Impacts of Inflation on Tourism Industry: Positive and Negative Effects

Research project

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
Definition: Inflation.....................................................................................................................1
Inflation: And its Events..............................................................................................................1
Aim and Objective of the research..............................................................................................1
MAIN BODY..................................................................................................................................2
Quantitative research.......................................................................................................................2
Small medium enterprise impacted by the inflation:...................................................................2
Qualitative research.........................................................................................................................3
Positive and negative impacts in tourism industry in reference to inflation................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................6
online...............................................................................................................................................6
Yvanovich R., 2022. What Are the Effects of Global Inflation on the Hospitality Industry?
[Online] available through:..............................................................................................................6

INTRODUCTION
Definition: Inflation
Inflation in an economy determines the sudden hike in the price of a commodity. The
decrease in the price of commodity results in the lower purchasing power of the customers. This
is measured in percentage which states that the currency unit buys productively less in the
preceding periods (THIỀU, 2019). There are certain things that causes inflation for example,
when the demand rises than the supply then the goods price tends to increase. Customers
concerns regarding the price of goods are subtle, as they prefer to get the low priced goods as to
buy more products (Zhao, 2022). When the products have high prices, the customers limit the
purchase as they can only buy less products. The inflation can also affect when the price of raw
materials, labour wage and more that the firm tends to increase the price of the final goods.
Inflation: And its Events
When the economy hits the inflation, the customers decreases their purchase of products
as there are rise in price of the goods and services. During this time, the buyers save more money
for the future and spend the money in the healthcare facilities (Hoang and Nguyen, 2021). The
buyers purchasing less products as they focus more the necessary items to purchase more than
purchasing attracting items. The fluctuation in the price of goods and services also come into rise
when other countries increase the raw materials which affects the export charges. For instance,
the company Virgin Holidays in UK, due to inflation the sales lowered as the customers
decreased their spending as compared to prior inflation. Its shares fallen to 70% this year. The
rate of interest also leads the economy in inflation. When there are low rates in interest then
customers tend to increase the borrowing from the banks and spend according to the commercial
purposes (Nguyen, Binh, and Su, 2020). Also when the money is circulated in the market
economy then resulting to the increase in price of the goods and services by the government as to
control the money circulation. These are certain causes that affects the inflation in the country
where appropriate steps must be taken to take it under control.
Aim and Objective of the research.
Aim: To determine the impacts of inflation on the tourism industry and to execute the solutions
to overcome the negative impacts.
Objective:
1