It’s fair to say that everyone who has been stunned by the outcome of the vote must be wishing they’d paid more attention to it than they previously did. However, the impact of Brexit on travel may not be known for at least another two years.
As with anywhere else, the shock that half of British voters could force the country out of the European Union after more than four decades of membership is clear across the Nordic region. The decision will hit a variety of interconnected industries, not only travel and tourism.
Brexit is a process that will take place over two years or longer. The fall in the British currency, hitting travel from the UK and airlines that are based there, may at least encourage more visitors from overseas, including those from the Nordic countries, to visit the UK as a result of favourable prices.
One of Scandinavia’s prominent airlines, Norwegian, also Europe’s third-biggest budget carrier by passenger numbers, said the decision to leave the EU and the economic uncertainty associated with it was not having a discernible impact on bookings. Chief executive Bjorn Kjos insisted: “We haven’t seen anything from it so far. The reason probably is that we fly a lot of leisure passengers.”
Norwegian has quickly built up a large base at London’s Gatwick Airport, flying to destinations in Europe and the United States. But while British Airways owner IAG and easyJet issued profit warnings after the referendum, Kjos said Norwegian was seeing a rise, not a fall, in bookings – particularly in US passengers flying to London due to the currency fluctuations.
The weaker pound has not yet affected British demand for holidays, he said. “So far we haven’t seen it.
The simple fact is that most people have already purchased their summer vacation so it might not be until next year that we see lower demand from the UK side.
Scandinavian airline SAS, by contrast, does not have significant exposure. It’s the same with German giant Lufthansa - the impact of Brexit is manageable, as Britain accounts for just a small percentage of company revenues.
The transition of the UK out of the EU, regrettable though it is for so many in the travel trade, is going to be a very gradual, multi-year process, meaning that any kind of shock to the system is unlikely.
How has Brexit has been viewed by Europe?
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