The UK's vote to exit the European Union had made many investors wary of its future as a country with enough political and economic stability to do business. A huge investor pullout can make confidence in the UK's pound sterling decline -- namely its current predicament of a low value compared to its initial 2014 levels. British travelers may find some items and services that seemed affordable in the last few years a bit more expensive abroad.
According to The Express UK, the Pound Sterling is approximately 15 percent less than its original value against the dollar and believe that UK travelers could still handle the dip because it had dealt with bigger downs since the 2008 financial crisis. Citing FairFX Travel Money Expert CEO Ian Strafford-Taylor, travelers must be wary not to use airports to change their currencies -- as it will only result into a poor deal -- and instead go for better money changing rates from banks themselves.
On the upside, the pound's weakening had helped foreign tourists spend more for UK's tourism economy. According to The Independent UK, Indonesian travelers have almost doubled their spending by 88 per cent. The Independent UK cites data from the UK's Office of National Statistics indicates the pound's immense $1.15 value against the US dollar had helped encouraged shopping travelers to head to the country.
There are clear beneficiaries for the Brexit vote aside from the "Leave" party's intentions and voters supporting the referendum results such as UK exporting companies. The weak pound had helped countries to order more bulk UK export products, improving the profit of said companies. Property purchases even in London had improved in the third quarter of 2016.
However, UK travelers might find European trips a bit more expensive for 2017 and the ensuing years especially after the UK has officially left Europe. As it stands, EU's privileges to UK travelers still exists but this may change in the next few years. It may mean further fluctuations to the UK's pound sterling -- meaning European travels and destinations may not be as accessible as they were in the past.
