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Brexit makes UK more affordable, say destination management companies

DMCs say fall in sterling following the EU referendum result has made the UK a more affordable option
28/06/2016

Pictured: Paul Miller, Spectra MD

The fall in sterling following the EU referendum result has made the UK a more affordable option, according to destination management companies (DMCs).

But DMCs were also cautious about predicting the long-term effects of Brexit on business.

Paul Miller, MD of Spectra, said: “On Monday we received a unprecedented surge of new enquiries from our EU clients for sizeable conferences and meetings for either later this year or early 2017. We concluded that perhaps clients feel, due to the exchange rate fluctuation, that the UK is perhaps more affordable.

“It’s difficult to tell, but we have always felt there has been a pent up demand for the UK for some time and, pre-Brexit,  the exchange rate against the euro was prohibiting clients from selecting our destination over less expensive countries and cities within the EU.”

Emma Wellstead, MD of Warwick Events, said: “Our clients don’t know how it’s going to affect business. It could make the UK cheaper, particularly with the American market. You’ve always got to look on the bright side. 

“We don’t see the number of American corporate groups in Warwick and Stratford that we might, especially with our history. We will now advocate a push for American business. We will become more affordable as sterling takes a dip.”

Rob Russell, director of AC Tours, said: “We have seen a bit of a mixed business picture since Friday’s result. There is some concern in the market that people are reluctant to confirm business for 2017 until the pound steadies, but at the same time we have had some very on the ball clients offering to pay now for future business to make the most of the lower rate that is currently in place.

Overall it would be fair to say that it is business as normal for us.”

  • Hugo Ponsonby Smythe of PS Taker Investments Ltd 28/06/2016

    Despite the recent changes the Euro was more expensive (and thus the UK cheaper) in most of 2008, all of 2009 (at one point just 1.04 to the £) and nearly all of 2010, pretty well most of 2011 and 2012, all of 2013 and even a vast chunk of 2014. I'm sure there are other reasons that make London and the UK attractive.


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