Dr. Jerry Parrish Discusses Brexit Impact on Tourism with International Panelists
Dr. Jerry Parrish, Chief Economist for the Florida Chamber Foundation, today joined a University of South Florida (USF) panel with international experts to discuss the impact Brexit will have on global tourism.
The morning after the historic vote by the UK to exit the European Union, Dr. Parrish released an analysis on the possible impacts Brexit would have on Florida’s economy, particularly Florida’s tourism economy.
“In 2015, more than 1.7 million U.K. visitors came to Florida- that’s about 40 percent of Florida’s European visitors and about 15 percent of all of Florida’s overseas visitors. In fact, visitors from the U.K. make up the largest non-Canadian visitor group Florida has. International visitors spend more and stay longer, and leave more sales and other tax dollars in our state. With more than $89 billion spent by visitors in 2015 in taxable sales, this is a substantial contributor to Florida’s general revenue,” said Dr. Parrish.
Hosted by Dr. Cihan Cobanoglu, McKibbon Endowed Chair Professor and Director of the M3 Hospitality Research Center at the University of South Florida Sarasota-Manatee, the panel also included Dimitrios Buhalis, Head of the Department of Tourism and Hospitality at Bournemouth University in England, and Kevin Kaley of Tourism UK Ltd.
Florida Chamber Analysis on the Impact of Brexit
“Brexit will cause volatility in financial markets, will likely slow down the number of U.K. visitors to Florida and reduce foreign direct investment in our state…but there is good news for Florida’s imports.”
Florida Chamber’s Chief Economist Dr. Jerry Parrish
TALLAHASSEE, Fla. (June 24, 2016) – The Florida Chamber of Commerce today released the following statement from Dr. Jerry Parrish, Chief Economist for the Florida Chamber Foundation, regarding the U.K.’s vote to leave the European Union.
“On Monday, I taped a segment for the Florida Chamber’s monthly Florida by the Numbers about the vote and the potential effects on the Florida economy if the U.K. voted to leave. Florida’s tourism from the U.K. will likely be affected because the expected decrease in the value of the British Pound will make travel to Florida more expensive for U.K. residents.
“In 2015, more than 1.7 million U.K. visitors came to Florida- that’s about 40 percent of Florida’s European visitors and about 15 percent of all of Florida’s overseas visitors. In fact, visitors from the U.K. make up the largest non-Canadian visitor group Florida has. International visitors spend more and stay longer, and leave more sales and other tax dollars in our state. With more than $89 billion spent by visitors in 2015 in taxable sales, this is a substantial contributor to Florida’s general revenue.
“The vote by the U.K. to leave the European Union will also have the immediate effects of increasing volatility in financial markets, and that could lead to reduced foreign direct investment in Florida. We know from history that increases in uncertainty and volatility typically have negative effects on investment and trade.
“Although the drop in the value of the British Pound will likely slow down U.K. visitors to Florida and reduce foreign direct investment in our state, there is good news for Florida’s imports. Imports from the U.K. should now become cheaper. Currently, Florida imports twice as much as it exports to the U.K.
“The value of the Euro compared to the U.S. dollar is likely to fall as well. Florida’s imports from Europe made up 23 percent of the total imports in 2015 – totaling $16.9 billion. Those imports should become less expensive as the Euro falls in value versus the U.S. dollar.”
European Nations Lead Investments in Florida’s Global Economy
FOR IMMEDIATE RELEASE
CONTACT: Edie Ousley, 850-521-1231 or 850-251-6261
Companies from Europe Account for 67% of all Florida
Foreign Employment and 17% of Florida Origin Exports
TALLAHASSEE, FL. (May 27, 2015) – European countries are the leaders among foreign investors, with majority foreign-owned companies from Europe accounting for 67 percent of all Foreign Direct Investment (FDI) employment in Florida, the Florida Chamber of Commerce announced today.
“Florida’s leading European investors include the UK, Germany, France, Switzerland and the Netherlands. Europe presents unique strategic, trade and export opportunities for Florida,” said Alice Ancona, Director of Global Outreach for the Florida Chamber of Commerce. “Currently, 17 percent of all Florida origin exports go to Europe, a market of over 500 million consumers. The U.S. and Europe represent half of the world’s economic production. Opening markets and creating jobs for Florida families are why trade is important to Florida.”
Florida visitors from Europe also help strengthen Florida’s economy and create jobs. In fact, every 85 visitors that come to Florida help create one new Florida job. Out of the top international countries for visitation to Florida, the UK ranked third, behind Canada and Brazil, with 1.6 million visitors in 2014.
The impact of international trade to Florida’s economy cannot be denied.
- International business and foreign direct investment accounts for approximately 17 percent of Florida’s economic activity, and
- Directly supports more than 1 million Florida jobs.
- Florida is the seventh largest exporter of state-origin products with Florida-origin exports totaling more than $58.6 billion and exports from Florida supporting 275,221 U.S. jobs in 2013.
But Florida’s business leaders know that Florida must continue to work hard to remain the leader in international initiatives.
“Florida has come a long way in building international economic development efforts, but our work is far from over,” said Doug Davidson, Market Executive of Global Commercial Banking at Bank of America Merrill Lynch. “At Bank of America, we support the Florida Chamber Foundation’s research in trade and logistics because we know that Florida’s future lies in being globally competitive.”
The Florida Chamber’s Global Florida Program’s mission is to educate and promote business opportunities, collaborate and advance policy initiatives in each of the four major geographic regions: Americas, Asia Pacific, Europe and Middle East/Africa. Agriculture Commissioner Adam Putnam recently sponsored the Florida World Trade Month resolution, which was signed by Governor Scott, Attorney General Pam Bondi and CFO Jeff Atwater.
The Florida Chamber of Commerce is the voice of business and the state’s largest federation of employers, chambers of commerce and associations, aggressively representing small and large businesses from every industry and every region. The Florida Chamber works within all branches of government to affect those changes set forth in the annual Florida Business Agenda, and which are seen as critical to secure Florida’s future. The Florida Chamber works closely with its Political Operations and the Florida Chamber Foundation. Visit www.FloridaChamber.com for more information.