The Effects of Brexit on the Tourism and Travel Sectors: An Analysis

This report examines the impact of Brexit on the UK's travel and tourism industries. It begins with an introduction to Brexit and its implications, followed by a literature review that explores the effects of Brexit on travel businesses, including reduced travel frequency, decreased revenue, and increased costs due to new regulations and policies. The report highlights the challenges faced by travel organizations, such as adapting to changing government policies, managing recruitment strategies, and setting prices amidst economic uncertainty. The conclusion summarizes the significant negative impacts of Brexit on the tourism sector, emphasizing reduced profits, increased travel restrictions, and the need for businesses to adapt to survive. The report references various academic sources to support its findings.

HOW BREXIT WILL AFFECT
TOURISM/TRAVEL
Table of Contents

INTRODUCTION...........................................................................................................................1
Literature review.........................................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Brexit is an withdrawal of Britain from the European Union. Britain has made exit from
the European Union so there are several impacts of that which is been faced by the businesses in
Europe. The study will hight the literature review of Brexit impact on travel and tourism. The
report will highlight how travel organisations are impacted by Brexit and what are the measures
they can take to minimize the impact of Brexit. The report further show the qualitative and
quantitative data of Brexit's impact (Driscoll, 2019).
Literature review
Brexit has has great impact on travel business of UK. AS after the Brexit the range of
people who continuously used top travel has been decreased. It has impact on almost every
business but the travel business has impacted the most. As per the view of Taylor-Gooby, (2017)
Brexit has majorly impacted the tourism and travel industry. The ratio of people who used to
travel regularly has reduced their journeys. According to some report corporate travel to the UK
was down by 4 percent for the quarter that ended june30, 2017. Free movement of the travels are
restricted as they have to take permissions from their government before making entry and exit.
As per the view of Perles-Ribes, Ramón-Rodríguez and Ortuño Padilla, (2019) Brexit has
reduces the revue which was generated through travel industries. As people has reduces their
journeys so this has major impact on travel industries and the other industries related to that.
Brexit has cause a drop of 5% in UK outbound travel and tourism trips in 2020. All the travel
industries are going in losses due to Brexit. As earlier when their was no Brexit the entry and exit
of the people in the country was very easy but after Brexit there are lots of restrictions on people,
Britain has made several rules has regulations on the people going out of the country.
Government has makes several laws and policies which is must to be followed by people if they
are planning to travel.
As illustrated by Hantzsche, Kara and Young, (2019) illustrates that travel industries are
impacted in this way that government keeps on changing the rule and regulation so to deal with
that the travel industries also has to make changes so that the business operations can be carried
out in an smooth way. It raised the cost of travel companies as they also have to make changes in
their practices and frameworks. As people has reduced their number of journeys this impacts the

hotel industries also as the number of visitors has decreased. There is great downfall in the
revenue of travel industries in UK.
As illustrated by Urbatsch, (2019) after Brexit every company has to price their trip for
the future based on the upcoming exchange rate. Already the sales of the company is low so they
can not charge high prices to the customers. Thus, impacting the overall productivity of the
travel organisations. Britain has made an exit from the Europe Union but the final result is not
yet come. So it makes confusion between for the travel organisations that how to set the prices of
the tickets etc. Organisations are confused that which law is to be followed as the final result of
the BREXIT is not come yet. Government used to make changes in their laws and policies and
according to that the travel companies also has to make changes. they have to set prices
according to the policies of the government. Thus, this impacts the business in this way that lot
of time is wasted on making changes.
According to Moid, (2016) travel organisations have to take new measures for
minimizing the impact of this incident on the productivity of the company. This also impacts the
recruitment strategy of the organization as the talents from other countries can not be recruited,
organization have to make new recruitment strategy so that they can select the best candidates
according to the position. New methods and policies will be prepared by the leaders travel
businesses for minimizing the Brexit impact on the organization. After Brexit it becomes very
challenging for the organisation to sustain itself in the market and situation is making difficult to
create any sort of useful strategy. The owners of the travel companies are worried about how to
take the company forward. The organisations are also impacted in this way that, labours were
acquired in less wage rate. Now travel industries has to recruit labours from other countries at
high prices.
As per the view of Driscoll, (2019) due to Brexit the profit generation of the travel
industries has been continuously fall down. As travellers have to face difficulties at border, with
increased delays seen as an inevitability of Brexit. As with air travel, the lack of free movement
within the EU would require greater processing time by travel authorities. This impacted in this
way that travellers will either have to purchase additional insurance for their journey or risk
incurring significant additional cost. The business of the travel organisation is impacted as they
have to reduce their prices so that the number of consumers who are willing to travel can be
attracted and thus results in increasing organisational productivity. Earlier huge amount of

revenue was arises from the tourism sector but due to Brexit UK has greatly impacted as there is
very less revenue which is generated by tourism sector. As there are lots of restrictions imposed
by government so people do not feels safe to travel. People has to take permission for the
government before travelling, there are certain rules and regulations which are made by
government. So it becomes very difficult for people to do follow all measures of government.
According to the view of Gormley-Heenan and Aughey, (2017) There was an research
from the world and tourism council, There is considerable potential available for the growth
within the UK in its own tourism industry. There is decrease in the growth as it falls below the
world average of 3.9% growth in 2018 at only 1% adaption is only needed on this side of market,
but the opportunities will at least show increased promise once a Brexit path is set. Thu, by
Brexit the businesses of travel industries is nor going well and the organisation is facing
downfall in profit generation.
CONCLUSION
From the above study it is concluded that due to Brexit it becomes very challenging for
business to generate profits. The travel industries are getting impacted as people has people has
limited their journeys. Number of people who used to travel has made reduction in the number of
rides. Business gets impacted as government keep changing its policies due to Brexit. Further it
is concluded that the revenue which was generated from tourism sector in UK are getting
reduced.

REFERENCES
Books and Journals
Driscoll, E.E., 2019. Equal Treatment for the Identity: The Inequality of Irish and British
Citizenship in Post-Brexit Northern Ireland. BU Int'l LJ. 37. p.211.
Gormley-Heenan, C. and Aughey, A., 2017. Northern Ireland and Brexit: Three effects on ‘the
border in the mind’. The British Journal of Politics and International Relations. 19.(3).
pp.497-511.
Hantzsche, A., Kara, A. and Young, G., 2019. The economic effects of the UK government's
proposed Brexit deal. The World Economy. 42(1). pp.5-20.
Moid, S., 2016. Mapping the Potential Impact of Brexit on Indian Economy. SAMVAD. 12.
pp.42-47.
Perles-Ribes, J.F., Ramón-Rodríguez, A.B. and Ortuño Padilla, A., 2019. Brexit Announcement:
Immediate Impact on British Tourism in Spain. Cornell Hospitality Quarterly. 60(2).
pp.97-103.
Taylor-Gooby, P., 2017. Re-Doubling the Crises of the Welfare State: The impact of Brexit on
UK welfare politics. Journal of Social Policy. 46(4). pp.815-835.
Urbatsch, R., 2019. Trade connections’ effect on European regions’ interest in Brexit. European
Union Politics. p.1465116519871619.