BREXIT – What happens next BREXIT – What happens next? John de Vial, Director of Financial Protection

Brexit – where are we now? Divisive result, but UK public appears to be moving on Political earthquake Government clear it will honour the result, and: The UK will not invoke Article 50 this year The PM has said the UK will not seek to replicate an existing trading relationship with the EU Will seek limits on freedom of movement Two-year timeframe for exit negotiations (countdown begins once Article 50 invoked) These negotiations do not necessarily have to include a new trading agreement

Economic Review: Waters Calmed

But, is there trouble ahead? Sterling remains low against the Euro and the Dollar Impacts on costs and prices Pressure on inflation – increase will see cost of imports rise and impact on consumer spending powers The full economic impact will only be known once the shape of a UK-EU deal begins to emerge

ABTA’s immediate focus… Maintaining confidence in travel Consulting on priorities and opportunities Influencing the Brexit negotiations Keeping focused on the industry’s domestic agenda

Policy priorities… It’s important to make politicians aware of the economic value of outbound travel to the UK economy, which is more than that of inbound visitors. Maintain access to liberalised transport markets Single market in aviation (and other modes) Open Skies + bilateral air services agreements 85% of routes by passenger volume tied to EU 2. Protect employment rights, enabling businesses operational continuity Posted Workers Directive High dependency on EU nationals Link between employment and market access

Priorities continued 3. Ensuring visa-free travel to the EU Avoiding barriers to travel EU is UK’s largest market 2/3 of inbound; 75% outbound 4. Keeping the EHIC Important for consumer confidence Consumer priority according to ABTA survey Applies currently to non-EU countries, but tied to an EU regulation (so not automatic) 5. Exploring regulatory opportunities presented by Brexit

Key takeaways Referendum result has been divisive, but Government is clear it will enact the result. We have not started the process of leaving yet, and it is too soon to gauge the economic repercussions of the result. The immediate focus for the industry should be ensuring we retain confidence in travel. Operators have a very strong value message for consumers. Important that travel makes its voice heard in negotiations. Those seeking to influence will need to bring opportunities to the table, as well as highlighting risk. Share your priorities with ABTA and your trade bodies.

Thank you Luke Petherbridge, Public Affairs Manager E: lpetherbridge@abta.co.uk T: 020 3117 0578 www.abta.com/eureferendum