Brexit's Impact on Tourism (Vol.II) - Thematic Research

Brexit's Impact on Tourism (Vol.II) - Thematic Research

Summary

Brexit - the term used to refer to the UK’s planned departure from the European Union (EU) - is one of the most important and controversial political stories of recent times. Adjustments to a different way of life will extend far and beyond December 2020.

This thematic research report takes an in-depth look at how Brexit will impact the travel and tourism industry identifying potential winners and ‘lesser losers’ at this uncertain time. A situation analysis acknowledges the possible outcomes post transition period, and then different sectors are analyzed including airlines, hospitality, tourism service providers and destinations based on different Brexit scenarios. Macroeconomic and regulatory concerns are then analyzed across the current state and with a ‘Hard Brexit’ situation, followed by upcoming trends that may pan out for travel industry members.

“All sectors that reside within the travel and tourism industry wait what lies ahead and need to actively prepare for major changes to take place. In the current state however, the ‘grey’ areas stretch far and wide causing a standstill amongst businesses. Arguably, short term impacts will cause dire consequences across all operations whilst in the long term an array of factors will segment those who will fare better post-transition period”.

Key Highlights

- UK government, destination management organizations (DMOs), national tourism organizations (NTO’s), local authorities and general government-funded bodies have been actively encouraging businesses to ‘get Brexit Ready’ since the beginning. The underlying issue remains that the potentially dire impacts cannot be predicted. By possibly understanding each Brexit scenario and the effects on different sectors, this will shed more light on the consequences, but also outcomes the next few years could bring.
- There remain five key areas that must be overcome to mitigate the impact of Brexit on the travel and tourism industry. These include maintaining the free flow of movement, managing border control and security, monitoring employment opportunities in conjunction with development projects, reassessing areas that receive EU funding and destination imagery that is aligned with the UK and Europe.
- Whilst Brexit will without a doubt affect the airline industry in the future, the term ‘brex-cuse’ has been commonly associated with a drop in profit, revenue or even the collapse of industry members. WOW air, Flybmi and even the demise of Thomas Cook looked to blame Brexit uncertainty. Reality is, UK departures to European destinations have continued to grow and will continue to do so.
- Even though the UK has left the EU in the public eye, the reality is that negotiations need to be finalized and Brexit will continue to be one of the largest and most challenging tasks faced by government institutions in decades. Even if an agreement is created by the end of the transition period, adjustments to a different way of life will extend far and beyond December 2020.
- A variety of upcoming trends are likely to develop out of this political nightmare including areas such as the staycation, less economically developed countries(LEDC’s) will gain more traction, more employment opportunities, growth of Non-EU migration, gastronomy themed vacations and the increasing popularity of the package holiday industry.

Scope

- This thematic report provides an overview of the many potential impacts of Brexit for tourists and different sectors within the travel and tourism industry.
- The parliamentary road map followed by the Brexit situation analysis, clarifies the array of options that may come into play post transition period.
- Each sector is analyzed observing the impacts of each Brexit scenario across a variety of areas where the severity is then ranked in a color coded scheme. The way in which airlines, hospitality providers, tourism services and destinations are attempting to prepare for Brexit is also included, to offer examples for providers to better prepare themselves for what is ahead.
- Our unique thematic analysis then dives deep into the macroeconomic and regulatory impacts within the current state and then onto a hard Brexit to understand the array of areas that will be affected.

Reasons to buy

- Understand how a travel and tourism provider can advance to be a winner rather than a ‘lesser loser’ during this time filled with uncertainty.
- Attempt to understand the impacts of Brexit across a variety of sectors through examples and analysis.
- Discover how airlines, hospitality providers, tourism services and destinations are attempting to prepare for Brexit to mitigate the effects of this ongoing political nightmare.
- Acknowledge the wide array of impacts a hard Brexit could have on the travel and tourism industry, to better prepare for what is ahead which will fold to be another long winding road.
- GlobalData’s thematic research ecosystem is a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors. It has a proven track record of identifying the important themes early, enabling companies to make the right investments ahead of the competition, and secure that all-important competitive advantage.