Impact of Brexit on UK Tourism: Stakeholders and Response Strategies

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Added on  2023/01/16

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This report delves into the macro-environmental impact of Brexit on the UK tourism industry. It begins with an overview of Brexit, explaining its origins and implications, particularly concerning the UK's departure from the European Union. The report identifies key stakeholders affected by Brexit: tourism operators and the UK government, detailing the specific challenges each faces, such as economic decline, decreased visitor numbers, and changes in border policies. Furthermore, the report analyzes the response strategies adopted by these stakeholders. Tourism operators are advised to employ promotional techniques and innovative service packages, while the government is undertaking measures such as deregulation, visa-free travel, and infrastructure improvements to boost tourism. The report concludes by emphasizing the importance of strategic measures by both stakeholders to strengthen the sector, which significantly contributes to the UK's economic growth and employment.
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The Macro Tourism
Business Environment
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Overview of the event.................................................................................................................3
Stakeholders affected by Brexit..................................................................................................3
Response strategies taken up by the 2 stakeholders....................................................................4
CONCLUSION
..........................................................................................................................................................5
REFERENCES................................................................................................................................6
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INTRODUCTION
Tourism sector is considered as the effective industry which provides contribution in the
growth of nation. Its generated revenue also provides contribution in the economic development
of the nation. BREXIT is identified as the important event which have affected performance of
United Kingdom a lot (Ateljevic, 2017). BREXIT have placed higher impact over the overall
tourism industry in many forms. The current project is the continual part of CW1 in which work
of impact of BREXIT over Macro environment along with two of its main stakeholders had
been explained. In this current project, the main focus has been placed on response strategies
taken up by the two stated stakeholders in order to reduce impact of BREXIT on them.
MAIN BODY
Overview of the event
BREXIT is termed as the initiative taken by United Kingdom to keep themselves away
from European Union. The respective event initiated in the year 2017 but is still in the status of
in process. It is expected that it will completely completed by 31st January 2020. The main reason
behind this event was that UK was not able to execute their work at their own level due to
boundation presented by European Union. Along with this, it was difficult for the businesses to
grow their work at their own level because they have to discuss their proposed plan and policies
(Berry and Ladkin, 2017). This directly delays the project functioning of companies working in
United Kingdom. In addition to this, it has been further analysed that the respective event has not
only affected businesses of United Kingdom but at the same time it has also placed major
influence over the tourism industry of UK. Th respective influence can be seen on positive form
as after BREXIT event Britain become so much popular across the world that which have
attracted maximum number of tourist towards them in effective manner. On the other hand, it has
been later analysed that the influence of BREXIT on tourism industry was also negative. This
simply means that figures which depicts number of traveller of UK states that they are declining
with the passing time.
Stakeholders affected by Brexit
The overall event named as BREXIT places impact over two of the main stakeholders of
tourism industry which are tourism operator of United Kingdom and Government of United
Kingdom. Influence on both the stakeholders are stated as below:
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Impact of BREXIT on Tourism Operators
It has been mainly analyzed that post BREXIT number of consequences as well as
uncertainty in UK has been increased. This uncertainty can be seen in the form of economy
decline. In addition to this, it can be said that economical condition of nation is not strong than it
would not be possible for them to attract maximum number of travelers or visitors towards them
(Clayton, 2013). Along with this, it has been further analyzed that the overall impact over the
tourism sector can be seen in the form of decline in number of visitors within the country with
3% by comparing it with the data received from the records stated in the year 2017. Along with
this, it has been further analyzed that number of traveler are total 1.2 million in UK. This simply
states that post impact of BREXIT could be seen in the form of decline in number of people.
Impact of BREXIT on Government of UK.
Along with this, it has been further evaluated that government of UK has also suffered a
lot due to post BREXIT. This simply means that it has delayed in entrance of UK's border. Along
with this, it has been analyzed that the air fare of the company has also been increased post
BREXIT that have also influenced interest of tourist towards the visiting UK because they do not
want to visit the nation whose transportation is very expensive to them (Easterling, 2015). This
also shows that the overall contribution to this industry declines with the passing time as number
of travelers are declining towards the same.
Response strategies taken up by the 2 stakeholders
Response strategies are termed as the strategy adopted by specific individual towards the
issue so that they can easily cope up with the following issue. With reference to the current
provided scenario, it is essential for the individual to adopt right strategy so that they can easily
cope up with the impact which is being faced by them due to the event (Gannon, 2014).
Response strategies for both the stakeholders are stated as below:
Response strategies taken up by Tourism operator
At the first, it is essential for tourism operator of UK to make use of effective
promotional technique related to their specific destination so that they can develop their
understanding over several destinations in UK. This will directly spread knowledge of
people about the places which will definitely influence their interest to visit the place at
least once in the lifetime (Knežević Cvelbar and et. al., 2016). This promotional activity
can be effectively done by making use of campaigns that highlighted attractive places of
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United Kingdom that are popular for all people and will also influence interest of
individuals with its beauty effectively. By making use of these activities, it would be
easier for tourism operator of UK to develop knowledge of people regarding the hidden
attractive places of UK.
The next strategy that could be adopted by tour operators of UK for reducing their Brexit
impact over their market performance is to bring some innovative approached to add on
in their services or packages (Sofield and Li, 2011). In this the tour operators can
approach their target market by offering some sort of additional benefits in their travel
packages for attracting maximum number of visitors or travellers towards them.
Response strategies taken up by Government of UK
Government of UK is looking forward to undertake raft of measures as to effectively
boost tourism in a well defined manner (Walle, A. H., 2015). It has been seen that with the
decrease in value of pounds foreign visitors makes affordable trips. Further government duly
announced deregulation drive in order to benefit Britain tourism. Along with this, this some of
the regulatory changes are made by government that allows B&Bs to duly serve their customers
with alcohol and further allow owners to lift their guests from train stations to their
accommodation. In addition to this, it has been identified that government have also announced
series of new single-booking fox rail itineraries as to effectively encourage large base of visitors
from all across the globe (Tribe, J., 2019). With the help of all these measures it has been seen
that there are wide scale response strategies that has been undertaken by government in order to
duly boost up UK tourism after Brexit. In addition to this, UK government also announced
different set of projects that duly encourage tourists from all around the world. Further it has
been identified that Tourism play key essential and most important role in development of UK. It
has been seen that there are number of tourists location in UK that attracts tourists from all
around the world. Thus, it is essential for government to UK to undertake strategic measures in
order to strengthen this sector in best effective manner. As this sector not only provide country
with economic growth but also aid them to increase living standards of individuals within
country by providing them number of employment opportunities. Country is having stunning
countryside, world-class museums and fantastic heritage sites that satisfies needs of customers in
terms of tourism. In addition with this, with the help of Discover England Fund and working
with organisations in tourism industry government of UK is looking forward to effectively
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strengthen tourism sector within country. Along with this, UK government has announced a £40
million (around €46.8 million) fund in order to boost up tourism within UK. Thus, as per the
above mentioned report it has been analysed that The UK travel and tourism industry play
significant role to increase economic growth of country. For this in order to boost tourism
government is undertaking use of different strategies and measures. For example, visa-free travel
and offering more safeguarding measures for transport links has been offered by government
(Toh, M. H., 2018). With the help of all these significant measures company is looking forward
to increase overall efficiency of UK tourism.
CONCLUSION
As per the above mentioned report it has been identified that , tourism sector
significantly play key essential role in UK government as it significantly increase economic
growth of country. It has been identified that there after brexit there are significant changes that
has been seen in travel and tourism industry of UK. For this country government undertake use
of different types of strategies as well measures to boost this sector as it is one of the most
important source of country income level. Government of UK effectively maintain customer
confidence in travel and further entitled them with high value.
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REFERENCES
Books and Journals
Ateljevic, J., 2017. Small tourism firms and management practices in New Zealand: the Centre
Stage Macro Region. Tourism Management. 28(1). pp.307-316.
Berry, S. and Ladkin, A., 2017. Sustainable tourism: A regional perspective. Tourism
Management. 18(7). pp.433-440.
Clayton, A., 2013. Policy coherence and sustainable tourism in the Caribbean. International
Journal of Contemporary Hospitality Management. 15(3). pp.188-191.
Easterling, D. S., 2015. The residents' perspective in tourism research: A review and
synthesis. Journal of Travel & Tourism Marketing. 17(4). pp.45-62.
Gannon, A., 2014. Rural tourism as a factor in rural community economic development for
economies in transition. Journal of sustainable tourism. 2(1-2). pp.51-60.
Knežević Cvelbar, L., and et. al., 2016. Drivers of destination competitiveness in tourism: a
global investigation. Journal of Travel Research. 55(8). pp.1041-1050.
Sofield, T. and Li, S., 2011. Tourism governance and sustainable national development in China:
A macro-level synthesis. Journal of Sustainable Tourism. 19(4-5). pp.501-534.
Toh, M. H., 2018. Competitiveness of the Singapore economy: a strategic perspective. World
Scientific.
Tribe, J., 2019. The concept of tourism: Framing a wide tourism world and broad tourism
society. Tourism Recreation Research. 24(2). pp.75-81.
Walle, A. H., 2015. Business ethics and tourism: From micro to macro perspectives. Tourism
Management. 16(4). pp.263-268.
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