Cardiff Tourism: Economic Impact, Stakeholders, and Tourist Motivation

This report provides a comprehensive analysis of tourism in Cardiff, Wales. It begins with an introduction to tourism management and its relevance to Cardiff, highlighting the city's importance as a principal area within Wales. The report explores the significance of Cardiff's tourism to the busin...Read More

TOURISM MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Importance of Cardiff tourism to business environment.............................................................3
Tourism in Cardiff as an economic force....................................................................................7
Motivation of Cardiff tourists and evolution of demand and growth factors and impact of
globalisation over tourism.........................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
The tourism management is a multidisciplinary field which involves two different
activities relating to the tourism and other companies within hospitality industry. This tourism
management involves preparing candidates with good experience in trainee in order to hold
managerial positions. The tourism management involves every aspect relating to the hospitality
industry. The current study is based on Cardiff City council. The Cardiff council of the city is
one of the principal areas within Wales since the year 1996. The current study is based on
highlighting the different aspect relating to tourism of Cardiff City council. The current study
will outline the importance of card of tourism to the business environment and role of
stakeholders. In addition to this the economic dimension of the tourism within Cardiff will also
be highlighted with help of employment generator and multiplier effect. In the end the different
motivation of cognitive tourist and evolution of demand and growth factors will be analysed with
respect to Cardiff City council.
Importance of Cardiff tourism to business environment
Tourism is the world's largest and fastest expanding industry, according to the World
Bank (WB), the United Nations World Tourism Organization (UNWTO), and the World Travel
and Tourism Council (WTTC), accounting for 9% of global GDP and employing 8% of the
global workforce (Kubanska, 2017).
Tourism is a prominent part of Welsh economy and thus, for Cardiff. As tourists spend
around GBP 8 million a day it makes around for GBP 3 billion a year from tourism. Wales has
around 1 lakh people employed in tourism. It accounts for around ten percent of work force.
About a million tourists visit Wales each year There are many overseas visitors from different
countries like Ireland and Germany.
Thus, it can be seen that tourism is very much necessary for Welsh or Cardiff economy.
Also, as tourists come to see the beautiful locales at Wales, they also like to purchase products
and traditional attire from there. This way, lot of local shopkeepers earn money who trade in
these products. With tourism, is the services connected of transport and other logistics as people
coming and staying in hotels would like to visit different places. Thus, through hiring of cabs and
taxis, transport industry gets a boost during tourist season. There are many places which generate
interest like cultural, traditional and sporting events (Hiscocks, 2018). At place like Llangrannog,
tourists are attracted not only because of beach but also because of a residential centre where

people come for learning and improving Welsh language skills. There are other prominent
cultural attractions which include Eisteddfods where there is musical festival which attracts
thousand of tourists. There is a category of historical sites like beautiful castles of North Wales
and industrial sites like the National Slate Museum or Big pit mining museum which create
interest in the minds of tourists. There are number of sporting activities which also attract a large
number of visitors to Wales who either participate or watch the event as audience. Rugby events
which are famous in this part are the biggest earners in the field. Thus, it can be seen that there
are many events and places of interest for tourists who visit Wales. There is good income for
hospitality sector where the guest check in, eateries at Wales where new delicacies are prepared
for tourists and the airlines sector which gets an increase in revenues as tourists from different
countries visit the place.
Cardiff is a prominent tourism and visitor destination in Wales speaking of reputation,
profile and impact, for the business and event led activity. It is the capital of Wales and if Cardiff
can well develop the profile of itself, its appeal as a destination then Wales will receive the
benefits. Cardiff contribution of over 25% of visitor generated expenditure in Wales and has
higher spend per head per visitor than elsewhere in Wales (Kubanska, 2017).
Role of stakeholders
Stakeholders Their significance Needs and
expectations
Owners It's a group of people who own the hotel and
tourism chain. Franchise, hotel chain partners,
and referral groups are all part of this area.
They represent the hotel and tourism chain's
internal stakeholders.
They want to boost
the value of their
brand and receive a
better return on their
investment.
Management Management is in charge of the hospitality
and tourism’s operations, hiring and
supervising employees. They are also in
charge of hotel bookings. Internal
stakeholders are those who have a say in how
They'd seek for
policies that would
work and attract
additional capital
investment. This

things are done within the company. They
play an important role in the decision-making
process (Woo, Uysal and Sirgy, 2018).
will help them
increase their
dividend returns.
Employees Employees who work for the organisation are
also its internal stakeholders. At the
organisation, they work in several
departments such as operations, marketing,
and maintenance.
They seek for
opportunities to
develop the
company's business,
which could lead to
bonuses and raises
in pay.
Customers Tourists, delegates, and businessmen visit the
tourist places from a variety of countries.
They are noticeable in any company. They
represent the business's external stakeholders.
Customers expect
the tourism and
hospitality service
to provide world-
class service and
ensure the success
of their trip. Some
guests become
external
stakeholders by
investing in the
hospitality if they
see room for
expansion. They
anticipate a profit
from their
investment (Woo,
Uysal and Sirgy,

2018).
Suppliers They provide the hotel and other form of
guest houses with the raw resources it
requires, such as room accessories, furniture,
and bathroom fixtures, all of which aid in the
hotel's operation. They are the internal
stakeholders (Todd, Leask and Ensor, 2017).
They want a fair
arrangement that
gives them greater
monetary attention
and allows the
hospitality to
develop in the
market.
Government The government is an external stakeholder
that rules the country and sets policy for
various growth sectors. The importance of the
hospitality and tourism sector is determined
by government policies and budgetary
allocations for modernising the sector.
The government
would support
private sector
operations since it
would result in
more business, a
larger GDP, and
more jobs in the
country.
Local
community
They are residents of the city where the hotel
is located, or small business owners that have
opened stores near the hotel to attract
customers for services.
They demand
corporate social
responsibility
measures. Those
who run small
businesses hope to
expand their
operations by

catering to hotel
guests and meeting
their needs.
Investors People who invest in a company's stock and
evaluate the company's annual report and
financials. Their importance stems from the
fact that they assist businesses in raising funds
through stock (Todd, Leask and Ensor,
2017).
Return on
investment
Travel agents They are persons who work in the tourism
and hotel industries and would recommend
hotels to visitors while making reservations
for them. They would also show visitors
around the city's attractions and take them to
areas of interest.
They would like to
partner with a hotel
because they may
earn commission for
bringing in clients
and revenues.
Tourism in Cardiff as an economic force
South East Wales' visitor economy (i.e. overnight and day trips) is valued around £2
billion to the region (50 percent from day tourists), supporting 31,000 FTE direct and indirect
jobs, and producing £237 million in VAT for the UK government. Cardiff accounts for half of
the region's tourism revenue (as opposed to the other cities).It is the leading source of tourism
revenue in Wales, accounting for 36% of total revenue approximately (Xu, 2017). In the visitor
economy of Wales, the Los Angeles area is a leader. Wales is responsible for 66% of all
commercial tourism and 50% of all international tourism. Cardiff is the most populous city in

South East Wales. In 2013, 1.91 million overnight visitors and 18 million per day visitors
contributed £1.05 billion to Cardiff's economy; overnight visitors spent a total of 3.92 million
nights in the city, spending a total of £400 million (Xu, Jones and Munday, 2020). Over 13,700
FTE employment in the city are directly supported by tourism. There are 4,875 hotel rooms in 57
hotels and 4,600 rooms in different types of lodging. In recent years, hotels have reported strong
occupancy levels (72.2% in 2013) and rising RevPARs (revenues per available room) - £41.18 in
2013 vs. £41.18 in 2012. In 2012, the average salary was £39.24 (Xu, 2017).
Employment generation
The European Travel Commission (ETC) has regularly reported annual growth of
between 3% and 4% throughout the EU28 countries over the past five years, and its newest
"Trends and Prospects" study confirms this optimism for the medium to long term (Xu, Jones
and Munday, 2020). Tourism can also help to promote positive perceptions of a city or a region.
Supporting local companies, fostering civic pride, and assisting in the maintenance of services
are all examples of what can be done. Tourism marketing and the visitor experience are critical
for attracting inward investment and cultivating and retaining talent. As a result, a significant
amount of effort has to be made. Tourism and investment / business growth have a greater and
closer relation work and for this, The Cardiff Business Council is an excellent platform for
making this happen. In addition, the Council's Economic Development tourism programme has
been strengthened. Employment generation has increased manifold due to tourism, with local
community people benefiting from tourism, the shopkeepers seeing increase in sales,
construction projects to make infrastructure better has employed the youth along with new
upcoming projects, affiliates joining with hotel industry, travel agents joining as external
stakeholders, travel websites creating jobs for people, increase in number of restaurants and
catering services employing youth, transport sector employing people to make the tourists go
around city are some of the examples how employment has been increased.

Multiplier of economy
Retail foundation is strong: Due to tourism, retail sector has grown and benefited by tourists
purchasing various necessities and local products. This has increased revenue for the retail
sector.
International athletic events of high profile: Many sports events taking place at Cardiff with
special mention of rugby has made tourism a multiplier for earning through these events and
drawing sponsors and audience (Hiscocks, 2018).
National arts and cultural sector that is well-respected: Visits to museums and historical
industrial sites at Wales has promoted it on the World map of its valued heritage and culture
being depicted at these museums.
Infrastructure for the arts and sports (facilities and teams): As sport events line up, sponsors
come up for building of infrastructure for art and sports. This has helped in promotion of the
place.
All of the country's major markets are reachable: If tourists come to Wales or Cardiff, they
would be visiting other adjoining tourist places too and thus, the markets of the other states will
also benefit from their arrival.
Restaurants are rapidly improving: With influx of tourism, restaurants have raised their standards
of food and included various types of cuisines according to customer preferences.
Infrastructural spending has increased: Construction of roads, bridges etc. have increased which
has generated employment and new projects are being considered for development. Investment
from corporates is sure to boost the area and develop further with increased capital (Gómez
Aguilella and Cardiff, 2020).
Education sector rise: The city's universities are gaining a better reputation, and there is more
creative potential. Tourism has increased their value with people coming to know of the quality
universities here which can benefit the education sector.
Strong interest in possible worldwide events, such as a Roald Dahl Festival (2016), as well as
current significant events: These events have been conducted successfully with media coverage
thus leading to city being popular. There is also increase seen in other business activities in the
city.

Motivation of Cardiff tourists and evolution of demand and growth factors and impact of
globalisation over tourism
It is very essential for the companies within Cardiff to motivate the people to come to the place.
The reason underline this fact is that due to the pandemic the business within the hospitality
industry has reduced to a great extent and due to lockdown the business of tourism has fall to a
great extent. It is very essential for City council to motivate the people to come to the place. In
case the visitors visit the Cardiff council then this will improve the economic development of the
country. This is pertaining to the fact that when the visitors will come then they will live there
and will explore the place and as a result of this the money will flow within the economy which
will result in development of the economy. There are many different factors which can motivate
the Cardiff tourist to come to the place.
The first and foremost factor affecting the motivation level of the tourist coming to
Cardiff is the culture (Zenker and Kock, 2020). The Wales millennium culture attracts most of
the visitors coming to the place. This is pertaining to the fact that the culture within the area is
very attractive and pleasant and this makes the visitor motivated towards the coming to the place.
In addition to this Cardiff City council is having a good shopping network and area. Handsome
this will attract a majority of the consumer who are shopaholic. This is pertaining to the part that
the city network of Victorian and Edwardian arcades helps Cardiff and building good reputation
as the UK stop shopping destination. In addition to this there are dozens of independent shops
and different areas for doing shopping.
Along with this and other major attraction for the visitor to come to Cardiff is the
fantastic pubs of the area of (Benjamin, Dillette and Alderman, 2020). The Vale of Glamorgan
includes a fair share of fabulous pubs within the country. This involves and attracts most of the
visit as this is a lovely location within which a person can relax and enjoy their leisure time. In
addition to this the Heritage of the Cardiff was also very pleasant and attractive. The Cardiff
castle presence of a retail presence and is within the heart of the city along with the main
shopping centres. And this will attract and motivate the visitor to come to the place.
For the effective working of the economy it is very essential that there is proper balance
between the demand and supply of the consumer. This is particularly because of the reason that
the economic development is being defined by the balance between the demand and supply. in
case the demand is more and supply is less then this will result in loss for the economy. The

reason underlying this fact is that there is demand within the economy but the companies are not
able to fulfil it and ends in decrease in demand. In addition to this if the demand is less and
supply will be more then also the companies will be in loss and there will not be any economic
development. This is pertaining to the fact that when the supplier will be more and there will no
one to consume to product then this will result in loss for the company. Hence there needs to be a
balance between the demand and supply of the goods and services within the country.
With respect to the tourism as well the demand and supply needs to be balanced. In case
the visitors coming to the place are more and there is no space for them to live then this can
cause the motivation for the visit and they may go back. Hence there needs to be a balance
between the demand and supply of the goods and services. With respect to the current pandemic
the demand of visiting the card has been declined (Motevalli-Taher and Paydar, 2021). This is
pertaining to the fact that consumers are having fear that if they will travel to other places then
there are chances of getting affected with the virus. As a result of this the demand of visiting card
is low and the destination places within the country marketing them in order to get noticed by the
consumer.
In the coming next 5 years the globalisation will go to affect the tourism of the
destinations in a great manner. This is pertaining to the fact that due to current pandemic
situation the consumers have fear of going to any other place without any reason. Hence the
travelling from one country to another for the purpose of leisure and enjoyment will be declined
to a great extent. In addition to this the globalisation will also affect the tourism within the
destination. This is pertaining to the fact that as a control measure there were lockdown being
imposed to many countries and people were not allowed to go to any other country or area
(Stankov, Filimonau and Vujičić, 2020).
Hence is there a possibility that because of these visitors will not visit to the different
places after the pandemic. This can be undertaken as a remedy all measures to avoid the
interaction among the people. Thus it can be stated that the current pandemic will affect the
growth and development of the tourism industry to a great extent. This is pertaining to the fact
that even after the downside of the pandemic the people will fear that if they will go out then
they can face the harmful effects of the pandemic. Hence the tourism industry will not revive
very easily.

CONCLUSION
The above report concluded the fact that tourism management is very essential for the
effective working of the hospitality industry. The reason underlying this path is that if the
tourism will not be managed properly then this will result in decrease in operations of hospitality
industry. The above report concluded the fact that analysing the business environment is very
essential for the effective tourism management. In addition to this it was also highlighted that
different stakeholders like owner management employees are interested in the effective duration
management. Further it outlined the fact that tourism is unemployment generator and multiplier
of the economy. In the end it was highlighted that different motivational factors are present to
attract according to risk which involves factors like good culture, attractive pubs and many
others.

REFERENCES
Books and journals
Benjamin, S., Dillette, A. and Alderman, D.H., 2020. “We can’t return to normal”: committing to
tourism equity in the post-pandemic age. Tourism Geographies, 22(3), pp.476-483.
Gómez Aguilella, M.J. and Cardiff, J., 2020. Destination Satisfaction in Senior Tourism: A Case
Study.
Hiscocks, T.M., 2018. AN INVESTIGATION INTO HOSTING GLOBAL SPORTING EVENTS
AS AN EFFECTIVE MARKETING TOOL: A CASE STUDY OF CARDIFF (Doctoral
dissertation, Cardiff Metropolitan University).
Kubanska, S., 2017. An investigation into the motivations of visitors when choosing a city
shopping break destination: a case study of Cardiff (Doctoral dissertation, Cardiff
Metropolitan University).
Motevalli-Taher, F. and Paydar, M.M., 2021. Supply chain design to tackle coronavirus
pandemic crisis by tourism management. Applied Soft Computing, 104, p.107217.
Stankov, U., Filimonau, V. and Vujičić, M.D., 2020. A mindful shift: an opportunity for
mindfulness-driven tourism in a post-pandemic world. Tourism Geographies, 22(3),
pp.703-712.
Todd, L., Leask, A. and Ensor, J., 2017. Understanding primary stakeholders' multiple roles in
hallmark event tourism management. Tourism management, 59, pp.494-509.
Woo, E., Uysal, M. and Sirgy, M.J., 2018. Tourism impact and stakeholders’ quality of
life. Journal of Hospitality & Tourism Research, 42(2), pp.260-286.
Xu, C., 2017. Tourism industries and tourism foreign direct investment in Wales. Welsh
Economic Review, 25, pp.37-41.
Xu, C., Jones, C. and Munday, M., 2020. Tourism inward investment and regional economic
development effects: perspectives from tourism satellite accounts. Regional
Studies, 54(9), pp.1226-1237.
Zenker, S. and Kock, F., 2020. The coronavirus pandemic–A critical discussion of a tourism
research agenda. Tourism management, 81, p.104164.

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