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NEWS TRAVEL WEEKLY BUSINESS CONTINUED FROM THE BACK


We’ve certainly benefited from free movement in the EU. I hope the question marks around free movement will be resolved satisfactorily.” Colin McKinlay, finance


director for Tui UK and Ireland, said: “We looked at a lot of scenarios around Brexit [and] we predicted an impact on sterling, [but] the impact still needs to be assessed. “There is an obvious point on input costs, but that is one of many considerations that go into the cost of a holiday. There are other drivers, including influences on demand more generally, the quality of product and service, and the nature of that product and service. A high percentage of our product is all-inclusive, for example. Quite possibly, customers will want to fix more of the price of their holiday upfront. “None of us likes uncertainty.


[But] we don’t know yet what the impact will be. The process hasn’t even started yet. “Making it easy for people


to travel is clearly important. [But] overseas travel from the UK is important when we look at the economies of the rest of Europe. The contribution to some economies is significant, so we may have alignment in ensuring travel can continue efficiently because it will be as good for continental Europe as for the UK.” Monarch Group chief


executive Andrew Swaffield warned: “These things take time. It’s dangerous to get into [saying] ‘nothing has happened since the Brexit vote’. “Take the impact on sterling.


Airlines and operators are hedging positions, so the collapse of sterling isn’t going to have an instant impact. But in two years’ time, food [prices] will probably have crept up and consumers might have less money.”


Business Breakfast: Graham Pickett (Deloitte), Andrew Swaffield (M


Brexit: ‘We need clarity on flying rights and tax issues’


The industry needs clarity on post-Brexit flying rights across Europe, currently conferred by membership of the European Common Aviation Area (ECAA), and on the movement of labour.


Deloitte lead partner for travel and hospitality Graham Pickett said: “We need the right deal. Some areas of compromise on the ECAA wouldn’t be acceptable. It’s important the industry makes clear where it stands. It’s in our interests to remain in the ECAA, and in the interests of Europe. Deloitte’s message to the industry is: ‘Speak with one voice.’” Monarch chief executive Andrew


Swaffield warned: “We have to be careful of complacency, that we’re going to stay in the ECAA and somehow not have all the rules that come with membership. “As a business person, you can’t


just say: ‘We’re going to find a way to stay in the ECAA and not have free movement.’ We don’t have that power and European politicians say it’s not going to happen. They may make an exception for the ECAA, but we should have an alternative. If nothing else, it’s a better negotiating position to say:


Consultation: ‘Government has listened to sector’


The government has listened to the industry as it prepares its Brexit strategy and can’t be criticised for “taking its time”, according to Monarch Group chief executive Andrew Swaffield. He said: “I’ve no criticisms of the way the government has behaved


70 travelweekly.co.uk 5 January 2017


PICKETT: ‘I can’t see changes [to APD] in the immediate future’


“It’s important to make clear where we stand. It’s in our interests to remain in the ECAA”


‘We want to stay in, but you’re not going to hold us over a barrel.’ The UK is big enough to negotiate a deal in its own right and, if all else fails, to negotiate bilateral deals. “We should accept it’s not going


to be easy to stay in [the ECAA] and we should have a plan B.” Amadeus UK managing director Champa Magesh said: “I don’t think we can say whether Europe will say ‘no’ or ‘yes’ to something


thus far. I sometimes think I have a difficult job, but imagine having to take Britain out of Europe. I don’t criticise the government for taking its time to figure out what to do.” Swaffield added: “The press


don’t make it easy. [But] you don’t go into a negotiation and give away your position. It would be crazy. “I’ve had dialogue with the


aviation minister and transport secretary. They’re asking for views. They seem clear they want to trigger Article 50 by March.”


SWAFFIELD: ‘I don’t criticise the government for taking its time’


because Europe itself is in the process of making decisions.” The sector also requires clarity on the tax implications of quitting the EU. Tui UK and northern region finance director Colin McKinlay said: “There could be any number of scenarios. It’s naive to think the Tour Operators’ Margin Scheme isn’t going to be replaced. But this isn’t the only tax under consideration. We’ve been challenging Air Passenger Duty (APD).” However, Pickett said: “I can’t


see changes in the immediate future. APD is the easiest tax to collect.” He warned: “There is going to be more tax. The chancellor has to balance the books.”


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