Brexit Aftershocks and the

Implications on the Management

and Marketing of Tourism
Destinations.

Students ID:
GOPALAIN COOPEN (150863)
RHAALIB GASSITA (150864)
DESHIKA BEETUN GOORAH(150861)
JOSIAN JM TROUBAT (150874)
Contents
1. Introduction ........................................................................................................................ 2

1.1. Impact of British Pounds (GBP) ................................................................................. 2

2. Impact of Brexit on Ireland ................................................................................................ 3

2.1. Impact of Brexit on Wales .......................................................................................... 4

3.1. Weakened pound makes Wales an attractive destination............................................ 4

4.1. Impact of Brexit on Scotland ...................................................................................... 5

5.1. Conclusion................................................................................................................... 6

Reference ................................................................................................................................... 7

6.1. Introduction ................................................................................................................. 9

7.1. How Brexit affects the competitiveness of the tourism industry positively? .............. 9

8.1. How Brexit affects the competitiveness of the tourism industry negatively? ........... 10

9.1. Conclusion................................................................................................................. 11

Reference ................................................................................................................................. 12

10.1. Introduction ........................................................................................................... 13

11.1. Brexit affect travel behaviour ................................................................................ 13

12.1. Introduction ........................................................................................................... 16

13.1. Conclusion ............................................................................................................. 18

Reference ................................................................................................................................. 19

Table 1: Main visit and spending estimates for overseas residents' visits to the UK in 2016 .. 3

Figure 1: Total Overnight Tourist Visit Scotland ...................................................................... 5

Abbreviations:

UK: United Kingdom

GBP: Great Britain Pound

GDP: Gross Domestic Product

EU: European Union

1
RQ 1. What are the impacts of Brexit on the tourism industry of British
countries?

1. Introduction

Fast forward to 24 June 2016, the people in the UK gathered and voted after a heavily
publicised and contested pre-referendum period by both the ‘Leave’ and ‘Stay’ camps. In the
end, 48.1% of those who voted preferred to stay and 51.9% preferred to leave. The vote was
largely split by the greater London area and Scotland being in favour of ‘Stay’, whereas most
other parts of the UK voted in favour of ‘Leave’ (The Guardian, 2016).

Nowadays, currencies often reflect the health and prospective outlook of countries’ economies.
Favourable forecasts yield currency value increments and adverse ones lead to value declines.
With voters supporting a Brexit, the UK is on course for major changes and a significant
amount of uncertainty surrounding future economic prowess. No matter the duration of the
actual Brexit negotiations, there will be a decrease in political and economic stability. (The
Economist, 2017)

1.0 Impact of British Pounds (GBP)

The hospitality and tourism industry is a lynchpin of the UK economy. It is the fourth largest
industry representing 10% of GDP, equivalent to £143 billion and employs 4.49 million people
across the country. Over the past five years the industry has delivered 331,000 new jobs,
equivalent to one in five new jobs created in this country, and we are on track to deliver a
further 100,000 new jobs by the end of the decade (Back the future for hospitality and tourism
,2015).

2
 Table 1: Main visit and spending estimates for overseas residents' visits to the UK in 2016

Overseas residents' visits to UK

Visits % change Earnings % change

(thousands) from year (£ million) from year
2015 2015
July 3,080 +2 1,830 +5
Aug 3,060 +2 1,900 +8
Sep 3,080 +1 1,810 -4
Oct 3,070 -6 1,750 -9
Nov 3,400 +16 2,010 +15
Dec 3,330 +11 1,840 -4

Source: Office of National Statistics

Table 1 shows that two months after the EU Brexit, Tourism receipt had significantly decreased
from -4% to -9% and in November 2016, it had an increase of +15% as compared as in
November 2015. Moreover, in December 2016, another decreased of -4% had been noted.
(Office of National Statistics, 2017). This is because of the British Pound (GBP) had dropped
in value against key global currencies since the vote on June 24 and its value will likely remain
low until the UK will be able to shed a light on a future path.

Foreign travellers will likely capture this opportunity to visit London and other popular
destinations in the UK. Conversely outbound travel will be impacted, certainly among more
value oriented travellers that constitute a large share of the European travel market (Lam &
Voellm, 2016).

2. Impact of Brexit on Ireland

Britain’s decision to leave the European Union is going to have a significant impact on Irish
tourism, according to new research from the Emerald Isle’s tourism body.

The research, carried out by RedC on behalf of Tourism Ireland, had investigated on the impact
of Brexit on Tourism to Ireland in 2017 and beyond, with the results suggesting that British
Nationals travelling to Ireland for holiday will spend significantly less.

3
With approximately 65 million overseas trips taken by Britons each year, Oxford Economics
has estimated that outbound travel from the UK to the rest of the world will decline by 2.5 per
cent – roughly 1.5 million fewer trips (Oxford Economics, 2017).

However, 2016 was a record year for inbound tourism for Ireland, with visitor numbers 11 per
cent higher than 2015 as 10.5 million visitors explored the country, contributing more than
€5.4bn (US$5.8bn, £4.6bn) in revenue to the economy. In that period, Ireland welcomed 4.9
million British visitors, worth €1.5bn (US$1.6bn, £1.3bn) to the country’s economy (News
talk.com, 2017).

2.0 Impact of Brexit on Wales

According to the most up-to-date figures, 20.5 million people visited Cardiff from 2015 to
2016, although this includes people from all countries, not just within the EU. The target for
2017 to 2018 is a three per cent increase on the previous year (The Cardiffian, 2017).

3.0 Weakened pound makes Wales an attractive destination

A drop in the value of sterling has contributed to an increase in the number of visitors welcomed
by the tourist industry in Wales, this year. The fall, which happened after the UK voted to leave
the European Union, has not only made the UK a more value-for-money destination for those
outside the country, but has encouraged more Brits to opt for a staycation over overseas
destinations for short breaks and holidays. Wales has benefited from this post-Brexit currency
fluctuation, which has contributed to nearly half (46%) welcoming more visitors than last year,
including 46% of those in serviced accommodation and 44% of self-catering operators (Wales
Tourism Business Barometer, Wave 4, 2016).

Much of the confidence going into 2017 comes from the post-Brexit fall of the sterling, making
the UK an improved-value destination for overseas visitors, and encouraging more Brits to
holiday at home. But while some operators are feeling the benefits in the short-term, opinion
is divided on how the tourism industry will perform in the long term, once the UK removes
itself from the European Union. Some believe that the visitor numbers will improve, often
citing the exchange rate as a reason for increase, some think that Brexit will mean fewer visitors

4
in the long run, and others have no idea what the future holds for the UK and Wales outside of
the EU (Wales Tourism Business Barometer, Wave 4, 2016).

4.0 Impact of Brexit on Scotland

Tourism to Scotland is impacted by a wide range of factors as the nation attempts to build
profile and appeal in a highly competitive marketplace. Business and markets dislike
uncertainty and tourism is no different. The tourism generating market of the EU is too
important to compromise and the potential price impacts of an exit from the EU make it the
less attractive option. Scottish outbound holiday makers would face cost rises and the period
of transition and renegotiation following potential exit would create uncertainty. The loss of
the regulatory frameworks and legislation impacting on a range of products from beach water
to package holidays undoubtedly protect our tourism environment and consumers and their loss
would be substantial (Euromonitor 2017; OECD Economic Policy Paper No. 16, April 2016).

Total Overnight Tourism Visits to Scotland - 2011 to 2016

20
18
16
14
Visits (millions)

12 Overseas
10 visits (m)
8 Domestic
6 visits (m)
4
2
0

2011 2012 2013 2014 2015 2016

Figure 1: Total Overnight Tourist Visit Scotland

Figure 1 shows a decreased in tourism visits to Scotland on domestic visit from 12.47 million
of visitors to 11.37 million visitors in 2016, the figure also shows that there is also a decreased
on overseas visit from 2.54 million to 2 million in 2016.

5
5.0 Conclusion

Following the Brexit, a period of introspection is likely to occur as the British people come to
terms with their new independence and future role in the world, just like when Japan withdrew
from the global marketplace following its recession in the 1990s or Iceland after the global
economic crisis and its banking collapse.

To move forward and transform the UK as a destination, a process of creative destruction of

previous national tourism strategy will be necessary and the national tourism board would enter
a stage of crisis management in the short term, and would then need to develop a destination
brand recovery strategy to help overcome long-term reputational damage to its brand.

6
Reference

BHA., (2016), Back the future for hospitality and tourism. British Hospitality & Tourism
Industry Brexit Strategic Response.

Larissa Lam & Daniel J Voellm., (2016), BREXIT AND TRAVEL: THE RISKS OF A
TOURISM DOWNTURN. HVS Publication. Hong Kong.

URL:

The Economist., (2017) BREXIT: THE AFTERSHOCKS., Available from:

http://www.economist.com/Brexit [ Accessed on 23rd March 2017]

Office of National Statistics, (2017), Available from:

https://www.ons.gov.uk/peoplepopulationandcommunity/leisureandtourism/bulletins/oversea
stravelandtourism/dec2016/previous/v1#main-trends-in-figures-and-charts [ Accessed on 21st
March 2017].

Oxford Ecomonics (2017), Available from:

http://www.oxfordeconomics.com/my-oxford/projects/345782 [Accessed on 21st March

2017].

Newstalk.com., (January 2017), Available from:

http://www.newstalk.com/Tourism-Ireland-research-shows-Brexit-implications- [ Accessed
on 21st March 2017].

7
The Cardiffian., (2017), Available from: http://jomec.co.uk/thecardiffian/2017/02/17/brexit-
impact-tourism-cardiff-says-council-leader/ [ Accessed on 21st March 2017].

The Guardian., (2016), Available from: https://www.theguardian.com/politics/2016/jun/29/uk-

voted-for-brexit-but-is-there-a-way-back [ Accessed on 22nd March 2017].

Wales Tourism Business Barometer Wave 4, Autumn 2016, Available from:

http://gov.wales/docs/caecd/research/2016/161207-wales-tourism-business-survey-wave-4-
2016-en.pdf [ Accessed on 22nd March 2017].

Scottish Government statistics (2017)., Available from:

http://www.gov.scot/Topics/Statistics/Browse/Tourism-Culture-Sports [ Accessed on 23rd
March 2017]

OECD (2017)., Available from: https://www.oecd.org/eco/The-Economic-consequences-of-

Brexit-27-april-2016.pdf [Accessed on the 23rd March 2017]

8
RQ2: How Brexit affects the competitiveness of the industry?

6.0 Introduction
Brexit is a word that has become used as shorthand way of saying is simply the United
Kingdom (UK) leaving the European Union (Britain and exit). In a same way as a possible
Greek exit from the European Union (EU) was dubbed as Grexit in the past. Brexit was a
referendum which was voted on the 23rd June 2016 with a vote of 51.9 % for the leave and
48.1% against. The Brexit process will take at least more than two years between March 2017
and April 2019. With Brexit, the EU would lose its second-largest economy, the country with
the third-largest population and the financial centre of the world. Furthermore, the EU would
lose its second-largest net contributor to the EU budget as stated by WTTC (2016) for the year
2015 with Germany €14.3 billion, United Kingdom €11.5 billion, France €5.5 billion.

The tourism industry which plays an important in the global economy will inevitably be
affected by this shock decision of the UK leaving EU. Up till now there are still a lot of debates
going on whether the Brexit is affecting it positively or negatively.

7.0 How Brexit affects the competitiveness of the tourism industry

positively?

As per a travel article published on 30th March 2017 by Express (a British newspaper), ‘‘Brexit
has begun and it’s already working its magic on tourism – with a record breaking increase in
visitors to the UK’’. This increase is due to the weakened pound with Britain becoming 11 %
more affordable to overseas tourists than the year 2016. As per a business news article
stated by Independent (British newspaper) on the January 2017, the British pound (GBP) has
endured a battering as it has depreciated around 18% since the referendum. This depreciation
has made the UK a more affordable destination which in turn will enhance a stronger leisure
spending in the country (WTTC, 2016). Foreign tourists shall have a high purchasing power
like for example tourists from France and Germany spent around 14 % more in year 2016
compared to 2015.

More and more people are travelling to the UK due to the depreciation of the pound either for
business purposes or leisure travel thus implying more and more flights are in demand in order
to cater for this increase. With UK removing itself from the EU means that the UK can set its

9
own tourism industry quota that is cutting down the red tape where the EU will not impose
regulations on businesses thus economic growth will be stifled. There is freedom to enter into
any trade agreement outside the EU as the latter doesn’t allow individual member states to
make these deals. Again with this freedom, other countries shall benefit from it in terms of
tourism and travel whereby new alliances (new flights, new destination packages,.) shall
prevailed which will in turn incite people to travel more.

8.0 How Brexit affects the competitiveness of the tourism industry

negatively?
On the other hand, other countries shall be affected by this situation as more and more people
will be willing to travel to the UK due to the loss of value of the pound. This implies that some
countries like for example Spain flight searches from UK has decreased by 14% which means
that the tourism industry as a whole of Spain is affected and witnessed a decline in tourist
arrivals and tourism receipts.

With Brexit along with other lingering concerns about terrorism given attacks in Paris, Brussels
and Istanbul, tourists will be more willing to travel to places apart from Europe as destination
thus implying an economic slowdown. Another issue is the flight prices will be affected as
some big airline companies buy their oil and airline fuel in dollars. The people working in the
tourism industry in UK will also be affected as 70% of all hospitality workers are migrant
workers thus as forecasted by the WTTC (2016) by 2020 there will be 75000 less people
working in the travel and tourism sector.

Brexit will also create difficulties for the British people wishing to travel to Europe as until
today only an identity document was enough to move within some areas, but the removal of
the country from the EU stated that a visa might be required when travelling to and within
continental Europe. Additionally, foreign travel and purchases will be expensive with the fall
of the pound against the euro for the British people.

There is also the risk of relocating global hotel enterprises which has chosen to settle in London
as they benefitted from free access to European markets and facilities. With the issue of Brexit,
there shall be huge competition hence increasing unemployment rate in the industry. Foreign
investors shall not invest in the industry until the situation is stabilized and the economy will
witness a negative economic growth.
10
9.0 Conclusion

‘‘The decision of Britain to leave the EU is not done yet and there are still speculations that
there will be veto votes by other EU members to prevent Britain from leaving the EU’’ as stated
by the Mauritian online news website Le Defimedia in 2016.The UK’s eventual exit from the
EU, dubbed “Brexit,” is a process that is expected to take place over the course of two years or
perhaps even longer, so any immediate impacts being felt at the moment including a rapidly
falling British currency are still premature.. Big companies like Starwood Hotels & Resort has
stated recently that it’s still too early to make a conclusion of the impact of Brexit on tourism
and travel industry but they will continue to promote UK as destination as well as their hotels
in the tourism market. Other countries like Mauritius said that Brexit shall promote movement
of labour to UK to work in the tourism industry. Therefore, to conclude, given the situation of
the Brexit, it’s still too early to say exactly what kind of impact this will have on the travel and
tourism industry.

11
Reference

URL:

http://www.defimedia.info/brexit-aftermath-what-consequences-mauritius. Accessed on 11th

April 2017]

http://www.express.co.uk/travel/articles/785780/brexit-tourism-europe-holidays [ Accessed
on 11th April 2017]

http://www.independent.co.uk/news/business/news/brexit-latest-news-tourism-pound-
sterling-value-drop-slump-holiday-foreign-visitors-christmas-period-a7524131.html [
Accessed on 9th April 2017]

https://www.wttc.org/-/media/files/reports/economic-impact-research/economic-impact_post-
brexit-update.pdf?la=en [ Accessed on 10th April 2017]

12
RQ3: How has Brexit affected the travel behaviour of international tourists?

10.0 Introduction

Tourism is ‘always associated with human nature’ (Reisinger, 2009, p. 265) as it is a people-
based industry. Understanding the travel behaviour of international tourists is therefore crucial
for destination managers and marketers in terms forecasting effects on inbound tourism to
Britain and outbound travel from Britain.

In the face of an awkward UK-EU divorce (if and when it is triggered), Pound Sterling
(GBP) has fallen significantly against the Euro, the United States Dollar (USD) and
other global currencies since June 24 2016 (Chipchase, 2016).

Leaving the European Union impacts future vacations for those with sterling in their
pockets, as a collapsing pound puts a dent in both incomes and euro spending money,
Richard Branson points out in a Virgin post. (Miller Farr, 2016)

11.0 Brexit affect travel behaviour

The fall in the value of the pound sterling has triggered less travel outside the UK borders as
outbound tourism figures showed a downfall since British holidaymakers are faced to pay more
than they actually bargained for their summer holidays as this accounts to additional 16% of
the travel costs as indicated by Simon Phillips, a retail director of Currency exchange services
(Chipchase, 2016). The same author argues that this plummeting of UK currency is expected
expand and is hence considered to have implications on the UK residents willingness to travel
away from their home-country due to reduced spending power. It is to note that in this situation
though, the highest currency order of the pound sterling, such effects are impacting on
international British tourist behaviour but a downfall in other currencies could also reverse the
actual situation.

A post Brexit is considered to impact on travel documentation for inbound tourism. Prior the
Brexit, European Union citizens were allowed to come to Britain with only a national identity
card and a post-Brexit would lead to UK officials to reimpose the rule that all foreign nationals

13
must have a passport, though the British travel industry would lobby strongly against anything
that makes it more difficult for many EU citizens to visit (Calder, 2016).

In line with the above arguments, with the Brexit after-shocks the “staycation” market has
shown amplification and this has also been due to ‘a spate of terror attacks within Europe’ as
described by Chipchase (2016). Britain’s coastal resorts and country retreats have reported to
have rising bookings since June, 24, 2016 and destinations including East Anglia, the Isle of
Wight and Yorkshire have showed a boom in domestic holidaymakers (Chipchase, 2016). A
shift from international tourist behaviour of the British to more domesticated holidays has
hence been observed in their travelling patterns and behaviour.

Moreso, the number of regulations imposed on international travel has impacted the British
travellers, wherein ‘some Brits are now anxious about the ease and cost of moving around on
the continent’ (Miller Farr, 2016). This is seen to be a distinctive element in behaviourism
where Reisinger (2009) articulated three domains: affect, cognitive and conation, which
influence the mind of persons and the latter’s behaviour. On the affect domain, Reisinger
(2009) posit influences of feelings, emotions and attitudes, related cognition to knowledge,
understanding and thinking and finally conation comprising of intentions, reasons volition and
will. This fear to travel of British travellers can therefore be explained through a mixture of the
human behavioural dimensions, where for example lack of information about post-Brexit
regulations which triggers uncertainty, negative feelings and emotions, which impacts on the
Brits, who tend opt rather for domestic vacations.

In a similar way, the above influences relating to the mind and behaviour of individuals, can
gear negative attitudes to visit Britain, especially among EU residents. According to a research
engaged by the travel-deals publisher Travelzoo, a third of the surveyed Italian and Spanish
travellers, 30% of Germans and 25% of French holidaymakers showed reticence to travel to
the UK due to the “leave vote” from the EU (Calder, 2016). The same research showed that
1/8 Americans and 1/10 Canadians demonstrated similar sentiments; of being less likely to
come to Britain following the Brexit (Calder, 2016). UK inbound tourism sector is dominated
by EU citizens with ‘two thirds (63%) of holidaymakers to Britain are from EU countries and
85% of passenger traffic to UK ports hails from the EU’ (Chipchase, 2016) and as indicated by
Paul Mason, contributor in economics and social justice contributor in the Guardian (Miller
Farr, 2016) other millennials, comprising of an overwhelming pro-Remain demographic
samples added ‘Free movement was a core principle of the EU, developed over time. We are
14
no longer part of that.’ These appear to be detrimental to the British inbound tourism industry
from international tourist behaviour and arrivals perspectives in relation to EU markets, relating
to changes in their behaviouristic inclinations.

Miller Farr (2016) argued that Brexit turmoil is no good news because it is more difficult to
attract travellers affected by a weakened currency. The same author also pointed out that the
EU-U.S. Open Skies Agreement allows EU and U.S. airlines to fly between any point in both
regions, but with the U.K. out of the EU and increased restrictions on air travel both to and
from the U.K. is not favourable for international movement of US and UK travellers to and
from the US and UK. Such turmoils caused on both sides from international tourism
standpoints appear to increase re-adaptation capacity, essential in this era of described as one
where ‘uncertainty is certain’ (Miller Farr, 2016). Hence, travel of behaviour of international
tourists has taken a new curve, where new behaviours would be emerging.

On a positive note, international behaviour of travellers has been favourable in terms of

shopping to the UK and according to Tax-free shopping business Global Blue, rise in spending
of visitors from Asia and US have been observed with the Brexit effect (Satchell, 2016). This
is due to the fact that the Asian and US currencies went further and as UK offers branded and
quality products, many of these international visitors have seized this opportunity for
purchasing goods.

The World Tourism Organisation (UNWTO) forecasts that the BRIC countries (Brazil, Russia,
India and China) would have continued gradual growth in their economies until 2030
(UNWTO, 2015) and as these countries would be the focus for the future in terms of tourism
spending, the Brexit has showed to be a test case for uplifting some disparities between the UK
and the BRIC currencies, and has been opening avenues for boosting the UK economy. Still,
however, maintaining positive relationships with EU countries is a major challenge due to the
high market share they account for Britain inbound tourism.

15
RQ4: What management and marketing strategies may be devised to face the Brexit
after-shocks?

12.0 Introduction

Tourist destinations in the European Union, UK, and countries dependent on the UK markets
need to consider several marketing and management strategies to make it throughout the Brexit
aftershocks. The DMO “visit Britain” has to focus more efforts as it is operating from a separate
entity from the EU marketing strategies. Also, destinations targeting UK travellers need to
understand the implications of the Brexit and devise new ways to manage this turmoil. The
marketing of destinations is related to promotional efforts that can be achieved by product
development, appropriate pricing policies, effective distribution channels, and product
packaging. With regards to destination management, tourism must be sustainable, not just
economically and ecologically viable, but also socially, culturally and politically sound. Hence,
an integrated approach is required.

First, information about travel documentation to Britain must be clarified. This will allow
illuminating users about travel regulations and encourage visitors preparing their holidays to
Britain. These can be translated in several languages, displayed on information portals of “visit
Britain” and the Association of British Travel Agents (ABTA). Dissemination of key
information and guidelines would hence be needed to allow visitors in planning their visits to
the UK. A focus on internet websites is needed as compared to traditional channels of
distribution, ‘the Internet provides more alternatives and more information to the consumers’
(Smith et al. 1999, Brynjolfsson and Smith 2000 cited in Chang, Chen and Chen, 2010, p.630).
A further focus would be provision of key information and not to overload travellers. Chang,
Chen and Chen (2010, p. 641) indicate the use of ‘personal decision strategies’ to reduce the
information overload problems.

Market Britain as a unique shopping destination. The UK, being a destination offering quality
products and services needs to become more known in that domain so as to allow visitors
seizing opportunities relating to the downfall of the pound sterling. In this respect, quality
standards must be maintained and regular checks to monitor the goods are needed. The previous
section put forward evidences where Asian and US markets seized this instant to grab goods.
Quality of services and experiences are also important components for management activities.

16
Enhancing the quality of service should be considered to increase tourist satisfaction. As a
result, these marketing efforts can have the potential to enhance the tourism attractions’ appeal,
as well as strengthen the competitive position of destinations (Mihalic, 2000). Additionally
with reference to the Brexit and associated security concerns in Britain, destination managers
and marketers need to focus on adequate security measures to reassure visitors. Emergency
preparedness and evacuation need to be planned and implemented efficiently by government
officials.

In relation to a study carried out by Divisekera and Deegan (2010) ‘tourists are forced to
consume available goods and services at destinations they visit’ (p. 1696). This has therefore
led to empirical evidence through their research in Ireland among consumption behaviour of
foreign tourists across the four major source markets, that demands are price inelastic in this
context due to lack of substitute products and information about commodity Divisekera and
Deegan (2010). Hence, as concluding remarks, the Brexit’s effects on consumption patterns of
international inbound visitors to UK as tourist destination may be unchanged as visitors are
forced to operate in ‘captive markets’ (Divisekera and Deegan, 2010, p.1696).

Destination marketers can resort to destination branding in such a case since according to Lee
and Back (2010), the latter certainly leads to better destination performance, same as strong
brand leads to competitive advantages. Fast becoming a strong strategic tool, due to increasing
competition between destinations, branding helps in changing visitor perceptions about a
destination in the aftermath of negative effects. The UNWTO (2009) referred to a destination’s
brand as the destination’s positioning in the mind of potential tourists and its competitive
identity. A change in identity shall encourage tourists to visit Britain even after its exit from
the European Union, henceforth not seeing the latter as a deterrent to their travel behaviour.

Focus on targeting BRIC countries with emphasis on China. Mminele (2017) argues that
‘increased globalisation has meant that BRICS has become an important source of global
growth and political influence’. Economies of BRICs have grown rapidly with a rising share
of global GDP from 11% in 1990 to about 30% in 2014 and BRICs report to over 40% of the
world population, embracing over US$4 trillion in reserves and further contribute to over 17%
of global trade (Mminele, 2017). According to the World Economic Forum (WEF), “China
was the world’s largest economy in 1820 and is the second largest economy today”. This shows
the economic strength of the country and the WEF announced that Chinese consumers are
17
spending more on lifestyle services and experiences while also moving from mass to premium
segments. These facts hence position China and other BRIC nations as strategic choices to
focus marketing efforts and can allow subsequent contribution to destination economies.

Negotiation and planning with US and BRICs. Relating to the previous discussion and due to
the US still maintaining the first place economic-wise, it would be essential for tourism
destinations to lay trade agreements with these countries. With the Brexit, Britain’s airline
agreements with the US needs to be renewed and planning for the UK to become a stop-over
for BRIC countries can allow competitiveness and economic growth. Planning of tourism
products and services through an integrated approach while considering the US and BRIC
markets to shape up new forms of travel and emphasising on business tourism may provide
more confidence to be generated within Britain and the EU countries as though exiting from
the EU, devising and implementing constructive strategies have to form part of the aftermath
of the Brexit.

13.0 Conclusion

On an ending note, with ‘Remain’ and ‘Leave’ campaigns of Britain may appear to be severe
but however this has provided new insights, that of re-structuring the world’s economy and
triggering strategies in view of democracy, where immigration is seen as a top concern at the
national level for the UK residents, where the Eurobarometer survey (2015) reported that 61%
of Britons viewed immigration as the most important issue facing the EU. Hence, it is within
democratic disciplines to take into account the views of the population but still, managing and
marketing destinations are challenging due to the variety of stakeholders involved in the
development new economic system, where exchange rate stabilisation is needed at the earliest
as

‘stable exchange rates would at least allow those with resources to adapt’ and ‘is how the trade
survived profoundly shocking disruptions of the Gulf War in the ’90s, 9/11, and the Great
Recession’ denotes Steinman, founder and CEO of NAJ Group (Miller Farr, 2016).

18
Reference

Bis.org. (2017). Daniel Mminele: The role of BRICS in the global economy. [online]
Available at: http://www.bis.org/review/r160720c.htm [Accessed 03 Apr. 2017].

Calder, S. (2016). How Brexit will affect British tourism. [online] The Independent. Available
at: http://www.independent.co.uk/travel/news-and-advice/brexit-british-tourism-impact-eu-
referendum-a7066371.html [Accessed 02 Apr. 2017].

Chipchase, J. (2016). Brexit and the UK’s Inbound Tourism Industry. [online] The Travel
Magazine. Available at: http://www.thetravelmagazine.net/brexit-and-uk-inbound-
tourism.html [Accessed 02 Apr. 2017].

Divisekera, S. and Deegan, J. (2010). An analysis of consumption behaviour of foreign

tourists in Ireland. Applied Economics, 42(13), pp.1681-1697.

Miller Farr, L., J. (2016). How Brexit Will Impact Global Tourism. [online] Available at:
https://www.fastcompany.com/3061361/how-brexit-will-impact-global-tourism [Accessed 01
Apr. 2017].

Reisinger, Y. (2009). International tourism. 1st ed. London: Routledge.

Satchell, A., M. (2016). Effects of 'Brexit' on our tourism? Experts say it's too early to tell.
[online] Sun-Sentinel.com. Available at: http://www.sun-sentinel.com/business/tourism/fl-
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