Weak rand counters Brexit bonanza
BREXIT is arguably the
most significant change
in the UK in recent times,
and has had a big impact on
the UK travel sector.
Reports from Europe and
the US show that travellers
are heading en masse to the
UK to take advantage of the
weakened pound following
the Brexit vote. But how
has it affected travel from
South Africa?
Theresa Szejwallo, md of
Trafalgar South Africa, says
she has noted an upswing
in sales, as the company is
actively promoting travel to
the UK due to the weakened
pound. However, although the
rand-pound exchange rate is
currently looking promising,
she says Trafalgar doesn’t rely
on the rate of exchange to
give guests the best value.
“We have seen a slight
increase in enquiries, however
booking numbers have stayed
the same for the immediate
future,” says Megan D’Arcy,
product manager for kulula
holidays.
She says South Africa’s
political issues have made the
local currency volatile, which
means that travel to the UK
is not necessarily cheaper for
South Africans.
John Ridler, pr and media
manager for Thompsons
Holidays, says the weaker
pound has boosted travel to
the UK to an extent, but that
political instability in South
Africa might slowly erode the
value of the rand against
major world currencies and
negate the effect of the
weakened pound.
When it comes to business
travel, John is confident that
Brexit could boost travel from
South Africa.
“Increased travel might be
on the cards for many South
African businesses as they
start negotiating new trade
agreements with the UK.”
Travel industry players
agree, however, that it is
still too early to predict the
true impact on travel from
South Africa.
“Brexit still has to find its
feet in terms of what it exactly
means,” says Jonathan
Gerber, director of TAG,
adding that, until such time
that the UK’s exit from the
EU has been negotiated, the
travel industry is playing a
waiting game.
“Everything has continued
as ‘business as usual’ for
the interim while the UK
negotiates its exit from the
EU,” says Megan.
“Until the terms have
been finalised, there is no
indication regarding how it
will affect anything relating to
travel.”
What will happen to airfares?
CONCERNS have also
been raised over the
impact of Brexit on
airlines and open sky
policies.
Even though weaker
sterling has meant lower
airfares in the short term,
the true impact will be
far reaching and will see
airlines shifting away from
the UK, says Ryanair ceo,
Michael O’Leary.
“UK traffic in the coming
year will slow and we
are predicting a drop
in growth from 15% to
six per cent, whereas
before the vote we were
predicting double-digit
growth again,” Michael
said during a press
conference.
However, not all airlines
have adopted this view.
The International Airlines
Group (IAG) confirmed
during a panel discussion
at the World Low Cost
Airline Congress in
London that the Brexit
vote had had ‘no impact’
on operations.
Whether airfares from
South Africa will increase
or decrease remains to
be seen. Megan D’Arcy
says this will depend on
the terms of the UK’s
exit from the EU and how
amicably agreements can
be reached.
According to Megan,
the UK is likely to further
enforce its border control,
as a large part of the
‘leave’ campaign focused
on the ability to control its
borders. “The UK already
has some of the highest
airport taxes in the
world and any additional
measures put in place to
control the flow of people
in and out of the country
would most likely have an
impact on the cost of air
travel, however whether
this would result in an
increase or decrease in
airfares remains to be
seen.”
Lesser-known areas offers good value
ALTHOUGH London remains a
favourite destination for South
Africans, travel agents and tour
operators report that travellers are
exploring beyond London and other
big cities.
Jonathan Gerber of TAG, says the
main reason is that there is far
better value around the UK than in
London.
Many travellers split their time
between London and beyond the
city, says Thompsons’ John Ridler.
“Not only is the English countryside
breathtakingly beautiful, it is also
much more affordable than the city.
“Thompsons offers numerous
packages to lesser known areas
such as our three-day ‘Historic
Yorkshire and the Dales’. Or, we
can make up a bespoke package to
travellers’ requirements.”
Scotland
Megan D’Arcy, of kulula holidays
says for most South Africans
London remains the main
attraction but kulula has started
adding on a few nights in other
destinations. “The Lake District is
relatively popular, as are Scotland
self-drive packages.”
Theresa Szejwallo, md Trafalgar
South Africa, says often travellers
will opt to book an eight-day London
Explorer followed by the Best of
Scotland, which is a seven-day At
Leisure exploration of Scotland
that takes in Glasgow, Glencoe, the
Scottish Highlands, the Isle of Skye,
Inverness, Loch Ness, Pitlochry, St
Andrews and Edinburgh.
Edward Frost, British Airways
commercial manager for East and
Southern Africa, says the Christmas
markets, which are springing up
everywhere in the UK, are prompting
South Africans to look beyond the
big cities. Hogmanay in Edinburgh is
especially a drawcard, says Edward.
Northern Ireland
Ireland is another niche destination
that has seen a steady increase in
demand from South Africans, says
Megan.
Jane Davidson, director of
Development Promotions, says that
the fall of the pound after Brexit has
boosted travel to Northern Ireland
considerably and says the main
tourist attractions are Belfast and
Londonderry. “Both are very compact
and can be covered in a day and are
worth including in any itinerary.” She
adds that Belfast’s main attraction,
Titanic Belfast, at the site where the
iconic ship was built, is not to be
missed.
Jane suggests the Causeway
Coastal Route as an addition to
itineraries. It travels north from
Belfast along the spectacular Antrim
coast to the Giant’s Causeway, which
is described as the ‘eighth wonder of
the world’.
Explore the cities!
TRAFALGAR recently introduced
the Explorer range, which gives
guests the inside story on the
most exciting capital cities, with
explorations further afield that truly
augment their experience. Theresa
Szejwallo says: “For example, on
our eight-day London Explorer we
supply our guests with a threeday
London Oyster card pass
and give them a great city tour of
London. Then we have excursions
to Stonehenge and Windsor
Castle, optional experiences to
Oxford and the Cotswolds, a visit
to Kensington Palace, the London
Borough Food Market and two of
the iconic British museums – the
Tate or the British Museum. We
also include a scenic river cruise
on the Thames from the London
Eye to Greenwich.”
