British tourism industry to be ‘one of first’ to benefit from Brexit

The UK’s travel and tourism industry is expected to be one of the first sectors of the economy to benefit from Britain’s vote to leave the EU, according to insolvency firm Begbies Traynor.

The company’s Red Flag Alert research for the second quarter of 2016, which monitors the financial health of UK companies, found the British tourism industry was already in a state of improving financial health in the three months leading up the the Brexit vote

During the last quarter, ‘significant’ financial distress among UK hotels and accommodation fell 4% (down to 3,382 struggling companies), decreased by 3% among companies focused on leisure and cultural activities (5,464 companies) and fell by a further 4% within the wider British travel and tourism sector (3,791 companies).

The company predicts the tourism industry will be one of only a handful of sectors in the UK to immediately benefit from the referendum decision.

It said the weak pound makes Britain an even more desirable and cost-effective holiday destination for both domestic and international holidaymakers.

The ongoing sterling weakness against the euro is expected to add an extra £245 to the cost of holidaying in Europe for the average British family, making staycations to UK destinations even more appealing.

Julie Palmer, partner at Begbies Traynor, said: “Despite the typically unpredictable British weather over the past three months, our data shows that levels of ‘significant’ financial distress actually decreased across all key sectors of the UK tourism industry in the lead up to the Brexit vote, suggesting the sector is in rude health ahead of its vital summer season.

“Since then, while most sectors of the economy have started to batten down the hatches to wait for the Brexit storm to blow over, in contrast the UK’s domestic travel and tourism industry is expected to be one of the first sectors of the economy to see tangible financial benefits from the referendum result.”