A potential Brexit without an agreement could jeopardize hundreds of thousands of jobs within the tourism sector
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The Travel & Tourism sector in the UK and across Europe faces significant challenges if a post-Brexit trade deal is not reached, according to the World Travel & Tourism Council (WTTC).
If no agreement is made, the sector could experience job losses, business disruptions, and increased travel restrictions and costs.
Key Impacts
Increased travel restrictions and costs
With the end of free European roaming charges and the requirement for ETIAS authorisation to enter the Schengen Area starting in 2025, travel could become more cumbersome and expensive. Without a trade deal easing border controls, these new hurdles could deter short-term visits, which are a major part of tourism demand.
Reduced tourism flows and spending
UK tourists are already shifting some spending to EU destinations due to VAT-free shopping advantages that the UK no longer offers since Brexit. If no trade deal facilitates smoother travel and cooperation, this trend may accelerate, negatively impacting UK tourism businesses while EU locations attract more British visitors.
Economic drag on jobs and businesses
Brexit-related trade frictions have contributed to slowed UK GDP growth and reduced investment. The Travel & Tourism industry, which heavily relies on cross-border movement and consumer discretionary spending, could be particularly affected by continued barriers, potentially reducing employment and business profits in hotels, airlines, restaurants, and related sectors.
Opportunity cost of lost integration
The EU recorded 452 million overnight stays in Q1 2025, showing steady tourism normalization. The UK’s exclusion from visa-free travel and border-free access may reduce its competitiveness in attracting European tourists and workers, with subsequent negative job impacts.
EU Job Losses Due to Pandemic
Across the EU, a staggering 14 million jobs are at risk due to the pandemic. The WTTC has urged the UK government and the EU to agree on a Brexit deal to save millions of Travel & Tourism jobs.
Pre-pandemic Warnings
Before the pandemic outbreak, the 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 the EU without a deal. Recent WTTC research shows that up to 2.4 million Travel & Tourism jobs are at risk in the UK alone because of the impact of COVID-19, causing a loss of £124 billion in GDP.
Airline Pressure
Those airline businesses already reliant upon traffic with Europe are under huge pressure due to the impact of coronavirus travel restrictions. The WTTC fears UK airlines could suffer if there is a no-deal Brexit.
Longer Passport Control Queues
A no-deal Brexit could mean longer queues for passengers at European passport control.
In Summary
Without a post-Brexit trade deal, the UK’s Travel & Tourism sector risks slower recovery, loss of international visitors, increased administrative costs, and diminished job opportunities. The EU could gain competitive advantages in attracting UK customers but also face some disruption in integrated travel markets. The sector's health heavily depends on how travel facilitation and trade cooperation evolve post-Brexit.
- The holidaymaker may encounter increased travel costs due to factors like new passport control requirements and the end of free European roaming charges, should a post-Brexit trade deal not be reached.
- The eco-tour, which is a significant part of the tourism industry, could experience business disruptions as a result of job losses and reduced tourism flows.
- The general-news outlets report that the Travel & Tourism sector, largely financed by consumer discretionary spending, might suffer from slowed economic growth and reduced investment due to increased travel restrictions and costs.
- In the midst of the ongoing pandemic, politics play a crucial role in preserving millions of travel and tourism jobs in both the UK and the EU, as evidenced by the WTTC's call for a favorable Brexit agreement.
- The holiday industry, including businesses like airlines and hotels, may face extended passport control lines and possible decreased competitiveness in attracting European tourists, leading to job losses and diminished business profits.
