29 June 2016

Brexit: Bitesize - The Implications for Tourism & Leisure

"Tourism is valued at £1.9 billion for the Greater Lincolnshire economy and was set to grow, but as we exit the EU, what does the future hold for the tourism and leisure industry?

"The industry feels the pinch when there is uncertainty in the economy and incomes. Bookings from UK residents decline in times of reduced financial stability and confidence. Local authorities can also find they have less funds to promote their holiday destinations.

"Will our exit send out a signal that makes foreigners feel less welcome? If visas become a requirement for overseas tourists this may indeed put them off visiting the UK. Conversely, the fall in the strength of the pound means numbers of visitors from abroad could increase, and holidays for us abroad become more expensive so the ‘staycation’ may become more popular.

"There is also the question of employees. Our tourism industry relies heavily on foreign labour. Will these employees be able to continue to come and work for us? Will those already here be able to stay? A shortage of available labour would lead to a rise in salaries, a cost which businesses may struggle to absorb.

"The future for the UK is currently an unknown. All we do know is that for every challenge there is also an opportunity."

Flora Bennett, partner & head of tourism & leisure sector

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