Impact of Inflation on SMEs in UK Tourism Industry

Research Project
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Table of Contents
INTRODUCTION...........................................................................................................................3
Concept of Inflation................................................................................................................3
List of the events that can lead to inflation.............................................................................3
Aim and objective of research................................................................................................3
MAIN BODY...................................................................................................................................4
Quantitative research.......................................................................................................................4
Impact of inflation on SMEs with the UK tourism industry..................................................4
Qualitative research.........................................................................................................................5
Impact of inflation on business performance within UK tourism industry............................5
CONCLUSION................................................................................................................................8
REFERENCES:...............................................................................................................................9
Books and Journals.................................................................................................................9
Online.....................................................................................................................................9
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INTRODUCTION
Concept of Inflation
Inflation can be understood as increase in prices of products and services available in
market. It also enhances the overall cost of living over a period of time. It takes place with the
rise in price of production cost and raw materials (Su and et.al., 2020). The overall cost of
operations becomes costly causing inflation. Along with that, rise in demand of a particular
product is another reason of inflation. This leads to rise in process and due to this reason the
customers are not able to spend money on the particular commodity. There are various problems
that takes place due to inflation and it is necessary to take measures that will control inflation.
The imbalance in the prices of commodities is the reason for inflation. The changes in the
income level of the consumers is also a reason that causes inflation.
List of the events that can lead to inflation
There are various events that cause inflation. It becomes necessary to have knowledge
regarding those events so that proper precautions are taken. The primary cause of inflation is
when demand for a commodity exceeds its supply then it leads to inflation. The demand pushes
the price level up and is a major cause (Nyoni, 2018). At the same time, growth in population
rate is also a cause of inflation. There is need of understanding that the rise in population also
enhances the demand of the products and that is the reason there is inflation. At the same time,
another event that can raise the price are rise of prices in international market. this leads to rise in
the market due to having trade relations with them.
A recent event of Covid-19 pandemic has impact on the price rise. The pandemic caused
lockdown situation around the world and there was shortage of raw materials and well problem
in transportation facility. This lead to price rise as there was no labour to carry on the process of
manufacture. The shortage has led to high prices and inflation. In tourism industry, there was low
occupancy rate seen in hotels. No one was ready to go out of their houses and this enhances the
rate of products.
Aim and objective of research
Research aim
To examine the impact of inflation on the tourism industry.
Research objectives
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