UK in two minds – 40-million-pound tourism support by PM and expected increasing operating costs post Brexit

Post BexitUK Prime Minister Theresa May has announced the allocation of a 40-million-pound fund for tourism projects across the country, pledging a boost in the UK’s tourism industry post Brexit.

“Towns and cities from across England will benefit from a £40 million fund to deliver new tourism outside London and ease travel around Britain, helping visitors from abroad as well as Brits holidaying at home to explore the wealth of tourism opportunities across the country,” Britain’s Premier said in a statement on Friday.

 “The British people’s decision to leave the European Union creates real opportunities for growth and we will work in close partnership with the tourism industry, to ensure it continues to thrive as negotiations on the UK’s exit progress,” she added.

The comments were made as two thirds of the visitors to the UK come from European countries and hopes are that tourism industry in Britain could benefit from a weaker pound following the Leave vote.

“We are making it easier for visitors to travel beyond London and experience all of the world-class attractions the UK has to offer, to make sure the benefits of this thriving industry are felt by the many and not the few,” May noted.

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On the flip-side

Almost half of Scotland’s tourism businesses expect their costs to increase as a result of the Brexit vote, according to the first major survey of the sector.

One in five say they are “unconfident” about the prospects for the next 12 months in the wake of the EU referendum result.

Some 15 percent of those surveyed by the Scottish Tourism Alliance, the main industry lobby group, said they were planning to put investment plans on hold and 12 percent of businesses polled say they have suffered cancellations since the Brexit decision.

Among the main concerns were the possible damage to Scotland’s reputation as a holiday destination, uncertainty over the free movement of workers, the impact of Brexit on the UK economy and future exchange rates as major areas of concern.

The findings, which also highlighted the prospect of another Scottish independence referendum as another reason for industry uncertainty, have already been presented to Scottish Tourism Secretary Fiona Hyslop.

Marc Crothall, chief executive of the Scottish Tourism Alliance, said the current situation had given rise to “feelings of great uncertainty” within the industry. He highlighted a finding that 57 percent of respondents felt confident about the prospects for the next year.

More than 400 accom­modation providers, visitor attractions, food and drink operators and event organisers took part in the organization’s biggest survey, which was conducted throughout last month.

Common Ground

More businesses have reported a boost in bookings rather than a slump since the Brexit poll. And 18 per cent said they were planning to increase investment.

Crothall said: “We were keen to gauge industry feeling during the aftermath of what has been one of the most turbulent political periods in recent years.

“One very clear message came back to us – Scotland’s tourism industry has an inspiring level of confidence. When describing the opportunities, amongst the most frequently used phrases were ‘pound exchange rate’, ‘more visitors’ and ‘removal of EU VAT regulations’.

“The feelings of optimism and determination are evid­ent; however, there is no doubt that the situation we’re living with at the moment has given rise to feelings of great uncertainty.

“Concern around free move­ment of workers and a second independence referendum were high on the agenda for most respondents, in addition to the uncertainty around the economy, all of which have far-reaching implications for Scotland’s tourism industry.”

A spokesman for national tourism agency VisitScotland said: “It is reassuring to see that bookings remain on a similar level, or have increased, while the majority of businesses report that investment plans are largely unaffected by the result of the EU referendum.

“It is still too early to know the full impact of Brexit and we will continue to work closely with our partners and stakeholders.”

 

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