How Aussie travellers will be stung by Brexit
Think the Brexit won’t affect Aussie travellers? Think again, as the global impact of the Brexit referendum with a “yes” vote is expected to have a significant effect on the exchange rate.
Economists are forecasting the Australian dollar to strengthen against the British pound, but lose momentum against the US dollar, according to CommSec.
CommSec. senior economist Craig James said currency strategists at the Commonwealth Bank believed the Australian dollar could fall 2.5 percent against the US dollar, while a rise of eight percent is expected against the pound.
Should the vote swing in the opposite direction, it will most likely to see an initial rally in the pound sterling against the US dollar, before it reverted back to current rates.
James said the impact of Britain leaving the EU on travel and tourism would be minimal despite predictions by the Bank of England it could plunge the UK into recession.
“Tourists would still come from Europe and the UK to Australia and Australians would continue to travel to Europe and the UK,” James added.
Interesting enough, an extra visa may be required for Australians if the UK separated from the EU. Traditionally, travellers who go through Britain automatically gain entrance to all the EU countries. If Brexit does occur, for Australians you will most probably have a special stamp for coming into the UK and another stamp for EU countries.
Email the Travel Weekly team at traveldesk@travelweekly.com.au
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