The Spanish tourism sector could lose up to 1,407 million until 2020 in case of hard Brexit

3% drop in sales to the British market this summer

The Alliance for Tourism Excellence (Exceltur) ensures that if there is an exit without agreement of the United Kingdom of the European Union on October 31, the Spanish tourism sector could suffer a loss of 1,407 million euros of activity between the two remaining months of the year 2019 (58 million euros) and the whole of the year 2020.

This was explained by the Executive Vice President of Exceltur, José Luis Zoreda, in a press conference in which he presented the balance of the summer and the forecasts for the end of the year.

Exceltur Executive Vice President José Luis Zoreda explained that of these 1,407 million euros, 90% would be attributable to the English market while 10% would correspond to falls in other countries as a result of the ‘Brexit’.

The expenditure of English tourists in Spain is around 12.6 billion euros, so a hard Brexit could mean a 10 to 11% drop in the turnover of the English market in our country, according to Exceltur.

The expenditure of English tourists in Spain is around 12.6 billion euros, so a hard Brexit could mean a 10 to 11% drop in the turnover of the English market in our country, according to Exceltur.

“We are confident that before October 30 we can reach a consensus agreement of Brexit,” said Zoreda, warning of the negative effects that an agreement cannot finally reach for all European economies.

And it is that the exit without agreement of the United Kingdom would cause an immediate depreciation of an additional 10% of the pound with respect to the euro, according to the measure estimated by the houses of analysis. And that would have a very important impact on the European tourism sector.

IMPACT NOW IN THE SUMMER

The economic uncertainty derived from the possibility of a Brexit without agreement on October 31 has already damaged the tourist sector as a whole during the summer months due to a depreciation of the pound, according to Exceltur.

Thus there has been a 3% drop in sales of Spanish tourism companies to the British market. In addition, there is a special impact on holiday hotels (the drop in sales to the British is -4.4%) and those located in the Canary Islands (-7.2%).

36.1% of tourism companies linked to Spanish inbound tourism (accommodation, car rental companies and leisure service providers) have perceived this summer a negative impact on their sales due to the uncertainty related to Brexit, according to a query made by Exceltur closed on October 2.

This impact has resulted in a 3% decrease in sales to the British market. The falls have been more intense in the subsector of accommodation, especially in holiday hotels (-4.4%) and in urban hotel accommodation with more presence in the British market (-3.6%).

The uncertainty of Brexit this summer has impacted more on the sales to British of the tourist companies based in the Canary Islands (-7.2%) and the Balearic Islands (-3.5%). In these two regions, the number of hotel overnight stays by British tourists over the total of those registered are very important (24.3% in the Balearic Islands and 29.5% in the Canary Islands).

Mediterranean destinations show lower sales in the English market, in the region of 3%. Thus the impact of Brexit on the turnover to the English market has been -3.3% in Andalusia and 3.2% in Catalonia.