MARKETS may still be volatile following the affirmative Brexit vote on June 23, but industry experts are already projecting uplifts for the UK’s inbound business due to a weakening pound.

Estimates are mostly based on the short-term for now as Britain comes to terms with the new reality, but preliminary findings by IATA suggests that international arrivals will increase with most currencies gaining strength over the sterling.

IATA reported broadly that “a weaker pound has raised the attractiveness and affordability of the UK relative to other destinations.”

This sentiment is similarly held by intermediaries such as metasearch engine Wego, which operates in Asia-Pacific and the Middle East.

Said its CEO and co-founder Ross Veitch: “The pound has dropped 9.8 per cent, with the value of the pound to the dollar at 1.34 in early trading since the referendum result has become clear, which means a UK holiday is going to be cheaper for most foreign tourists than it has been for about 20 years.

“(This means) in-destination trip costs such as accommodation, dining, entertainment and shopping will allow significantly better value for the foreign traveller after exchanging their local currency.”

Concurring, David Tarsh, managing director of UK-based Tarsh Consulting, which serves many in the travel industry there, said: “Brexit brought a slump in the value of the pound. Overnight, hotel rooms, taxis, restaurants and all visitor attractions in the UK are better value. I will not hesitate to invite people based abroad to come here and enjoy the value.”

Still, while many stand to gain from the currency depreciation, travel businesses there face uncertainty as key issues such as aviation policy, visa permits and unrest on the ground linked to xenophobia surface.

Commented David Scowsill, president & CEO, WTTC, following the Brexit vote results: “We are entering a period of market uncertainty which will undoubtedly put pressure on travel and tourism businesses, however we know that our sector is resilient and we expect business and leisure travel to hold up in the face of these challenges.”

Alicia Seah, spokesperson for Singapore-based Dynasty Travel, says she is less concerned about the racially aggravated attacks in the UK as they “appear to be isolated cases”, and is more concerned with the effects of Brexit on cross-border travel.

“The only worrisome issue we have is the Brexit impact on flights within Europe and access across the borders. Scheduled flights within Europe may be affected (if restrictions were put in place after the exit of the UK from the EU) and the airfares of these flights may go up as a result. Travellers from outside of Europe will be inconvenienced should they want to explore the region,” she said.

This regulatory uncertainty can lead to a change in air passenger behaviour as well, reasoned Veitch, who said that London, which has served as one of Europe’s major gateways for a long time, may now become less attractive for travellers within Europe. Arriving at other entry points such as Paris or Frankfurt may now prove more convenient for multi-destination travellers.

He added: “The UK’s airline network may also have to review regulations, which as a part of the EU secured single aviation area treaties across Europe, which may increase airfare costs for the UK’s national carriers. Accommodation costs however, could drop, as Britain fights to retain its large inbound visitor numbers from Europe who will no longer be able to travel freely into the country.”

Overall, this will likely lead to neutral traffic flows for travel and tourism businesses in the UK, with push and pull factors happening in tandem.

IATA predictions place a 1 to 1.5 percentage points decline in air traffic in the UK over the next few years, stating that the impact of the weaker sterling is likely to be relatively muted.

“This relates to the fact that we expect the weaker exchange rate to stimulate inbound demand to the UK to a greater extent than it deters outbound trips. As a result, despite inbound traffic accounting for a minority of traffic in the entire market, this will, in part, offset the negative impact on outbound travel,” explained IATA.

Additional reporting from Karen Yue

LAURENS van den Oever will fill the role of chief marketing officer of travel intelligence company ForwardKeys starting August 1, 2016.

Van den Oever, who has over 15 years’ experience in marketing and research across multiple industries, will lead ForwardKeys’ global functions including marketing strategy, product development and marketing communications.

Prior to the appointment, he was global head of travel and hospitality at GfK, which in 2015 launched a partnership with ForwardKeys.

LOT Polish Airlines launched a chartered service between Warsaw and Denpasar, Bali on June 23, marking the first direct service between Poland and Indonesia.

The airline’s Boeing 787 Dreamliner carrying 255 passengers arrived in Bali on June 24 at 06.00.

Indonesian ambassador for Poland Peter Gontha, when gracing the launch of the maiden flight at Chopin Airport, said the service was a historic moment for tourism between the two countries.

He said: “Many people do not believe in the potential of travellers from Central and East Europe, (but) the Indonesian embassy has always made an effort to create new markets for Indonesia.”

The chartered service is a collaborative effort between Rainbow Tours Poland and Panorama Destination Indonesia.

It will be available every two weeks until March 2017 and Panorama Destination targets to bringing 5,000 travellers from Poland.

Tourists are scheduled not only to visit Bali but also travel to other destinations like Java, Komodo-Flores, Tanjung Puting-Kalimantan, Toraja and Papua.

Ricky Setiawanto, director of Panorama Destination, said: “Arrivals will be based on a scheduled service every two weeks, with an average of 250 tourists per arrival.

“The strategy to bring tourists by chartered flight back-to-back is a new trend and has two major benefits – it is an easier way for tourists to visit, and it also brings in more tourists to Indonesia.”

Szymon Chojnacki, director of product at Rainbow Tours said the high demand for travelling from Poland to Indonesia over the last few years was also a strong reason for this initiative.

PASSENGERS affected by a strike organised by China Airlines’ (CAL) flight attendants from June 24-26 will be reimbursed by the carrier for the inconveniences caused.

According to a CAL statement, those affected by the flight cancellations will be offered US$100 in coupons, or other currency equivalent, as well as for their airfares, ground transportation, accommodation and meals.

They can file for a refund by providing receipts or other related documents of tickets booked with other airlines as evidence. The same process applies for any hotels booked or meals and ground transportation taken.

CAL will also reimburse for group tours booked and then cancelled due to the crew strike. The process can be initiated through travel agencies or directly with CAL at their branch offices or customer service hotline.

“China Airlines is deeply sorry for causing passengers and travel agencies inconvenience due to the strike that had affected the normal operations of our flight schedules. We promise we will not let our partners bear the cost themselves,” said CAL.