A Literature Review: The Economic Impact of UK Tourism and Hospitality

This literature review examines the economic impact of tourism and hospitality in the UK, drawing on three articles. The first article highlights tourism's role in job creation, infrastructure development, and overall economic growth, noting its contribution of approximately £106 billion annually and employing over 2 million people. The second article focuses on the relationship between sports and tourism, particularly the growth of golf and ski tourism, as well as the increasing importance of sports events in promoting travel and tourism. It emphasizes the need for investment and public-private partnerships to support these events. The third article discusses the economic contribution of the UK hospitality sector, noting its provision of over 2.5 million jobs, generating over £90 billion in annual revenue, and contributing significantly to the UK government's tax revenue. It predicts further growth in the hospitality sector and increased government spending to attract more inbound tourists. Desklib provides access to similar solved assignments for students.

Article 1
Tourism plays a prominent role in developing an economy in different aspects such as new
job creation, enhance demand, infrastructure development etc. It having a large impact on
country’s consistent growth and promote travel and tourism sector. According to the website
of VisitBritain which is a government authority in order to promoting tourism within Britain
and also responsible to provide funds to them. it generates approx. £106 billion in a year and
provide employment more than 2 million people within the country. it also supports directly
or indirectly various business in variety of sectors like farming, transportation, retail, sports
and other industries. On the other hand, there are other tourism experts said that, the value of
tourism in Britain not only support these business but also provide a large amount of foreign
currency from its international visitors. According to the VisitBritain data (2011), its
contribute £48 billion and support more than 1.5 million jobs in different sector includes
accommodation, food, transport, travel, culture and events etc. This sector is growing with
approx. 5% annually and by 2025 it will increase by more than £250 billion which is more
than a small country economy. there are large number of hotel and accommodation business
operates in England and also growing due to increase in demand of international and
domestic visitors.
Figure 1Tourism trips and spend
There are different types of attractions approx. 5000 to 6000 which helps in attract large
number of visitors. It results that on an average room occupancy 70 percent which is quite
good as compare to other countries. More than 35000 non serviced hotels business provide
approx. 1,401,070 bed space which is also large. Whereas, serviced accommodation having
790,707 bedrooms’ spaces in England. These data show that the value of travel and tourism
in UK economy having a great impact in the long run.

Article 2
Sport and Tourism
This literature review is focused on interaction and relationship between sports and tourism.
Today, sport tourism is growing very fast in United Kingdom which not only support local
economy but also support national economy. According to Taylor and Francis, in sport
tourism there are two major areas which are growing drastically one is golf tourism and
another on is ski tourism. In the last couple of years there are other fields of sport tourism like
adventure, sport event and other sport related area promote travel and tourism sector
significantly. Now a day, there are other issues in sport events growing due to increase in
sport culture in different country, sustainability, Olympics and Paralympic Games and so on.
Sport tourism basically divide in to two areas micro and macro level. According to the recent
data, first at micro level, nature and adventure related sport attraction increasing with a good
growth rate. At the macro level, there are large number of countries who promote sports such
as Football, Cricket, Olympics and other events. It required large number of investment in
order promote such events and build infrastructure in an effective manner. As per Taylor the
role of social policy and public private partnership is too significant for development of sport
events. The role of United Kingdom government in such events having a large influenced
because, they provide funds and arrange “London Olympics” type of events which helps in
create an ideal image at the global level.
Article 3
Topic: OXFORD ECONOMICS - THE ECONOMIC CONTRIBUTION OF THE UK
HOSPITALITY INDUSTRY
This is another article which related to economic contribution of UK hospitality sector and its
future growth. According to the report of British Hospitality Association, this is one of the
largest sector in UK and provide wide range of jobs in different industries which affects local
and national economy. UK hospitality sector provide employment more than 2.5 million
people and there are approx. 170,000 commercial units and more than 90,000 nonprofit
organizations in public and private sector. In terms of overall employment situation this
industry is contribute 8 percent of the country’s total job. Its annual revenue is more than £90
billion and also provide more than £30 billion in form of tax to UK government. This is one
of the most attractive industry spread in various region like England, Wales, Scotland and
Ireland. It is economic driver for all these parts of the country in all aspects.

Figure 2: Spend by overseas and domestic visitors
As per the article from Oxford economic, the number of new jobs in the hospitality sector is
estimated to increase approx. 2.9 million in upcoming yeas. Apart from that it also provides
new employment indirectly in restaurants and related services, catering, event management,
and other sub sectors. Therefore, UK government will increase its spending in order to
develop this sector which helps to attract large number of inbound tourist by approx. £2
billion. This information predicts that in upcoming years’ hospitality sector will grow rapidly
which is good sign for the economic and social aspects of the UK.