Adam Burkinshaw, partner in our holiday and caravan park division, talks about how ‘Brexit’ could affect the UK holiday market.
“Brexit has created a further degree of uncertainty in the UK property market, but there’s one part of the market that is well placed to capitalise on the effects of the recent vote to leave the European Union – the holiday and caravan park market.
With often idyllic countryside or beachside locations, holiday and caravan parks have always proven to be popular holiday destinations with UK tourists. The emergence of ‘luxury’ lodge style holiday parks and increasingly popular ‘glamping’ sites has widened the appeal of the market to tourists wanting high-end UK breaks.
Over recent years in particular, the UK holiday and caravan park market has been buoyant. The recent recession, coupled with the increasingly trendy ‘staycation’ concept has helped to make holidaying in the UK a more popular choice amongst UK tourists. And whilst holiday and caravan park bookings were already looking promising for 2016, some park operators have already enjoyed a surge in enquires since the vote.
Tumbling exchange rates are one the biggest reasons, with the value of the pound at 31-year low, UK tourists are getting far fewer euros or dollars when exchanging their pounds, making holidays and spending abroad more expensive than before. Uncertainty on whether low-cost airlines will be able to continue to offer favourable fares, or whether the pound will recover, could mean the number of UK residents looking for holidays at home continues to increase.
A drop in the value of the pound will also give international tourists more incentive to visit the UK. Just last month VisitBritain published record figures for the first quarter of 2016 for inbound visits to the UK (a 6% increase on 2015), which could be set to rise again sharply as the cost of visiting the UK goes down for over-seas tourists.
As the market leaders in the valuation and sale of UK based holiday and caravan parks, we’re pleased to see one of the more positive effects of Brexit – improved trade and profitability will continue to drive an already buoyant market for holiday parks in the UK”.
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