Many UK holidaymakers travelling abroad will pay more for foreign currency as the pound plunged to its lowest level since 1985 following the EU referendum.
Sterling was down against every single major currency group.
The pound crashed 10% against the dollar overnight to 1.33 US dollars, a low not seen in 30 years, while £1 will get you 1.22€.
This could make the UK a more affordable destination for overseas tourists.
The victory for the Leave campaign is unlikely to have any immediate ramifications for UK tourists passing through immigration controls abroad, or for inbound tourism.
Conversion rate at a glance:
- Pound to euro exchange rate today down 6.4% at 1.22
- Euro to pound exchange rate: 0.82
- Pound to dollar exchange rate today is 9.8% down at 1.33
- Pound to Australian dollar exchange rate today 6.35% down at 1.83
- Pound to New Zealand Dollar exchange rate today 6.6% down at 1.92
- Pound to Swiss Franc exchange rate today 8.57% down at 1.30
- Pound to Yen exchange rate today 13.77% down at 1.36
A spokesman for Heathrow Airport said: “Anyone travelling through the airport will find it operating normally with no changes to security and immigration.”
Bill Gibbons, director of industry body Discover Ferries, which represents 12 ferry companies, insisted that the vote will not have an impact on summer travel plans.
“Ferries will continue to travel as normal and there will be no changes to routes or schedules,” he added. “It will be business as usual.”
Joel Brandon-Bravo, UK managing director of travel deals company Travelzoo, warned that the referendum result would have an impact on the tourism industry in several ways.
He said: “The next 24 months of negotiations will be crucial for British travel – particularly if the UK Government wants to maintain inbound tourism from the EU, and avoid a price hike for Britons wanting to travel abroad for holidays.
“Obviously top priority is dealing with the impact the referendum result will have on the value of the pound, but there are other factors that could make the result a big blow for the travel industry.”
Mr Brandon-Bravo urged the Government to quickly negotiate how an independent UK will operate in the European Common Aviation Area.
Travel organisation Abta warned during the referendum campaign that foreign travel was “likely to become more expensive” following Brexit.
It published a report which stated that holidaymakers and business travellers may face increased costs if an exit vote leads to a fall in the value of sterling, while travel businesses may also raise prices in order to recoup the cost of new taxes and levies being introduced.
Another potential factor which could make travel more expensive is consumers needing to cover additional insurance costs if the UK leaves the European Health Insurance Card scheme, according to the report produced with economic analysis by Deloitte.
The research concluded: “In the longer term, following a Brexit, travel is likely to become more expensive.”
Andrew Swaffield, chief executive of low-cost airline Monarch, responded to the study by saying that the UK leaving the EU could lead to an increase in air fares and a reduction in the number of flights.