Complexities of Tourism Industry in Madrid Region

Coursework the Madrid
Region
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Complexities of tourism industry in relation to the importance of economic perspectives.........3
Complexities of tourism industry in relation to the importance of stakeholders.........................4
Complexities of tourism industry in relation to importance of tourists’ motivation...................6
Complexities of tourism industry in relation to importance of Globalisation.............................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Tourism is one of the largest industry that is concerned with people travelling for either
pleasure or for travelling in their destination for at least one night. In the year 2019, the
contribution of tourism sector towards the GDP of Spain is 221.4 billion US dollar (Díez‐
Pisonero, 2019). This is indicating the average annual rate of contribution is 5.47%. Madrid is
capital and most popular city of Spain which attract large number of tourist and travellers each
year. However, there are also various complexities that tourism industry of Madrid region is
facing in the present environment. Understanding the difficulty that tourism industry is facing in
term of different perspective is important as it helps the sector to solve the same.
Thus, the present report will cover the complexities of tourism industry in relation to the
importance of following perspectives such as economic dimension, stakeholders, tourist
motivations as well as the globalization perspective.
MAIN BODY
Complexities of tourism industry in relation to the importance of economic perspectives
Before discussing complexities of tourism sector as well as importance of economic
perspectives, it is important to understand about changes that have been made in this sector and
reasons as why Madrid is suffering problems in attracting tourists. In regard to Madrid, it is
found that it has been hit by the pandemic and it affected its sales. It knows that for making an
effective position in the market as well as achieving tourists, there is need to make products and
services innovative and it is the reason as it has developed new concept at the time of FITUR and
new concept of international tourism region will be known as greater Madrid.
Importance in regard to economic perspective: In regard to economic perspective, it
can be said that tourism is one of the main big sectors that contribute high in improving in
improving economic goals. Tourism is wide sector that requires number of activities and it
generates income, employment as well as foreign exchange earnings. Tourism sector entails a
collection of goods and services that are being provided to visitors.
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Figure 1: Contribution of tourism in global economy
For attracting tourism and satisfying them, tourism sector needs to make partnership with travel
sector, local businesses like restaurants, hotels, local transportation, food and beverage and
others (Altinay and Taheri, 2018). Tourists can be made satisfied only when there is availability
of good food, accommodation, tourists place and transportation facilities. So, in this regard, it
can be said that tourism sector is a collection of number of goods and services and it can increase
employment opportunities.
Some complexities and elements associated with economy of tourism include:
Elements of demand and supply: There are three main factors that can affect demand of
tourism such as: overall tourism growth, growth in specialty travel and increasing awareness of
environment. Each of this element also influenced by other elements such as: quality of travel
services, education and others. Rising income, employment, growing population and shorter
work weeks are some factors that can rise in demand of tourism. So, on the basis of this, it can be
said that Madrid’s region tourism needs to focus on all these elements and need to provide
employment opportunities by rising demand and attracting tourists.
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