Analyzing the Impact of Tourism on National Economies

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GLOBAL TOURISM ASSESSMENT
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Table of Contents
Assessment 1: Individual essay.......................................................................................................3
Assessment 2: Individual report......................................................................................................7
Introduction......................................................................................................................................7
Tourism situation analysis...............................................................................................................7
Visitor market..............................................................................................................................7
Tourism products.........................................................................................................................8
Supply and demand....................................................................................................................10
Tourist characteristics................................................................................................................11
Tourist experiences....................................................................................................................12
Tourism trends...........................................................................................................................13
Conclusion.....................................................................................................................................13
References......................................................................................................................................14
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Assessment 1: Individual essay
Introduction
Tourism industry successfully contribute to the economy and GDP growth rate to different
countries as a large number of foreign tourists and visitors can be obtained through tourism. It
also creates demand and growth of other industries and generates more employment that is
necessary for country development. The present study analyses the negative impact of tourism
and its effects on the economy of different countries.
Discussion
Tourism has both positive and negative impacts on the country economy, society and
environment. As per the opinion of Hall and Lew (2009), tourism increases price of the local
shops as it is identified that foreign tourists are wealthier than the local people. Therefore, it
creates issues for the local people to fulfil daily necessities in regular process that creates and
economic challenges. There are also possibilities of overcrowding situation. There are different
types of impact of tourism in different countries such as,
Environmental impact
Tourism industry has negative impact on quality of life as there are possibilities of enhancing
pollution due to waste materials. Over-tourism creates burden for different rural areas of Chile,
Spain and Patagonia. Natural treasures are destroyed due to continuous improvement of the
tourism in several years. It is also observed that top 10 parks of the US have more than 44
million visitors in 2016. Henceforth, National Park Service of the US finds some ways to protect
their environment. As mentioned by Li et al., (2019), there are also possibilities of increases
erosion, loss of natural habitats and forest fires. Pollution and overcrowd in different areas cause
damages in ancient buildings, temples and monuments and that also reduces the possibilities of
protecting historical places.
Alongside, traffic is also increase in some areas that creates issues for local people and hamper
the continuous flow of the life. In the UK, 45% rise of the waste material in 2017 is identified
due to increment of tourism. Transportation of tourism also creates huge pollution in the
environment and cause harm to the local habitats. Noise and air pollution has also enhanced. In
Australia, a danger to the Great Barrier Reef and climate change is noticed due to lack of tourism
policies. As the capital of Thailand, Bangkok is one of the popular tourist destinations in the
world with 20.5 million tourists in 2017; it contributes 32% of the air pollution to country.
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Alongside, as stated by Fountain et al., (2011), chemical pesticide and fertilizers has ecological
impact on the global tourism and it has created 21% of soil pollution internationally.
The slopes of Mount Everest are littered and due to firewood caused by tourism and waste
materials. Tropical temperature of Mauritius Island has been changed for mass tourism and
highest population density and congestion has been found here (Mason, 2015). Lack of garbage
disposal and recycling techniques of Indonesia has created enormous dumps and has created
issues in environment and facilitated soil erosion air pollution. Alongside, luxury hotels and
shopping malls also ruin natural resources. On the other hand, it is noticed for Philippines that
high environmental pollution has been recorded recently due to tourism. El Nido that is most
beautiful island area of Philippines and attracts over 200,000 visitors has seen a large number of
resort constitution as well as no waste management and sewage system destroys natural beauty
of the site (Bojanic and Lo, 2016). Ideal lagoons became swamped and lack of proper in
structure cannot manage tourism effectively.
Cultural impact
Tourism creates positive impact on society and culture of countries as it increases cultural
awareness and collaboration between people of different countries. Om the contrary, there are
some negative impact of tourism. As highlighted by Martínez-Garcia et al., (2017), change in
values and identity can be observed for the people as there is possibility of losing authenticity
and there are issues of commoditisation. It changes the local atmosphere and local life and this
problem is highly observed for indigenous people of Australia. There are lack of ethical tourism
and poor tourism policies in different areas of Australia mostly Kangaroo Island community.
There are possibilities of cultural clashes as the tourists often have lack of respect to the local
traditions and culture. Challenges are lifestyle, costume and festivals are observed due to foreign
tourism and commercialisation of culture occurs. Basic changes in human value also occur
because of reconstructed ethnicity of tourism in which tourism has demand for entertainment and
souvenirs (Paramati et al., 2017). In Indonesia and Bali, it has been recognised that cultural
survival has been in decline due to unethical tourism and broken artwork. In Morocco, high
negative impacts of tourism have been identified as traditional life of the people has been
destroyed. Disrespectful tourists of Bagan, Myanmar have changed the formation of the
architecture of Pagoda and insult historical importance of the travel site. It has increased
possibilities of culture clash and reduces collaboration between different cultures.
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Economic effects of tourism
Economic impact of tourism on different countries is high as there are possibilities of unexpected
events such as political upheaval and terrorism. Tourism enhances the possibilities of terrorism
that reduces GDP growth rate of different countries. According to Su et al., (2018), though jobs
are created due to tourism, but these are low level jobs such as restaurant and hotel service and
bar work. Low skills and low wage staffs have little prospect for promotion. Therefore, lifestyle
of the people has not been changed that also negative affect the country GDP. Thorough global
tourism generates 10% of employment and 10.4% of global GDP, unskilled labours creates
issues in culture (Song et al., 2019). High economic crisis has been observed for Indonesia and a
collapse in the capital markets of the country that has recorded 90.3% drop in profit of the
tourism industry.
A reduction in tax revenue from tourism has been observed for Spain and change in demand and
behaviour of tourists has been observed. In addition to it, tourism has caused economic recession
in Spain as a decline in GDP and increment of unemployment rate has been found. Through
Spain has 46.5 million visitors in 2016, improvement in economic value s has not been observed
for Spain (Albaladejo et al., 2016). CGE model has been followed by Spain for tourism to
analyse data of tourists as well as regional growth rate due to tourism. Tourism industry in US
has accounted 2.6% of GDP and 5.4 million of employees and a small growth in GDP have been
contributed by the tourism in the US because of issues in legislation. Imbalanced funding is
possible due to the tourism which has enhanced decline of economy (Cuccia et al., 2016). On the
other hand, high dependence on tourism has been identified for different countries and income
generation from other industries has been neglected. It is identified that Hong Kong has highly
dependent on tourism and this industry contributes 15% of GDP. Additionally, in Malta, 14.2%
of GDP and in Montenegro, 11% of GDP has been contributed by tourism industry.
Travel from China to the US has also been fallen from 5.7% to 2.9 million visitors due to the
strict regulations that have also reduced economic growth of the country. As in modern time,
budget friendly packaged tours, inclusive resorts, cruises and cheap flight are included in the
tourism that generates jobs and stimulate economy. Influx of tourism increases employment
opportunities and revenue of country. However, as per the viewpoint of Moutinho and Vargas-
Sanchez, (2018), lack of infrastructure in tourism destroys the resources of local community.
Camera-wielding tour groups also damages the old architecture and it is highly observed in Cairo
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and Giza of Egypt. Overseas investors has been found in Cape town of South Africa which has
reduced the possibilities of local people to afford home and increases the number of beggars in
street. It created high differences between rich and poor and makes the areas crowd and
suffocated as well as reduces security of the area as it increases thief. On the other hand, over-
tourism in Halong Bay of Vietnam has reduced created high environmental issue and fatal
accidents. Lack of safety regulation and high market saturation of the country has created issues
and in 2011, it has killed 12 tourists. In accordance with Bojanic and Lo (2016), the island has
been destroyed as most number of tourism companies and tourists are only concern about
creating profit and they are not concern about the environmental destruction.
Conclusion
In conclusion, tourism is required for increasing GDP and cultural collaboration, but it has high
negative impact on environment, society and economy of different countries. Environmental
pollution such as air pollution, soil pollution causes soil erosion as well as damages architecture
and local habitat of different countries. It has also impact of GDP growth rate and unemployment
rate of the countries as lack of skills and wages has been identified for the staffs of hotels that
have reduced quality of life. Cultural clashes can be identified between local people and tourists
that also change the lifestyle and authenticity of local people.
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Assessment 2: Individual report
Introduction
Situation analysis of tourism industry helps a country to determine their tourism spends and
contribution of the tourism to the local economy. For this purpose, UK is selected to successfully
evaluate tourism industry that includes their visitor market, tourism products a as well as supply
and demand. It also analyses the tourism experiences, trends and characteristics that successfully
determine whether tourism positively influences the UK economy and tourism services.
Tourism situation analysis
Situation analysis of tourism industry is analysis of the destination management and
understanding of the operations of tourism. Destination operation is included in the tourism
evaluation and that can enhance social responsibility and sustainability of tourism market. It is
effective to measure the value of tourism included economic and non-economic contribution that
can increase importance of tourism (Chiu and Yeh, 2017). Future visitation can be forecasted
through the situation analysis and alignment of region-level strategic planning creates strategic
opportunities.
Figure 1: International tourist arrivals
(Source: Chiu and Yeh, 2017)
Visitor market
There are 37.905 million visitors in the UK in 2018 and the country has spent £22.897 to the
tourism economy. UK is the sixth biggest tourist destination of the world. The data of
VisitBritain shows that UK has most valuable inbound market. Principle destination of the
country is London. However, number of visitors has been reduced from 10% to 3%. Average
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spend per visit has been £604 (Shahzad et al., 2017). Inbound market for the UK as per the
number of visits in 2018 has been almost two in three visits that have been 63%. Visitors are
distributed in region and most number of visitors is present in London that has been 19,090 visits
and has spent £12,329 million.
Figure 2: Visitor market and tourist arrivals in the UK
(Source: Shahzad et al., 2017)
UK has several visitor markets and among them, China, Germany, Australia, WE and Gulf
Cooperation Council are big visitors. British residents have spent £19 billion on 100.6 million
overnight trips of England in 2017. On the other hand, overseas visitors to England have spent
£21.4 billion in 2017 and made 34.3 million trips. In England, there are 5000 to 6000 visitor’s
attractions. Excellent global connectivity is present in the UK and the country has air connection
with more than 100 countries and 77% of inbound visitors of the UK have reached by air
(Neumayer and Plümper, 2016). Share of visitor spend for transporting through air stands for
86% in 2018 as well as 13% of the visitors are travelled through ferry and 11% are travelled
through channel tunnel. However, Brexit has reduced the number of visitors in 2018 by 7% from
2017.
Tourism products
Tourism products of England are tours and itineraries, hotels and restaurants, airlines, crutches
and ticketing services. England fund is discovered in which government of the UK supports the
fund of tourism industry. Quality assessment, ‘National Accessible Scheme’, ‘Sustainable
Tourism Certification’ and other accreditation schemes are included in the tourism products.
Other partner resources are ‘Local Enterprise Partnership’ and ‘Tourist Information Centre’
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resources (Martins et al., 2017). Other business advice hub that is involved in tourism products
are quality edge magazine, pink book of legislation, digital marketing toolkit, communication
toolkit, maximising SEO and building. £40 million Discover England Fund supports tourism in
England and other parts of the UK.
Figure 4: Tourism pending for different areas
(Source: Martins et al., 2017)
Tourism planning guidance and accessibility guide are provided by the tourism industry of
England to the customers. E-car club in Oxford and visitors from Gulf Cooperation Council has
benefits of twin city package. Self drive itineraries, air-passes and day tour packages are included
in it. Multi-currency facilities for online booking are presented in the UK (Mowforth and Munt,
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2015). Domestic trips have increased transportation facilities and 880 million trips have
increased value from £4.4 billion to £12.4 billion in 2017. The restaurants and hotel chains of the
UK help the visitors to get luxury accommodations and this industry has contributed 9% of total
employment.
Supply and demand
The economists has been predicted that there would be 3% increment of total arrivals of the UK
in which 5% increment could be possible for leisure hotels. Alongside, total spending growth of
6% has been predicted in 2018. Alongside, restaurant and UK hospitality industry has estimated
that 12% of 3.2 million workers of the country can be from EU. However, Brexit has created
issues for free movement between the UK that has created issues for the staffs. The relationship
between quantity and price creates demand relationship in tourism (Séraphin et al., 2018). Long
term tourism growth strategy is to attract 40 million international visitors in a year and spend
£31.5 billion by 2020.
Figure 5: Inbound tourism of the UK
(Source: Séraphin et al., 2018)
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There is direct and indirect impact of the tourism industry on economic condition of the UK that
includes the aspects of supply chain. Tourism in England contributes £106 billion to the British
GDP or economy. It supports 2.6 million jobs in the UK. Tourism contributes £48 billion in
tourism and that has direct impact on the UK economy. It has been also observed that there have
been 208,880 VAT registered businesses in England related to tourism that includes sport, travel
agencies, accommodation and food services (McGuire et al., 2018). The tourists are interested in
visiting London, Bath, Edinburgh and Glasgow and for this purpose, the company has spent
more finance to improve services and fulfil demand of the tourists. Recorded double digit growth
has been obtained by the country due to 35% of increment of the overseas visitors to £694
million.
Tourist characteristics
Country spending on tourism and facilities of tourism can enhance motivation of the tourists.
Accumulated experience and socio demographic characteristics of the tourists are based on the
country facilities. Overseas residents have spent £24.5 or $31.51 billion in 2017 to visit different
areas of the UK that has been increased by 9% in 2016 (Tussyadiah et al., 2018). However, it has
been identified that the number of visits has been reduced due to Brexit. As there is lack of
freedom of movement between the UK and other European countries, number of visitors has
been reduced.
Figure 6: Tourist characteristics of the UK
(Source: Morpeth, 2019)
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The factors that influence the behaviour of the tourists are,
● Multi destination action trips
● Types of destination are also influential factor as London, Glasgow and Liverpool has a
large number of tourists.
● Day trips are also a factor and the tourists can identify about different tourist destination
and day trip facilities. It is also recognised that day trips has more number of visitors
than overnight trips.
● Destination summaries are also required for the tourists in which detailed planning of
travelling is included.
● Most of the tourists are in age group of 25-34 and they prefer a season of July to
September for visiting England
It is identified from the characteristics of the tourism industry of the UK that most of the visitors
of the UK spend 4-13 nights that has been 41% for the UK and London. The visitors also like
independent visit over than package visits (Morpeth, 2019).
Tourist experiences
It is noticed from the record of Great Britain Tourism Survey (GBTS) that it measures volume,
value and characteristics of the visitors on the basis of the speeding and visiting characteristics.
Partnership with Airbnb improves air travelling that also amplifies the market reach and
increases tourism experiences of the customers. Experience based travel boosts the UK economy
that worth is £127 billion to UK economy per year by creating job (Taylor, 2018). Day and
overnight trips improves number of visitors. It has been identified that the visits from the US
have been enhanced by 13% to 3.9 million in 2017 and the travellers has spend a record £3.6
billion that has been increased from 2016. Alongside, visit from China has been increased by
29% and Asia has been 35% in 2017 than the previous year due to effective infrastructure and air
travelling facilities of the UK.
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