Tourism Minister Charles ‘Max’ Fernandez has shared some concern over how the sudden changes in leadership in the United Kingdom could affect the local tourism market.
After just 44 days in office, Liz Truss resigned as Prime Minister last Thursday, the shortest tenure in British history.
Turmoil during her premiership sent the pound into a tailspin that left it briefly near parity with the dollar, forced the Bank of England to intervene in bond markets to stave off the collapse of pension funds, and sent mortgage interest rates soaring.
And while a new PM has been appointed, Fernandez says the economic implications could possibly result in a decrease in the number of UK tourists visiting Antigua and Barbuda for the winter season.
“The ripple effects of what has happened, I think is a bit concerning. In other words, uncertainties are not going to help the stock market, it is not going to help the value of the pound, and it’s not going to help the situation where people may not be sure whether they are going to have their jobs tomorrow or next week. Will the economy take a further downturn,” Fernandez queried.
The UK is Antigua and Barbuda’s second biggest tourism source market but many Brits are already keeping a close eye on their wallets as the cost of living continues to bite, exacerbated by skyrocketing energy bills.
“So, these are things that will affect how people spend, and when people are concerned about their spending, one of the first things they look to cut is vacation,” Fernandez continued.
“So, yes, it will be a concern for us. It depends on what measures are put in place, and it depends on how the economy reacts. So, those are the questions – we need to wait to see how they pan out, and depending on what happens there I think that will determine the way forward in terms of the last quarter of this year and even the tourist season going into 2023, in terms of tourism air arrivals out of the UK,” he said.
On Monday, Rishi Sunak became Britain’s third prime minister in less than two months, at a time when the UK faces what he has termed a “profound economic challenge,” and as his Conservative Party struggles to heal divisive wounds from months of infighting.
This is why Fernandez says it is imperative to get the Jolly Beach Resort back up and running promptly as a means of offering more affordable accommodation for lower income travellers.
“At the same time, the fact that people may have less money to spend is all the more reason and urgent why we need to get the Jolly Beach opened as a three-star option for persons that would not be able to afford the more expensive opportunities,” he added.
Work is already underway at the resort to meet the deadline for commencing operations.
Fernandez is optimistic that its renovation will bring back 250 rooms by December.