Impact of Inflation on UK Tourism Industry

Research project

Table of Contents
INTRODUCTION...........................................................................................................................3
A) Meaning of Inflation..............................................................................................................3
B) Factors which affects the inflation in the country and the tourism industry..........................3
C) Aims and objectives of the research ......................................................................................3
MAIN BODY...................................................................................................................................4
Quantitative measures ................................................................................................................4
Qualitative measurement ............................................................................................................5
CONCLUSION ..............................................................................................................................6
A) Ascertain the solutions to deal with the impact of inflation..................................................6
B) Analysis of the Globus tourism company of the UK ...........................................................6
APPENDIX.....................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
A) Meaning of Inflation
According to International Monetary Fund inflation relates to increase in the price of
goods such as grocery items, clothing, transport and the food items. It will reduce the purchasing
power of the consumer and the customer will purchase less items on the same income as
previous year. It will increases the cost of every product and eventually slow down the economic
growth of the country. It has impact on the life style of the people and it becomes difficult for the
people to maintain its expenses (Le, and Nguyen, 2021). High inflation has increases the price of
hotel, restaurants and ticket price of tourist places that reduces the growth of tourism sector. In
this there is discussion of the UK tourism industry.
B) Factors which affects the inflation in the country and the tourism industry
 Interest rate: It is the rate where consumer borrow the loan for their needs. In the tourism
industry the rates of interest will be high in the UK country which discourages the people
to spend the more money on the tourism sector. It will increase the charges of air ticket
prices and reduces the travelling of tourist in to another country for visiting the places.
 Global events: The main purpose of organising the events at the global level is to attract
more tourist and to showcase the infrastructure of the company. It denotes the tourism
capacity of the industry and create a affirmative image of the destination. The events is
created at the domestic or global level and include the events like organise carnivals,
meetings and the cultural events on the rapid scale. It comprises the tasks that is related to
the exploring the new places, traditions and the experience of the individual(Murphy,
2019).
C) Aims and objectives of the research
Aim: The aim is to find out the affect of inflation on the travel sector.
Objective:
 To know the impact of the inflation in the UK country
 To understand the affect of inflation on the tourism industry
 To interpret the positive or negative consequence of inflation and provide the solutions to
cope up the situation.