Analyzing the Economic Impact of Tourism

The provided content includes several academic articles and reports that explore various aspects of tourism, including the impact of destination image on tourist satisfaction and loyalty, synergy and congestion in the tourist destination life cycle, cross-cultural heterogeneity in tourist decision making, social networks for tourist destination choice, web quality index for official tourist destination websites, local residents' perception of protected areas, ecotourism's impact on regional economy, nation branding, factors influencing competitiveness of a tourist destination, visitors' expenditures analysis, and knowledge discovery to assist tourist destination marketing. Additionally, there are reports on the economic impact of the tourism industry in Spain and visitor economy facts.

Tourist
Destination
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TABLE OF CONTENTS
Introduction .....................................................................................................................................4
TASK 1 ...........................................................................................................................................4
1.1 ...............................................................................................................................................4
1.2................................................................................................................................................6
TASK 2 COVERED IN PPT...........................................................................................................7
Task 3 ..............................................................................................................................................7
3.1................................................................................................................................................7
3.2................................................................................................................................................9
Task 4 ............................................................................................................................................10
4.1..............................................................................................................................................10
4.2..............................................................................................................................................11
Conclusion ....................................................................................................................................13
References .....................................................................................................................................14
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Illustration Index
Illustration 1: International tourist arrivals .....................................................................................5
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INTRODUCTION
In last one decade, tourism industry has emerged as a very potential and one of the
leading industries in the world (Baggio, Mottironi and Corigliano, 2011). It can be stated that it
is contributing a lot in economic development of a nation by bringing in more foreign exchange
and providing employment opportunities. This research mainly focuses on carrying out analysis
of main tourist destinations. Along with this, an evaluation regarding the key issues affecting
popularity of tourist destination is also mentioned in the present study.
TASK 1
1.1
UK, France, Spain, Italy and china can be termed as some leading destinations in the
world. Furthermore, the tourism statistics of these destinations are below highlighted as:
Italy
 There were total 48.6 million people visited the destination in 2015
 In the year 2014, the income generated by tourism industry Vibrant culture of the country is the one which attracts travelers from different nations
France
 The total number of visitors in the destination increased by 20% between year 2012 to
2013
 At present, the tourism industry is contributing more than 7% of France's total GDP The number of travelers recorded in 2014 were more than 83 million
UK
 The total number of travelers or tourist arrived in UK were more than 34 million in 2014
 UK is popular because of its historical monuments and vibrant culture Tourism industry has generated a sum of total 125.2 Billion which has contributed a lot in
development of UK (Visitors Economy facts, 2010)
China
 Total number of tourist arrived in the country accounted to 26 million in 2015
 In the year 2014, the tourism industry of China has witnessed the growth rate of more
than 4%
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 Hong Kong, Shanghai and Beijing are considered as the most preferred destinations by
the international tourists
Spain
 At present, the tourism industry of Spain is contributing more than 5% to the nation's
overall GDP (The economic impact of the tourism industry in Spain. 2014)
 In 2014, more than 64.9 million people have visited the destination
 Spain holds second position among top ten tourist destinations of the world.
Illustration 1: International tourist arrivals
(Source: Carlo, 2015)
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1.2
It can be stated that the travel and tourism industry of the world is witnessing very high
growth rate and it is also providing several kinds of growth opportunities to the businesses
operating in the same. In the last few years, government of different nations has started to take
active participation in development of tourism and travel industry (Correia, Kozak and
Ferradeira, 2011). Nowadays, adequate support is provided by the government and other
development authorities which directly results in carrying out smooth flow of operations and
activities of firms operating in this industry.
However, it can be argued that there are still some places which have not been developed
appropriately and therefore those destinations are not able to attract desired number of tourists. It
is required by the government to understand that development of tourism industry is not only
beneficial for economic growth but it also results in growth of society which is essential
(Karanth and Nepal, 2012). In last one decade, destinations such as France, Italy and UK have
witnessed increase in number of travelers or tourist whereas the tourism industry of Germany is
going through declining trend. In context of tourism trend, it can be expressed that Europe has
imposed several kinds of restrictions on foreign investment which can be used for development
of various destinations. It clearly indicates the fact that investors from other nation are not
allowed to invest their money in growth and development of tourism in Europe.
Nowadays, internet is considered as one of the most popular and effective tools which
can be used by a person to gain information about characteristics and attractions in a particular
destination. According to the tourism trends, the demand of eco tourism and sustainable tourism
among people in the market is increasing with a very good pace (Karmakar, 2011). In addition to
this, individuals now seek for the places or destinations which can offer them a unique and
completely different kind of experience. Some tourists prefer to visit a particular destination to
become aware of its culture and history while some opts for destinations which can offer leisure,
fun and relaxation (Chen and Phou, 2013). The tourism trend is France, Italy and UK is below
highlighted as:
 Growing demand of sustainable tourism among tourist and travelers
 Reducing the challenges faced by individuals while traveling from one destination to
another
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 Formulation of more effective marketing plans with an objective to attract more travelers
and make destination popular
TASK 2 COVERED IN PPT
TASK 3
3.1
It can be stated that the characteristics of UK completely differs from that of North
Korea. Furthermore, people prefer to visit destination which have different attractions and
adequate facilities. The comparison of two different destinations is mentioned below as:
Basis of comparison North Korea United Kingdom
Number of tourist The destination is attracting
more than 11 million visitors
every year. Along with this,
adequate assistance is provided
by the government for growth
and development of this sector
(Kerrigan, Shivanandan and
Hede, 2012).
The culture and monuments is
the one which has helped the
destination to attract wide
range of tourist.
Economic Growth The destination is facing
several kinds of issues and
challenges in terms of
attracting more and more
tourist. It can be also stated
that the key reason behind this
is the negative reputation of
North Korea which has been
developed front of tourist and
travelers (Chen, Shang and Li,
2014).
In terms of economic
development, the destination
has witnessed desired growth
in the last few years. The
recession occurred in 2009 has
affected the entire economy of
UK to a great extent and there
was a time when businesses
where not able to achieve
desired sales and profits.
However, it can be argued that
tourism industry has helped
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destination to attain higher
economic growth by bringing
more foreign exchange in the
country.
Development of new product In last few years, the
government in North Korea
has understood the
significance of tourism sector
and now adequate support is
provided to the businesses in
terms of developing new
products and services (Coban,
2012). There was a time when
the government in country was
not at all interested in offering
support to tourism industry in
terms of developing new
product.
Here, the government has
always supported businesses in
carrying out the development
of new products and services.
Apart from this, government
also initiates in developing
marketing strategies through
which more and more travelers
or tourist can be attracted
towards the destination.
Political condition In destination, such as North
Korea, politics cannot be
termed as a stable factor The
destination has witnessed
many ups and down in its
political environment and this
has affected operations of
tourism industry to a great
extent.
Stable government of UK can
be considered as another big
factor which has resulted in
development of its tourism
industry. Effective plans and
strategies are formulated at
regular intervals to make the
destination popular.
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3.2
Cuba is also termed as republic of Cuba and it is an island which consists of vibrant art.
Furthermore, it is located 90 miles away from Florida and it is considered as the largest
Caribbean island nation. Haiti, Jamaica and Cayman island are the main neighbor areas of Cuba.
In last few years, it has been able to attract large number of travelers and there are various factors
associated behind the same. One of the major and most important among all is related to its
practices regrading sustainability (Di Pietro, Di Virgilio and Pantano, 2012). The destination is
promoting sustainable tourism and this has helped in gathering attention of tourist from many
nations and countries all across the globe. Other than this, its sub tropical climate is the one
which helps in attracting people and increase the total number of tourist. In terms of population,
it can be stated that the destination is having a very diversified population which consists of
people from different race and religion (Salman and Hasim, 2012).
The culture of Cuba is mainly influenced by areas such as North America, Europe and
Africa. Cuba's approach towards sustainable environment can be termed as very effective one as
the government and other regulatory bodies have developed wide range of strategies regarding
the same. However, it can be argued that the rather than attracting normal tourist, the destination
has been able to attract the travelers who are very much conscious about environment. In terms
of geographical features, the nation has a coastline of 3570 miles and it is also termed as home of
the smallest bird in the world. At present, the destination has adopted for an economic model
which is linked with socialist economy.
The power of decision making lies within the hands of state and it also places adequate
efforts in carrying out the best possible utilization of all available resources. Sugar, citrus,
tobacco and sea food are the things which is mainly exported from Cuba (Fernández-Cavia and
et.al. 2014). Here, Catholicism is the one religion and majority of the people are inspired by the
same. The common language which is being spoken by people living in Cuba is Spanish and at
present it is having a population of around 11.17 Billion. Music can be considered as one of the
main and most important part of Cuban culture. The music of selected destination is praised an
enjoyed in many nations of the world. The cuisine which is used here is mainly an integration of
Caribbean and Spanish cuisine and it is mostly preferred by people living in the destination.
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TASK 4
4.1
The TUI group can be termed as one of the leading and most renowned businesses
operating in the travel and tourism industry of the world. Furthermore, the brand is carrying out
its operations by integrating with variety of tour operators and online service providers. It can be
also stated that the group is facing intense competition from brand such as Thomas Cook and it is
also trying very hard to enhance its existing sale, market share and customer base. The
organizations keep on carrying out modification and changes in its existing products and services
in order to attract customers and stay competitive at marketplace (Santos and Cabral Vieira,
2012).
Here, the issue is that in order to sustain in market, TUI group needs to understand
changing customer demand and make modification in its services according to the same. Over
the last few years, wide range of resources and efforts has been placed by the brand in order to
promote sustainable tourism among travelers and tourists of the world (Sartori, Mottironi and
Corigliano, 2012). Wide range of marketing strategies is developed by TUI group in order to
create awareness among people that why sustainable tourism is more effective and beneficial
form of tourism in the future.
It can be expressed that creating awareness among people in the market is a very
challenging task and therefore huge efforts are required to be placed regrading the same. In the
modern era, travelers or tourist are more attracted towards destinations which offer leisure,
relaxation and therefore developing a need of sustainable tourism is not an easy task to be carried
out (Correia, Kozak and Ferradeira, 2011). Developing destination only will not help in
attracting desired number of tourist and there are wide range of things which needs to be taken
into consideration. Some issues which can have impact on popularity of any destination are
highlighted below as:
Natural disaster- destinations which witnesses natural disaster at frequent intervals cannot
attract wide range of travelers or tourist as there is a big threat to life people. At the time of
developing any destination, TUI group needs to conduct appropriate market research and identify
the rate or frequency up to which natural disaster occurs. Further, it is more beneficial for the
brand to look for developing areas which witness very low natural disaster. It can be expressed
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that these disasters are not only a big threat to TUI group but it is also a threat to local people
living out there.
Diseases – At the time of developing a destination, TUI group also needs to make sure that the
destination do not have any kind of serious disease. Places with high rate of viral diseases are
mostly avoided by travelers (Coban, 2012). Along with this, even if wide range of development
can be carried out by TUI group, people will not prefer to visit places which has a disease.
Therefore, it can be termed as another major factor which affect popularity of a tourist
destination and TUI group needs to take care of the same.
Terrorism- It can be termed as one of the biggest and most important issue which has affected
the popularity of many destinations to a great extent. There are various countries and destinations
in the world which are no longer popular among tourist because of increasing terrorist activities
in the same. This can be justified by the example of the Paris attack which has caused a big loss
to life and property of the destination (Stalidis and Karapistolis, 2014). Along with this, this issue
has also resulted in lowering down the total number of travelers and tourist at destination after
those attacks. Destination such as Cuba, Pakistan, Kabul, Turkey are not preferred by tourist
because they think that going to these places can be a big threat to their life and family.
Therefore, it is required by TUI group to invest resources in those areas which do not witness
terrorist activities at regular intervals.
4.2
In the present scenario, the concept of responsible tourism is increasing with a very good
pace. Further, it is a new form of tourism which lays emphasis on providing maximum and the
best possible benefits to environment and the people living in society. Nowadays, the activities
and operations related to tourism are having wide range of negative impacts on society.
Therefore, government and other pressure groups has encouraged businesses in this sector to
ensure that their activities do not have any kind of negative impact on environment (Baggio,
Mottironi and Corigliano, 2011). The concept of responsible tourism also focuses on reduction in
the overall cost which is incurred in developing a particular destination and attracting desired
number of tourism.
On the other side, it is also lays emphasis on integrating tour operators, government, local
people and hoteliers to make places better for living and traveling. It is required by all the above
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stated stakeholders to become responsible and make efforts to make tourism related activities
more sustainable. At the time of developing any destination, TUI group needs to make sure that
there are certain areas which needs to be taken into consideration. First of all the group will need
to make efforts on lowering down negative impact on tourism related activities on society,
environment and economy. This will help in carrying out overall development of a destination
and will also support in protecting the life of people living in nearby areas. It can be stated that
most of the time, businesses seeks for getting higher profits and sales. However, it can be argued
that responsible tourism focuses on providing greater benefits to local people and enhance the
life of host communities (Karmakar, 2011).
TUI group will need to place efforts on developing better working conditions nears host
communities so that more and more tourist can be attracted. In the present scenario, no focus is
laid on involving local people or individuals in host communities to take part in the process of
decision making related to development of any tourism destination. Responsible tourism gives
importance to involving local people in process such as strategic formulation and decision
making. Majority of the time, wildlife and natural resources are being exploited by tour operators
and other related businesses in the industry with an objective to gain higher sales and profits
(Anuar and et.al. 2012). The concept of responsible tourism clearly highlights protection and
maintenance of natural resources, wild life and world's diversity.
It can be stated that presently, TUI group is conducting its business practices in
destination such as Cuba, Europe, Costa, Mexico etc. Here, the brand needs to make sure that
development is carried out in such a way that maximum benefits can be gained along protecting
environment and life of people living in nearby areas. Furthermore, efforts are also required to
made in development of host communities in order to create satisfaction among different
stakeholders. The local culture and products of host communities should be promoted by TUI
group in order to enhance life of people and improve their standard of living. Protection of local
culture is another key role which needs to be taken care and accomplished by TUI group.
Other than this, it can be also expressed that destination such as Turkey, Paris and Egypt
have witnessed several kinds of terrorist activities in last few years and this needs to be
considered by TUI group. Such activities can be termed as a bug threat to the life of people
living in destination and to other tourists which are visiting the destination. It has become very
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important for the brand to formulate effective strategies and take corrective measures regrading
the same (Bajs, 2015). The concept of responsible tourism states that efforts needs to be placed
by TUI group for safety and health of people living in local community and tourist who are
visiting any particular destination. Apart from this, it also needs to focus on carrying out
effective marketing practices so that more awareness can be created among tourists regrading the
kind of services which has been provided by a particular destination.
CONCLUSION
From the above carried out report, it can be concluded that in order to develop and
promote a destination wide range of efforts are required to be placed by government and other
stakeholders. Further, it can be inferred that tourism industry is very potential and it is also
contributing a lot in economic development of a country. Effort of stakeholders are required in
order to make a destination popular among different travelers.
It can be also concluded that sustainable tourism or the demand of responsible tourism is
increasing with a very good pace. The concept is linked with development of destination along
with taking care of economy, environment and society. It can be concluded that at the time of
carrying our its operations TUI groups needs to take care of various issues which can affect
popularity of destination. Among all the major issue, terrorism, disease and natural disaster can
be termed as the most important one and they are required to be taken care of.
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Online
The economic impact of the tourism industry in Spain. 2014. [Online]. Available
through:<http://www.caixabankresearch.com/en/detail-news?
lastnewsportal_articleData=363734,10180,1.5> [Accessed on 24th September 2016].
Visitors Economy facts. 2010. [Online]. Available through: <https://www.visitbritain.org/visitor-
economy-facts>. [Accessed on 24th September 2016].
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