The EU last week agreed terms for a “European travel information and authorisation system”, or Etias, to increase security and combat terrorism.

Etias discussions have been ongoing for several years. The charges would likely apply to “visa-exempt third country nationals” – i.e. non-EU and non-Schengen residents – travelling to the Schengen area, which currently includes 26 countries.

This could include the UK if no exemption is agreed during Brexit negotiations.

If adopted, it is understood the EU would seek to implement the Etias system as soon as possible, potentially by 2020.

The UK is currently due to leave the EU on March 29, 2019, with a transitional period agreed until December 31, 2020.

Should Etias go ahead, airlines and “sea carriers” would be obliged to check whether travellers have Etias authorisation. This would extend to overland coach travel after a further three years.

Like the US Esta system, authorisation does not provide automatic right of entry, with border officials making the final decision.

Abta said that with no certainty in the matter at this stage, it would not comment on the scheme.

Progress on Etias came amid a warning from the European Tourism Association (Etoa) that Brexit put the employment status of guides and reps working for UK companies in Europe “in jeopardy”.

Etoa has also called for the Tour Operators Margin Scheme (Toms) for UK companies sending customers to EU members, and inbound EU operators to the UK, to continue after Brexit.

The association said the scheme saves companies “a great deal of financial administration” by not having to register or account for VAT in every country in which they operate.

Laura Quirke, senior VAT manager at Elman Wall, added there was “a question as to whether the UK will be able to use the Toms rules post-Brexit”.

Etoa also appealed to Brexit negotiators to do “everything in their power to maintain the status quo”, while chief executive Tom Jenkins branded the EU’s new Package Travel Directive “obsolete”, due to the fast- changing nature of the industry, and called for immediate talks on PTD3.

Meanwhile, the government suffered another defeat over Brexit this week after the House of Lords approved an amendment to the EU Withdrawal Bill giving parliament, rather than ministers, the power to decide what happens if MPs reject the final deal on leaving the EU, making a “no deal” scenario less likely.

The amendment was proposed by former Conservative MP Douglas Hogg, now Viscount Hailsham, who said it was vital parliamentary sovereignty was upheld. Former Conservative leader Lord Howard, however, said it effectively gave parliament a veto over Brexit.