How do you think the recession will affect travel & tourism in the future?
Now that spending is going to be cut in the UK, how will the recession affect travel & tourism in the future??
Whats your opinion on this??
Thanks
In a recession, consumers are wary about spending their money on leisure activities, including travel. They will take fewer vacations each year and look for greater values. While marketing tourism may seem like a non-essential expense in a recession, it is important for leisure travel destinations and suppliers to continue to market their services in order to receive repeat business and attract new visitors.
For instance take the case of Dubai. Tourism has been a key contributor to Dubai’s economy. However, during 2009, various factors combined to cause a drop in international tourist arrivals. Nevertheless, as of 2010, experts predict that Dubai’s tourism industry will recover and meet long-term targets over the next decade.
Tourism in Dubai
Dubai is a liberal city in the otherwise conservative Middle East region. What Dubai lacks in oil or natural gas reserves, it makes up for as the region’s tourism capital with glittering luxury malls, the world’s best hotels including the first Armani Hotel that opened in 2010, an indoor ski resort, clean beaches, desert safaris, sports and other attractions. Dubai is also investing in hospitals and healthcare to promote medical tourism.
In 2007, Dubai was the 8th most visited city in the world. In 2008, the emirate attracted 7.5 million hotel guests and tourism contributed 19 percent to its GDP. Dubai is aiming to reach a total of 15 million hotel guests by 2015.
Decline in 2009
Figures for 2009 showed a 1.3 percent drop in international hotel guests in Dubai compared with the same period in 2008. This drop was attributed to the global economic downturn, an outbreak of swine flu and the weakness of the euro and the British pound-sterling against Dubai’s currency, the dirham, which is pegged to the U.S. dollar. Additional factors that contributed to the drop in tourism were the high cost of Dubai’s hotels and its cost of living.
In a recession, consumers are wary about spending their money on leisure activities, including travel. They will take fewer vacations each year and look for greater values. While marketing tourism may seem like a non-essential expense in a recession, it is important for leisure travel destinations and suppliers to continue to market their services in order to receive repeat business and attract new visitors.
For instance take the case of Dubai. Tourism has been a key contributor to Dubai’s economy. However, during 2009, various factors combined to cause a drop in international tourist arrivals. Nevertheless, as of 2010, experts predict that Dubai’s tourism industry will recover and meet long-term targets over the next decade.
Tourism in Dubai
Dubai is a liberal city in the otherwise conservative Middle East region. What Dubai lacks in oil or natural gas reserves, it makes up for as the region’s tourism capital with glittering luxury malls, the world’s best hotels including the first Armani Hotel that opened in 2010, an indoor ski resort, clean beaches, desert safaris, sports and other attractions. Dubai is also investing in hospitals and healthcare to promote medical tourism.
In 2007, Dubai was the 8th most visited city in the world. In 2008, the emirate attracted 7.5 million hotel guests and tourism contributed 19 percent to its GDP. Dubai is aiming to reach a total of 15 million hotel guests by 2015.
Decline in 2009
Figures for 2009 showed a 1.3 percent drop in international hotel guests in Dubai compared with the same period in 2008. This drop was attributed to the global economic downturn, an outbreak of swine flu and the weakness of the euro and the British pound-sterling against Dubai’s currency, the dirham, which is pegged to the U.S. dollar. Additional factors that contributed to the drop in tourism were the high cost of Dubai’s hotels and its cost of living.
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