The World Travel and Tourism Council, a global body, plans
to close its UK headquarters, citing Brexit‑driven challenges and a shifting
business environment.
The organization, which has been headquartered in the UK since its founding and represents the private travel and tourism industry globally, is to move to continental Europe in order to take advantage of "lower operational costs and EU single market access," according to its 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 decision was made after the WTTC board approved a relocation plan, with Switzerland, Italy, and Spain being the most likely locations.
The action was taken after chancellor Rachel Reeves attributed the nation's most recent economic problems to the lingering effects of the Brexit vote.
Following Brexit, P&O relocated its ship repair operations from the UK to Cyprus; Panasonic relocated its European headquarters to the Netherlands; MoneyGram relocated its headquarters from London to Brussels; and the European Bank Authority and European Medicines Agency also departed the UK.
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 to 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".
By 2019, in the wake of the Brexit vote but before it was even implemented, a report found £900bn in financial firms' assets had been moved out of the UK. Brexit will continue to strip assets from the UK - something politicians now seem ready to admit publicly, after years of staring at their shoes and shifting the subject at any mention of the blatant damage leaving the EU has wreaked on the UK's economy."
A response from the UK government has been requested.
Sir Keir Starmer has struck a reset agreement with Brussels to assist eliminate business impediments brought up by Brexit, but he has ruled out entering the EU, single market, or customs union.
What financial and legal steps are needed to move an international HQ?
The company must officially amend its papers of association
or rules to reflect the new HQ position. This is needed to fairly
transfer the listed address. The move must be registered with applicable public
and authorities similar as company registries, duty authorities, and trade
controllers in both the old and new authorities.
Opinions on deportation, redundancy, or rehiring may be demanded. Legal power of intellectual property, contracts, plats, and licenses must be transferred or reasoned. Compliance with original data protection laws (e.g., GDPR in Europe) is obligatory, including arrangements for cross-border data transfers.