Brexit vote could boost UK tourism

Tourism experts say more Chinese visitors are likely to travel to Britain now as a result of a weaker pound brought about by the vote to exit the European Union.

The referendum sent the pound plunging on June 24, slipping nearly 10 percent to $1.3229 at one point, its weakest level since 1985. But while the low value of the pound was bad news for many, the weakened currency will mean lower prices for Chinese tourists.

Li Gang, co-founder of the International Association of China Tourism Studies, expects an increase in Chinese visitors and says the fall in the pound is a good incentive for them to shop more in Britain.

"Chinese tourists are generally price-sensitive, and shopping is one of the key motives of their visits to the UK," he says.

Li's view is echoed by David Higgins, general manager of China Links Travel, who adds: "Based on the weakening pound, we should see more Chinese coming over, as it offers them good value. This in turn should help the retailer who provides a service for the Chinese market."

Chris Newlands, CEO of an online travel agency based in Scotland, says a devalued pound will offer better value for many international tourists, not only Chinese, which is something the industry can promote as a rare opportunity to make the trip of a lifetime or to purchase high-end luxury items at bargain prices.

He believes Chinese tourists will continue to visit Britain because the visa process will remain unchanged after its exit from the EU, as the country did not sign up to be part of the Schengen area. So obtaining a visa to work or study in Britain will not change as a result of the Brexit.

Britain is likely to look more at countries including China as it seeks post-EU relationships, Newlands adds. "From the long-term perspective, the UK will want to encourage even stronger bonds with China and other non-EU countries as it seeks deeper trading and cultural ties outside the EU."

In recent years, Britain has become an attractive overseas destination for Chinese tourists. Nearly 270,000 Chinese holidaymakers visited last year, up almost 46 percent on the year before, when the number was 185,000, according to a report by VisitBritain, the official tourism board.

The report also shows that the money spent by Chinese tourists soared by about 18 percent last year, bringing the total to more than 586 million pounds ($800 million; 720 million euros).

VisitBritain, which hopes to see spending from Chinese visitors double to more than 1 billion pounds by 2020, says the Chinese are already some of the biggest spenders in Britain, forking out an average of 2,174 pounds each.

"We're anticipating a strong summer holiday season as we continue our global Home of Amazing Moments marketing campaign to show people why they should book a holiday and come visit Britain," the tourism authority said in a statement.

However, Yang Jingjing, a lecturer on tourism development at the University of Surrey, is not convinced. He feels that a weak pound will not necessarily bring tourists flooding in.

"The Chinese yuan may also fall due to the flexible currency policy, which may counteract the exchange rate benefit," she says. "Meanwhile, the euro may fall, which will attract Chinese tourists into the eurozone.

"In addition, a devalued pound along with increased tariffs may increase the cost of luxury goods imported into the UK, offsetting any benefit."

Yang says tourists consider a number of factors when choosing where to travel, not only exchange rates. They also look at safety, stability, the tax refund situation, the visa process, travel distance and language barriers, she says.

"All these factors will influence the number of Chinese tourists visiting and shopping in the UK."

wangmingjie@mail.chinadailyuk.com