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The economic importance of sport
Comment about tourism economic aspects
Positive And Negative Impacts Of Tourism On Economy
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Introduction
Tourism is one of the largest and fastest growing industries in the United Kingdom. According to official reports, the growth rate of the UK tourism was 4.1% in 2011 while the country’s economy growth rate was merely 0.7% in the same year. Statistics also show that between 2010 and 2012, tourism supported 1/3 of the new employment opportunities in the country. British Tourist Authorityforecasted that by 2025, with a growth rate faster than the nation’s economy, this industry is predicted to worth£257 billion, which shares around 10% of the country’s total GDP and significantly supports the nation’s employment. Both overseas tourism and sub-national tourism affect the nation’s economy.
This paper will discuss economic effects of tourism on the UK from six aspects–macro economy, employment, enterprises, investment, consumer spending and agriculture. They are then followed by a special analysis on the impact of 2012 London Olympic Games on the economy.
Effects of tourism on UK’s economy
1. Macro economy (contribution to GDP)
A report issued by the World Travel & Tourism Council (WTTC) in 2013 divides the total contributionof travel and tourism to GDP into three categories. The first category, accounting for 2.4 percent of 2012 GDP, is called direct contribution, defined as spending of tourists, such as spending on services of restaurants, hotels and travel agencies.The second category is indirect contribution, including investment in the travel industry and spending of service providers. For example, construction of facilities in a resort area and products and services acquired by a restaurant or a hotel in order to offer to tourists both fall intothis category. There’s also inducedcontributionmade to UK’s economy,displ...
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... the Spanish case. Applied economics, 34(7), 877-884.
Deloitte MCS Limited, (2010). The economic contribution of the visitor economy: Uk and the nations
Gratton, C., Shibli, S., & Coleman, R. (2006). The economic impact of major sports events: a review of ten events in the UK. The Sociological Review,54(s2), 41-58.
Penny, T. (2013, July 19). London olympics report says u.k. economy boosted. Retrieved from http://www.bloomberg.com/news/2013-07-18/london-olympics-report-says-u-k-economy-boosted.html
The Economist. (2013, September 29). Easy come, easy go. Retrieved from http://www.economist.com/news/britain/21586885-booming-post-olympics-tourism-wont-boost-economy-much-hoped-easy-come-easy-go
Tourism Alliance, (2013).UK Tourism Statistics 2012. London, England.
World Travel & Tourism Council, (2013). The economic impact of travel & tourism 2013. London, England.
In the year of 2012, there were almost fifteen million overnight tourist trips taken in Scotland, which resulted in £4.3 billion in visitor expenditure. This shows that tourism really helps the Scottish economy as over one hundred and forty million tourist day trips w...
Siegfried, J., & Zimbalist, A. (2000). The economics of sports facilities and their communities. The Journal of Economic Perspectives, , 95-114.
Noll, Roger, and Zimbalist, Andrew. Sports, Jobs, and Taxes: The Economic Impact of Sports Teams and Stadiums. Brooking institutions press, Summer 1997. Vol. 15 No. 3.
Sharpley, R., and Telfer, D. J., 2002. Tourism and Development Concepts and Issues. Bristol: Channel View Publications.
In this report I will be looking into the theoretical concepts associated with tourism, leisure and hospitality developments and evaluating the social, economical, political and environmental impacts of tourism in Blackpool. I will be ...
While sports for the spectators are merely entertainment, the economics of the industry are what drives businesses to become involved. Sports have become more of a business entity rather than an entertainment industry due to the strong economic perception of the over all industry. There are several instances in which economics may contribute to the effect on the sports industry, such as: the success of a team, the price of a ticket, the amount of money an athlete will make, and the amount of profit a team will make. The success of an...
From an economic standpoint Simm reiterated what is already well known information about tourism in the fact that it provides employment and business opportunities for individuals and to a larger extent, contributes to the economic situation of a
As well as its direct economic impacts, the sector also has significant indirect and induced impacts. Tourism has been source to remarkable in the increase of the National Gross Domestic Product as well as increases in employment creation. One of the most sensible and important impact of tourism on the economy is it increases the national gross domestic product, which is the broadest quantitative measure of a nation’s total economy activity. Precisely, it represents the monetary value of all goods and services produced within a nation’s geographic borders over s stipulated period of time. The tourism sector however on this aspect has been found increasing the National GDP as tourists tend to increase. Tourists trade with the service in monetary value and resultantly the GDP increases( traveltips, 2017).
It is the economic effects of tourism which bring the most benefit to the host nation. Tourism is a low import user which means more of the money earned here stays here. The government is earning money through tourist taxes such as the airport tax, increased export earnings and income tax revenue from people employed by the industry. A balance must be struck between these benefits and associated negative impacts on the community and the environment.
1.2 Problem Formulation In the problem formulation part of my report I would describe the overall situation of the U.K Tourism industry. The service concept of “Simply Travel” will give us information about the services provided by the company. I will find out about the customers, competitors of the company. I will find out what political, economical, social and technological factors affecting the company and its demand situation.
According to the ‘World Tourism Organization’ (UNWTO), the tourism industry is one of the fastest growing sectors in the world, as it is estimated that by the year 2020, 7.8 billion people (roughly a quarter of the world’s population) will embark on a foreign trip (Bennett & Gebhardt 15). The Caribbean is said to be the most economically dependent on this industry, as the ‘Caribbean Tourism Organisation’ states that the industry forms the “economic backbone of most countries in the Region”(“Caribbean Tourism Industry” 1), implications for what tourism’s affect on the region have arisen and have prompted further research into matter. Since the 1970’s research regarding tourism in the Caribbean has attempted to determine the social, cultural, environmental, and economic impacts of tourism. Much of the research has found that there are in fact many negative adverse affects, and Jackson’s article asserts that, “Governments often commit money and other resources to support the growth and development of tourism and often turn a blind eye to its negative impacts” (574). The reason why tourism looks attractive (and thus turn a blind eye) to these Caribbean countries is because of “its potential to foster GDP growth, to create employment, to increase foreign exchange earnings, and attract capital investment” (Daye, Chambers, and Roberts 2). This paper will overview such impacts by first discussing a case study conducted in Jamaican resort town, Ocho Rios, with Sheere Brooks discussing the observed social, cultural and economical consequences of Jamaica’s reliance on the tourism industry and will finally look at tourism in relation to capitalism, with Robert Fletcher suggesting in his article that the tourism industry (and more specifically...
It’s a major one- time or recurring events of limited duration, developed primarily to enhance the awareness, appeal and profitability of the host location (Ritchie, 1984). Sports events are organized mainly to attract tourists by providing cost friendly facilities to them. Sports destinations range from sports purpose-built resorts, where all the functions are focused on the dominant activity, to capital cities and entire country (Law, 1995). Sports event in a hosting city should be presented in a way that can attract various types of visitors to attend a particular sports event in that city. Every destination has a unique mix of characteristics, which are determined by its geographical location, culture and history (Getz, 1997). The major sport events are mechanism for urban regeneration because they create opportunities for host cities to present a new and exciting image of itself to the world (Harvey, 1989). The strong growth of the sports event industry is part of a general economic change. Whereas the economy tends to be more product base, it is increasingly becoming service based. This is the reason why governments increasingly use events as economic development strategies. The government plays a key and leading role in events. Increasingly, governments use events strategy to plan the use of resources and to improve and measure the outcomes of programmes and service (Bowdin, McDonnell and
Global events benefit regional, tourism and community development. Take for instance the Commonwealth Games and the Olympics. They both are events held globally that increase visitor’s expenditure and length of stay while improving destination awareness and increasing civic pride. Janecko, Mules and Ritchie (2002) explain events in small regional destinations are obviously beneficial and often play an important role in tourism development and thereby in regional development however, differ due to size and scale of the event. Global events create employment and increase labour supply, expenditures and even the standard of living. ‘As local economics have adapted to changing to global dynamics, the hosting of international events has become more commonplace and can play a significant role in local development, acting as a catalysts for jo...
Tourism is generally a “clean” industry; no smokestacks or dangerous chemicals. But it does put demands on the infrastructure—on roads, airports, water supplies, and public services like police and fire protection. These problems—travelers increasing in numbers and adding stress and strain to infrastructure and heritage sites—are, as Safer says, only beginning, and the travel industry is already addressing them. But a challenge results not only from visitor impact, but also from visitor expectations of quality products and services. Tourism is essentially a service industry, which means it depends on the competence of people in many different jobs and locations. Tourism, while not a panacea, is an attractive form of economic development.
At the present time, one of the inseparable parts of the economic growth is considered as tourism industry. Commonly, tourism is the movement of people to other places for business or leisure purposes as well as covers their activities. Holloway and Humphreys defines that the places where tourists come and spend their money are called as “tourist destinations” in other words “receiving areas”. Many countries have been improving tourism to overcome economic difficulties since it is growing fast. The industry activities have been demonstrated a general positive trend in the economy and it has already become the inherent part of economic development. In host countries, tourism has led to such positive consequences as the improved infrastructure,