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Factors Affecting Inbound and Outbound Tourism

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Rebecca Murad

on 23 May 2014

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Transcript of Factors Affecting Inbound and Outbound Tourism

Factors Affecting Inbound and Domestic Tourism
However, there are some factors such as the economic recession have a negative impact on major holiday destinations, that will effect the tourism of domestic and inbound tourists. This is because is places such as Greece which over the past couple of years has seen its economy collapse has resulted in a huge loss of tourism as tourists have set their eyes on cheaper holidays such as Turkey or Tunisia where they can get more for their money. This means that euro zone countries like Greece and others such as Spain and Portugal that have been suffering. Domestically on the Greek islands there will be great loss as local businesses are loosing out from the decline of tourism on the island. Also, research has shown that there has been a drop of tourists by 7.9 percent leaving only 42 million tourists in comparison to previous years where there would have been 87.8 percent.

This is also affecting inbound tourism because according to the World Tourism Organization one in five jobs will be at risk of a loss because of the state the economy has got into. This will also account for the fact that there has been a decline in tourists because there is no one there to fulfill these roles of the tourism industry in Greece, which is why tourists are more likely to travel to destinations that are not suffering. Due to Greece is suffering one of the travel companies blame it on the "slow-down of European economies" as passenger traffic dropped by 8.8 percent to 1.3 million. http://www.bloomberg.com/news/2012-10-23/foreign-visitors-to-greece-drop-as-economic-crisis-hits-tourism.html
Factors Affecting Inbound and Domestic Tourism
Another external factor would be the availability of products and services that are in other countries. This also links to the idea of new markets emerging and customers expecting more for there money. In holiday resorts across the world now they offer 'add ons' for customers to pick and choose whilst they are booking their holiday. This is why it has an effect domestically because it will make more tourists want to travel around their country if they are offered more extras to their domestic break. This can include things like luggage transfers so that tourists do not have to worry about their items when arriving at their destination as they will be taken to them at their resort.

In regards to inbound tourism this will have an effect on them because more tourists will be attracted to the specific destination if there is more products and services available which means that that country will have gained more tourism income. An example of this would be in Orlando Florida where there have been many excursions built into the country so that it becomes a more exciting destination for tourists to go to.

Factors Affecting Inbound and Domestic Tourism
The increase in budget airlines and super planes is a factor which is affecting inbound and domestic tourism, this is because there is a now a variety of options on traveling to the destinations. The increase in budget airlines means that tourists are now able to travel at a cheaper price therefore, this encourages more tourists to go and travel overseas because costing is now not so much of a problem. Research shows that in 2013 there was an increase of passengers on aircraft's to 3.9 million and 1.9 of these where located on budget airlines. The most frequent budget airlines used last year was from the UK and Germany, this was because both the British and the German market increased causing tourists to increase in Britain by 5.7 per cent and in Germany by 11.2 per cent. Spain was too one of the main countries that also saw an increase of visitors by 64.4 million international tourists, this again was because of the increase in budget airlines as in Spain the most frequent visited by these low cost airlines was Barcelona and Palma De Mallorca. Both of these airports saw an increase by 7.4 per cent again this is because tourists can now travel for a lot cheaper prices compared to recent years.

As well as budget airlines, there is now an increase within super planes traveling to especially long haul destinations like Florida, Thailand, Australia and New Zealand. Therefore, this means that it is opening a whole new holiday opportunity for tourists as there are many more attractions and sites on offer here for them. This then then means that it it will impact on the future as, more income will be generated from those countries which are only just making an appearance within the tourism market. This will act as profit for the future of UK tourism as they will be able to generate more customers due to the decrease of flight prices.
http://buyingbusinesstravel.com/news/
Factors Affecting Inbound and Domestic Tourism
Another factor affecting these types of tourists is the exchange rate in the UK, as the pound is becoming weaker more overseas tourists are taking advantage of this. This is because in comparison to where inbound tourists are coming from they can get more for their money in the UK, this means that it is better value over their country. An example of this would be inbound tourists traveling from the Euro zone as we know at the moment is in an economic recession so prices go up as wages fall therefore, coming to England is seen as a better option for them.

Since the start of this year there has already been a 10% increase in tourists coming from across the Channel to spend their money here in the UK, as it is a lot cheaper for them. Shops have certainly seen the most increase of income as businesses last year grown up to 40% from other countries using the Euro. The main growth has come from high street stores such as Selfridges as their buying director suggests that "They are taking advantage of the strong Euro to make great savings" This again further implies how that overseas visitors are benefiting from the weak pound as they are able to recognize the significant drop in prices in the UK, compared to the rising ones in their countries.

This has proven to be great for inbound tourism but, domestic tourism is too then affected by this because as more overseas tourists are attracted big hotel chains are not going to be advertising their usual discounts, this means that British holidaymakers will lose out on the low prices and this may discourage them from taking a domestic holiday. This is because the tourists companies do not need to put on discounts to attract tourists as there are enough of them coming into the UK. This means that in the future it will act as a profit for UK tourism as the country will be able to attract certain types of tourists who may have a love for the high street shopping centers that are alot cheaper than where they are in their own country. A recent study taken by the World Tourism Organization predicts that the number of Chinese tourists will surge from 70 million to 100 million by the end of the decade.
(www.bbc.co.uk)
http://news.bbc.co.uk/1/hi/uk/7957522.stm
http://www.theguardian.com
Factors Affecting Inbound and Domestic Tourism
The emergence of new markets is an external factor affecting all inbound and domestic tourism. This is due tot he fact that now customers are expecting more for there money which is why the tourism industry as introduced new markets such as the 'niche' one that targets a more luxury style of a holiday. The tour operator of TUI interrelates with some of these new markets as the travel company of 'Flexiski' and 'Hayes and Jarvis' offer a different and more specified holiday experience that is a big change to the ordinary 2 week away to Spain. They can offer anything from African Safari's to skiing holidays in the Alps, which is why they are used to target the higher end of the market. This has an affect domestically because those countries that never had many tourists travel there such as Dubai and India, now have millions that are able to go there on there holidays. Therefore, this means that domestically it is good for the economy as more tourists will be buying into their products.

Inbound tourism will also be affected as the new markets will open a whole new opportunity for tourists to go and venture on. This means that it will be a profit for many countries because there will be alot more on offer for them to do, therefore generating more money in that particular area. This will act as a loss for UK tourism as tourists are able to venture further than common destinations such as the UK to more exotic places such as Barbados and Dubai where there is a higher quality of services applied.
Factors Affecting Inbound and Domestic Tourism
Competition from other destinations are affecting inbound and domestic tourism because there is now a rise of exotic destinations that tourists would like to travel to, in comparison to previous years. As for example there is a rise in long haul destinations of 11% within the market, this could include destinations such as Australia or New Zealand where in previous years no one would think to go there but, the new improved technology means now tourists are able to travel to destinations such as these. As well as long haul competition there has been a rise in luxury destinations as holiday resorts such as, Dubai, The Caribbean, Maldives and many more are now open to tourists to travel too.

There is the emergence of these new destinations because tourists now expect more for their money which is why they long to travel to different types of destinations. AS Dubai last year in 2013 seen a rise of 11 per cent within its top hotels as more tourists are visiting the country, The DTCM Director General claims that they have had an increase in tourists because of their ability to "...tap new and emerging tourism". The country have seen a gap in the market so they have therefore promoted Dubai into this new tourism market so that there tourism would increase, which it has done so it proves that they have been successful. They have promoted this by taking part in 25 major travel and tourism exhibitions across the world to see what competition they also have, as well as enhancing Dubai workshops in 10 different countries this year.
(Gulf News Report)

This means that it will have an impact on future UK tourism because most tourists will want to travel to the more exotic destinations as they will want more for there money. This is because of different cultures as well as the opportunity to visit new and exciting sites around different countries. Research has shown that last year alone there was more than 10 million tourists went to the new competitive destination of Dubai. This means that from the new destination the UK are loosing out to new destinations and this will only increase over the next coming years. Therefore, this will be a somewhat loss to the UK tourism as not as many tourists will be visiting due to the emergence of new destinations.
http://gulfnews.com/business/tourism/dubai-s-tourism

Factors Affecting Inbound and Domestic Tourism
Factors Affecting Inbound and Domestic Tourism
One of the internal factors would be the climate for the UK itself that is often the downfall of tourists into holiday making in the UK. This is because tourists holidays are largely chosen on the type of climate that it consists of this means that the warmer the destination is the more tourists generated. However, over recent years the UK has suffered from various climate dissastors such as the flooding in 2014 that affected millions of peoples homes as well as the tourism industry. Many shops and attractions were destroyed and peoples lives disrupted which means that tourists will be majorly put off in visiting the UK because of this. Domestically this would have affected all local businesses which will eb a loss to the community but, also the people of Britain will of not been wanting to go to Somerset for their short break away whilst the flooding were taken place.

For the inbound tourism it means that no overseas visitors will want to come into the UK for their holiday because of the disruption the climate as caused all who live there as this will then ruin their holiday. Not only does the UK suffer severe floodings but also poor summers as the temperatures are not getting any better. This therefore, acts as a loss to the UK tourism because tourists will want to go to more warmer countries where there climate is a lot better.
Factors Affecting Inbound and Domestic Tourism
The next factor is the increase within budget airlines, this is a vital part of the tourism industry because it offers tourists to travel abroad for a reasonable price which therefore, means that it will attract more people to travel abroad.

Low cost airlines attract certain types of tourists as last year alone the budget airline Easyjet have seen up to 60 million business passengers board the aircraft. This is because they are able to save a substantial amount of money from the firms deals. All the time budget airlines are increasing making profits up to £478 million last year. This will affect the future of tourism because the more budget airlines there are available it enables a lot more tourists to be able to travel outside of their own country. Which then benefits outside economies as more tourists are visiting certain destinations bring tourism income to them.
http://www.independent.co.uk/news/uk/home-news/easyjet-
Factors Affecting Inbound and Domestic Tourism
The next factor is the increase within budget airlines, this is a vital part of the tourism industry because it offers tourists to travel abroad for a reasonable price which therefore, means that it will attract more people to travel around the world as it allows more people to have the opportunity to do so.

Low cost airlines attract certain types of tourists as last year alone the budget airline Easyjet have seen up to 60 million business passengers board the aircraft. This is because they are able to save a substantial amount of money from the firms deals. All the time budget airlines are increasing making profits up to £478 million last year. There are many other budget airlines for passengers to9 chose from such as; Ryanair, AirFrance, Jet2 and many more that offer passengers a more healthier budget to travel at. This will affect the future of tourism because the more budget airlines there are available it enables a lot more tourists to be able to travel outside of their own country. Which then benefits outside economies as more tourists are visiting certain destinations bring tourism income to them.
http://www.independent.co.uk/news/uk/home-news/easyjet-
Factors Affecting Inbound and Domestic Tourism
Another internal factor would be the health and safety regulations that are held within the UK that is effective of inbound and domestic tourism because of the strict terms that are now applied in the tourism industry. This means that inbound tourists will feel safer when coming into the UK for their holidays as there will be no scare of any illnesses due to the health and safety being taken more seriously in comparison to other countries where peoples standards of health are not the same as the UK's. Also, this is a benefit for EU citizens in the UK as if they do have any accidents then they can be treated at no charge on the NHS, same with non EU citizens however, there will be a cost involved. When inbound tourists are coming into the UK they must ensure that they have taken out some insurance that will cover the loss, theft and damage of belongings whilst on their holiday.

For domestic tourism this is simple for them as because the health is considered of those who are coming into the UK the domestic tourists do not have to worry about any illnesses being brought into their country from others. This will act as a profit for the UK because they will be able to generate more tourists because of the clean environment that they will be entering as well as, the fact their ;lives will not be endangered as there is always help for them that can be given to any tourist visiting the UK.
http://www.smoothhound.co.uk/tourism/advice4.html
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