7031SMM
Coventry University
UK
What Is The Role Of Tourism For Economic Growth In Paris?
Tourism has played a vital role in Paris and has been one of the key sources of economic growth and income generation for the citizens either directly or indirectly. Tourism is one of the fastest-growing industries across the globe that requires the major focus towards the identification of the complexities and all the major dimensions linked with the industry that has influenced the industry and have the potential to influence the industry majorly. The below information thus includes the focus towards the development of knowledge and understanding in relation to the importance of economic dimensions, stakeholders, tourists' motivations and globalisation.
Economic Dimensions
Paris has faced a major slowdown in tourism that includes the major role of the economic conditions. The public economic factors have majorly influenced the working and have affected the tourism industry. The complexities linked with tourism in the economic dimensions include the global economic crisis due to the pandemic situation. The covid-19 pandemic has majorly influenced the business operations and has led to a major impact on the tourism of Paris, it is the post-covid-19 impact on the industry, and economically the tourism industry is majorly influenced by the covid-19. The complexities linked with the decreased income generation of the tourism industry prospects have faced the issues in the slowdown of the businesses. The slowdown in the businesses has affected tourism, and in Paris, the businesses were mainly dependent upon tourism like the hotel industry, the transport industry, and other businesses were also indirectly related to tourism (Page, 2014).
The economic dimension is required to be considered in terms of Paris as the slowdown of tourism has affected the income generation for instance the revenue generation of Paris from tourism has fallen by $15.5 billion. It is because of the major fall down in the tourists for instance the number of visitors to Paris fallen down by 77.5% in January 2021. and the attendance of the Louvre museum was majorly influenced and fell down to 72%. It has affected the employments in Paris. The implementation of the stringent lockdowns and difficulties of the businesses to generate adequate revenue has affected the employment of Paris; the hiring of the new employees in Parish was restricted.
Before the issue of covid-19, the issues included the taxation that was the major complexity in tourism due to which the profit generation of the hotel industry has majorly suffered. It includes the major focus towards the generation of the income that is taxable and the tax deductions in France majorly cuts down the profit generated. The increased competition has influenced the industry economically, and the availability of a wide variety of options has somewhere influenced the generation of profit, as the tourists are provided with numerous options or substitutes that can be considered at lower costs (Valeri and Baggio, 2020).
The cost of infrastructural development and maintenance has also economically influenced the tourism industry. The tourism industry of France has majorly faced issues linked with the increased rents and property prices due to which the profit margins and the income generation in the tourism industry are majorly influenced. Paris is facing issues linked with infrastructure as a high number of the locations is outdated and underdeveloped. The tourism departments and the government is highly focused on the improvements and providing a better public transportation system, airports and stations, etc (Carr-Locke, 2020).
The security and sustainability in tourism have also economically influenced the tourism industry as it has increased the cost of the businesses in the tourism industry. It includes the increased expenses of the tourism industry due to the adoption of sustainable practices for the protection of the environment and decreasing the negative influence on the environment. It includes the focus on the increased expenses of the tourism industry that has made the survival of the tourism businesses in Paris more challenging prior to the covid-19 (Scott, 2021).
The industry has majorly contributed to the generation of the GDP and economic growth of Paris and during the covid-19 situation, the organisations in the industry have mainly faced the issues of decreasing the sales and revenue generation due to which the organisations fired numerous employees, many businesses failed and proved insolvent, and also it has a major contribution in the decreased living standards. The industry has faced major job losses and the lockdown measures have also influenced the permanent closure of many businesses that were dependent on the daily income from tourism for sustaining the position in the industry (Bramwell et al., 2017).
These are the key complexities discussed along with the understanding of the importance of the economic dimension that is majorly required to be considered. The income generation in the tourism sector before the pandemic situation was impacted by the technology that has allowed the prospects to avoid travelling and connect with others through video conferences, and communication. For instance, it has decreased the number of travellers who were travelling for business purposes to Paris. Paris is facing major complexity linked with the high rate of unemployment (Muhammedrisaevna et al., 2020).
Tourism complexities for the stakeholders include different issues that are of the concern of various stakeholders like the businesses, government and legal bodies, environment, locals, tourists, etc. The government is the key stakeholder as the taxes are collected and it allows the government of France to focus on economic development through the generation of the income from tourism. It includes sustainability that is the priority of the government, and the government majorly focuses on sustainability. Tourism includes the complexities linked with the damage to the environment and disturbs the society, culture and natural resources of the destination. The natural resources of a destination like Paris are majorly affected due to tourism, and the cultural influences are also required to be considered. These complexities have increased the concern of the government and the legal bodies to ensure that the laws and policies linked with sustainable tourism are majorly being considered (Mykola et al., 2020).
The businesses in the tourism industry include the focus on taxation and decreased profit margins due to which sustainability has become the key complexity. It includes the increased and stiff competition in the tourism industry of France. During the pandemic situation, the businesses have faced major issues linked with the survival of the businesses due to the unavailability of the tourists, fewer bookings and decreased demands in the restaurants, entertainment sites, close down of cinema halls, and other issues. The businesses and the employees in the tourism sector are majorly influenced due to the complexities of increased competition and the uncertain situation of covid-19 that has influenced the hospitality and tourism industry mainly (Holloway and Humphreys, 2019).
The businesses are also influenced by the rising concern of the government and the tourists related to safety measures and sustainable tourism practices. It is important for the businesses to ensure the safety of the tourists and also implement sustainable measures in tourism essay. The increased expenses of the businesses have affected the tourism industry and the profit generation too. The tourists after the pandemic situation are highly concerned about health safety and hygiene due to which it has become a complex task for the businesses in the tourism sector to consider the health and safety measures (Geary, 2018).
Tourism organizations and operators are stakeholders that influence the tourism industry deeply. Travel agents, airlines, travel bloggers are used to manage the tourism industry. Further, restaurants, hotels, and tourist attractions are all related to how the organisation will operate, considering these as they form a more significant part of the tourism industry.
Good tourism management often get involved with the communities as the communities have a more considerable social impact on the tourism industry. If a tourism organisation has to work with the local community, then it must meet the needs of the host community to ensure that the critical stakeholders are empowered throughout the process of tourism development, and it helps in the effective operation of the organisation (Duarte Alonso and Nyanjom, 2017).
Transportation is another important component that must be aligned with the tourism industry to be successful as the transport between one point to another is an integral part of the system, and its availability impacts the tourism industry. Employees are a key asset to any organisation, and tourism employees and consultants play a crucial role in tourism development. For example, tourism has been the fastest-growing sector, and it has a constant need for skilled and unskilled labour, which makes them an essential stakeholder in the industry(Duarte Alonso and Nyanjom, 2017).
The complexity also includes the regulations and certain restrictions that are present in the tourism industry while travelling. It includes the restrictions of the baggage, ban on certain items that cannot be sent from Paris to another region, or vice versa. The complex documentation and security concerns are also the complexities for the travellers. These complexities make travelling more complex and hard for the travellers that somewhere influences travelling and tourism. The government is required to come up with effective and innovative solutions to leverage and ease the documentation, and verification processes to increase tourism in Paris. Further, the complexity includes the rising covid-19 cases that are the major concern and the responsibilities like maintaining physical distancing, ensuring the availability of masks, etc. has also made the tourism complex for the tourists (OBrien, 2021).
The localities, society and the culture are also the key stakeholders that are important to be considered as the complexities somewhere have affected the localities, society and the culture of Paris too (Seyfi et al., 2020). For instance, the decreased tourism due to the pandemic situation and the technological expansion has influenced the employment of many personnel who were dependent upon the generation of income through tourism and somewhere has affected the living standards too. It includes the focus towards the socio-cultural factor, as tourism includes the complexity and difficulty to preserve the local culture of Paris, heritage and provision of the social services. Paris has witnessed the major commercialisation of local art and culture that is a complexity required to be considered in tourism from the viewpoint of tourism (Shoval, 2018).
These were the major considerations and the complexities in tourism that are required to be considered and the impact on the stakeholders from the complexities are also understood effectively through the in-depth analysis of the complexities and the direct impact on the stakeholders like the government, businesses and other different stakeholders. The concern about wildlife is also required to be considered as the key complexity, the wildlife and environment is also the key stakeholder in the industry.
The complexities have also influenced the tourist motivators that are required to be considered widely, it includes the key factors that are influenced and affected because of the pandemic situation. The industry has faced major issues linked with taxation, increased documentation, security and sustainability, covid-19 and the rising inflation due to which the travel motivators like the summer holidays, social media promotions, entertainment, spending time with families, friends, etc. breaking away from the routine schedule, etc. were affected. The tourist motivators are of different kinds, it mainly includes the psychology of the travellers of tourists like the cultural motivators, interpersonal motivators, status and prestige motivators, etc. In Paris tourists mainly travelled with their loved ones and it is mainly famous for the honeymoon and different other types of leisure travels. Thus the motivators are mainly required to be considered (Coca et al., 2018).
The complex documentation and the increased time plus cost of travelling to Paris from various countries are the key complexity that is required to be considered. The increasing flight fares and the security issues have majorly affected the tourist motivators due to which the revenue generation is decreased. The tourists mainly travel for the food and the nightlife of Paris that includes leisure and an extraordinary luxurious experience that has allowed the tourism industry to grow in Paris. The economic crisis and the restrictions due to covid-19 is the complexity required to be considered due to which the tourists are mainly avoiding travelling for fun, spending the leisure time, and for different other purposes. The travel motivators are slowly restricted to emergency purposes only (Shoval, 2018).
The increased technological advancement and the awareness of the prospects across the globe have influenced the prospects to spend much on luxury and leisure. The increased knowledge about saving and investments and the wealth creation among the prospects is somewhere a complexity that might make the marketing and the promotions of the tourism to Paris. In Paris, the tourists also visit the museum's exhibitions, shopping, visit Eifel Tower, parks and gardens, discover the city, etc. for numerous reasons that are also included and counted as the physical motivators for the tourists to visit Paris, the uncertainties like covid-19, increased inflation, economic crisis, technological advancement, etc. have majorly affected the travel and tourism in Paris and the motivators somewhere have been proven less effective towards the rising complexities (Tamarashvili and Aladashvili, 2021). It is important to understand that the key motivators are essential for the growth of tourism but the complexities like security concerns to visit France, taxation, inflation, and sustainable tourism and the current covid-19 policies, etc. are restricting the growth. Tourism majorly contributes to income generation and employment in Paris as more than half of the population is directly dependent upon tourism in Paris. The French and foreign tourists mainly visit for discovering Paris that is the key motivator, and it includes the food, shopping, cafe culture, art collections, day trips, etc. that act as the key motivators of the tourism. The complexities include the rising concern about terrorism that is somewhere a big issue if ignored for the safety of locals, infrastructure and culture of Paris (Meindl, 2018).
Social interactions and employment are also the motivators that are required to be considered, in tourism to Paris social interactions for foreign tourists and for the tourists of France are required to be considered mainly. It includes the major contribution, still, the increased inflation and the covid-19 situation has affected the growth of tourism in Paris. During the fall season and which is the peak time and a major motivator for the foreign tourists to visit Paris, the city was under lockdown. The decreased number of international visitors led to the decreased hotel stays by almost 78%. Prior to the pandemic the security, rush and overcrowded places in Paris as the narrow roads in Paris faced the issues of jams because of the tourist vehicles were also the complexities due to which the tourism was influenced and it somewhere manipulates the decisions of tourists of France i.e. the Capital, to visit Paris. These were the key complexities required to be considered that are influencing the tourist motivators (Coca et al., 2018).
The complexities in tourism include the focus on the increased issues linked with the socio-cultural influences, and the adverse impact on the environment engineering, and it also includes the influence on the local businesses. The increasing trend of globalisation has led to stiff competition between the local brands. It includes the major considerations of the complexity, as the big giants and the MNCs have a strong customer base in Paris that has somewhere increased the competition of the local businesses. Unemployment is the major concern and complexity in Paris that enables the MNCs to get the availability of the pool of candidates and the personnel for the business operations. Globalisation is important to be considered as the complexities like setting up of the businesses in Paris might influence the tourism, and the interests of the businesses to invest in Paris (Holloway and Humphreys, 2019).
The investments of the big international brands somewhere boost the infrastructural development and enhance the living standards, the complex policies and taxation might adversely affect the global brands' viewpoint to invest and set up business in Paris. The high dependency on tourism and the current situation of the pandemic has impacted the investments of businesses in Paris. The complexities linked with immigration, loss of cultural identities, and challenges linked with the incurring tariffs and compliance challenges are required to be considered. It includes the focus towards the major complexity in France that is the sluggish growth and the slowdown in the economy due to which the globalisation rate is also slowed down (Holloway and Humphreys, 2019).
The international brands with tourism-related businesses and financial services are mainly operating in Paris, still, the region mainly faces the challenges linked with the immigration complexity, and the tariffs due to which export from Paris is somewhere affected. Globalisation has allowed creating more affordable and easier travel and thus is the important aspect to be considered. The tourists are provided with better infrastructure, technology, wide range of leisure services and it has allowed Paris to welcome a large group of visitors too (Bramwell et al., 2017).
Due to the imposition of several lockdowns in France after the increase in the covid-19 cases, the organisations operating in Paris major faced the decreased revenue generation and the unemployment that was the issue prior to the pandemic increased due to the reason. The decreased tourism and the restricted travelling is the key reason due to which globalisation and the investments in Paris have fallen down. It includes the major contribution of globalisation in the growth of tourism in Paris thus it is essentially required to focus on the reduction in the risks and the complexities linked with tourism. The increase in tourism will facilitate more and more investments from the international brands and the increased investments allow the development of the infrastructure of the region that further stimulates the tourism of the region and enhances the living standards (Mykola et al., 2020).
The complexities linked with the legalities, covid-19 uncertainties, terrorism, and increased issues linked with immigration, taxation, etc (Cadavez, 2016). have majorly contributed to the slow growth of the development due to which tourism has majorly faced the slowdown. It includes the heavy traffic in the region and overcrowding that is majorly required to be considered in terms of Paris's tourism and globalisation element. The increased rent prices due to a major increase in tourism in past have also influenced the globalisation in Paris and the international bands find it expensive to operate in Paris as the operational cost has increased.
The above information is based on the tourism management linked with Paris's situation and the impact of covid-19 on the tourism industry. The tourism industry is majorly influenced by the pandemic situation and the industry has faced a major slow down. The other complexities are also considered and appropriately discussed in the current report that has provided an depth analysis of the complexities and their influence on the economic dimension of tourism in Paris. The influence of the complexities on the stakeholders of tourism and the influence on the tourists' motivators are also discussed in the report above. the report finally concludes the influence of the tourism complexities on the decreased globalisation that has restricted the development in the region.
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