In excess of 300,000 jobs could be at threat in the Travel & Tourism sector in the United Kingdom and almost 400,000 in Europe if the UK leaves the EU without a deal on 29 March, as per the new analysis by the World Travel & Tourism Council released yesterday.
A “No Deal” Brexit would have a negative impact on one of the UK’s most vital economic sectors.
WTTC is the organisation that represents the travel and tourism private sector globally with members consisting of CEOs, destinations and industry organisations.
WTTC contributes more than €1.5 trillion to the EU’s GDP (10.3% of total) and supports 27.3 million jobs (11.7% of total). In the UK, tourism contributes £213.8 billion to GDP (10.5% of total) and supports four million jobs (11.6% of total).
The WTTC analysis models the impact on the Travel & Tourism sector over the next decade, based on the 7.7% forecasted fall in economic activity across the wider UK economy modelled by the International Monetary Fund (IMF). In this circumstances, a No Deal Brexit would result in:
• A loss of 399,000 jobs in the rest of the EU
• A loss of 308,000 jobs in the UK economy
• A loss of £18.6 billion in GDP to the UK economy
• A loss of £22.0 billion in GDP to the economies of the rest of the EU
To lessen the impact, it is essential that:
1. The UK should continue to have access to the Single Aviation Market
2. Visa-free travel between the UK and EU should be maintained and the movement of people should be as sound as possible while maintaining security
3. Security co-operation to avoid hard border checks and lengthy delays are paramount
4. The mobility of labor for Travel & Tourism employees across the UK and EU should continue
Gloria Guevara, President & CEO, WTTC said, “The UK is the fifth largest Travel & Tourism economy in the world. Given its importance to the UK economy, it is now clear that a No Deal Brexit would have a dramatic impact on one of the UK’s most significant sectors.”
“If the IMF prediction on the wider economy is realised, there would be a total cost across Europe of over £40 billion and over 700,000 jobs compared to our projections. Our Members are already seeing an impact on their businesses and workforce.”
