With 99 days to go, ski operators warn of Brexit danger

Ski operators have warned that holiday prices could rise if Britain votes to leave the European Union.

Those attending the annual WTM Connect Ski conference in Otztal, Austria, this week said that the short-term risk to sterling and long-term consequence of Britain no longer being a member of the EU would have a negative impact on the ski industry.

In addition to a potential fall in the value of the pound due to the uncertainty Brexit would create, there’s also the possibility that British operators would no longer be able to base British staff in resorts.

Hotelplan UK overseas director Goran Zunic said: "We don’t know exactly what will happen if Britain leaves the EU, but in the worst case scenario it will be very bad for ski operators.

"Switzerland lost €42 million when UK companies moved out because of their employment laws, what will happen if Britain leaves the EU?" he said.

"Suddenly all our staff will be working illegally in Europe. Hopefully we will be given a couple of years to work it all out, but there will be uncertainty, which isn’t good."

Ski Solutions MD Craig Burton said he was ‘quite negative’ about Brexit.

"We could have two to three years of currency volatility," he said. "There’s a danger it will lead to a selling off of sterling, which will impact on the cost of holidays overseas, at least in the short term.

"I am very much in the ‘staying in camp’ because uncertainty is not good for the travel business."

Burton also pointed out there were advantages for skiers of staying in the EU. "When people are voting in the referendum, they need to think about the advantages of being in the EU, things like the reduction in roaming charges," he said.

Peak Retreats’ managing director Xavier Schouller added: "By far the biggest problem is the exchange rate. All of our costs are in euros and all of our revenue is in pounds so a fall in the value of sterling will have a massive impact."

Ski Club of Great Britain, which has its own ski operator, agreed that a downward shift in the value of sterling was worrying.

"We don’t know yet what will happen to staff based in Europe, hopefully we will have time to get our house in order, it will probably take years to sort out, but the biggest issue is what will happen to the pound," said head of partnerships Simon Henwood

"If the pound weakens, it will pose a challenge to the whole business model."

Jonny Cassidy, general manager of the Ski Club’s operator Freshtracks, said it would be buying its currency for next year in June, around the time of the referendum. "The risk to the pound is hugely significant for tour operators at the moment," he said.

TUI UK Ski purchasing director Gordon Ritter was less concerned about the immediate effect of an exit.

He said that as most operators will have bought their currency for next winter season before the vote, Brexit shouldn’t have much of an impact on 2016/17 prices.

"If there is a UK exit it will be phased over two years so there would be no overnight problem, but it would be a long-term problem," he said.