A major travel group is set to move its headquarters from the UK to a European city as a result of Brexit, it has been announced.
The World Travel & Tourism Council (WTTC) plans to close its London headquarters and is consulting its London staff on compulsory redundancy.
A move to Madrid is considered to be a likely alternative, Travel Weekly reported – although options in Switzerland, Italy or elsewhere in Spain may be considered.
WTTC is the only global body representing the Travel and Tourism private sector and its numerous industries, according to its website.
It has been based in the UK since it was founded, but is set to relocate to mainland Europe in order to benefit from ‘lower operational costs and EU single market access’, its chairman has said according to The Independent.
Chairman Manfredi Lefebvre added: ‘Brexit is one of the main factors in our decision to potentially move our headquarters beyond the UK.
‘The benefits of a European head office include lower operational costs, EU single market access and recruitment flexibility of a multilingual talent pool.
‘The high standard of research services our members, governments and the stakeholders around the world receive will continue to be at the forefront of our work and we are confident we will attract high-quality talent in the wider European market, for all of our services to members globally.’
The World Travel & Tourism Council (WTTC) plans to close its London headquarters and is consulting its London staff on compulsory redundancy
It comes after Rachel Reeves put the blame on Brexit for the UK’s economic woes as she claimed Britain could reap ‘huge benefits’ from moving back closer to Brussels.
She said Brexit was to blame for high inflation in the UK.
Official figures released last week showed inflation remained at 3.8 per cent – almost double the Bank of England’s target of 2 per cent.
Many other bodies have opted for a move to Europe as a result, too.
As part of its preparation for Brexit, Bank of America announced it would merge Bank of America Merrill Lynch International, its London-based subsidiary, into its Irish entity based in Dublin in 2018.
Plus, shipping operator P&O moved its UK-registered fleet to Cyprus ahead of Brexit.
Meanwhile, Panasonic shifted its European HQ to Amsterdam.
MoneyGram moved its HQ from London to Brussels and the European Medicines Agency and European Bank Authority both left the UK.
WTTC has been based in the UK since it was founded, with its headquarters in London, and is set to relocate to mainland Europe
Dr Mike Galsworthy, chair of European Movement UK, said: ‘If they do undertake this move, then they can be added to a depressing list of HQs that have departed the UK for Europe over Brexit.
‘Such as the European Medicines Agency, which was based in London with its over £300m taxable annual revenue, or the European Banking Authority, or the European headquarters of Sony and Panasonic, or the moves of Lloyds and Barclays over Brexit’s loss of “passporting rights”. ‘
Rachel Reeves’s comments come ahead of next month’s Budget.
The Chancellor is expected to unveil fresh tax rises as she scrambles to plug a huge hole in the public finances.
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Major travel group quits London and moves to Europe because of Brexit