Potential Brexit Fallout Will Effect Business Travel
Business Travel In Western Europe On The Rise
According to the GBTA BTI™ Outlook Annual Global Report, business travelers in Western Europe generated $310 billion in total business travel spending in 2017.
The only major drag on the Western European business travel market has been the UK, which declined -0.7% last year. The region saw 4 percent growth over 2016 levels including 5.6 percent growth in Germany, 3.9 percent in France and 6.3 percent in Spain.
The Impact Of Brexit
The decline in Britain has been driven by the fallout from the Brexit vote – a weakening pound, increased inflation and the associated pressure on consumer spending.
GBTA projects moderate to strong growth is on the horizon in Western Europe with Germany, France and Spain all growing their business travel markets in the 4-6 percent range.
The biggest downside risk for the region, however, comes from the British business travel market, as the health of the market will hinge on the final terms of Brexit negotiations.
As Brexit looms, look for the fine print from European based airlines, which may include Brexit caveats in tickets sold for travel after March 2019. The warning: Flights might be grounded by “the regulatory environment.”
You can access the full report here.
Last week in other Brexit news, we discussed the guidelines released by HMRC to help businesses prepare for a No-Deal Brexit scenario, and how Brexit is likely to impact your VAT reclaim.
Are you worried about how Brexit may impact your business? If you need to speak to VAT experts to find out more, get in touch below.
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