No-deal Brexit will put thousands of travel companies in jeopardy, says WTTC

A no-deal Brexit would put at risk thousands of travel companies, the World Travel & Tourism Council warned today.

It said hundreds of thousands of jobs in travel and tourism were also at risk if the UK doesn’t secure a way forward with the European Commission.

UK Prime Minister Boris Johnson is due to meet in Brussels with European Commission President Ursula von der Leyen this evening to try to break the logjam.

Prior to the Covid-19 outbreak, WTTC had warned that 300,000 travel tourism jobs in the UK and almost 400,000 across the EU could be at risk if the UK left without a deal.

In addition, recent WTTC research has shown that up to 2.4m travel and tourism jobs are at risk in the UK alone because of the impact of COVID-19, causing a loss of £124 billion in GDP. Across the EU, 14m jobs are at risk due to the pandemic.

With a no deal Brexit, access to markets and the ability of business travellers and holidaymakers to move freely between the UK and the EU could be lost, creating complexity, cost and confusion, and impeding seamless travel, said the WTTC.

Flight connectivity is a major issue, with a UK-EU deal needed to replace the Comprehensive Air Transport Agreement which allows UK airlines access to 27 EU states and 17 other countries, due to expire on 31 December.

While contingency measures are expected to enable flights to operate until a long-term deal can be reached, WTTC fears UK airlines could suffer if there is a no-deal Brexit. Those already reliant on traffic with Europe, are under huge pressure due to the impact of coronavirus travel restrictions, along with thousands of businesses throughout the travel and tourism sector, it said.

"We urge the UK government and the EU to put the interests of the travel and tourism sector, as well as the livelihoods of millions of people who depend upon it, at the forefront of their minds when considering the implications of a no-deal," said WTTC President & CEO Gloria Guevara.

"2020 has been an incredibly difficult year for the whole global travel and tourism sector, which has left many businesses decimated and put millions of jobs at risk.

"WTTC fears if a Brexit trade deal cannot be reached, it could compound the already difficult situation and be even more disruptive to the travel and tourism sector both here in the UK and across Europe.

"Businesses already face enormous economic uncertainty, and we want to avoid any further loss of confidence or disruption which a no-deal Brexit could cause."

As well as the impact on flights, the knock-on effect of a no-deal Brexit could mean longer queues for passengers at European passport control, costly healthcare cover and more expensive phone calls with the end of free European roaming charges, said the WTTC.

The European Health Insurance Card (EHIC), which entitles Britons to free healthcare in EU states will be withdrawn from the end of December, which could force up travel insurance premiums. However, mobile phone providers have said they don’t intend to reintroduce roaming charges from 1 January.