Border disorder

31 January 2013 By Olaf Storbeck

In his big speech on Europe, the UK’s prime minister said unnecessary regulation was stifling British competitiveness. But would-be isolationists ignore the reality that separation also raises impediments to growth. Take the much-maligned Schengen border accord, for example.

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Twenty six European countries have signed the Schengen treaty abolishing internal border controls, among them non-EU members like Norway and Switzerland. Bulgaria and Romania are applying to join.
About 67.4 million people enter the UK from the Schengen area, according to a Breakingviews analysis of data from the UK’s National Statistics office. The UK Border Agency says it costs 2.90 pounds to process each traveller.
The UK Department for Transport values an hour of working time for professionals at 47 to 57 pounds. Non-working time is valued at 5.70 pounds. About 23 percent of all trips to the UK are business trips.
Currently, the UK attracts 330,000 visitors a year from China and Hong Kong and, according to National Statistics, they spend 435 million pounds. There are 211,000 visitors from Russia who spend 306 million pounds. Germany attracts 637,000 Chinese and 737,000 Russian visitors.

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