Impact of Tourism on Economy and Infrastructure

This assignment involves analyzing the impact of tourism on a nation's economy and infrastructure. It discusses various factors influencing destination popularity, including infrastructure, climate, and government policies. Case studies from Brunei Darussalam, Catalonia, and Croatia are used to illustrate the importance of these factors in promoting tourism development.

Tourist Destinations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Analysis of main tourist destinations and income generators of world................................1
1.2 Statistics to identify tourism destination trends and prediction of future trends...................3
TASK 2............................................................................................................................................4
2.1 Physical, social and cultural features of tourist destination..................................................4
2.2 Comparison of leading and developing tourist destinations features....................................5
TASK 3............................................................................................................................................6
3.1 Comparison of current leading tourist destination appeal with developing tourist
destination...................................................................................................................................6
3.2 Evaluate the way in which characteristic of tourist destination impact its appeal................7
TASK 4............................................................................................................................................7
4.1 Issues that influence popularity of tourism destinations.......................................................7
4.2 Potential for responsible tourism to improve host community at tourist destinations of
world...........................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In current scenario, travel and tourism is the fastest growing industry and it highly
contributes in economic growth of nation. Nowadays, people spend a lot of money in visiting
various tourist destinations for the purpose of recreation and enjoyment (Ahmad, 2013). Tourism
process occurs at 2 levels, domestic and global. In the present assignment, given company is
Virgin Holidays Ltd. which is located in UK and offers worldwide holidays to visitors. The
report covers various tourist destinations and generators of world regarding income generation
and visitor numbers. It also includes physical, social, cultural features of tourist destinations.
Apart from this, various issues are analysed that influence the popularity of tourism destinations.
TASK 1
1.1 Analysis of main tourist destinations and income generators of world
After 2009 recession, many countries started to emphasise on tourism industry as
contribution of this sector is high in economic development. It administers opportunity to
countries for foreign exchange and assist in lowering down the rate of unemployment. According
to gathered data from UNESCO, this sector is going to touch 200 billion GBP by 2020.
Issues France United
Kingdom
China Spain USA
Contribution
in economy
It is one of the
country which
is visited by
many travellers.
In France, the
people with
high spending
power, visit the
country most.
High amount of
funds are invest
by government
in order to
Economy of
the nation is
going through
tough time due
to Brexit. In
country's
national
income, the
contribution of
travel and
tourism sector
is
approximately
Before 1990,
china did not
give much
emphasis on
travel and
tourism
industry. But,
after that, it
started to give
preference to
this sector.
Contribution of
tourism
Recently, the
country
emerged as
most
successful and
player in
tourism sector.
Approximately
Euro 161
billion is
contributed by
tourism sector
of Spain in
The
contribution
of tourism
sector in
economy of
country is
3% and it is
supposed
that this
figure is
increased by
0.8% by
2025. Large
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promote top
destinations of
place & attract
large group of
visitors.
Economic
development of
France is
supported by
tourism
industry.
3.5%. Growth
rate of this
industry is 5%
which shows
decent
development
rate. UK has
done
remarkable
efforts in
encouraging
night tourism
as most people
like to visit the
destination in
night because
of less crowd.
industry in
country's
income is ¥
1620 billion.
Approximately
2.6% of share
this sector has
in national
wages. The
figure is big as
china has
world's highest
population.
economy and
the country
done
aggressive
promotion.
number of
employment
is generated
by this
industry &
approx.
20.60% of
national
wages is
generated.
Number of
travellers
Around 60
million of
people visit
France every
year. 1275.50 is
average
expenditure per
person.
Every year,
the country is
visited by
36.114 million
people. On an
average,
£246.1 is
spend by 1000
visitors in
travelling
various
destinations.
20 million
visitors visit
country every
year. Approx.
¥39.88 million
is spend by
1000 visitors.
Around 32
billion
travellers visit
country and
per individual
expenditure is
1414.62.
Approximate
ly 60 million
visitors visit
country and
average
spending
power is $
734 per
person.
Major tourist Eiffel tower, Royal mile Tienanmen Gaudi Zion national
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places French Riviera
and Viexport.
shops, Kelvin
grove gallery
and
Buckingham
palace.
square, Karts
hills and
Forbidden city.
building,
Prado museum
and Royal
palace.
park, Statue
of Liberty
and
Hollywood.
1.2 Statistics to identify tourism destination trends and prediction of future trends
In order to acquire large portion of market share and generate high profits, it is necessary
for Virgin Holidays Limited to offer high quality goods and services to consumers. A research
revealed that currently, a constant growth is seen in travel and tourism industry from last some
years & it can be said that it will remain the same in upcoming years (Beritelli, 2011). UK is one
of the popular country and has many destinations to visit. In £120 billion, above 50% share is
hold by visitor's total expenditure.
Many people in London get employment from tourism sector. Brexit is the factor that
influences country's growth in negative manner. It can be predicted that night tourism is
supposed to grow in coming time as these are related with recreation. Medical and educational
tourism also plays crucial role in tourism development.
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From the above graph, it can be assumed in upcoming years, numbers of visitors are
going to increase. This will increase the amount of money they spend in recreational activities.
Currently, around three million individuals are working in this sector and there are chances of it
to rise up-to 4 million in next five years (Content Marketing for Travel, Tourism and Hospitality,
2017). Rise in number of visitor in future will render various benefits to other sectors like
transportation.
TASK 2
2.1 Physical, social and cultural features of tourist destination
It is required by trip advisor to identify features and information of various tourist
destinations in order to attract more visitors. The 2 destinations where visitors more like to visit
are United Kingdom and Nepal. Both these are popular destinations and Nepal is one of the
fastest developing country. The purpose of each visitor is different to visit destination so, those
tourist places are preferred by them where they get good facilities and their motive can be
fulfilled. Various physical, cultural and social features of country assist in attracting large
number of visitors and contribute in growth of economy. These are:
Cultural: In UK, various cultural programmes takes place with the assistance of available
resources like monuments, special food etc. The country attains many natural and man-made
cultural aspects which assist in attracting more visitors. Albert museum and park are good
example of it (Crouch, 2011). In Nepal, visitors more attract towards Kathmandu Valley.
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Because of earthquake, the country is destroyed but due to high efforts of government and local
people, Nepal again moves towards development and become a best example of developing
country. Though, it is far behind in administering leisure and transportation activities then UK.
Social: It is a factor that plays vital role in growth and development of tourism sector.
Tourist destinations also contributes in society welfare as it administers employment
opportunities to the domestic people of country and also assists in enhancing living standard of
people. In order to make destination more attractive, government also put huge efforts and
contribute in enhancing infrastructure of country.
Physical feature: United Kingdom is popular for its unique natural environment and
there are various types of resources available to the country. Tourist activities are taking place in
some regions such as Scotland, England and London.
Above mentioned are all the features of tourist destinations which assist in attracting
large number of visitors.
2.2 Comparison of leading and developing tourist destinations features
It is important for tour operator to understand the distinction between developing &
leading tourist destination as these both are different from one other in terms of physical, cultural
and social aspects (Datzira-Masip and Poluzzi, 2014).
Leading tourist destination Developing tourist destination
There are many beaches and unique places
available in United Kingdom which attracts
many visitors every year.
Occurrence of natural hazards in Nepal such as
earthquake brings it backward.
Government plays vital role in development of
country and its various tourist destinations by
administering adequate infrastructure.
Nepal fails to acquire and adopt new
technology tools and equipment due to
shortage of funds.
Both man made as well as natural places are
available in united kingdom which gives an
opportunity to people to select among these.
Only natural destinations are available in Nepal
which is also destroyed because of earthquake.
Effective transportation network is available in
UK in comparison to other countries which
assist in improving satisfaction level of
Local community and government supports
development of tourist destination but because
of natural hazards, visitors shows less interest
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visitors. towards such places.
Government and local community highly
contribute in welcoming their guests.
Because of inadequacy of funds, transportation
system of Nepal is ineffective as compared to
UK.
TASK 3
3.1 Comparison of current leading tourist destination appeal with developing tourist destination
It is important to carefully analyse all the elements of tourist destination carefully. In
comparison of Nepal, UK is a leading destination which attracts visitors more. Government also
plays crucial role in development of country by administering adequate infrastructure. The
growth of tourism sector highly relies on characteristics of destinations (Fourie and Santana-
Gallego, 2011). Some differences between leading and developing tourist destination are defined
below. Such characteristics are as follows:
Economic characteristic: Economic development plays vital role in influencing
behaviour and interest of visitors to visit a destination. Economic growth of UK is better than
Nepal. United Kingdom is a developed country and highly contributes in global economy. In
tourism sector, the country is not dependent on other nation for growth and development.
Whereas, Nepal is not much developed because of occurrence of natural hazards like earthquake
which push the country backward. For making tourism destinations more successful, Nepal relies
on other countries.
Physical characteristics: As a developed country and has support of government in
developing various destinations with excellent infrastructure, United Kingdom is able to attract
large number of people towards the country. Good infrastructure and availability of adequate
funds helps country in handling difficult situations effectively and satisfying visitors more.
Whereas, Nepal is developing nation but because of earthquake and other natural hazards faced
by country in past, the place has less developed infrastructure. This will reduce visitor’s interest
to visit country. Transportation facility is also less in Nepal than United Kingdom.
Based on above mentioned characteristics, it can be said that high income is generated by
UK from travel and tourism sector and highly contributes in country's economic growth.
Whereas, Nepal do not have adequate infrastructure and funds to attract more visitors (Frenzel,
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Koens and Steinbrink, 2012). Though the country constantly attains growth, but because of
dependency on other countries and lack of funds, Nepal restricts to influence behaviour &
interest of visitors.
3.2 Evaluate the way in which characteristic of tourist destination impact its appeal
Each destination has different features which impact its appeal in positive or negative
manner and it largely influence revenues generated by these destinations. In order to attract large
number of people, it is important that destination have some unique and attractive features
(Horng and et.al., 2012). Main characteristics of tourist destination can be understand by
following points which are as follows:
Accessibility: Before entering in any country, the main element which visitors seek is
comfort. In order to increase visitors, countries need to increase the ways of entry by air, road or
sea.
Weather: It is one of the feature which influences the visitors of a particular destination
as it is not necessary that the climate of place suits to everyone.
Availability of goods & services: Appeal of tourist destination is also influenced by this
element. Availability of good services like rooms, restaurants etc. affect visitors. Besides that,
advance booking facility also influence number of tourist.
Quality of services: UK is known for its quality services which are offered to visitors in
restaurants & hotels. It is important for hotels to administer good quality services to visitors and
maintain it in order to better serve needs of customers.
Marketing Campaign: Tourist destination appeal is also affected by tourism promotion.
It is very important for every country to promote their tourism effectively in order to encourage
travellers more to visit country.
Value for money: It is an important factor which every visitor wants. Value of money is
evaluated in terms of services. Visitors spend money for getting high quality services in turn of
amount they pay for it.
TASK 4
4.1 Issues that influence popularity of tourism destinations
The biggest source of foreign exchange is tourism. In UK, the revenues generated from
tourism sector highly contribute in GDP of country (Laws, 2011). Historical places, natural
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beauty and adventurous destinations of country attract visitors more. There are various issues
which influence the popularity of tourist destinations. Some of these are as follows:
Lack of good infrastructure and hotels: It is an important issue as all visitors wants good
infrastructure and hotel facilities. Popularity of tourism sector is influenced by it. Bad
infrastructure facilities such as unhygienic food, dirty rooms, etc. create a negative image in
minds of visitors regarding that place.
Lack of communication and transportation: Popularity of tourism industry is influenced
by this issue. Absence of technological advancement influence communication & transportation
of nation. Because of ineffective communication, visitors face many difficulties during hanging
at different places (Pandža Bajs, 2015).
Ineffective manpower: Trained manpower plays important role in tourism industry. But,
because of lack of education, skilled manpower is not available. The majorly focused region is
historical places which are designed by architecture. So, unavailability of skilled workers creates
many problems as they do not understand uniqueness of sculptures.
Wastage of resources: As United Kingdom is a developed country, it enjoyed the benefit
of resources. But, because of lack of training, resources are not properly utilized and it leads to
wastage of resources. If this will continuously going on, it impacts resource availability &
destroy heritage places.
So, it is important for Virgin Holidays Limited to consider all the above mentioned
points.
4.2 Potential for responsible tourism to improve host community at tourist destinations of world
Responsible tourism of UK promotes the natural beauty of place. The major advantage of
responsible tourism activities is that it assists in lowering down the negative or harmful effects of
tourism on economy, culture and society of country. In order to preserve heritage and cultural
resources of country, various firms are funded by travel and tourism industry.
Responsible tourism renders various types of benefits to United Kingdom as defined below:
 It improves the satisfaction level of visitors.
 It promotes and contributes conservation of heritage and tourist destinations. Apart from
this, it offers various advantages for long term (Prebensen and et.al., 2013).
 It offers economic benefits to domestic people and improves service quality offered to
visitors.
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 This lowers down negative impact of economic, social and economical factors.
Above mentioned are all the benefits which a responsible tourism offer but it requires
large amount of funds (Saraniemi and Kylänen, 2011).
CONCLUSION
From the above mentioned report, it has been concluded that travel and tourism is the
fastest growing sector of country. This industry highly contributes in growth and development of
economy of nation. There are various elements which influence the popularity of destination
such as infrastructure, climate etc. Tourism operators must ensure that they administer high
quality goods and services to travellers in order to satisfy their needs in better manner.
Government also plays vital role in promoting and developing tourism of nation.
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REFERENCES
Books and Journals
Ahmad, A., 2013. The constraints of tourism development for a cultural heritage destination: The
case of Kampong Ayer (Water Village) in Brunei Darussalam. Tourism Management
Perspectives. 8. pp.106-113.
Beritelli, P., 2011. Cooperation among prominent actors in a tourist destination. Annals of
Tourism Research. 38(2). pp.607-629.
Crouch, G.I., 2011. Destination competitiveness: An analysis of determinant attributes. Journal
of travel research. 50(1). pp.27-45.
Datzira-Masip, J. and Poluzzi, A., 2014. Brand architecture management: The case of four tourist
destinations in Catalonia. Journal of Destination Marketing & Management. 3(1). pp.48-
58.
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Fourie, J. and Santana-Gallego, M., 2011. The impact of mega-sport events on tourist arrivals.
Tourism management. 32(6). pp.1364-1370.
Frenzel, F., Koens, K. and Steinbrink, M. eds., 2012. Slum tourism: Poverty, power and ethics
(Vol. 32). Routledge.
Horng, J.S. And et.al., 2012. Understanding the impact of culinary brand equity and destination
familiarity on travel intentions. Tourism Management. 33(4). pp.815-824.
Laws, E., 2011. Tourist destination governance: Practice, theory and issues. Cabi.
Pandža Bajs, I., 2015. Tourist perceived value, relationship to satisfaction, and behavioral
intentions: The example of the Croatian tourist destination Dubrovnik. Journal of Travel
Research. 54(1). pp.122-134.
Prebensen, N.K. And et.al., 2013. Motivation and involvement as antecedents of the perceived
value of the destination experience. Journal of Travel Research. 52(2). pp.253-264.
Saraniemi, S. and Kylänen, M., 2011. Problematizing the concept of tourism destination: An
analysis of different theoretical approaches. Journal of Travel Research. 50(2). pp.133-
143.
Tortella, B.D. and Tirado, D., 2011. Hotel water consumption at a seasonal mass tourist
destination. The case of the island of Mallorca. Journal of environmental management.
92(10). pp.2568-2579.
Online
Content Marketing for Travel, Tourism and Hospitality. 2017. [Online]. Available
through:<https://thetomorrowlab.com/2016/03/content-marketing-travel-tourism/>.
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