DO NOT LIVE YET: How to prepare for a No Deal
Are you prepared for a No Deal? Well, you’d better be, says Nick Parkinson, solicitor at Travlaw LLP, as he tries to make sense of it all…
We are leaving on 31/10/19. Come what ‘May’. Do or die!
Brexit has ground to a halt. The political wrangling over whether to have a soft, hard or liquid Brexit has been subsumed by the ongoing Tory Leadership Contest in which Boris Johnson is widely tipped to be our next Prime Minister. With Boris’ recent pledge to leave the EU ‘with or without a deal’, and that coming from an ardent Leave Campaigner, is it time for travel companies to brace themselves for the stark reality of the UK leaving the EU on 31/10/19 without a deal? Or is it just a case of ‘fake deadlines’ and ‘fake promises’? Either way, it seems like an opportune time to remind ourselves of some of the implications that a No Deal Brexit could have on the travel industry.
Flights
No significant disruption is expected in the immediate aftermath of leaving the EU without a deal. The UK and EU have in place an agreement for ‘basic connectivity’ for flights between the UK and EU countries for 12 months. There are some limitations and, of course, a long term agreement will need to be negotiated.
Providing services in EU Countries
Are you offering travel services to customers in other EU countries? Good news. Under WTO Rules there should be limited impact on your ability to do so.
Establishing a permanent business presence in another EU country
Again, under WTO Rules this should be straight forward in principle, but there are specific restrictions in place for Belgium, Portugal and Italy to be aware of.
Free movement of workers
Uncertainty awaits. EU countries will have a free hand to say who can and cannot come over, on what terms and for how long.
Currency exchange rates
The 2016 Referendum caused a reaction to currency markets with the pound falling sharply against the Euro and the US dollar. That may explain why concerns over exchange rates ranked top of the list in response to an August 2018 survey of members of the Association of Bonded Travel Organisers Trust (ABTOT). The concerns are not without merit, with a recent report suggesting that the pound could fall in parity with the Euro if Boris follows through with his ‘Brexit threat’ to leave the EU without a deal.
VAT – Tour Operators Margins Scheme
Will it be necessary for travel companies to register for VAT purposes in each Member State in which they are suppling services? Quite possibly, hence ABTA has advised its members to seek independent tax advice to consider the potential liabilities, process and timescales involved.
But that’s only scratching the surface
The implications of a No Deal Brexit on the travel industry are far reaching and go way beyond the issues that we are only able to touch upon briefly. Only time will tell.
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025