Economic Impact of Tourism: A Case Study of Edinburgh's Growth

This report delves into the significant role of tourism as a catalyst for economic growth and development, with a specific focus on Edinburgh, Scotland. It highlights tourism's contribution to a country's economy by promoting cultural understanding and generating revenue through various avenues, including employment in hotels, transport, and entrepreneurial ventures. The report analyzes Edinburgh's tourism sector, emphasizing its beauty, historical sites, and cultural attractions, which attract a large number of visitors and contribute substantially to its GDP and employment rates. It explores the economic impact of tourism on employment, GDP growth, and the balance of payments, while also considering sustainable tourism practices. The report concludes by emphasizing that tourism enhances society and fosters economic growth through various services and goods, making it a crucial aspect of sustainable economic development.

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Tourism and Sustainability

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The following parts cover a discussion on the concept of how tourism is considered to be an
effective means of achieving economic growth and development in the destination spot.
Tourism is a key source of economy and revenue for any country. It helps the people to
promote an understanding of the destination of their culture, art, monuments, cuisine, famous
dance, and people (Coppe, 2015). The locals get a chance to showcase their talent and sell
their work. The hotels and other transport activities provide employment to thousand. This
also provides business opportunities to entrepreneurs. Tourism not only supports the industry
on its own but various stakeholders associate with it as well. The discussion also covers an
analysis of the famous tourism place known as Edinburgh which is a Capital of major country
Scotland that is a part of United Kingdom. Edinburgh is the most beautiful city in all of the
United Kingdom.
A destination spot is the significant means of sustainable development and economic growth
of tourism sector for the country. Tourism helps in increasing the opportunities of
employment and big profit maximisation which results in a key difference to the overall
economy and on the population. In January 2020, a research found that tourism is a growing
sector and the most noticeable one which plays a significant role in boosting an economy of
the nation (Harris & Griffin, 2012). It can easily increase the growth of Gross domestic
product and raise economic development. Without harming the local community people visit
the locations which are a great idea behind sustainable tourism. Tourism has a constructive
impact on the environment which helps the country to develop more productive economy
(Jenkins & Schroder, 2013).
There are three goals which have been initiated in the sector of tourism and are the important
economic activities of tourism sector. These three goals are generated income by the society
of the country, growth in employment and foreign transactions. It not only helps the country

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to grow more but also an effective means of economic growth (Anslemet, 2019). Some of the
economic development tools have been taken into the consideration such as the elements of
demand and supply which defines that the demand of tourist and the influence of nature help
in the sustainable growth of the tourist spot by symbolizing the primary factors such as
specialty travel, the concern for environment and awareness.
The elements of demand and supply are specifying the major economic tool in the tourism
sector. With an Overall tourism, for instance, is expected to grow more accordingly and as a
result it develops the growth in population, rise in employment and income and the increment
in integration of the world economies for example, people’s attitude can be change according
to the environment of the place and they plan the vacations accordingly (Wei, 2019). In terms
of gross domestic product tourism sector significantly contributes to the earnings, through
this type of earning cannot be reflected in the domestic as well as product accounts of some
countries (Rodgler, 2019). In terms of Balance of payment tourism sector has a major role of
the country. From the view of an economist, the services that provided in tourism can be
called as exports (Coppe, 2015).
One of the famous tourism places which we are taken into the consideration is Edinburg.
Edinburg itself has almost 10 un miss able sights such as Royal Mile, Calton Hill, Edinburg
castle, Palace of Holyrood house, Princess street gardens, St Giles Cathedral, Scott
monument, Deal village and the Real Mary King’s Close (Jhonson, 2020). These places have
a real beauty of its own. The city has known for a beautiful culture, feeling of royalty,
attractive sight-seeing and multiple cuisines. People wish to go their number of times and it
becomes favourite tourist place for the tourist. Edinburgh has a rare charm (Loe, 2020).
The town is known for its dark corners and looks like the ghost do not want to leave
Edinburgh and come out to haunt the streets and buildings. The weather of Edinburgh is rainy

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and windy, which makes a city extra charming and creating a mysterious and sombre
atmosphere. When the rays of the sun steam through the clouds and night falls, it created a
mysterious and sombre atmosphere. The visitors and locals of Edinburgh have a wide variety
of attractions, including museums, church and castles which are free of cost. Tourists wish to
visit a mysterious place of the city like whisky distillery where they learn about how Scotch
whisky made, the evolution of medicine in the Surgeon’s Hall Museums. Edinburgh multiple
cuisine that combined with the Scottish breakfast is the famous among tourist (Enterprises,
2020).
Therefore the ravishing beauty of Edinburgh makes the city most visited city in the United
Kingdom after the capital city London. In terms of tourist destination there are lots of
services which is greatly provided to the tourist. For multiple cuisines there are lots of
restaurants and cafes are there and even in 2019 government itself provide lands in minimal
price to the new cafes and hotels (Loe, 2020). In Edinburgh there are many transport facilities
are available by which many low to low income people are earning money (Loe, 2020).
In 2015, Government had been initiated to provide railways facilities to connect places from
one to another in Edinburg for tourist by seeing large number of tourist visits every month.
The agenda of the government of being provided large number of transport facilities,
hospitals, shopping to the Edinburgh was to increase the sustainable growth of the city. To
raise the economic growth, government itself established employments in the city and also
established industries and helped new start-ups so that it creates a positive impact to the
economy. It increases the gross domestic product of the country and also helps in balance of
payment in the future. The adverse effect of culture helps the city in the growth of economy
(Ducktin, 2018).

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The cultural areas of museum and heritage site represent economic benefit of the area.
Cultural and heritage facilities require challenging economic times to explore different ways,
generated revenues, and to control expenses. It helps in operating policies and best practices
to focus on various issues including customer services, partnership and packaging, and some
entrepreneurial approaches to meet their heritage preservation and education mandates.
United Kingdom has the most significance source in the employment sector which is also an
important factor in the growth of sustainable (Government, 2020).
In 2018, approx. 200,000 people were employed by the UK Government in the Edinburgh, it
represented as 9% of total employment and also in 2019 almost one in 10 people were started
to earn money in Scotland (Rodgler, 2019). Although it was a sign of a depletion of 16,000
jobs in 2019 as compared to 2017, the employment sector has grown by 11% (Anslemet,
2019). In recent years Gross Domestic Growth has grown rapidly in the Scottish economy
due to the favouritism destination of the tourist. Edinburgh GDP data for the third quarter of
2020 indicates that an output of the sustainable tourism growth sector is increasing by 0.5 per
cent and in year on year terms the sector’s output will increase by 2.3 per cent (Government,
2020).
The tourism sector independently generated economic activity as a whole which is around
£11 billion wider (Enterprises, 2020). £7 billion to Scottish GDP has been contributed in the
supply chain of Scottish in terms of basic prices. This represents 6.4% of total GDP of United
Kingdom (Government, 2020). It helps to the vast economy by an increase in expenditure
from visitors of Edinburg (Vanhove, 2017). Each additional £50 million of spending by
tourists is estimated to support around £75 million of GDP in the wider economy, when
taking into account of the direct effects, supply chain effects and re-spending of wages
(Government, 2020). These effects would mainly be seen within the food and beverage, retail

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and accommodation sectors, which help in the contribution to the wider economy in
Edinburg.
In order to conclude the discussion tourism considered as achieving the development of
society and growth in economy. It increases the economy by ample number of services and
goods usage in the city. By seeing the tourist destination government itself increases the fund
on that place to the tourist and to increase the growth. They provide transport facilities,
shopping malls, hospitals services and even provide employment to low income people so
that the gross domestic product of the tourist spot will become beneficial for the growth
sustainable economy. There is a consideration of Edinburgh. Edinburgh is a Capital of the
major country Scotland which is a part of United Kingdom. Edinburgh is known to be the
most beautiful city in all of the United Kingdom. The country has its real beauty and people
like to visit the place again and again therefore it not only becomes the favourite destination
of tourist but also an important city for the United Kingdom where an effective economic
growth and development is considered.

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