Tourism Industry Issues Post-Brexit: A Comprehensive Analysis

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Issues in Tourism
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Introduction
Travel and tourism are publicize that leads to bridge the gap in between the cultures, religions
and people, but an exclusive difference has been observed in aspects of the lifestyle and wealth
between the tourism and local public may cause resentment. However, tourism is the process and
act that leads to spending time away from the home in pursuance in aspects of pleasure,
recreation and relaxation while making usage of commercial provision services. Thus, there are
certain disrupt and also damage the ecosystem as well as the environment. However, the negative
behaviour of the tourist serves as the other negative impact on the tourist sector industry. The
assignment deals with all the negative issues that are related to the tourism industries. Moreover,
the negative impact of tourism in aspects of the cultural, social and environmental is evaluated in
the given assignment. Moreover, many of the current issues that are faced by the local country
people are determined in the given study. It has been observed that the lack of respect in aspects
of the religious and cultures of the peoples that are followed by the local public.
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Current issues in tourism
There are several issues that are faced by the UK tourism and travel market that are evaluated.
The UK industry of tourism and travel serves three main market conditions: UK residences that
are termed as the domestic tourism within UK, outbound of the tourism in the UK residents that
are travelling abroad as well as inbound tourism that are residents travelling to overseas UK.
However, it has been observed that the expenditures on tourism and travel in UK are increasing
to £70.04bn by 1.4%. Moreover, in the latest market the inbound market are showing high results
both in the day and night trips. Merger and consolidation has considered as the key feature of
outbound tourism market (Cirer-Costa, 2017). The market of the tourism are serving a huge
competition in the market to the airlines that offers at the low cost in aspects of the increasing
preference and independent travel within the customers while booking their holidays through
internet.
Difficulties and travel delays
One of the noticeable facts that encountered sudden effect to the tourist is the rising cost of the
airfares that started of journey. Within the boundaries of the EU certain issues has been observed
that waived restrictions as well as the corporate tactics that is set in between several airlines.
Outside the border line of EU all the restrictions are placed along with increasing difficulties that
might lead to tickle down the cost of travelling to the customers. Moreover, the delays in the
flight timing are other issues that have been observed in Brexit. However, the lacking in free
movement within EU would need high processing time by the travel authority.
Increasing cost
This is one of the difficulties that are faced by the tourist that arises from the increasing costs of
the medical access and insurance. However, the members of the EU enjoy the facility of the
European Health Insurance Card which provides the free access for the medical care. However,
following to the Brexit this facility was no longer existed to the meaning for the travellers in
which they are bound to purchase additional insurance at the time of their journey for any kind of
risk that might incurred that significant the additional cost for the medical emergency that arise. \
At the time of financing for trip the uncertainties of the Brexit must be kept in mind that
contributes to the decreased amount of the pound. However, the exchange rates are varied with
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the US dollar which started to decrease since 2009. It has been observed that the uncertainties of
the Brexit are still decreasing for the future timing (Sheehan et al., 2018).
The above issue was the definite issue that was faced at the time of transferring money directly
as well as representing the opportunities for the investors in aspects of the international finance.
The rate of the populations is increasing that are getting uncontrollable with the policies of the
government. Thus, the Government established a policy in rail franchise in fare payer that helped
to greater extended shares while running cost of railways. This is the reason the price of the
tickets are assumed to be high in future.
Recovery post-Brexit
According to the given study the considered potential are available for the growth within UK in
the tourism industry. However, being the fifth largest in the tourist sector the uncertainty that led
the recent performance are underwhelm while leaving the speculators in order to believe the
means that are nowhere to go rather than up (Lim, 2018).
However, the falling significant that are below the average 3.9% of the growth that are adapted
and are certainly needed at the side of market, but the raising opportunities will show the
increasing promise after the path of Brexit is set.
It is important to rectify that the destination is sustainable for the tourism development or not by
evaluating all the natural, social and cultural factors (Vickers, 2018). Another concern issues in
this sector of industry is the security and safety, the changing climatic in the tourist spots and
global warming level in the area, barriers that arises in travelling and many other relevant facts
crates issues that must be determined in an adequate manner.
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Issues faced by Tourist Company
● Margins down and weak pound
Many of the tourist company are bound to sell and buy the currencies most of the time like for
saying UK deals in dollars, Nepalese euro and rupees, Kenyan in shilling, Moroccan in dirham,
Malaysian in ringgit, Russian roubles. It has been observed that the rate of the pound has
dramatically dropped creating the short term impact on rising the holiday as well as the profit
dropping margin. Henceforth, the safe haven currencies are assumed to become more expensive.
Many of the travel and tourism company purchase the currencies in advance in order to maintain
a certain level of budget every month. However, small changes are observed over the different
time after the long passage of time. Brexit resulted in a huge drop that the companies are bound
to surcharge the invoice irrespective to cover their losses. The contracts of supply can be
challenged which leads the companies to provide price guaranteed to their tourist but not hedged
that will be suffering more (Campos et al., 2018). Moreover, the instability of the political
account and certain cancellations all around the world are inevitable which is failed by many of
the tourist companies.
● Fluctuating prices in future
The tourist companies are required to plan their cost in order to provide trips in future as well as
have to decide the rate of exchange. Most of the companies adopt the generate exchange rate in
order to avoid the complexity. However, all the company focus on the perfect hedge at their bets
as well as opt for lower rate of exchange which in relation increases the rate of the holidays.
Moreover, the currency volatility can be theoretically go on the basis of one year. Henceforth,
the certain weakened currency is bounded to be accepted by the companies in the long term
which leads to add on immeasurable stress upon the company owners.
The report analyze that the demand of the customers are shifting towards the shorter breaks that
relates to the political and economical uncertainty. Moreover, it has been determined that
consumer trend and demographics are emerging towards the solo travelling. However, the 60%
of the study determines that travelling alone generates the opportunities towards the growing
areas of tourism market.
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● Lower number of customer and higher prices
It is the basic law of demand and supplies that with the increasing price of the product the
demand of respective product decreases. At the same phase the increasing rate of the holidays
lower down the demand of the customers. On the other hand, the government impulses offset the
high rate of taxation and cut off the amount in order to increase the interest among the company
owners (Diekmann and Smith, 2015). Moreover, is a gap between the cheap destination places
and the expensive holidays.
It has been observed the industry of the tourism and travel were facing their struggling sessions
at the time of 2007. At the same moment the increasing rate in the inbound tourist are expected
in UK. Moreover, the outgoing visitors remained relatively statistic as the summer beach in UK
serves to be very much tempting to the visitors and the local publics. The market was expected
different with both the outbound and inbound in the market that was demonstrating the growth in
the tourism industry.
● Travel culture verses worries holiday spending
It is observed that the tourist will have less amount to spend on their holidays but on the other
side there are norms as well as item that are big ticket like dream holidays on the exotic locations
which needs to be secured. The psychology discounts are rising in everything that are purchased
which even includes the holidays packages in which the pricing will again be another factor
variable. One of the company Group on maintains the relationships between the discounted
percentages and the selling price on the basis of collected data (Williams and Baláž, 2015).
However, this sort of mentality leads to encourages the public and drag the attention.
● Creating room for the foreign holidaymakers
It has been observed at the middle passage of time that weak pound that boost the inbound
market which encouraged the European and American to book cheap holidays packages in
Britain.
● Uncertainty
The basic demand for the holidays is based upon the long and short term of that appears to
national hysteria as well as depression. However, in Brexit it is predicted uncertain consumers as
well as lacking in the confidence while spending the foreseeable future. Moreover, the thinking
of the booking a holiday will be considered at the last stage at such a weak pound rate.
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It has been observed that the travel industries faces very challenging phases and situations which
leads to stressful conditions for them to think and develop a strategic planning (Cumming and
Zahra, 2016). Moreover, the changing rate of the proud even creates huge worries to the
company owners in Brexit. Majority of the decisions served to be reactive other than the pro-
active due to the frozen inactivity. At the certain situations the customers can switch their pass
time to some other brands but it majorly affects the tourism industries and relevant small
companies that really struggle.
● Disruptive enemy
Some of the company's adopts aggressive methods in order to drag the attention of the customers
to their destinations and locality at the cheapest rang while creating amazing websites and
platform that becomes embedded through online social lives that are disruptive as well as
dangerous. However, many of the tourist companies are involved providing the experiences and
holidays. It has been observed that certain tourist company that has a good market position, fine
profit margin, binding agreement of supply rely heavily on the brand values and the customer
loyalties (Sharf, 2016). However, it may not be serve for long period of time. Moreover,
embracing rapid changing in the buying culture is being nimble enough in order to ride
technological wave serves to survival key.
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Conclusion
The main objective of the study is to evaluate the current issues that are determined in tourism.
The assignment accentuated certain issues that are faced by the tourist of the Brexit. All the
points that lead to create trouble to the visitors that instance the changing rate of the currency,
delaying in the time of flights and many more are explained in the given assignment. In addition,
certain issues that are faced by the companies engaged in the tourist sectors are also accentuated
in the context. All the economic and democratic issues are discussed in the assignment narrating
post Brexit. Thus, the government of the Britain is required to adopt certain laws and regulations
in aspects of the tourism to eliminate adverse impact in the country.
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References
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A literature review. Current Issues in Tourism, 21(4), pp.369-400.
Cirer-Costa, J.C., 2017. Turbulence in Mediterranean tourism. Tourism management
perspectives, 22, pp.27-33.
Cumming, D.J. and Zahra, S.A., 2016. International business and entrepreneurship implications
of Brexit. British Journal of Management, 27(4), pp.687-692.
Diekmann, A. and Smith, M.K. eds., 2015. Ethnic and minority cultures as tourist attractions
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Lim, W.M., 2018. Exiting supranational unions and the corresponding impact on tourism: Some
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Sharf, E., 2016. Information exchanges: regulatory changes to the cyber-security industry after
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Sheehan, M., Grant, K. and Garavan, T., 2018. Strategic talent management: A macro and micro
analysis of current issues in hospitality and tourism. Worldwide Hospitality and Tourism
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Sima, C., 2017. Brexit impacts on British tourism. Strategii Manageriale, 5(34), pp.297-303.
Vancouver
Vickers, B., 2018. Global Britain, Trade and Development: Issues and Priorities Post-Brexit.
Navigating Uncertainty: Towards a Post-Brexit Trade and Development Agenda, 97, p.5.
Williams, A.M. and Baláž, V., 2015. Tourism risk and uncertainty: Theoretical reflections.
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