British tourism industry predicted to benefit from Brexit

26 July 2016 by
Tourists VisitBritain/VisitEngland

The UK's travel and tourism industry is expected to be one of the first sectors of the economy to benefit from the Brexit fallout, according to an insolvency firm.

Red Flag Alert research for Q2 2016 from Begbies Traynor suggests that the British tourism industry was in a state of improving financial health in the three months leading up to the Brexit vote.

During the last quarter, ‘significant' financial distress among UK hotels and accommodation fell 4% (down to 3,382 struggling companies), decreased by 3% among companies focused on leisure and cultural activities (5,464 companies) and fell by a further 4% within the wider British travel and tourism sector (3,791 companies).

Begbies Traynor, which monitors the financial health of UK companies, predicts that the British tourism industry will be one of only a handful of sectors to immediately benefit from the referendum decision.

The ongoing sterling weakness against the euro is expected to add an extra £245 to the cost of a European getaway for the average British family, making holidays in the UK more appealing.

Julie Palmer, partner at Begbies Traynor, said: "Despite the typically unpredictable British weather over the past three months, our data shows that levels of significant financial distress actually decreased across all key sectors of the UK tourism industry in the lead up to the Brexit vote, suggesting the sector is in rude health ahead of its vital summer season."

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