Will Brexit cause a rise in do

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Will Brexit cause a rise in domestic holidays?

Has the drop in the value of the pound made the British more cautious about holidaying abroad? Has it made it more attractive for people to holiday in the UK?

Will Brexit cause a rise in do

Supplied

The threat of a hard Brexit has caused the pound to plummet relative to other currencies.

After Brexit, British holidaymakers looking to travel to EU countries may have to pay a £6 fee to buy the relevant documentation to gain access to countries within the EU. Coupled with the concern that once Britain leaves the EU, UK citizens will no longer have access to free healthcare has meant that holidaymakers are increasingly looking to spend some time within the island’s borders. 

In 2015 before Brexit British holidaymakers enjoyed 42 million foreign vacations but escaping the country’s grey clouds and lacklustre summer temperatures to sizzle on a beach in Spain was not always the tradition it is now.

Going back to the post-war era and many holidaymakers stayed within the island’s borders and enjoyed the pebbled beaches in Brighton and the bright lights of Blackpool. Those flush with money would consider Devon or somewhere in the south west where there are sandy beaches and the promise of a warmer climate.

Top ‘staycation’ destinations for British holidaymakers

London remains the most popular place for both British and international tourists to visit but there has been a record 16.5m visits to areas outside the capital in 2017. Counties such as Cornwall and Devon in the south west of England are always popular with tourists due to the temperate climate and rugged coastal landscape.

Devon is one of the most popular staycation destinations in the UK according to a study conducted by Travelodge. Torquay is the third most popular travel destination according to Tripadvisor, beating places such as Bath and York in terms of the quality of hotels, attractions and restaurants.

It is no surprise Devon is loved by British holidaymakers, it is home to some of the most picturesque countryside and miles of sandy beaches. It is also home to Dartmoor and Exmoor National Parks and a host of medieval towns, meaning that there is something everyone can find enjoyable and interesting in the county.

The lure of the weak pound to overseas holidaymakers

It is not just British who are finding the UK an increasingly attractive holiday option, in 2017 a record 40m international tourists visited the United Kingdom. Overseas travelers are flocking to the island as they can now get better value for money due to the drop in the value of the pound compared to other currencies. Both international and domestic tourists in the UK need somewhere to stay. Now could be an ideal time to invest in hotel rooms for those with capital that is generating minimal interest sitting in the bank

Why choose a hotel room investment?

With the uncertainty surrounding Brexit, the pound has dipped in value compared to other currencies. This has meant that more people are taking domestic holidays, and it is now more affordable for people overseas to holiday in the UK. This ensures that there is a strong demand for hotel rooms, and thus investors can expect to achieve a good income. The demand will be sustained as it is uncertain whether it will be as easy or inexpensive for UK nationals to holiday abroad once Brexit has been fully implemented.

Devon Bay is a hotel room investment in Ilfracombe, Devon. It has an entry point of R958,000. A 9% return is guaranteed for 5 years. This hotel is already operational and as such there is no development risk and the opportunity for immediate income is available.

These types of UK investment opportunities are hands-off which means they are ideal for the overseas investor or individual who cannot manage the unit on a day-to-day basis. It could also be an ideal time to invest as the rand is performing well against the pound.

Contact One Touch Property today to learn more about these types of hotel room investments and how a sustained demand for UK holiday property will translate into high yields. One Touch Property will also be in South Africa from the 13th – 22nd February. One-to-one UK property consultations will be hosted in Cape Town, Durban and Sandton. Book a consultation today to find out about hotel room investments and other investment classes today.

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