08 Apr 2020
Posted in Travel & Tourism
Glimpse of hope for future British tourism following pound drop
Following the news that the pound has fallen sharply against the dollar and euro as a result of Prime Minister Boris Johnson’s admission to intensive care;
John Vandesquille, Travel & Tourism Analyst at GlobalData, a leading data and analytics company, offers his view on the long term impact of this announcement on the tourism sector:
“With Brexit negotiations becoming a pressing issue again and a looming post COVID-19 recession, the uncertainty related to the future of the head of government position adds to the already bleak economic future of the UK and many are now expecting the pound to reach a lasting parity with the euro in the next few months.
“The evolution of the exchange rate could actually end up having at least one positive impact for the UK. Indeed, generally considered as an expensive destination, the country could increase its existing popularity in Europe, which constitutes the core of its tourist arrivals – 25.4 million visitors in 2019.
“Furthermore, the weak currency, coupled with the predicted slow resumption of air travel and the ‘cabin fever’ effect caused by the isolation period, is likely to boost domestic travel within the British Isles which, in turn, would help the British hospitality industry kick-start its recovery.
“On the other hand, a weak pound is certainly bad news for some popular European destinations, such as Spain. Indeed, as one of the most affected countries by COVID-19, Spain will see tourism figures, one of its main industries, drop significantly in 2020, starting with British tourists, who will probably opt for more affordable destinations such as the Maghreb or Turkey.”