Brexit causes tourism boom for London

Since the referendum to leave the EU in June, much doom and gloom has been written about the effects Brexit will have on Britain’s economy.

And some members of the British tourism industry feared that foreign visitors would shun the UK because they would be anxious about not feeling welcome or that they may suffer racial abuse after media reports of an upsurge in racist incidents post-Brexit.

However, the UK capital has instead found itself enjoying a remarkable ’Brexit boom’ in tourism as visitors flood to the capital in record numbers, spurred on by the pound’s fall in value. The vote to leave caused a sudden 13% currency depreciation and sterling hit its lowest level against the dollar for more than three decades at one point.

Although this situation is bad for Brits holidaying in destinations where their pound was suddenly worth considerably less - notably Europe and the US - it transformed the UK into an attractive low cost destination for foreign visitors. Airlines, hotels and attractions have all noticed a significant increase in bookings in July, especially in London.

But Brexit has also caused a surge in Brits staying in the UK for their holidays as travelling abroad is now considerably more expensive. The last time this happened to a comparable degree was during the financial crisis of 2008, which also triggered a boost in ‘staycations’.

18% increase in foreign visitors

A few days following the EU referendum, search engine Cheapflights found that searches for UK flights from the US doubled, and increased by 61% from China and 49% from Canada.

Opodo has found that travel from Europe to Britain increased by 42% for the four weeks after the exit vote. Airbnb registered a 24% increase in bookings after the referendum compared to the previous month. Research by travel organisation Tourism Alliance indicates an 18% increase in foreign visitors and an 11% increase in British holidaymakers during July compared to last year.

Museums, other attractions, car hire firms and theatres have all also seen an increase in demand, while many of London’s top hotels are enjoying a period that is busier than ever.

Shops have benefitted too. For example upmarket West End retailer Fortnum and Mason has found trading increased by a fifth compared to the same period last year. Northern Ireland has also benefitted, with, for example, Newry in County Down witnessing a 50% hike in visitors from the Republic of Ireland since Britons voted to abandon the European Union. Shoppers in the Republic have been taking advantage of the stronger Euro following the June 23 vote.