'Brexit' will put pressure on travel: WTTC

While the full economic impact of Britain’s exit from the European Union is yet to be seen, the World Travel & Tourism Council is taking a measured approach to the effect of the decision on travel to both the UK and Europe.

In a statement regarding the ‘Brexit’ released this morning, the WTTC stated that “travel to, from and within the EU and UK will not be affected in the short term. The process set out by the Lisbon Treaty allows for a two year period of negotiation once the UK formally states its intention to leave the EU, and this period could even be extended by agreement of all the parties. During this period the legislation around travel & tourism will remain unchanged.”

However, David Scowsill, president & CEO, WTTC, added cautiously “we are entering a period of market uncertainty which will undoubtedly put pressure on travel & tourism businesses, however we know that our sector is resilient and we expect business and leisure travel to hold up in the face of these challenges.”

Following the announcement of Britain’s decision to leave the EU, the pound dropped sharply to its lowest point since 1985, to $1.32 U.S. Uncertainty regarding the vote affected other currencies including the Canadian dollar, down a cent to 0.77 U.S.; the loonie currently sits at 0.56 pounds.

The International Air Transport Association (IATA) also released a preliminary analysis of the financial and economic impact of the Brexit decision on the air transport industry. According to IATA, the number of UK air passengers could be three to five per cent lower by 2020, driven by the expected downturn in economic activity and the fall in the sterling exchange rate.

IATA's full report is available here.

Note: This article has been updated from its original version