THE rapid depreciation of
the British pound in the
days following the UK’s vote
to exit the European Union
is good news for South
African travellers to the UK
because they will get more
rands for their pounds, says
economist, Roelof Botha.
At the time of going to
print, the rand was R20,10
to the pound, having dropped
from R22,29 on June 1.
While the rand weakened
against the dollar in the
aftermath of the referendum,
the pound took a dip to
levels last seen three
decades ago, making it
cheaper for travellers to
visit the UK at the moment
because the pound is so
weak,” Roelof says.
Studies done by Iata reveal
that the UK currency is
expected to remain in the
region of 10-15% weaker than
would have been the case
under a no-Brexit scenario,
although it is expected to
recover somewhat over the
medium to long term.
These currency fluctuations
during Britain’s exit from the
European Union will make
long-term planning a bit
tricky, says Susan Thesan,
operations director of
British T.I.P.S.
At the same time, the
weak pound is bad news for
inbound tourism to South
Africa, says Roelof.
“The UK is South Africa’s
biggest source market, so
the fact that their currency
has depreciated so greatly
means they are less likely to
travel, at least until the pound
stabilises,” he says.
Impact on visas
The free movement and
working rights of EU citizens
will remain unchanged for the
time being, according to a
White Paper released by the
UK House of Commons, titled
Brexit – What Happens Next?
What happens in practice in
the longer term would depend
on the approach taken by the
UK government and the 27
Member States during the
UK’s withdrawal negotiations,
the report said.
It added that, while it was
possible to argue that Brexit
could lead to enhanced visa
options for Commonwealth
nationals (including South
Africans), it was not possible
to state with any certainty
what a post-Brexit UK
immigration policy might
look like.
There is also the possibilty
that with Britain leaving the
EU, it could have different
implications for different visa
categories.
