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How Tourism Sector Contributes Towards the UK Economy

University: University of Sunderland

  • Unit No: 6
  • Level: High school
  • Pages: 6 / Words 1509
  • Paper Type: Essay
  • Course Code: N/A
  • Downloads: 571
Question :

This assessment will cover the following questions:

  • Discuss relevant strategies and the range of challenges in the recycling process.
  • How an effective tourism policy will contribute to the country’s economy.
  • Provide the Tourism factors that contribute to building the UK economy.
Answer :
Organization Selected : N/A


Tourism is considered one of the fastest-growing sectors in the entire world, which directly contributes to an increase in the global gross domestic product (GDP). With the increasing demand for tourism, job employment opportunities, development of infrastructure and others, also increases, which leads to enhancing the living standards of societies (Kassotaki, 2019). The present essay is going to discuss the contribution of tourism to the development of the UK economy, by taking a number of statistical facts and figures.


Spending holidays overseas or in domestic marketplace with family, is most trendy these days. Today, people around the world like to visit different-different places like destinations, heritages, monuments and more, mostly during summers and winters (Pulido-Fernández, Cárdenas-García and Espinosa-Pulido, 2019). Therefore, money they spend for visiting a particular country refers to the main income source of the tourism industry. Tourism can be defined as an activity which mainly concerns on attracting the visitors towards famous destination and heritages of a country. For this purpose, it monitors the social progress, that brings tremendous growth in economic value for a nation. In another words, tourism also defines as travelling of people from one place to another, with different-different purpose like visiting the beautiful destinations, conducting business meeting and more (Lin, Yang and Li, 2019). So, this would create foundation and builds the base for a country for bringing tourism in its place. Tourism provides a number of benefits to a country in terms of economic development, improvement of infrastructure of societies, building brand value and more. Apart from promoting the destinations, providing employment opportunities consider as the most important contribution of tourism, that enables the local residents to earn for their livelihood. Therefore, every country today, concerning more on promoting tourism for increasing the footprint of visitors over there (Teixeira and Ferreira, 2019). In context with UK, it has evaluated that this nation takes tourism as a platform for growth and development of its marketplace.

In UK marketplace, Tourism from the year 2010, has been considered as the fastest growing industry, which forecast that in 2025, it will worth more than £257 billion. The expansion of tourism has created 9.6% jobs of total employment rate where in 2013, over 3.1 million job opportunities is provided by the organisations that deal in tourism business, which is about one-third of net employment (Scheyvens and Hughes, 2019). UK considers as the fifth largest tourism industry in terms of organisations with more than 200,000 enterprises, where over 70,000 are the major world-class hotels, including guest houses, holiday parks and more, while 110,000 are the restaurants, bars and pubs that serve best services for promoting tourism.

Along with this, over 7,000 hospitality organisations includes the theme parks, gardens, museums, historical and heritage sites, etc. All these organisations, give their equal contribution in enhancing tourism and attracting more tourism. Impact of tourism can be measured in terms of job employment where, total contribution of tourism economy in the year 2013 is equivalent to over £161 billion i.e. near about 11.4 percent of expected GDP of UK (Scheyvens and Hughes, 2019). This would help in increasing more revenues that directly contributes to improve and enhance of infrastructure for society development.

Generating the revenue by more than £106 billion per year, which provides a platform of supporting organisations in tourism industry to work more for enhancing travelling experience of visitors (Teixeira and Ferreira, 2019). Tourism sector of England is considered as vibrant and vital, where each and every organisation like Trailfinders, TUI, Thomson Cook and others, contribute equal efforts for promoting tourism. Through data of tourism volumes and spending in 2017, it has been analysed that more than £19 billion was spent by residents of England on overnight trips and more than £50.9 billion on day trips of domestic tourism. Similarly, in inbound tourism, spend rate by international visitors also increase continuously in UK marketplace, which is estimated to increased by £57 billion till 2025 as compared with 2013 where it was £21 billion. It has been evaluated that last year i.e. 2018, near about 37.9 million visitors have come from overseas in UK with spending volume of £22.9 billion (Pulido-Fernández, Cárdenas-García and Espinosa-Pulido, 2019). Get ghost writers uk.Talk to our Experts!

However, this has been decreased by 4% as compared to year 2017, where l it is accounted for 2.8% of total global arrivals. But still UK is counted as one of the most arrival of overseas visitors, that indicates the better opportunity for economy development (Lin, Yang and Li, 2019). Major advantages of tourism can be analysed by the destination attractiveness, overall macro-economic performance, consumer spending and creation of more job opportunities (Kassotaki, 2019). Demand from visitors of international market is also expected to grow by 6.1%, which forces organisations that deal in tourism industry to provide better services to them. Tourism thus, consider as an important activity that builds the base in terms of wide scaling the consumption to bring the far reaching benefits. Importance of this industry can also be determined through it’s positive impacts on other industries (hotels, transportation and more), society etc. In this regard, tourism contributes towards overall growth, progress as well as development of a country. As per law of demand, tourism industry includes a number of organisations like travel agencies, hotels, transports and more, that work in collaboration for enhancing travelling experience of tourists (Scheyvens and Hughes, 2019).

Therefore, tourism in this regard, defined as a consumption of such services by visitors throughout their journey that enhance more revenues for a nation. While from supply side of tourism, what travellers spend on consuming the facilities and other services during journey, becomes the revenue for tourism industry. For this purpose, organisations like hotels, transportations, travel agency focuses more on determining the demand of both national and international visitors for visiting a place (Teixeira and Ferreira, 2019). Through this process, travel agencies by collaborating with other organisations works on offering attracting tour packages, to influence customers and increase their footprints in UK. The positive impact of tourism apart from employment for any nation includes promotion of cultural awareness, which helps in preserving the heritages and historical places in systematic manner, for attracting more visitors. Similarly, in terms of economy, tourism benefits include generation of foreign exchange; stimulation of trade, income as well as entrepreneurship (especially for small business ventures); provision of regional development particularly in remote and isolated areas etc.

On contrast, in terms of negative impact, it has been analysed promoting tourism at global level increase the air travel, which may contribute directly to air pollution (Pulido-Fernández, Cárdenas-García and Espinosa-Pulido, 2019). When holidays are booked for destinations then it may reduce profitability of local and small scale ventures, because people generally takes the services of those travel agencies who are operated at worldwide level. This will also reduce opportunity of employment for local residents due to less experience and skills. So, large corporations of tourism industry for enhancing experience of overseas visitors will hire talented workforce, which may create discrepancies in organisational culture as well (Kassotaki, 2019). Increasing overseas visitors also increase necessity for importing goods and resources from across the nation, to meet their demands. Along with this, higher number of visitors will also require more accommodation facilities like safety and security of tourists, availability of hotels, lodges and other houses as per demand of international tourists and more (Lin, Yang and Li, 2019).

Thus, it has been determined that tourism is one of the vital industry whose importance can be measured from the number of benefits and advantages, which this sector brings to a host country. Moreover, real importance of this industry comes from its nature including the way it is organised for leisure purpose. Tourism by bringing the numerous value and benefits in terms of economy, contributes majorly towards societal growth and development of a nation. Along with this, it also helps in building the brand value, identity and positive image of a country. Moreover, Tourism industry also goes beyond the attractive destinations, for being a crucial economic growth contributor. Take assignment help Now!


It has been concluded from the overall report that economically, tourism brings the main source of income for organisations which deal in this industry. Through this income, corporations with cooperation of government, in building infrastructure such as road development, railway and other network for transportation etc. Along with this, with growing business of tourism, also provides numerous benefits to a country by providing job employment to both skilled and semi-skilled local residents. But it arises a number of issues also where, a country to meet demand of overseas visitors have to import resources from international areas. This would require more capital investment for enhancing journey of visitors and attracting more tourists as well.

Read more - Virtual Trip UNWTO Tourism Industry

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