Holiday prices to SOAR after shock Brexit result

It’s official; holiday prices have already begun climbing after Brexit result causes the pound to plummet

Family putting change in a piggy bank

by Kayleigh Dray |

The UK has voted to leave the European Union after 43 years.

Results were very close, with Leave winning by 52% to 48%.

England and Wales voted strongly for Brexit, while London, Scotland and Northern Ireland backed staying in the EU.

However, while Nigel Farage has backed this as the UK’s "independence day”, it seems as if leaving the EU is already having a drastic effect on the economy.

The pound crashed by 10% against the dollar overnight to 1.33 US dollars - and sterling is down against every major currency group.

Which means that, yes, it has plunged to its lowest level since 1985.

Bank stocks have also dropped by 30%, according to ITV News Business Editor Joel Hills.

He explained that this will affect us all far more than we may realise, saying: “The impact will be felt at the petrol pumps quite quickly (oil is priced in dollars) and more widely (the form of food bills and so on) in the months that follow.”

He added that, as a result of inflation, unemployment is “likely to rise” and a recession is very much on the cards.

But what does this mean for holidaymakers?

Well, it means that buying foreign currency is going to cost you a LOT more than you may have hoped.

As an example, we could have cashed in £100 for $152.90 back in November if we planned on visiting the United States.

But, this morning, you’d get just $133 - which means you money has lost around 15% of its value in just a few months.

According to Abta, this isn’t the only thing that could affect overseas travel.

While airports are running immigration and security as normal, Abta have warned that travel is “likely to become more expensive”, as travel businesses may raise prices to recoup the cost of new taxes and levies.

Consumers will also have to pay more for overseas health insurance if the UK leaves the European Health Insurance Card scheme.

They concluded their report as: "In the longer term, following a Brexit, travel is likely to become more expensive."

Joel Brandon-Bravo, UK managing director of travel deals company Travelzoo, also warned that the referendum result would have an impact on the tourism industry in several ways.

He said: "The next 24 months of negotiations will be crucial for British travel - particularly if the UK Government wants to maintain inbound tourism from the EU, and avoid a price hike for Britons wanting to travel abroad for holidays.

"Obviously top priority is dealing with the impact the referendum result will have on the value of the pound, but there are other factors that could make the result a big blow for the travel industry."

However, alternatively, the UK could be set to become a more affordable destination for overseas tourists.

Some experts have even said that the potential for increased tourism could have a beneficial effect on the economy.

Are you surprised by the results of the EU Referendum?

Let us know via Facebook or Twitter (@CloserOnline) now.

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