Brexit and Tourism
After Brexit,
the EU referendum when Britain
decided to leave the European Union, the British currency, the sterling, became
weaker against the euro and the dollar. This however resulted in attracting
more tourists to Britain ,
especially from North America , who wanted to
take advantage of the favourable exchange rate, with the pound dropping in value
against the dollar. This drop meant that Americans visiting Britain paid
much less for hotels and therefore had more holiday money to spend. The number
of visitors from EU countries also increased by 8% in 2016 compared to the
previous year.
The British tourism minister however stressed that this increase in
visitors was not only due to the weaker pound, but was also proof that Britain
has everything the tourist wants, from vibrant cities to stunning landscapes
and many cultural attractions. Yorkshire seems
to be one of the areas that benefited most with a record 476,000 visitors in
the three months following the referendum, amounting to a 12% increase compared
to the same period the year before.
The national tourism agency, VisitBritain, has confirmed that so far,
2017 has been another successful year for the tourism industry and has
registered an increase of 16% of flight bookings to the UK between
February and April compared to the year before.
This tourist boost is, they say, due primarily to the weak pound. At the
end of January 2017, for example, it was 10% cheaper for Chinese tourists to
visit the UK
than the previous year.
However, while the number of visitors to the UK has risen, economists say that
this increase in tourism will not completely solve the general trend of a
slowdown on domestic spending. Reports after the referendum suggested that
retail sales went up as overseas visitors took advantage of the weak pound to
purchase luxury goods like watches and jewellery. However, British shoppers are
reducing their spending as they try to cope with higher fuel prices and food
bills that are eating into their household finances.
1 Why did more Americans want to visit Britain after
Brexit?
2 What other reasons did the British tourism minister
give for the increase in visitors?
3 What data does the national tourism agency,
VisitBritain, have to confirm this increase in tourists?
4 Why aren’t British people
spending as much as they did before?
(Source: Explore © ELI)
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