BA & FdA Tourism Business Environment: Impact Analysis Report

This report examines the impact of significant macro-environmental events on the tourism business environment, focusing on the effects of Brexit on UK tourism, the issue of overtourism in Iceland, and the decline in US tourism under the Donald Trump administration. The analysis explores how Brexit has influenced visitor numbers to the UK and the rise of domestic tourism, highlighting the economic benefits. It also delves into the challenges of overtourism in Iceland, discussing its causes and potential solutions. Furthermore, the report investigates the decline in US tourism spending and job losses attributed to the Trump administration's policies. The document provides a comprehensive overview of the complex factors shaping the tourism industry, supported by references to relevant sources.

Tourism business environment
10/18/2018
University College Birmingham
Simon Faulkner

BA & FdA International Tourism Business Management:
“Tourism Business Environment” – Assessment 1.
Brexit.
The exit of the British from the European Union leaves an impact on the tourism which is
discussed below: -
Visitors to the UK
The tourism industry in the UK always supports the overseas tourists that are visiting the UK,
UK residents visiting the local states or the overseas market. This means that there is a rise in
the number of tourists after Brexit. According to the association of the travel agents and tour
operators (ABTA), this has been found that travel trends report of 2017 reflects that the number
of there is a rise in the number of domestic holidays to 71% in 2016 which is up from 2015 that
was 64% only (Livingston, 2017).
Along with this, the destination UK report reflects that Barclays has more light of shone with
the rise in popularity of Staycation as the outcome of Brexit. Tourists are selecting Britain for
tours and holidays because of its affordability and a wide range of choices than before. The
issue of the high exchange rates has been reduced that have emphasised people to spend more
amounts in the UK.
Economy of UK
The rise of the staycation in the areas of UK works as a boon for the economy. Moreover, this
has been found in the report of Barclay’s Destination UK that average visitors taking a trip
within the UK are spending £309 on accommodation which is only for their staying purpose.
Adding to this, they are spending £152 on eating, £121 on shopping and also on holiday parks
that is equal to £72 (Tyler, Woodhouse and Pepin, 2018). This amount contributes to the

economy of the country due to which this sector is becoming an emerging sector after Brexit.
Moreover, the sector of tourism provides employment opportunities to a large number of
people. According to the analysis, this has been found that there were 1.5 million jobs that are
directly associated with the tourism in the year 2015 in the UK which is equal to approximately
4.5% of all the jobs in the UK.
Over-tourism.
Over-tourism in Iceland is becoming a contemporary travel issue for the country and it is
affecting the pockets of the island. This has been found that travellers are considering tourism
from last few decades in their radar. Currently, the island nation has become the hotspot for the
tourist. In the year 2010, Iceland found less than half a million tourist but the number has
increased in the year 2017 by almost 2.2 million people which are confirmed with the data of
Icelandic tourist board (Responsible Travel, 2018). This reflects that there is rise with approx.
half a million in a single year. Considering the view of the Iceland monitor, this has been found
that the number of tourists is expected to increase by 2.5 million in the year 2018. This reflects
that Iceland is dealing with the issue of over-tourism as the population of Iceland is limited to
the 334,252. The reason due to which the country is dealing with the issue of over-tourism is
that the country is known for its wild, otherworldly landscapes, glacial lakes, erupting geysers
and black sand beached.
Along with this, the place is equipped with the huge national parks, remote shores and the
unspoiled harbours which grab the attention of the visitors in the place. A stonking 98% of
travellers fly into Iceland generally come from Keflavik that is 45 minutes from Reykjavik

(Morris, 2018). The major reason due to which the issue took place is the accessibility for
independent travellers as they can easily book Airbnb. The solution of the issues is simple that
is travellers need to be responsible enough for thinking the places that you travel and the times
you travel. They should ensure that they are not contributing to exploiting the place. Furthers,
the issue can be resolved after joining the organised tours. These tours take you off the beaten
path, avoiding tourism and revealing a quiet, unspoiled side of the island.
Donald Trump.
Travel in the US market is declining since President Donald Trump took the responsibility and
the new data from the Commerce Department reflects the slump translates that cost approx. 4.6
billion in lost spending and 40,000 jobs as per the analysis by the US travel association.
According to the latest data, this has been found that there is a decline of 3.3% decrease in travel
spending and a 4% decline in inbound travel (BBC News, 2018). The decline in tourism has
been registered because Donald Trump proposed travel bans, anti-immigration language and
heightened security measures which leads to a negative impact on foreign visitors. All these

regulations negatively effect on the attraction of the foreign visitors. According to the Los
Angeles Times, the US travel association is planning to launch a “Visit U.S” lobbying campaign
whose major motive is to encourage Washington to embrace the vital economic impact of
foreign tourists.
According to the National travel and tourism, this has been found the US peaked in the year
2015 at 77.5 million visitors. However, the number of international visitors fell from 2% in the
year 2016 and this decline was continuing in the year 2017 (Popken, 2018). This leads to a
decrease in the foreign exchange rate of the country due to which the dollar fell. This step was
taken with the motive to increase the number of international visitors in the country. This
situation was faced by the USA under the administration of Donald Trump (Rizzo, 2018).
Further, the motive of trump was to enhance the GDP and create jobs in the nation but they need
to recognize the foreign perception without which it is difficult to perform. Tourism industry
leads to the jobs opportunity in the USA market which is one of the biggest benefits. Therefore,
at that time only the administrative was supposed to take the steps for increasing the tourism in
the USA which will lead to the rise in the employment opportunities in the country.
References
BBC News (2018) Fall in tourists to US 'blamed on Trump [Online]. Available from:
https://www.bbc.com/news/business-42808080 [Accessed on 18th October 2018]
Livingston, S. (2017) How does Brexit affect tourism? [Online]. Available from:
http://www.thetravelmagazine.net/how-is-Brexit-affecting-the-uk-tourism.html [Accessed on 18th
October 2018]
Morris, H. (2018) Has Iceland's tourism bubble finally burst? [Online]. Available from:
https://www.telegraph.co.uk/travel/destinations/europe/iceland/articles/iceland-tourism-growth-
slows-bubble-burst/ [Accessed on 18th October 2018]
Popken, B. (2018) Tourism to the U.S. under Trump is down, costing $4.6B and 40,000 jobs [Online].
Available from: https://www.nbcnews.com/business/travel/tourism-u-s-down-trump-took-office-
costing-4-6-n840326 [Accessed on 18th October 2018]

Responsible Travel (2018) Overtourism In Iceland [Online]. Available from:
https://www.responsibletravel.com/holidays/iceland/travel-guide/overtourism-in-iceland [Accessed on
18th October 2018]
Rizzo, C. (2018) Are Tourists Really Canceling Their Trips to the U.S. Because of Trump? [Online].
Available from: https://www.travelandleisure.com/travel-tips/travel-trends/trump-tourism-to-us-is-
down [Accessed on 18th October 2018]
Tyler, C.R.G., Woodhouse, J. and Pepin, S. (2018) Effect of the UK leaving the EU on tourism and the
creative industries [Online]. Available from:
https://researchbriefings.parliament.uk/ResearchBriefing/Summary/CDP-2018-009 [Accessed on 18th
October 2018]