1.3 Explain the economic impact tourism has had on a specific locality within the UK.
In this assessment I want to investigate tourism in London and explain the economic impact that tourism has on this locality. Also I want to analyse the potential economic impact of hosting the Olympics 2012 in London. This report indicates that tourism spending in London generated £304.1 million pounds of direct economic activity for the community, an increase of approximately £ 9.3 million pounds from 2009 spending or 3.2 per cent. The study includes an estimate of "Overnight Visitors to London", "Tourism Spending in London" and the "Economic impact of Tourism in London.
London is one of the world's leading tourism destinations, and the city is home to an array of famous tourist attractions. London attracts 30 million international visitors per year, making it the worlds most visited in terms of international visits. The Government Office for London states that tourism revenues constitute 10 per cent of London's gross value added and contributes to the employment of up to 13 per cent of London's workforce. According to the London Development Agency, visitors to London spend around £20 billion each year. 1. Overnight Visitations to London
In 2010, the City of London was host to 1.61 million overnight visitors. This figure includes the number of visitors from the United States, other international countries, as well as domestic visitors from other parts of Canada. The figure estimated for 2010 represents a 2.0 per cent increase over the number of overnight visitors reported for 2009. 2. Tourism Spending in London
In 2010, spending by both same day and overnight visitors to London is estimated to be £304.1 million pounds. This is a 3.2 per cent increase from 2009 figures. In 2010, the largest portion of spending in London was attributed to spending on food and beverage which totalled £107.3million (79.8 million in restaurants and £27.5 million at stores). Tourists also spent over £11.3 million on public transportation which includes ticket fares for intercity aircraft, trains and buses. Accommodation spending accounted for £36.9 million. 3. Economic Impact of Tourism in London
As stated earlier, spending by visitors to London in 2010 is estimated at £304.1million pounds. Over 8,135 full year jobs were supported by tourism in London, 6,335 of these in London. In 2010, there were an estimated 238,300 residents employed in the London workforce. This analysis suggests that tourism helped support 2.7 per cent of the local employment. In addition, £140.9 million pounds of taxes for all levels of government were supported by tourism in London and related economic activity. £65 million of these taxes were allocated to the federal government, £55.9 million to the province and £20 million to municipal governments. In the City of London, £15 million dollars was used by London businesses and citizens to help pay their municipal taxes.
The economic impact of Olympics 2012
The potential economic impact of hosting the Olympics is very newsworthy, and receives a lot of attention in the press and other media at a local, national and international level. The current economic downturn has placed the issue in even greater focus, as pressure on government spending, and jobs, intensifies. Economic impact is a measure of the spending and employment effects of a specific project - in this case the London 2012 Olympic Games. Usually, effects are generated by capital costs such as spending on construction and transport upgrades, operating costs such as policing and broadcasting, plus spending by tourists, or inward investment or trade. The total economic impact is the sum of direct, indirect, and induced impacts resulting from the Games. The direct impact can be attributed to purchases of Games organisers in the preparation and execution of the Olympic and Paralympic...