Rhys Griffiths, partner at Fox Williams, gave agents at The Travel Network Conference (TTNG) an update on the impact of Brexit, in particular a no-deal Brexit, on the travel industry.
At the time of writing, British Prime Minister Theresa May had been granted a short extension by the European Union on Article 50 after her withdrawal agreement was rejected twice by MPs in parliament. Over the weekend, Mrs May wrote to all MPs to outline the four options remaining, which are to revoke notice on Article 50 and stop the Brexit process; a no-deal Brexit on April 12; to come up with a new plan and ask the EU for a long extension, resulting in the UK having to participate in EU elections at the end of May; and to agree to implement her withdrawal agreement so the UK can leave the EU on May 22.
"No deal is still very much a possibility," Mr Griffiths told agents in Budapest, advising them to "hope for the best but plan for the worst". He said that in the event of a hard, no-deal Brexit, automatic freedoms to travel, live and work in the EU will change so agents should "understand the issues and be prepared".
In regard to the impact on flights between the UK and the EU, Mr Griffiths was able to give positive news, with the EU saying it will grant a 12-month extension to the current open skies arrangements so UK carriers can continue to fly into and over the EU. This is on the proviso that the UK agrees to reciprocate, which it has done. This means agents can reassure customers that flights will continue between the UK and the EU for at least 12 months in the event of a no-deal Brexit.
However, there is no similar arrangement in place for bus and coach travel between the UK and the EU. Mr Griffiths said the government has been looking to sign up to the Interbus agreement, which allows buses and coaches from non-EU countries within Europe to travel easily across the continent, but no such agreement has yet been made and there is no guarantee this will happen in time for the UK leaving the EU. Mr Griffith said that UK-based coach operators could look into getting authorisation in Europe, although this could prove expensive particularly for smaller companies, or look into sub-contracting coach services to EU-authorised companies. UK bus drivers will need EU-approved certificates of professional competence as UK certificates will become invalid in the event of a no-deal Brexit. The same situation will apply to EU bus drivers looking to drive in the UK post-Brexit.
For customers who want to drive in the EU, agents should advise them that their UK driving licence alone will no longer be enough after Brexit. Drivers will need to get an International Driving Permit, which costs ?5.50 and is available from most post offices. Depending on where in Europe the customer plans to drive, they will need to obtain either a 12-month 1949 Geneva permit, which covers Ireland, Spain, Malta and Cyprus, or a three-year 1968 Vienna permit, which covers all EU countries plus Norway and Switzerland.
British travellers, as well as any other non-EU citizens, visiting the EU after Brexit will need to travel on passports that have been issued in the last 10 years and have six months validity on the date of arrival into the EU. Additionally, there is an EU proposal to allow UK citizens to travel visa-free for 90 days within a 180-day period in the Schengen zone, subject to the UK reciprocating this arrangement for visitors to the UK from the EU. Longer stays in the EU "may require a visa", Mr Griffiths told agents. From 2021, there are plans for an Electronic Travel Authority visa, similar to the one required to visit the US. This would cost 7 euros and be valid for three years.
As well as stricter visa requirements, Mr Griffiths said that post-Brexit, UK citizens travelling to the EU can expect longer queues and possibly more passport checks and questions, such as length of stay, at airports and ports. In particular, delays could be expected at major commercial ports, such as Dover, as a knock-on effect of longer customs checks for shipping.
For travel companies that employ staff from the EU, they will be able to stay in the EU with their families if they apply for settled status, for those who have lived in the UK for five years or more, and pre-settled status for those who have lived in the UK for less than five years. These EU citizens will then have the right to remain in the UK and can apply for British citizenship. However, the position for UK citizens currently living in the EU is still uncertain. Each EU member state has to decide how to administer the residency status of UK citizens post-Brexit. Mr Griffiths said that the EU "encourages member states to take a generous approach in this regard", and Spain has already made plans to reciprocate with a programme similar to the UK's settled status scheme.
Insolvency protection will become more complicated in the event of a hard Brexit, Mr Griffiths cautioned as mutual recognition of insolvency protection will end. EU companies will not be able to use EU insolvency protection when selling to UK customers and vice versa. UK retailers will need to have proof of package tour regulatory compliance by organisers based in the EU, and take out insolvency protection for each EU market into which they sell, which will add to business running costs. EU tour operators will need to be ATOL members. When selling packages with EU-based tour operators, UK agents will be obliged to check and have proof that non-UK organisers comply with ATOL and UK package holiday regulations.
"The choices are pretty stark," said Mr Griffiths of the implications for the end of mutual recognition of insolvency protection.
