainty prompted by this decision as soon as possible."

The trade body representing regional airlines in Europe has voiced concern over the UK Brexit vote.

Simon McNamara, director general of the European Regions Airline Association, said: “Aviation is a global industry that works best in a borderless environment where the free movement of people allows airlines to move passengers seamlessly and without complication.”

He added: “Time will tell what this vote will mean for the UK and wider European aviation sector.

“As a European association, ERA represents both EU and non-EU member airlines and has associate and affiliate members from across the globe.

“ERA represents its 53 member airlines at the highest levels in Europe.

Bilateral aviation agreement with the EU

“Our airlines face similar challenges and ERA protects and safeguards their interests whether they are members of the EU, European Common Aviation Area, or have chosen to negotiate a bilateral aviation agreement with the EU or another European country.

Through our extensive experience ERA will continue to support our members flying to, from and within the UK as it becomes clearer what the implications of the vote are for the aviation industry.”

Meanwhile, British Airways, Aer Lingus, Iberia and Vueling owner International Airlines Group followed easyJet in claiming the ‘Out’ vote “will not have a long term material impact on its business”.

But the company said: “In the short term, however, in the run up to the UK referendum during June, IAG experienced a weaker than expected trading environment.

“Following the outcome of the referendum, and given current market volatility, while IAG continues to expect a significant increase in operating profit this year, it no longer expects to generate an absolute operating profit increase similar to 2015.”

Read more here.

RELATED TOPICS: GreeceGreek tourism newsTourism in GreeceGreek islandsHotels in GreeceTravel to GreeceGreek destinations Greek travel marketGreek tourism statisticsGreek tourism report

Tornos
  1. 20/05 01:51

    First Ramada by Wyndham Hotel in Fethiye opens in Ölüdeniz of Turkey

  2. 17/05 01:25

    Mayors of Athens and Rome discuss city challenges and cooperation

  3. 16/05 23:20

    Tsakopoulos Collection & Hellenic Studies Program marked their 20th anniversary

  4. 16/05 21:17

    Greek Culture Minister hosts Turkish counterpart for ‘Romeo and Juliet’ premiere

  5. 16/05 20:12

    Greek Finance Minister advocates green transition and Recovery Fund II

  6. 16/05 15:27

    Higher global temperatures causing Caretta turtles to lay eggs sooner in Greece

  7. 15/05 20:32

    BoG urges progress on harmonizing national systems of bank deposit guarantees

  8. 15/05 19:22

    Islands Decarbonization Fund signing in Greek island of Naxos on May 27

  9. 15/05 14:15

    EU Commission forecasts Greece's growth rate at 2.2% in 2024 and 2.3% in 2025

  10. 14/05 22:27

    Syracuse show on Mycenaean influence on Sicily includes golden cup of Dendra

  11. 14/05 20:34

    Greek Health Minister attends World Health Congress in Abu Dhabi

  12. 14/05 19:23

    Greece and Santorini clinch top honors at American Leisure Lifestyle Awards 2024

  13. 14/05 18:31

    20th Thessaloniki International Book Fair opens from May 16-19 at Helexpo

  14. 13/05 20:16

    Greek Prime Minister meets with Turkish President in Ankara (video)

  15. 13/05 20:11

    Greek Council of State to mull relocation of Mt Parnas casino to Maroussi again

  16. 13/05 15:48

    Athens Acropolis Museum offering free admission on May 18

  17. 13/05 09:53

    Discover Kerasia Petrified Forest in northern Evia near the Greek Capital

  18. 11/05 01:30

    Greek Foreign Minister congratulated new Serbian counterpart on assumption of duties

  19. 10/05 22:45

    The 52nd Oakland Greek Festival to take place this year on May 17-19

  20. 10/05 22:33

    Thessaloniki Port pier extension expected to be given the green light in the fall

  21. 10/05 19:42

    Hellenic President visits Greek community's premises and Cavafy's tomb in Alexandria

  22. 10/05 19:27

    Greek and Swiss ministers meet in Athens on investments and cooperation

  23. 09/05 17:22

    Red Arrows aerobatic team to perform in Athens suburb of Paleo Faliro on May 18

  24. 05/05 19:40

    International Tourism | WTTC: Travel sector set to break all records during 2024

  25. 04/05 17:56

    Minister launches dynamic plan to boost Greece's relations with other countries

  26. 04/05 17:44

    Greece opens another five Aegean Islands to Turkish visitors fast-track visas

  27. 03/05 23:04

    OECD report: Greek economy stays resilient

  28. 03/05 18:00

    Minister: Zero price hikes in Greece in March and April

  29. 03/05 17:42

    Aegean and Olympic Air to fly 'Holy Light' from Athens to the rest of Greece

  30. 03/05 17:39

    Athens transportation schedules over 2024 Greek Easter holidays announced

  31. 03/05 01:26

    Greece's unemployment rate drops to 10.2% in March 2024

  32. 01/05 11:45

    Euro 2004 Legends play FootGolf at Porto Carras Pro-Am Aegean Mini Tour

  33. 30/04 22:36

    Visa entry express now available on five more Greek islands for Turkish citizens

  34. 30/04 20:44

    Hellenic Police launches 10201, a 24-hour hotline for protection of minors in Greece

  35. 30/04 19:42

    Aegean Airlines to distribute dividend for the first time after four years

  36. 30/04 18:39

    May Day strikes in Greece: Public transportation disruptions and Syntagma Metro station closure

  37. 30/04 18:31

    Bank of Greece report: More than 30 million tourists visit the country during 2023

  38. 25/04 22:00

    Greek FM talks with Kuwaiti counterpart on bilateral relations, regional cooperation

  39. 25/04 14:49

    Prices of products in Easter Basket the same or lower in Greece than in 2023

  40. 25/04 13:57

    Olympic flame hand-over ceremony in Athens on Friday

  41. 25/04 12:44

    Greece and China to ink cooperation protocols in the fisheries sector

  42. 25/04 09:53

    Extended shop opening hours for Easter in Greece start on Thursday

  43. 25/04 02:19

    Athens Airport voted as the best in marketing strategy at European awards in Denmark

  44. 25/04 02:10

    President of Hellenic Republic visits La Chascona Museum in visit to Chile

  45. 24/04 21:31

    Thirty-one Greek political parties to take part in European Parliament elections

  46. 24/04 21:25

    Payment by bank cards now accepted on Athens Airport Express bus lines

  47. 24/04 14:12

    Herculaneum papyri unveil more than location of Plato's tomb in Athens

  48. 23/04 23:52

    Greece’s New Ambassador to the United States visits Queens in New York

  49. 23/04 21:49

    Traffic regulations in Athens due to the Olympic Torch Relay on Thursday-Friday

  50. 23/04 20:59

    President of Hellenic Republic wraps up visit to Uruguay at parliament

  51. 23/04 15:44

    Greek government will pass legislation halving commission paid for POS transactions

  52. 23/04 15:03

    Precise location of Plato's burial site unveiled by ancient papyrus

  53. 22/04 22:33

    'Nature Positive' peport highlights new collaborative era in travel & tourism

  54. 22/04 21:25

    Greek Prime Minister to inaugurate highway E65 on Tuesday

  55. 22/04 20:37

    Greek and Turkish delegations discuss Confidence Building Measures for 2024

  56. 22/04 18:29

    Over 114,000 Greek Diaspora citizens register to vote by post in the European elections

  57. 22/04 13:40

    'Basket of Godparents' available in Greek markets on Monday

  58. 19/04 01:29

    Athens State Orchestra presents 'St. Matthew's Passion' by Bach on April 30th

  59. 18/04 21:49

    Greek Climate Change Minister signs memorandum for Attica fire protection zones

  60. 18/04 20:32

    'Easter Basket' and 'Godparents basket' to be put into effect next week in Greece

  61. 18/04 20:17

    American Hellenic Institute celebrates 50th anniversary

  62. 18/04 17:40

    Reuters report: Greek economy soars after decade of pain

  63. 17/04 21:06

    Thessaloniki Port: Performance growth for 2023 with record container throughput

  64. 17/04 20:57

    Traffic regulations imposed in Athens for the 41st Peace Marathon on Sunday

  65. 17/04 20:52

    LAMDA Development malls and marinas reach new record high

  66. 17/04 18:15

    Greek Foreign Minister addresses the 9th Our Ocean Conference in Athens

  67. 17/04 17:12

    IMF: Drop of Greek public debt to 158.8% of GDP in 2024

  68. 16/04 21:02

    NHM hosts the Trial of Pericles at the Harris Theater in Chicago on April 17

  69. 16/04 20:17

    Greece will invest $830 million to protect marine biodiversity

  70. 16/04 01:46

    New York Greek Independence Parade honors 1821 and solemn Cyprus Anniversary

  71. 16/04 01:35

    Olympic Games Paris 2024: Olympic Flame to be lit at Ancient Olympia in Greece

  72. 16/04 00:29

    European Committee of Regions and UN release study on Rural Tourism

  73. 15/04 20:41

    No Athens Metro on Wednesday

  74. 15/04 19:58

    Minister: Greece is transforming into a hub for exporting quality agri-food products

  75. 15/04 18:51

    Greek Environment Minister meets Chinese Deputy Minister of Natural Resources

  76. 13/04 00:13

    UN Tourism and Croatia to launch Research Centre for Sustainable Tourism

  77. 12/04 00:03

    2024 marks a critical year in the enduring strength of Greek-German relations

  78. 12/04 00:00

    Greek Rural Development Minister in Italy for wine meeting

  79. 11/04 22:07

    Ambassador: US committed to upgrade of Greek military and support NATO's SE flank

  80. 11/04 19:40

    Hellenic Pride on display at rainy Chicago Greek Independence Day Parade

  81. 11/04 02:06

    Delphi Economic Forum IX: Energy collaboration a 'key' in Greek-Bulgarian relations

  82. 11/04 01:58

    UN Tourism launches investment guidelines for Albania sector

  83. 10/04 19:01

    Greek FinMin: New package of economic measures in 2025 to lower taxes, raise pensions

  84. 10/04 18:25

    Greek city of Nafplion hosts Mediterranean Yacht Show for ninth year running

  85. 09/04 23:57

    Greek PM on Tilos: Innovative projects for a cyclical economy are of key significance

  86. 09/04 23:55

    UN Tourism members promote agenda for Europe as region leads global recovery

  87. 09/04 23:46

    HFS presents 1968, Rousing Docudrama about Greece’s First European Cup April 21

  88. 09/04 22:48

    Stolen 7th-century BC oenochoe returned to Greece by Hanover museum, municipality

  89. 09/04 22:42

    Greek civil servants confederation ADEDY to strike on May 21

  90. 09/04 21:55

    Greek Migration Minister meets Senior US Coordinator for Lawful Migration

  91. 08/04 23:48

    Athens-Epidaurus Festival to kick off on June 1

  92. 08/04 23:41

    Elliniko-Argyroupoli Mayor marches in Greek Independence Philadelphia Parade

  93. 08/04 21:53

    Project Voria casino complex in Maroussi moving ahead after environmental report

  94. 08/04 21:36

    Minister: Up to 120 delegations to take part in 9th Our Ocean Conference in Athens

  95. 08/04 19:22

    Direct flight from Shanghai to Athens offers access to key tourism market for Greece

  96. 08/04 18:31

    AI conference to attract distinguished speakers to Thessaloniki on April 25-27

  97. 04/04 23:28

    City of San Jose marks March 25 with 16th Annual Greek Flag Raising Event

  98. 04/04 22:16

    Urban plans published for seven townships in Thessaloniki and Attica of Greece

  99. 04/04 17:24

    FinMin: The new EU economic and fiscal framework is good for Greece

  100. 04/04 15:30

    Greek PM meets with the chiefs of the international pharmaceutical manufacturers