Discuss the effect of tourism on London’s economy.

Tourism is important to

economy of both rich & poor

countries

LONDON ATTRACTIONS

Eye Of London

Natural History Museum

British Museum

Current Economy

Contributions

•Contribution made by visitor spending & tourism economy-related government spending

Direct

Industry

• Involves direct industry as well as private & government investment in the tourism sectors

•Domestic supply chains providing inputs for direct industry

Tourism

Economy

• Includes the tourism economy & impact of spending by the people employed.

Total

Contributions

Source: MasterCard

Products Industries

1. Accommodation services for visitors 1. Accommodation for visitors

2. Food & beverage serving activities 2. Food & beverage serving activities

3. Road passenger transport services 3. Road passenger transport

4.Country-specific tourism

characteristic services

4. Other country-specific tourism

characteristic activities

5. Sports & recreational services 5. Sports and recreational activities

6. Travel agencies & other reservation

services

6. Travel agencies and other

reservation services activities

Advantages

• Low unemployment rate

Job Opportunities

• Stable income

Income

• High demand on goods & services

Spending

• Tourism Industry

Profit

Source : Oxford Economics

•High tax revenue

Tax Revenue

• Subsidies

Government Spending

•Growth of economy

Gross Domestic Product

• Supply of money

Multiplier effect

• Increase

Currency

•Government & Locals

•Community projects

Investment

Advantages

Disadvantages

Profits kept by travel company

Seasonal Unemployment

Inflation

Unstable Market

Illegal Market

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Conclusion

To Sustain Tourism in London:

Partnership between Government and Tourism & Hospitality Sector

Promote Tourism

Improve Infrastructure

Preservation of cultural and heritage

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References https://www.msu.edu/course/prr/840/econimpact/pdf/ecimpvol1.pdf

www.london.gov.uk/sites/default/files/wp-54.pdf

http://www.slideshare.net/SBrooker/tourism-ppt-7748923

http://slideplayer.us/slide/732246/

http://www.telegraph.co.uk/finance/economics/9601918/Tourist-spending-spree-at-London-2012-Olympics-boosts-UK-

economy.html

http://www.independent.co.uk/news/uk/home-news/london-overtakes-paris-to-become-worlds-most-popular-destination-for-foreign-

tourists-9340154.html

http://insights.mastercard.com/position-papers/top-20-global-destination-cities-in-2013/

https://www.udemy.com/blog/disadvantages-of-tourism/

http://www.ibike.org/encouragement/travel/tourism.htm

http://www.visitbritain.org/Images/Final%20proof%2015%20Nov_tcm29-39296.pdf

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Thank You for your time !

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