Uk holidays industry Essay Example | Topics and Well Written Essays - 1250 words

Uk holidays industry - Essay Example Another significant challenge being faced by the industry is increasing inflation, which has resulted in the average expenditure per visitor falling from 320 pounds per visit in 1996 to 250 pounds per visit in 2005. Another challenge that is posed to incumbents in the industry is the competition from other tourist destinations overseas. There has been a rise in the number of people leaving the UK. In 2005, the number of UK residents leaving the country on visits abroad was 2.3 million and their expenditure rose by 1.9 billion pounds. This has resulted in a tourism deficit, with UK competitiveness reducing in comparison with the rest of the world.(Tourism Annual report, 2006). This is further exacerbated by the high taxation rates mentioned before, which makes UK products and services 50% more expensive as compared to comparable services in other European countries. As a result, tourists prefer to visit other destinations in Europe rather than visiting the U.K. The UK Government has also increased the cost of licenses from alcohol sales from 30 pounds for three years to about 300 pounds per annum, which has made it difficult and uneconomical for many incumbent players in the tourist industry, such as small bed and breakfast units, to provide alcohol to their customers (Tourism Annual report, 2006). Companies in the industry that wish to succeed must ensure that appropriate standards of quality are met. Visitors to the UK are looking for a high quality tourist experience at reasonable prices. Therefore, innovative products and services must be introduced without sacrificing environmental protection (Tourism Annual report 2006). Companies in the holidays industry that are able to develop innovative tourist packages and plans are likely to benefit. For example, the opening of the Eden project neat St. Austell in Cornwall has had a positive impact on the tourist