Brexit threatens London’s world beating tourism industry: Don’t let the capital become a museum
Tourism is one of our biggest exports – and London is the most-visited city on earth. But the industry is worried that this world-beating ranking could be at risk if Britain cuts itself off from Europe.
In fact, Europe is our biggest tourist market, with more than 60 per cent of visitors to the UK coming from the EU. Nearly three-quarters of business visitors come from the continent. So anything that encourages those visitors to think of other destinations is a concern for London’s hotels, flagship stores and attractions.
Of course, we’ll still be physically in the same location. The appeal of the capital’s iconic sights, unparalleled heritage and vibrant West End would still exist. So why should EU status matter?
In short, the EU has enabled low-cost, low-hassle travel. This has boosted the income generated from tourists travelling to London, and enabled British tourism firms to sell more not just to Brits but to the whole of Europe. Brexit would hurt the domestic tourism industry and our global tourism brands because it would, over time, increase friction – creating annoyances and costs (such as new visa requirements) that would make travel less appealing, and constrain access for UK businesses.
Read more: Nine Brexit myths rebutted: Why the City would suffer if we leave the EU
Take air travel. Without the work of the EU, cheap flights across Europe would never have happened. The EU’s liberalisation of Europe’s airspace has led to the rapid growth of low-cost airlines – including UK companies like EasyJet, but also those like Ryanair which have put London at the heart of their networks.
These low-cost flights have fuelled British businesses’ expansions, making it more affordable for smaller firms to visit prospective continental customers. They have also brought Europe to London, underpinning the £9.6bn spent in the UK by EU tourists every year.
A similar Open Skies deal with the US is only beginning to realise its potential. When further liberalisation between the EU and the rest of the world occurs, do we want to be part of that deal, or find ourselves excluded?
There’s another hit the tourism industry would face. Outside the EU, we’d see downward pressure on disposable incomes as the UK economy struggles with the consequences of Brexit – putting expenditure on non-essential leisure travel at risk, as well as impacting London’s high value business travel market.
Meanwhile, the protectionist, anti-immigration rhetoric of Brexit campaigners shows we could face draconian and economically illiterate restrictions on workers from outside the UK. This would be horrendous for hotels and attractions at peak times of year.
Read more: EU referendum: Businesses defend free movement
Tourism has been able to grow so rapidly, and contribute so much in tax revenues and jobs for British workers, because the industry has also had access to a huge pool of European hospitality talent and can hire people to meet seasonal demand or fill skilled vacancies. This is a difficult argument to make in public, but it has the merit of being true. It’s also worth bearing in mind that plenty of young Londoners gain experience by working in the Med’s tourism resorts.
Finally, there is a real danger that lucrative business travel to London could fall into long-term decline. That’s because the capital is currently the place global businesses want to put either their global or European headquarters. Outside the EU, we would start to see businesses locate their HQs in Paris, Berlin and Amsterdam. This would result in less investment in hotels, retail and attractions in London – and we’d see British workers losing their jobs.
Access to Europe has made London a world leader in business travel, flight networks, and global brands as well as tourist spending. London will always be a great historic city. We mustn’t let it become a museum.