Potential effect of the UK leaving the EU on UK tourism

Since the EU referendum in June 2016, there has been scant official data showing how UK tourism has been affected by the decision to leave the EU. What data has been published is presented with a brief discussion of the impact of the fall in value of Sterling since June. Exchange rates are important in the tourism industry. A weaker pound is effectively a price cut for foreign visitors to the UK – their money is worth more in the UK than it was previously. Conversely, for UK residents going abroad, a weaker pound means that the value of their money falls and their foreign holidays become more expensive. The value of the pound declined sharply against the dollar and the euro following the referendum (Europe and America are the UK’s biggest overseas tourism markets). The value of the pound has remained subdued in the months since then and in early October it was around 12% down against the dollar and the euro compared with the mid-June level.