Impacts of Inflation on Tourism Industry and Solutions

Research Project
(Impacts that inflation can have on the
tourism industry and solutions to ease the
negative impacts that can be implemented)

Table of Contents
Topic: “What are the typical impacts that inflation can have on the tourism industry and what
solutions, to ease the negative impacts, can be implemented?”......................................................3
Definition................................................................................................................................3
Positive and Negative Impacts of Inflation............................................................................4
Solutions that the tourism industry can used for reducing negative influence of inflation which
aims to identify solutions for tourism organisaion for assisting ease inflation pressure. ......5
A Gantt Chart that shows the research tasks and timings of the tasks...................................7
References .......................................................................................................................................9

Topic: “What are the typical impacts that inflation can have on the tourism
industry and what solutions, to ease the negative impacts, can be
implemented?”
Definition
Tourism industry consists of a wide number of businesses such as food and beverages,
hotels, resorts and many more. The tourism industry has been contributing to the development of
any country as there are different places which are having the power to be attractive as well as
unique. According to the situation of the market, increment in the prices of products as well as
services have a great impact on the purchasing power of the market share. After the pandemic
situation of COVID-19, economic lockdowns along with new preventive measures have greatly
impacted all the industries (Andrade and Costa, 2020). Therefore, it has been seen that there are
different preventive measures that are also used by the tourism industry for the purpose of
dealing with the adverse issues. This will help to overcome the challenges and issues within the
tourism industry in an effective and efficient manner. This can also be observed that inflation is
considered as a key reason that has more power to influence tourism sector within the different
countries. The situation of inflation takes place when the supply of the money is more in
comparison to the availability of the products and services within the marketplace. This has been
taken into account the major issue within the economy as it can easily be understood that it is the
situation under which prices tend to increase. This can also be believed that because of the
situation of inflation, there will be a rise in the amount of the money in relation to the suppky of
te available goods and services. In additio to it, inflation is said to be the measure of rate of the
increasing prices of the products as well as services within an economy. Hence, the situation of
inflation is determined to happen within an economy when prices of the products and services
rise because of the increase in cost of production such as wages and raw materials (Bazargani
and Kiliç, 2021). A flow in the demand of the goods and services can result in the situation of
inflation because market share is willing to pay more for goods and services. This majorly takes
place when products prices increase throughout the economy that will result in the minimisation
of the buying power of the money. There are a large number of reasons behind demand-pull
inflation as well as cost-pull inflation. There are several methods or ways that are used for