Brexit and travel
What leaving the EU could cost travellers
The Brexiteers have won. We are leaving the EU. Will those much derided warnings of so-called Project Fear prove justified, or will the arguments for Brexit be vindicated? It’s a huge question; one which will affect us all - no more so than in the world of travel. So what impact can we expect on our holidays?
Probably the biggest long term effect on travellers will be a financial one. If Britain prospers as the leaders of the Brexit movement promised, then we will be richer, the pound is likely to strengthen and more of us will be able to afford holidays. If the economy stutters, taxes rise, jobs become less secure and the pound falls, then overseas travel will be much less affordable for most of us.
But there are lots more specific areas where Brexit may change our world. Here are ten which have the potential to affect travellers most. Bear in mind that we are likely to remain a member of the EU for at least two more years, so any changes might take quite a long time to come into effect. And, of course, there is nothing to prevent new arrangements being implemented to cover some of them even when we leave - assuming the government of the day wants, and is able to make them. We will just have to wait and see.
1. The future of borderless travel?
It seems certain that once we have completed the leaving arrangements, British citizens will not need visas to travel into the EU on holiday, though they will, like now, have to pass through passport control when they first enter. But perhaps the greatest unknown brought about by Brexit, and a factor which was discussed relatively little during the campaign, is the impact it will have on the rest of the EU.
If Brexit leads to a more radical disintegration of the Union - and it may - then the Schengen arrangement, under which controls for those crossing borders between most of the member states have been removed, will presumably end and border checks might be re-introduced. It may take a few years, but it is certainly a possibility.
2. Higher airfares?
The huge success of the no-frills airlines and the impact they have made on reducing fares and opening up new routes was enabled by the EU’s removal of the old bi-lateral restrictions on air service agreements and the introduction of more open competition on routes between Union countries. Now that Britain is leaving the EU, arrangements will have to be made for new air service agreements if British airlines like easyJet, are to continue operate freely all over the EU, and Irish airlines, like Ryanair, or German airlines like German Wings, are to continue to fly in and out of the UK without restrictions.
Whether the wide choice of routes and historically low fares we now enjoy will continue will depend on the results of those negotiations.
3. A weaker or a stronger pound in the short term?
The pound has yo-yoed in value against the euro and the US dollar in recent weeks. This morning it has dropped like a stone. Investment bank Goldman Sachs has predicted that a vote to leave the EU could hit sterling by as much as 20 per cent, with the pound dipping as low as $1.15 against the dollar and €1.05 against the euro. Soon we will know if it was right.
4. Lower compensation for delayed flights?
The remarkably high levels of compensation that passengers are entitled to under the EU directive on flight delays and cancellations are enshrined in UK law. No doubt British airlines will lobby hard to get the protection watered down after we have left. Nevertheless flights in and out of EU countries and on EU airlines will still be governed by the directive, though you could have a much harder time claiming compensation, and might have to go to court in another country to win your case. However, the dire predictions that passengers might end up with not only no compensation but that they could also lose their entitlements to food and drink and overnight accommodation in the event of long delays, seem to be an unlikely outcome to me.
5. An uncertain future for reciprocal health benefits?
The European Health Insurance Card (EHIC) entitles UK citizens to free or reduced-cost treatment in other EU countries. It doesn’t have the same benefits as travel insurance, but if you have one, many travel insurance policies will waive the excess payment on a claim. Now the agreement will have to be renegotiated and the continuation of the current arrangements for Britons, will no doubt depend on us allowing EU citizens equivalent access to our own health service.
6. Higher mobile phone roaming charges?
Pressure from the EU has meant that the costs of using your phone in Europe have plunged in recent years, and under EU rules, roaming charges are due to be abolished entirely in June 2017. Whether this will now happen is open to question. Presumably the UK government will cease to implement EU directives from now on.
7. Poorer holiday protection?
Financial protection arrangements for package holidays - so that you don’t lose money or get stranded in the event of a holiday company collapsing - were enshrined in UK law under the EU directive of 1992. It’s unlikely that a UK government will want to water down current rules, although they will, of course, now be free to do so. However it seems unlikely that British holidaymakers will now enjoy the extended consumer protection benefits conferred under the new EU new Package Travel Directive, which was due to be implemented by 2018.
8. Harder to work in the EU?
The ability for you, or your children, to work in, for example, ski and beach resorts without a work permit, or fund a trip around Europe by taking casual jobs, is down to our EU membership. Brexit will mean a wholesale rethink of those rules. Since one of the key arguments of Brexiteers was the need to operate a quota system for migrant workers, once this is imposed, presumably British citizens may face similar restrictions, or at least more bureaucratic obstacles when we we want to work in the EU.
9. What will happen to beach pollution?
A big EU success has been the requirement for ever higher standards of bathing water quality, and the shaming countries which were not meeting them. Over the last 25 years, Britain in particular has seen a dramatic reduction in the number of beaches polluted by raw sewage. Much of the good work has been done, but there are still areas where improvement is needed. Is that more or less likely to happen now there will no longer be pressure and publicity from the EU? Your guess is as good as mine.
10. Back to duty free?
We lost the right to buy duty free when travelling to or from another EU country back in 1999. But we gained the right to bring home virtually unlimited amounts of duty paid goods from EU countries. Those who like to stock up with wine when returning from France, for example, have profited handsomely - duty on wine in France is 23p per 750ml, compared with £2.08 in the UK.
Now that we are leaving the EU, presumably we will revert to the same arrangements which apply to all other countries. We will have a duty free allowance of 200 cigarettes, 16 litres of beer and four litres of wine, and above that we will have to pay £2 for each bottle we bring home.
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