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The World Travel and Tourism Council (WTTC) has announced it will move its HQ from London to Madrid because of Brexit.

The organisation represents the global private sector in the travel industry, from hotel groups and Airbnb to travel tech companies and international tour operators. It has been based in the UK since its foundation in 1990. But in October the chair, Manfredi Lefebvre, said the WTTC would relocate to mainland Europe to benefit from “lower operational costs and EU single market access.”

While moves to France, Italy and Switzerland – as well as Dubai – were considered, the 17-member operating committee unanimously approved Madrid as its new location.

Gloria Guevara, the organisation’s interim president and chief executive, said: “Spain has prioritised travel and tourism and clearly understands the enormous contribution the sector makes to global growth.

“Being based in a competitive city like Madrid will help WTTC go from strength to strength, offer closer engagement with our members worldwide and enable us to play a major role advising on good policy development, investments that help tourism growth and job creation from our members which have global impact.”

In a statement about leaving London, the organisation said: “Challenges linked to Brexit, such as constraints on talent mobility, made the UK less attractive as WTTC wishes to further build its leadership position and become even more agile in the sector.”

Ahead of the Brexit referendum, the travel association Abta warned: “Any changes limiting the sector’s ability to recruit or employ foreign nationals, including those from the EU, could challenge many travel and hospitality businesses in filling a number of roles.

“The UK travelling consumer could be faced with increased costs if an exit vote led to a sustained deterioration in the value of sterling, making foreign currency destinations more expensive in sterling.”

In the wake of the vote to leave the European Union, easyJet lost the right to operate British planes within the EU. Britain’s biggest budget airline moved 100 aircraft to an Austrian subsidiary, easyJet Europe.

The Independent has asked the government to comment on the WTTC move.

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