Britons abroad will have spent 10-15 percent more on foreign holiday expenses this summer due to sterling’s post-Brexit slide, according to a respected retail commentator quoted in City AM.
Using government figures for tourism spend, retail strategist Richard Hyman calculated that the nation will have spent £500 million more on holiday in July, August and September due to the Brexit vote.
The overspend will be the Brexit vote’s “first direct impact on consumers”, he said: when families return home, they will realise how it has hit their finances, and reduce their outgoings.
He said retailers will also have to contend with goods becoming more expensive at home next year.
“There will be a some direct impact of Brexit coming through in the next few months – but when the currency hedging runs out, things will become more difficult as the product becomes more expensive,” he said. “It’s not clear to what extent retailers can pass that on to customers.”