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Analysis of the Macro Tourism Business Environment

University: Oxford University

  • Unit No: 8
  • Level: Undergraduate/College
  • Pages: 7 / Words 1641
  • Paper Type: Assignment
  • Course Code: TM4010
  • Downloads: 535
Question :

Project Task

You are required to conduct an analysis of the response or recovery strategies by one or two tourism stakeholders to the macro-environmental event (as chosen in CW1).

Task Guidance

Having evaluated the impact of a macro-environmental event on stakeholders of your choosing, you are now to examine the response strategies of the stakeholders in relation to this event.

This assessment should see you to analyse the positive or negative elements of the response strategies utilised, with evidence of why you came to these conclusions.

For instance: how did the response strategy produce advantages to the organisation in response to the macro-environmental event? Also, these strategies have any unforeseen negative impacts? How it helps to achieve its original objectives?

Answer :


Macro environment includes various political, economic and social factors that affect the working of business. These factors can lay positive as well as negative impact on working of various industry. Present study will lay emphasis on Brexit and how it has affected tourism sector in United Kingdom and in Europe. It has been analyzed that Brexit has lowered down the economic condition of both the states. Assignment will analyse the tourism business environment. It will also interpret the success factor relating to described strategy. Study will also focus on strategies taken by stakeholders to overcome the effect of Brexit. It lays emphasis on negative aspects followed by adopted strategy which is Brexit.


Basic analysis of the tourism business environment

Brexit is the withdrawal of the United Kingdom from the European Union. This step was being followed by the memorandum given in June 2016. 51.9% of people has voted to leave the European Union. The impact of Brexit on European Union has resulted in various political and economic changes. It has been analysed that in October 2019, Brexit has laid negative impact on the Spanish Tourism where the most re-known company in the states have terribly failed. This step is having significant negative impact on the running of business organizations. Spanish Tourism association has lowered down their annual growth. The tourism in Spain has been declined because of the effect of Brexit, Thomas Cook becoming bankrupt and the protest which is going in and on in Catalonia. Tourism income has fallen from 1.6% to 1.4% (Oxford Analytica, 2019). Mainly tourism business environment in Europe has been affected by Brexit, but the United Kingdom tourism was more benefited by it as there has been an increase in 21% of travellers who are more visiting the place.

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Once the Brexit process is complete in 2019, it’s likely the “fast track” lane for customs will be exclusively for British passport holders and therefore EU nationals will have to file into the same long queue as all other non-UK citizens. It has been analysed that airfare has been increased in Europe. Not only the airfare but staying in hotel, the expenses related to it has seen a rising phase. The visitors from Europe will have to seek permission from United Kingdom government, if they want to seek a job over there. Also the economy of both Europe and UK has been slowed down (Amoamo, 2018). It has also been identified that many of the companies in United Kingdom are shifting there headquarter to Europe. Various conflicts and chaos has raised in both UK and Europe after implementation of Brexit. Europe has adopted the policy of free movement of visitors in states. It has also been analysed that there will be no custom relationship between Europe and United Kingdom.

Success factor for the tourism business project

Brexit has laid positive impact on United Kingdom Tourism. Various potential opportunities have been increased by adopting Brexit. Like for example they have developed strategies for environmental climate change and came up with regulations related to making the effective use of energy and resources. These laws are more strengthen than the European laws. United Kingdom has also set up their objectives and priorities after implementing Brexit. They are involved in improving the business strategies and management practices related to the tourism industry. Practices were adopted by the UK so that they can increase the productivity of all business which are working with them. This has led to the growth of many organizations which are working in United Kingdom.

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Recovery strategies by the stakeholders related to the particular macro environmental event

On 1 September, 2019 it was analysed that Brexit is having adverse impact on European tourism. This strategy has lowered down the working of various organizations and also affected economy adversely. On 16 October 2019, Brexit also affected Spanish tourism negatively by making Thomas Cook bankrupt and also the recovery of rival Mediterranean destinations. It has been analysed that any traveller who is going to visit Europe has the passport which is stamped and has less than 10 years (Perles-Ribes, Ramón-Rodríguez and Ortuño Padilla, 2019). This aspect has laid negative impact on British policy makers, there business has bene greatly affected by this step, as it becomes difficult for visitors to visit the place. Tourism has been hugely affected by Brexit. A new document will be needed while travelling to United Kingdom from 2021. Students and business class people requires new visa for visiting or for completion of their studies or business projects. It has been analysed that people will be able to work in Ireland as same way as before.

Business when carrying goods with them will require custom declaration form. These aspects have laid negative impact as it has become difficult for individuals to take goods with them (Lim, 2018). In order to create a good travel experience and increase tourism in United Kingdom, they are also providing with health care insurance to people who are travelling over there. To increase tourism, the country is also laying emphasis on inbound tourism. They are also engaged in developing sustainable strategies so that travellers had a great experience and economy of the country can be made normal. These techniques followed by tourism industry also requires support of the government.

It has bene analysed that the various holiday resorts in Spain has seen a drastic drop down in their income aspects by 37% in February 2018 post Brexit affect. The famous hotel and resort Benidorm in Spain has seen 5% decrease in their income and also the number of selling of package holidays has been lowered down to 46%. Number of travellers visiting the country has also been lowered after the No deal Brexit. Benidorm was famous for hosting various light festival event, they have also organized the grand cycle marathon that has increased the number of travellers visiting the place, but now the income aspect of holiday resort has been lowered down (Wilson, 2017). Brexit has adverse the situation of Thomas Cook, they have ben bankrupt. The blame game for company becoming bankrupt is strong. It has been analysed that Brexit has cancelled down many holiday packages of the travellers because of the increase in price rise after United Kingdom exist from European union. Brexit has also affected German markets as most of the customer of Thomas Cook are from Germany. But the business of Airbnb has increased because of Thomas Cook becoming Bankrupt and losing their market share.

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In order to raise from the negative impact of Brexit, it has been analysed that government has been engaged in taking various stress so that they can manage economic turmoil adequately. They have thought down of laying strategies to manage organizations firmly so that productivity of state increases and also the tourism sector income increases. It has been analysed that Benidorm hotels and resorts in Spain are blaming the uncertainties that has been increased because of Brexit (Pappas, 2019). Holiday booking in Spain has bene declined in upcoming summers by 6%. The tourism industry in Spain is facing a critical time. They are thinking of strategies to overcome it.

Any foreseen negative impact on the tourism industry or organization

Brexit has laid negative impact on various organizations such as Thomas Cook, Benidorm hotel and resorts in Spain. It has been analysed that Thomas cook has gone bankrupt because of the adverse effect of Brexit. Tourism industry in Britain has seen a 6% decline in upcoming summers (Pappas, 2017). Profits and revenue generated by all these organizations have been declined and there are facing adversities of the regression period. Economy of United Kingdom and Europe has been slower down. The number of travellers who are going to visits place has deceased because of the strict laws and regulations that has been implemented by them to acquire visa. Expenses related to travelling has also been increased after the Brexit. Many travellers have cancelled their travelling packages. It has led to decline in growth of Tourism industry. It has also decreased profit made by them. The holiday packages in British market was 46000, this January which was 54000 thousand the last January.

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From the above study it has been analyzed that Brexit has impacted tourism in Spain negatively. It has been analyzed in report that because of Brexit Thomas Cook has gone bankrupt that has lowered down the economic condition of Spain. Assignment also identified that in order to enhance economy of Spain various strategies has been adopted by Benidorm. They have hosted a grand cycling event so that the number of travelers in place increases. Brexit has hit hard the economy and British are worried about going to abroad. It has also been analyzed that many of the organizations are shifting their organizations to Europe. The Benidorm hotels are blaming Brexit for all the uncertainties that they are facing.

You may also like to read:-

Impact of BREXIT on Tourism Operators In UK


Books and Journals

  • Lim, W.M., 2018. Exiting supranational unions and the corresponding impact on tourism: Some insights from a rejoinder to Brexit. Current Issues in Tourism.21(9). pp.970-974.
  • Pappas, N., 2017. Brexit Referendum Influence on Londoners’ Overseas Travelling.
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