Impact of Covid 19 on Financial Performance and Business Activity of UK Tourism Industry

This research project analyses the impact of Covid 19 on financial performance and business activity of UK tourism industry with a focus on Visit Britain. It examines the measures and strategies adopted by Visit Britain to overcome the impact of Covid 19 and improve their financial performance and business activity.

FOUNDATION YEAR PROJECT
(Impact of Covid 19 on financial performance and
business activity of UK tourism industry)
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Table of Contents
CHAPTER ONE: INTRODUCTION..............................................................................................3
Overview of the topic and organisation.......................................................................................3
Research aim................................................................................................................................3
Research objective.......................................................................................................................3
Research problem........................................................................................................................3
Research question........................................................................................................................4
CHAPTER TWO: METHODOLOGY............................................................................................5
Data collection and analysis........................................................................................................5
Gantt chart...................................................................................................................................6
CHAPTER THREE: LITERATURE REVIEW..............................................................................8
What is the concept of financial performance and business activity in context of tourism
industry?......................................................................................................................................8
What is the impact of Covid 19 on financial performance and business activity of Visit
Britain?........................................................................................................................................8
What are the measure and strategy adopted by Visit Britain to overcome form the impact of
Covid 19 and improving their financial performance and business activity?.............................8
CHAPTER FOUR: RESEARCH USING SECONDARY DATA..................................................9
Presenting finding from secondary data......................................................................................9
Summarising findings..................................................................................................................9
CHAPTER 5: CONCLUSION........................................................................................................9
REFERENCE................................................................................................................................11
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CHAPTER ONE: INTRODUCTION
Overview of the topic and organisation
In the current era it is very important for the companies to manage their business activity as
well as financial performance in order to gain advantage out of it. Company makes lots of efforts
to manage their assets and resources in order to perform well with their competitors. Financial
performance can be defined as the systematic measure to identify whether their assets are
performing well and generating revenue for the organisation (Khalid, Okafor and Burzynska,
2021).
In this project the selected tourism organisation is Visit Britain. It is a British tourist authority
which was founded in 2003. The headquarter of the company is in London, United Kingdom.
Research aim
To analyse the impact of Covid 19 on financial performance and business activity of UK
tourism industry: “A study on Visit Britain”.
Research objective
 To understand the concept of financial performance and business activity in context of
tourism industry.
 To analyse the impact of Covid 19 on financial performance and business activity of Visit
Britain
 To examine the measure and strategy adopted by Visit Britain to overcome form the
impact of Covid 19 and improving their financial performance and business activity
Research problem
The major problem that is identify in the present research is the challenges faced by travel
and tourism sector is managing their business activity and financial performance. It is examined
that at the time of Covid 19 it become impossible for the company to operate effectively and
efficiently (Škare, Soriano and Porada-Rochoń, 2021). Tourist at the time of pandemic looking
for their health and safety which can be provided by the company. As it become impossible for
the company to manage their activity in sound manner. thus, this impact in negative manner and
the financial performance of the sector gets disturbed (Abbas and et. al, 2021).
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Research question
 What is the concept of financial performance and business activity in context of tourism
industry?
 What is the impact of Covid 19 on financial performance and business activity of Visit
Britain?
 What are the measure and strategy adopted by Visit Britain to overcome form the impact
of Covid 19 and improving their financial performance and business activity?
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CHAPTER TWO: METHODOLOGY
Data collection and analysis
Research methodology is the chapter in the research which helps in assembling and
accumulating data in systematic manner. It helps in providing direction to the researcher about
the type od data need to identify, analyse and interpret as per the selected topic. There are serval
components involve in research methodology which are being discussed below with proper
justification (Mukherjee, S.P., 2019).
Research philosophy: There are two type of research philosophy which are positivism
and interpretivism. As per the study interpretivism philosophy is used to identify and used
subjective information. This is because it helps in gathering and using deeper data for the study.
Research approach: It is divided into two kinds i.e., deductive and inductive approach. In
the present investigation researcher has opt for inductive approach. The reason for this is it will
build new theories with the help of non-numerical information (Bairagi, V. and Munot, M.V.
eds., 2019).
Research choice: Quantitative and qualitative are the two research choice. As per the
chosen topic investigator has selected qualitative research methodology. The advantage for using
this is information is gathered in deeper sense which aids in conducting in-depth study.
Research strategy: Survey, experimental research, action research, systematic literature
review case study are the research strategies that is available to gather information. In the present
investigation systematic literature review strategy is used to provide direction for the thoughts of
the researcher. This will also help in gathering numerical as well as non-numerical information
from various secondary source (Mahuika, N. and Mahuika, R., 2020).
Data collection and analysis: Primary and secondary are the two data collection method.
In the present investigation secondary data collection method is chosen. The reason is it will
gather second hand information in less time and cost. The source to gather secondary data is
books, journal, articles, online site and many more. In the current research, thematic data
analysis is used for the analysis and inspecting raw data (Eisend, M. and Kuss, A., 2019).
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Gantt chart
It is the project management tool which is used for showing the activities and task which
are undertaken in the current research. It also helps in identifying the start and the end time of
each activity (Palombarini, J.A. and Martínez, E.C., 2021).
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CHAPTER THREE: LITERATURE REVIEW
It is that chapter in the overall project which contain the previous information about the
topic. This section contains the past data which is collected by various investigator about the
same topic. The data in this section is collected by different secondary sources that are books,
journal, magazine, website and many more (Khan and et. al, 2019).
What is the concept of financial performance and business activity in context of tourism
industry?
In the view of Menhat and et. al (2021), financial performance is the systematic measure
tool which is used by the organisation to identify how well the assets of the company is being
allocate and utilise in order to earn revenue out of them. On the other hand, business activity is
the activities that are performed by the organisation in order to gain profit. There are various type
of business activity such as operational activity, investing activity, financial activity (Khan, Khan
and Shafiq, 2021).
What is the impact of Covid 19 on financial performance and business activity of Visit Britain?
As per the view of Sigala (2020), covid 19 has negatively affect the financial performance
and business activity of Visit Britain. This impact has largely affected their revenue and supply
change management. The foremost impact is on revenue at the time of Covid 19 company is not
able to use their assets in proper manner due to which they are not able to generate any revenue
out of them. Second impact is on their supply chain management which was very poor that
company is not able to operated their business activity in effective and efficient manner (Lee,
2020).
What are the measure and strategy adopted by Visit Britain to overcome form the impact of
Covid 19 and improving their financial performance and business activity?
According to the view of Pandey and Kumar (2022), the foremost measure the company
acquire is shifting their traditional way of working in modern manner in which they adopt
various technology and software to operate their activity using online mode. This helps the Visit
Britain to operate their business while sitting remotely. Another measure is selling their
unwanted and unnecessary assets so that they can manage their other assets in efficiency manner
(Moneva, Bonilla-Priego and Ortas, 2020).
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CHAPTER FOUR: RESEARCH USING SECONDARY DATA
Presenting finding from secondary data
From the above gathered data it is analysed that in literature review different finding are
being collected and it is identified that travel and tourism industry has negatively impacted by
the Covid 19 wave. It is being analysed that the financial performance and the business activity
of the tourism sector has poorly affected which impact the overall performance and productivity
of the sector. The major finding is that due to ineffective and underutilisation of assets
organisation is not able to generate revenue. The sale of the companies is low as visitor are more
concern for their health and safety. It is also being observed that travellers have acquired various
method to overcome from the problem faced at the time of global pandemic. These majors are
adopted so that they can manage their business activity in sound manner. Tourism sector has
faced pressure on them at the time of pandemic due to lower sale and high expenses. Some of the
ways adopted by the tourism firm is developing and designing networks and software for their
different activities so that all the task can managed online. The company also train their
employee in order to perform various activity by different department in sound manner. Thus, it
is concluded that travel and tourism industry have direct relationship with their performance.
Summarising findings
From the above gathered data it is being find that it is very important for the company to
improve their financial performance and business activity in order to gain financial benefit.
Theses both are considered as two vital elements in the business which helps the company to
compete with any Crisis in sound manner. It is examined that through this company can gain
various advantage such as high revenue, high profit margin, proper utilisation of assets and many
more. In the current pandemic it is being analysed that the impact of Covid 19 on the
organisation is very poor that it becomes impossible for the tourism sector to generate profit out
of them. It is examined that if company wants to gain revenue and earn profit then they need to
adopt various measure which helps them in increasing the performance and activity of the
business.
CHAPTER 5: CONCLUSION
From the above collected data it is being concluded that it is very vital for the company to
manage their asset in effective and efficient manner so that they can improve their financial
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performance and business activity. This also helps the organisation to generate adequate revenue
and higher profit for their company service. It is also being concluded that covid 19 has
negatively impact the financial performance and business activity. Company has faced serval
issue at the time of pandemic which affect their various activity such as operational activity,
financial, investing and many other activities.
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REFERENCE
Books and Journals
Khalid, U., Okafor, L.E. and Burzynska, K., 2021. Does the size of the tourism sector influence
the economic policy response to the COVID-19 pandemic?. Current Issues in
Tourism. 24(19). pp.2801-2820.
Škare, M., Soriano, D.R. and Porada-Rochoń, M., 2021. Impact of COVID-19 on the travel and
tourism industry. Technological Forecasting and Social Change. 163. p.120469.
Abbas, J., and et. al, 2021. Exploring the impact of COVID-19 on tourism: transformational
potential and implications for a sustainable recovery of the travel and leisure
industry. Current Research in Behavioral Sciences. 2. p.100033.
Menhat, M., and et. al, 2021. The impact of Covid-19 pandemic: A review on maritime sectors in
Malaysia. Ocean & Coastal Management. 209. p.105638.
Khan, A., Khan, N. and Shafiq, M., 2021. The Economic Impact of COVID-19 from a Global
Perspective. Contemporary Economics. 15(1). pp.64-76.
Sigala, M., 2020. Tourism and COVID-19: Impacts and implications for advancing and resetting
industry and research. Journal of business research. 117. pp.312-321.
Lee, S., 2020. Corporate social responsibility and COVID-19: Research implications. Tourism
Economics. p.1354816620978136.
Pandey, D.K. and Kumar, R., 2022. Lockdown, unlock, stock returns, and firm-specific
characteristics: the Indian tourism sector during the Covid-19 outbreak. Current Issues in
Tourism. 25(7). pp.1026-1032.
Moneva, J.M., Bonilla-Priego, M.J. and Ortas, E., 2020. Corporate social responsibility and
organisational performance in the tourism sector. Journal of Sustainable Tourism. 28(6).
pp.853-872.
Khan, H.U.R., and et. al, 2019. Tourism logistics management through financial and regulatory
measures: evidence from a panel of countries. Asia Pacific Journal of Tourism Research.
24(5). pp.443-458.
Mukherjee, S.P., 2019. A guide to research methodology: An overview of research problems,
tasks and methods. CRC Press.
Bairagi, V. and Munot, M.V. eds., 2019. Research methodology: A practical and scientific
approach. CRC Press.
Mahuika, N. and Mahuika, R., 2020. Wānanga as a research methodology. AlterNative: An
International Journal of Indigenous Peoples. 16(4). pp.369-377.
Eisend, M. and Kuss, A., 2019. Research methodology in marketing. Cham, Switzerland:
Springer International Publishing.
Palombarini, J.A. and Martínez, E.C., 2021. End-to-end on-line rescheduling from Gantt chart
images using deep reinforcement learning. International Journal of Production Research.
pp.1-30.
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