The results of the June referendum vote which lead to our decision to leave the EU has rocked the nation, with damaging effects on different business and service sectors, and foreign holidays can be added to that list. Inspired investigates…
For a large amount of people and, families in particular, foreign holidays have become less of a luxury and more of a regular treat, with visitors often travelling back to previous holiday destinations for a second or third time. Booking holidays has never really proven to be a problem – it’s always been a pretty simple process, however new research conducted by Gocompare – one of the world’s leading travel insurance companies – has exposed the effects of post-Brexit on holiday rates.
Relaxing foreign holidays could become a distant memory for Brits as just about every aspect of planning a holiday has been causing worry for holidaymakers following on from the EU referendum – from exchange rates and European Health Insurance Cards (EHIC) to the frosty reception expected from other EU citizens following on from the controversial decision. Almost immediately after the result of the vote was announced, the value of the pound fell to an all-time low, and 13% of the surveyed Brits said they are worried they will not be able to afford a holiday in 2017 if the value of the British pound falls any lower. In addition to this, one fifth of the survey participants said they are putting off buying foreign currency until the last minute, with 5% intent on buying currency at airports or even in the country they are visiting – a risky move to make.
This drastic drop in the worth of the British pound has also forced British people everywhere to be especially careful and mindful of spending. A whopping 36% of the surveyed people stated that they are having to be cautious with spending as a result of a post-Brexit UK. A following 19% say they are delaying a decision about a 2017 foreign holiday, while 11% are postponing booking next year’s holiday altogether until the end consequences of Brexit have been made clear, however this doesn’t look promising when decisions in the political world are always changing.
In addition to these already concerning statistics, the validity of EHIC is also causing worry for British holidaymakers. Almost a quarter of the people surveyed (23%) are worrying about how long their health insurance cards will be valid for. The EHIC entitles British cardholders to free or a reduced price in health care if they are to suffer illness or an accident abroad, and a further 14% of survey participants are also concerned about the longevity of their passport validity. The relationship between Brits and other EU citizens is also causing some unease, especially following on from recent events such as the, what can only be describes as a ‘war’, between British and Russian football fans at the 2016 Euros. British people are now frightened of the reception they may receive from residents of the countries they plan on visiting – a factor that is putting a large amount of people off travelling to foreign grounds.
On the other hand, Gocompare’s Matt Sanders has urged UK holidaymakers to remain positive and not let the ‘mights’ determine the way in which we make decisions: “Britain is likely to remain a member of the EU for at least the next two years and any changes to travel documents or arrangements such as passports, EHICs or visas, will likely take several years to come into effect.” He continued: “However, the fall of the value of sterling against the euro and US dollar post-Brexit has already affected holidaymakers – making it more expensive to travel abroad and the value of the pound if likely to continue to fluctuate.”
At the moment, all British holidaymakers can do is sit tight and wait for more information surrounding the effects of Brexit, but subsequent of these concerns, Gocompare have listed a number of tips on making holiday money go further:
- Shop around for foreign currency: Exchange rates vary, so look around for the best rates you can find and don’t leave it until you’re at the airport as rates are often very poor.
- Research about the use of cards: Many people see credit cards as a cost-effective and safe way to withdraw cash or make payments abroad. However, not all cards are designed for use abroad, so it’s important you do your homework to check for any fees.
- Buy travel insurance as soon as you book your holiday: We have mentioned the importance of travel insurance elsewhere in Inspired, but Gocompare advise people to book insurance ASAP in order to ensure you have cancellation cover.
- Don’t pay for an EHIC: To most UK residents, an EHIC is provided for free, so beware of any websites that try and charge you for the supply of one.
