Tourism Business Environment Assignment: Brexit Impact Analysis

This report examines the macro-environmental impact of Brexit on the tourism industry, specifically focusing on its effects on two tourism stakeholders: Benidorm and the United Kingdom. The analysis details how Brexit has negatively affected the tourism sector by decreasing the number of tourists, impacting profit margins, and creating uncertainties related to travel regulations and currency fluctuations. The report highlights a decrease in British travelers to Benidorm and discusses the challenges faced by the UK tourism industry. It references various sources to support the analysis and provides a comprehensive overview of the negative consequences of Brexit on the tourism business environment.

Tourism Business Environment: Coursework One.
Choosing one of the following macro-environmental events:
Climate Change / A Terrorist Attack / Brexit / Over-tourism / Conflict
Technology Failure / Natural Disaster / Extreme Weather
A Macro-Environmental Event of your choosing.
Identify, using multiple sources, how this macro-environmental
event impacted upon two tourism stakeholders.
Macro Environmental Event:
Brexit is one of the macro environment event that impact on travel and tourism business
negatively. It is abbreviation for British Exit, refer to UK decision referendum to leave the
EU. This event affects overall growth of businesses and success as well as economic
growth within UK and other countries as well. It increases rate of unemployment and
decrease the living standard of local people. After Brexit, border between Republic of
Ireland and Northern Ireland will become only EU and UK land border, there concern over
this becoming hard Border with limited controlled customs checks and crossing points.
Stakeholder 1:
Benidorm is the first stakeholder that affected by Brexit, it is one of the most popular
tourist destination in the world, when the first hotels were built and its port was extended.
However, the actual boom of this city as coastal resort that gain the attention of people
from different countries like UK (Vitaliev, 2016). The relationship between Benidorm and
UK suffer due to Brexit, it creates issues for this city to drive local people from Europe
towards beauty of Spain, tourism sector organizations blaming this specific macro-
environmental event for blow to number of British travellers. Spanish vacation hotspot, a
most favourite for those seeking a destination for winter sunshine, which fallen down of
potential no deal scenario that could become reality with 15% drop in visitor numbers.
Brexit's discussions on Britain's separation deal from EU may not have been completed, yet
impact of uncertainty is being felt within Benidorm. After this event, the number of holiday
packages decrease consistently, sold to Britons amounted to 46,000 in 2019, as compared
to 54,000 just in 12 months before. 16% drop in bookings is the result of Brexit that
directly impact on profit margin and productivity of travel sector negatively. In simple
words Brexit damaged the relationship of UK and Benidorm, hotel association find out the
number of overnight stays in the most famous resorts of city like Costa Blanca by British
travellers last year drooped by 454,000, the plummeted represented an 8% fall. On the

other hand, after Brexit still five million overnight stays in hotels within Benidorm
registered by UK travellers made Britain Benidorm number one foreign tourist place. In
December 41.7 % of foreign holiday makers who stayed in city were British, compare with
3% from second placed Belgium and 2.2% from Holland that is third placed. Along with
this, Benidorm is famous with tourists from Germany, UK, Belgium, Ireland, Netherlands
etc. Its initial growth in popularity will be attributed to continue year around and package
holiday, due to night-life based near central concentration of clubs and bars. Brexit affect
relations between both stakeholders negatively, it is one of the biggest threat to Tourism in
Benidorm. Furthermore, the majority of Britisher who go on holiday to Benidorm are pro
Brexit as are majority of ex-pacts in city. They know their vacations after this event will
become more expensive than previous and when it's a no deal Brexit which is seemly an
accelerative certainty, people might not even acquire to Benidorm for their family or
annual holiday. Before Brexit the relationship between both stakeholders is quite effective,
most people go to Benidorm to cheer up their mood and enjoy the precious movement of
life away from stress full environment. A lot of Britisher go to this city to for several
purposes such as to work in cafes and bars but after this happen they will need Spanish
work permits which possible to be scarce and only accessible to Brits who have skills and
qualifications that Spain is in want of not for kitchen porters and cafe assistants. Spain
contending with few expensive holiday destinations outside EU as booking to Tunisia,
Turkey and Eqypt have jumped over 30%.
Stakeholder 2:
United Kingdom comprises four nations: Northern Ireland, Scotland, England and Wales,
the relationship between UK and Benidorm affect due to Brexit, it is withdrawal of United
Kingdom from European union (Dhingra and et.al, 2016). British parliament decide which
components of that law to keep, repeal or amend. No-deal Brexit hit travel in as well as out
of Europe and UK the most, as it decrease the number of travellers rather than the past few
years. Prospect of Britain crashing chaotically out of EU seems increasingly likely as times
pass way. Such as circumstances could change the travel plan of million of individual
people into misery of cancellations, delays and bureaucratic night mares. Majority visitors
seeking to heard in of UK face many uncertainties that almost impossible to plan efficiently
to avoid them. Meanwhile, potential of this event has impacted passport concerns as well as
pound to euro exchange rate, it impacts on people decision to go UK. Freedom of
movement rules for EU citizens will change immediately due to Brexit. Between summers
when cost of going abroad increased by roughly 25% the number of foreign holiday

packages by Spanish holiday makers reduced by small proportion. Visitors who decide
they are going foreign anyway even when it costs more, will be less willing to take an
additional short break in Britain. Brexit is having negative impact across much of European
tourism in summer, with many nations echoing a similarly worried out look for Ireland. UK
tourism is vital for Spain with 18.5 million of their citizens having holidayed, number of
represents an essential lynchpin on their travel industry (MacDonald, 2016). UK, like other
nations had felt backlash with number showing Spain travellers figures dropped by over
5% in the year. From above analysis, it can be said that Brexit impact on both stakeholders
negatively as it decrease the number of tourist, and also impact on profit margin of Travel
and Tourism industry. The package travel regulations permits tour operators to enforce
overcharge when cost of holiday package goes up after people booked because of currency
fluctuations due to Brexit.
REFERENCES
Book and Journals
Dhingra and et.al, 2016. Brexit: the impact on UK trade and living standards (No. 469).
Centre for Economic Performance, LSE.
MacDonald, S., 2016. The impact of Brexit on the UK’s reputation, influence and soft
power. Cultural Trends. 25(4). pp.280-286.
Olsson, E. and O’Reilly, K., 2017. North-Europeans in Spain: Practices of community in
the context of migration, mobility and transnationalism.
Simionescu, M., 2018. The impact of Brexit on the UK inwards FDI. Economics,
Management and Sustainability. 3(1). pp.6-20.
Vitaliev, V., 2016. Case study-Isle of Man: Brexit lessons from a non-EU
neighbour. Engineering & Technology. 11(5). pp.70-70.