Thank you for subscribing!
Got it! Thank you!

Britain's Decision to Leave the European Union May Mean Short-Term Advantages for the American Tourist, But Long-Term Disadvantages

     It is far too early to assess the impact that Brexit (the decision by the United Kingdom to leave the European Union) will have on the economy of the world.  Various commentators have expressed differing views, though the general estimate seems gloomy.
     But from the selfish perspective of an American tourist planning a visit to Britain, the results of that fateful development are definitely advantageous. The British Pound has plunged in value from $1.45 to a current $1.31, greatly lowering the cost (for Americans) of a stay in the British Isles. And a similar decline in the price of oil, now selling for around $46 a barrel (down from $50), will lower the cost of a motoring trip (and will also exercise some downward pressure on trans-Atlantic airfares).
     Finally, there is already some anecdotal evidence that British travelers, subdued and concerned about the effects of Brexit, have cancelled their proposed vacations in the United States, and that flights from London to the U.S. are therefore starting to show a disturbing number of empty seats. This has led some transatlantic airlines to lower their prices for such flights in the coming months. Again, therefore, the British decision to leave the European Union seems to have improved matters for the American tourist.
     But all this, if it continues, has possibly been won at the cost of a worsened economic situation for the U.S. as a whole. If the British economy slips into recession, this will have some doleful impacts on the U.S. And if the European economy (France, Germany, Italy, Spain, et al) should slow because of Britain's departure from the E.U., this, too, could adversely affect business conditions in the U.S.
     The situation will bear close watching. But in the very, very short term, the surprising effects of Brexit will mean happier days for the American tourist traveling to Great Britain and Europe. Such a trip has become markedly cheaper, and some lucky tourists are encountering sharply reduced costs.