Post-Brexit Tourism Stable So Far

The United Kingdom’s sudden currency depreciation in the wake of Brexit is making the newly independent nation a budget destination for international travelers.

The economy, supported by its service and tourism industry, grew by a quarterly rate of 0.5 percent in the three months after the referendum passed. Britain’s future is uncertain with rising inflation and upcoming negotiations with the European Union.

For travelers, a weaker pound translates to a favorable exchange rate, meaning cheaper hotels, food, taxis and luxury shopping. London’s Regent Street is reporting a boost in sales fueled by tourists seeking cheaper goods. The low prices won’t last forever; a depressed pound will eventually force retailers to adjust prices.

Tourism boards in Ireland were fearful of lost business, but the Central Statistics Office is reporting a 9.3 percent growth in tourism from British residents, as well as a 10 percent growth from Europe and 15.9 percent growth from North America. The UK is also receiving an influx of visitors from China who favor the boutique fashion scene of London to the luxury stores at home.

While its economy remains stable and supported by the service industry, economists are on the lookout for potential consequences of rising inflation and stagnating investment in the coming year.