and implications for duty-of-care. Legisla- tive deadlines and industry pressure for fast resolution will compound these issues.” He says that the upcoming ACTE-CAPA joint summit in Amsterdam this October (see p127) will bring together “some of the finest minds in the industry” to debate the issue, adding: “One thing we do know is that the UK is, and will remain, a trading partner to the world.” One of ACTE’s European travel buyer members comments: “I see no risks for the travel industry considering Brexit, as long as the economy is growing the same way in the UK – although maybe a few minor travel agencies can visualise a reduction in traffic.”
THE EFFECT ON HOSPITALITY Meanwhile, the UK hospitality sector is expected to see a 30 per cent year-on-year jump in room nights sold in the second half
PRAGMATIC REACTION
The UK’s serviced apartments sector which, like the wider hospitality industry, relies heavily on workers from the EU, has reacted with pragmatism to the referendum result which could – potentially – see a tightening of immigration rules. Prior to the UK’s June 23 referendum, a poll by trade website Serviced Apartment News suggested that apartment companies favoured a Remain vote – by a margin of three to one. However, the sector has quickly come to terms with the new reality. Shaun Hinds, Bridgestreet Global Hos- pitality’s managing director for just about everywhere except the Americas, said: “The serviced apartment industry is built on the principles of mobility, and free movement of talent and skilled workers. It’s a bad day to be British when the population has voted in this way.
“One thing we do know is that the UK is, and will remain, a trading partner to the world”
of 2016, according to Tourico Holidays. In July the travel brokerage firm said its data showed some source markets such as China and Germany increasing daily UK reserva- tions by more than 100 per cent since the vote. At one point, the British Hospitality Asso- ciation (BHA) expressed concern that current hotel industry employees from EU countries might face deportation once the UK was no longer bound by freedom-of-movement rules. Quite why the BHA thought this was even a remote possibility remains a mystery – why would any UK government irreparably damage a thriving sector and antagonise its European partners? However, the association did have a setback in the post-Brexit weeks: speak- ing at a summit meeting, organised with exemplary speed by the BHA just days after the referendum result, John Whit- tingdale, the UK’s secretary of state for culture, media and sport, a portfolio which includes hospitality and tourism, said: “If we wanted, for example, to abolish VAT on accommodation or attractions, we could now do so. We couldn’t have done when we were in the EU.” Three weeks later, Whittingdale was sacked from the cabinet by Theresa May.
BUYINGBUSINESSTRAVEL.COM
“Our immediate priority is business as normal. I don’t think anybody really knows what’s going to happen over the next two, three or six months, so the way through it is to stay focused and to keep doing everything we do every day to drive business forward.” Meetings Industry Association (MIA)
chief executive Jane Longhurst was equally forthright – and urged her members to maintain relationships with EU countries, as well as exploring new revenue streams from farther afield. “We know that uncer- tainty over the result of the EU referendum has contributed to a lack of confidence in the stability of the industry and the wider economy in recent months,” she says. “We need to embrace the referendum result. We can’t sit back and rest on our laurels and expect consumer confidence to return and business to just flood in – par- ticularly from outside the EU.
“Instead, organisations need to re-evaluate their business plans and develop creative ways to actively encourage cross-border relations and inbound tourism.” This analysis opened with a timeline of sorts, so it seems appropriate to conclude by extending that into 2017. There is just over six months to go before the French presidential
Key takeaways
More questions than answers
• Post-Brexit, the best possible scenario is that the UK continues to trade with Europe in much the same way; the worst possible scenario – and the least likely – is that EU members will erect trade barriers.
• Freedom of travel is unlikely to be restricted to any great degree. Ultimately, corporate travellers may not be fast-tracked through ‘EU passport’ immigration channels, but there will be other arrangements.
• At present, it seems extremely unlikely that UK travellers will require visas to visit their European ex-partners. Passports, however, will have to be changed – who bears the cost?
• Sterling exchange rates took a dive after the referendum result became known, but began to recover within a few days. Rates will continue to fluctuate – when have they not? – but stability will return.
• As the UK becomes – in the short-term at least – a cheaper destination, hotel accommodation demand is likely to increase, along with room rates. If the pound strengthens, that won’t happen.
• Trump vs Clinton? Wait and see...
elections, and around one year to go before the Germans head to the polling stations. François Hollande’s popularity is ebbing fast, and some reports say two-thirds of Germans want Angela Merkel out at the next election. That apple-cart is beginning to look increasingly wobbly.
BBT September/October 2016 65
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132
