Tourism Business Environment Report: Brexit's Effects and Strategies

This report examines the macro-environmental event of Brexit and its impact on the tourism industry, specifically focusing on the United Kingdom and Spain. It analyzes the basic changes in the tourism business environment post-Brexit, highlighting both the positive and negative consequences, such as increased UK tourism versus the bankruptcy of Thomas Cook. The report investigates the success factors for tourism business projects in this context, including strategic adaptations for environmental climate change and business management practices. It further explores the recovery strategies employed by various stakeholders, such as healthcare insurance provision and inbound tourism promotion, alongside the foreseen negative impacts, including decreased travel and economic slowdown. The analysis draws upon various sources to provide a comprehensive overview of Brexit's effects on the tourism sector, emphasizing the challenges and the strategies for navigating the post-Brexit landscape.

THE MACRO TOURISM
BUSINESS ENVIRONMENT

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Basic analysis of the tourism business environment...................................................................3
Success factor for the tourism business project...........................................................................4
Recovery strategies by the stakeholders related to the particular macro environmental event...4
Any foreseen negative impact on the tourism industry or organization......................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................6

INTRODUCTION
Macro environment includes various political, economic and social factors that affect the
working of business. These factors can lay positive as well as negative impact on working of
various industry. Present study will lay emphasis on Brexit and how it has affected tourism
sector in United Kingdom and in Europe. It has been analyzed that Brexit has lowered down the
economic condition of both the states. Assignment will analyse the tourism business
environment. It will also interpret the success factor relating to described strategy. Study will
also focus on strategies taken by stakeholders to overcome the effect of Brexit. It lays emphasis
on negative aspects followed by adopted strategy which is Brexit.
TASK
Basic analysis of the tourism business environment
Brexit is the withdrawal of the United Kingdom from the European Union. This step was
being followed by the memorandum given in June 2016. 51.9% of people has voted to leave the
European Union. The impact of Brexit on European Union has resulted in various political and
economic changes. It has been analysed that in October 2019, Brexit has laid negative impact on
the Spanish Tourism where the most re-known company in the states have terribly failed. This
step is having significant negative impact on the running of business organizations. Spanish
Tourism association has lowered down their annual growth. The tourism in Spain has been
declined because of the effect of Brexit, Thomas Cook becoming bankrupt and the protest which
is going in and on in Catalonia. Tourism income has fallen from 1.6% to 1.4% (Oxford
Analytica, 2019). Mainly tourism business environment in Europe has been affected by Brexit,
but the United Kingdom tourism was more benefited by it as there has been an increase in 21%
of travellers who are more visiting the place.
Once the Brexit process is complete in 2019, it’s likely the “fast track” lane for customs
will be exclusively for British passport holders and therefore EU nationals will have to file into
the same long queue as all other non-UK citizens. It has been analysed that airfare has been
increased in Europe. Not only the airfare but staying in hotel, the expenses related to it has seen a
rising phase. The visitors from Europe will have to seek permission from United Kingdom
government, if they want to seek a job over there. Also the economy of both Europe and UK has
been slowed down (Amoamo, 2018). It has also been identified that many of the companies in
United Kingdom are shifting there headquarter to Europe. Various conflicts and chaos has raised

in both UK and Europe after implementation of Brexit. Europe has adopted the policy of free
movement of visitors in states. It has also been analysed that there will be no custom relationship
between Europe and United Kingdom.
Success factor for the tourism business project
Brexit has laid positive impact on United Kingdom Tourism. Various potential
opportunities have been increased by adopting Brexit. Like for example they have developed
strategies for environmental climate change and came up with regulations related to making the
effective use of energy and resources. These laws are more strengthen than the European laws.
United Kingdom has also set up their objectives and priorities after implementing Brexit. They
are involved in improving the business strategies and management practices related to the
tourism industry. Practices were adopted by the UK so that they can increase the productivity of
all business which are working with them. This has led to the growth of many organizations
which are working in United Kingdom.
Recovery strategies by the stakeholders related to the particular macro environmental event
On 1 September, 2019 it was analysed that Brexit is having adverse impact on European
tourism. This strategy has lowered down the working of various organizations and also affected
economy adversely. On 16 October 2019, Brexit also affected Spanish tourism negatively by
making Thomas Cook bankrupt and also the recovery of rival Mediterranean destinations. It has
been analysed that any traveller who is going to visit Europe has the passport which is stamped
and has less than 10 years (Perles-Ribes, Ramón-Rodríguez and Ortuño Padilla, 2019). This
aspect has laid negative impact on British policy makers, there business has bene greatly affected
by this step, as it becomes difficult for visitors to visit the place. Tourism has been hugely
affected by Brexit. A new document will be needed while travelling to United Kingdom from
2021. Students and business class people requires new visa for visiting or for completion of their
studies or business projects. It has been analysed that people will be able to work in Ireland as
same way as before.
Business when carrying goods with them will require custom declaration form. These
aspects have laid negative impact as it has become difficult for individuals to take goods with
them (Lim, 2018). In order to create a good travel experience and increase tourism in United
Kingdom, they are also providing with health care insurance to people who are travelling over
there. To increase tourism, the country is also laying emphasis on inbound tourism. They are also

engaged in developing sustainable strategies so that travellers had a great experience and
economy of the country can be made normal. These techniques followed by tourism industry
also requires support of the government.
It has bene analysed that the various holiday resorts in Spain has seen a drastic drop down
in their income aspects by 37% in February 2018 post Brexit affect. The famous hotel and resort
Benidorm in Spain has seen 5% decrease in their income and also the number of selling of
package holidays has been lowered down to 46%. Number of travellers visiting the country has
also been lowered after the No deal Brexit. Benidorm was famous for hosting various light
festival event, they have also organized the grand cycle marathon that has increased the number
of travellers visiting the place, but now the income aspect of holiday resort has been lowered
down (Wilson, 2017). Brexit has adverse the situation of Thomas Cook, they have ben bankrupt.
The blame game for company becoming bankrupt is strong. It has been analysed that Brexit has
cancelled down many holiday packages of the travellers because of the increase in price rise after
United Kingdom exist from European union. Brexit has also affected German markets as most of
the customer of Thomas Cook are from Germany. But the business of Airbnb has increased
because of Thomas Cook becoming Bankrupt and losing their market share.
In order to raise from the negative impact of Brexit, it has been analysed that government
has been engaged in taking various stress so that they can manage economic turmoil adequately.
They have thought down of laying strategies to manage organizations firmly so that productivity
of state increases and also the tourism sector income increases. It has been analysed that
Benidorm hotels and resorts in Spain are blaming the uncertainties that has been increased
because of Brexit (Pappas, 2019). Holiday booking in Spain has bene declined in upcoming
summers by 6%. The tourism industry in Spain is facing a critical time. They are thinking of
strategies to overcome it.
Any foreseen negative impact on the tourism industry or organization
Brexit has laid negative impact on various organizations such as Thomas Cook, Benidorm hotel
and resorts in Spain. It has been analysed that Thomas cook has gone bankrupt because of the
adverse effect of Brexit. Tourism industry in Britain has seen a 6% decline in upcoming
summers (Pappas, 2017). Profits and revenue generated by all these organizations have been
declined and there are facing adversities of the regression period. Economy of United Kingdom
and Europe has been slower down. The number of travellers who are going to visits place has

deceased because of the strict laws and regulations that has been implemented by them to acquire
visa. Expenses related to travelling has also been increased after the Brexit. Many travellers have
cancelled their travelling packages. It has led to decline in growth of Tourism industry. It has
also decreased profit made by them. The holiday packages in British market was 46000, this
January which was 54000 thousand the last January.
CONCLUSION
From the above study it has been analyzed that Brexit has impacted tourism in Spain
negatively. It has been analyzed in report that because of Brexit Thomas Cook has gone bankrupt
that has lowered down the economic condition of Spain. Assignment also identified that in order
to enhance economy of Spain various strategies has been adopted by Benidorm. They have
hosted a grand cycling event so that the number of travelers in place increases. Brexit has hit
hard the economy and British are worried about going to abroad. It has also been analyzed that
many of the organizations are shifting their organizations to Europe. The Benidorm hotels are
blaming Brexit for all the uncertainties that they are facing.

REFERENCES
Books and Journals
Lim, W.M., 2018. Exiting supranational unions and the corresponding impact on tourism: Some
insights from a rejoinder to Brexit. Current Issues in Tourism.21(9). pp.970-974.
Pappas, N., 2017. Brexit Referendum Influence on Londoners’ Overseas Travelling.
Wilson, N.H., 2017. Hard Brexit: Will there be consequences for UK dentistry?. Faculty Dental
Journal.8(2). pp.60-64.
Pappas, N., 2019. UK outbound travel and Brexit complexity. Tourism Management.72. pp.12-
22.
Sima, C., 2017. Brexit impacts on British tourism. Strategii Manageriale, 5(34), pp.297-303.
Amoamo, M., 2018. More thoughts on core-periphery and tourism: Brexit and the UK Overseas
Territories. Tourism Recreation Research.43(3).pp.289-304.
Oxford Analytica, 2019. No-deal Brexit will hurt fragile Greek economy. Emerald Expert
Briefings, (oxan-db).
Perles-Ribes, J.F., Ramón-Rodríguez, A.B. and Ortuño Padilla, A., 2019. Brexit Announcement:
Immediate Impact on British Tourism in Spain. Cornell Hospitality Quarterly. 60(2).
pp.97-103.

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