NEWS 1
Seasonal Businesses in Travel has warned that unless a deal is struck to protect UK workers in the EU, it could be “catastrophic”
YOU NEED TO KNOW
at a glance
A survey by Seasonal Businesses in Travel (SBiT) has predicted a 58% rise in costs for travel businesses to continue to employ UK staff in the EU, if a Brexit deal does not protect UK workers.
SBiT WANTSWHITEHALL TO:
Brexit could put 25,000 jobs in travel sector at risk
Juliet Dennis
juliet.dennis@
travelweekly.co.uk
The impact of Brexit could mean smaller agencies suffer a substantial hit to their bottom line, according to companies behind a new trade report.
A poll of 130 holiday firms by Seasonal Businesses in Travel (SBiT), which represents more than 200 UK outbound travel companies, concluded European holiday prices could go up by almost a third and 25,000 jobs could be at risk as operators face escalating overseas staff costs as a result of Brexit. The survey also warns of the closure or merger of small travel businesses. Diane Palumbo, sales and marketing director at SBiT
member Skiworld, which relies on the trade for 60% of sales, warned agents and operators of a “catastrophic” scenario similar to past financial crises if a Brexit deal does not protect UK workers in the EU. She said: “When we reduced
our programme by about a third after the 2008 crisis, the number of agents also decreased or were taken over. Smaller agents were the hardest hit. “We’ve seen good agents [and
agencies] disappear because of the shrinkage of holidays on offer or because prices have gone up substantially. In the past, it generated price cutting between agents fighting for a smaller market. “What is happening now is so challenging and we have not
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travelweekly.co.uk 9 August 2018
“Agents will adapt to the market. There is a lot more to the world than just Europe”
yet got the ear of government.” SBiT member Hotelplan, which includes Inghams, employs more than 1,000 UK staff overseas. Business development director Ian Hope said: “From March 2019, we are at risk of not being able to employ British people visa-free overseas. Operators could be at risk and agents’ incomes affected.” But agents maintained the industry would cope. Aito Agents chairman Gemma
Antrobus suggested agents could switch their focus to non-EU destinations. She said: “Brits will
l Give travel firms operational certainty by continuing the freedom of labour movement for seasonal workers, currently guaranteed by single market membership, after March 2019 l Establish a longer-term, practicable, ‘fast-tracked’ work permit/visa process permitting UK citizens to work in Europe on a temporary basis l Retain the ability of workers posted abroad temporarily to remain in the social security system of their home nation l Protect holidaymakers’ rights – health and consumer rights – to maintain visa-free travel in Europe for UK citizens, and protect the UK aviation industry
still travel. Agents will adapt to the market. There is a lot more to the world than just Europe.” Miles Morgan Travel owner
Miles Morgan added: “The UK travel industry is robust and has seen off many ‘Brexits’ over the years. This is just another, large, bump in the road. The worst thing is the delay and uncertainty.” Alan Wardle, director of public
affairs at Abta, said: “We urgently need clarity on these matters.” Midcounties Co-operative
Travel Group has compiled a ‘risk register’ to cover issues including overseas staff, aviation deals and UK workforce challenges. Rad Sofronijevic, chief operating
officer, travel group, said: “We are starting to plan for all possible scenarios. We are resilient and will react accordingly.”
PICTURE: SHUTTERSTOCK; DON WALES
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