How is tourism coping with the credit crunch
May 31st, 2010
How is tourism coping with the credit crunch
Many people are not taking the trips abroad due to the difficult economic times that we are facing. So this has many wondering how is tourism coping with the credit crunch? Well in response to this I have found that it depends on where in the world that you live on what they are doing in regards to tourism. My focus will be America, as their economy is at a very low point right now. Many people are opting to choose closer areas of travel due to the increased airfares and the feeling of insecurity that they are having. The high interest rates and the high unemployment rates are making travelling abroad less of an option for Americans. They are instead choosing areas that are offer cheaper prices or doing more day trip type of travelling. Although this is the option of many, there are still the people that need that escape that a trip away brings them. The tourism industry is coping with these changes by marketing what they have to offer in different ways. They are trying to reach the up and coming generation more so than the frequent fliers that were their previous primary clients. The higher prices for fuel have brought the costs of going away to a higher level than it has been at in recent years, so resorts are offering cheaper rates for their stays in a way to compensate for losses that they would otherwise attain. Mind you the tourism is coping with the credit crunch by offering incentives to the tourists that have never before been offered European travels seem to be more of a wanted adventure to travellers with the American dollar being at one of the highest points ever in comparison with the Euro and the British Pound. This will make some travellers want to try to venture this route as opposed to the sunny southern places. The thought of the dollar being of more value there is highly appealing to the consumer. This is another way that tourism is coping with the credit crunch. They are capitalizing on their best qualities and playing them up more than ever before. The U.N. World Tourism Organization is anticipating that 2009 will show a tourism increase of 2-3%, but they also anticipate that the tourism industry will see more of a recovery later in the year. We are all hoping this is true, as this may be a reflection on the rest of the surrounding economy getting the boost it needs as well.
