Tourism is important to London's economy, contributing billions each year. Major attractions that draw tourists include the London Eye, Natural History Museum, and British Museum. Tourism provides jobs, income, tax revenue, and GDP growth for London. However, tourism also causes seasonal unemployment, inflation, and an unstable market. To sustain tourism, London must partner with the tourism industry, promote the city, improve infrastructure, and preserve cultural heritage.

1. Discuss the effect of tourism
on London’s economy.

2. Tourism is important to
economy of both rich & poor
countries

3. LONDON ATTRACTIONS
Eye Of London
Natural History Museum
British Museum

4. Current Economy
Contributions
•Contribution made by visitor spending &
tourism economy-related government spending
Direct
Industry
• Involves direct industry as well as private &
government investment in the tourism sectors
•Domestic supply chains providing inputs for
direct industry
Tourism
Economy
• Includes the tourism economy & impact of
spending by the people employed.
Total
Contributions
Source: MasterCard

5. Products Industries
1. Accommodation services for visitors 1. Accommodation for visitors
2. Food & beverage serving activities 2. Food & beverage serving activities
3. Road passenger transport services 3. Road passenger transport
4.Country-specific tourism
characteristic services
4. Other country-specific tourism
characteristic activities
5. Sports & recreational services 5. Sports and recreational activities
6. Travel agencies & other reservation
services
6. Travel agencies and other
reservation services activities

6. Advantages
• Low
unemployment
rate
Job
Opportunities
• Stable
income
Income
• High demand
on goods &
services
Spending
• Tourism
Industry
Profit
Source : Oxford Economics

7. • High tax
revenue
Tax Revenue
• Subsidies
Government
Spending
• Growth of
economy
Gross
Domestic
Product
• Supply of
money
Multiplier
effect
• Increase
Currency
• Government
& Locals
• Community
projects
Investment
Advantages

8. Disadvantages
Profits kept by travel company
Seasonal Unemployment
Inflation
Unstable Market
Illegal Market

9. 9
Conclusion
To Sustain Tourism in London:
Partnership between Government and Tourism &
Hospitality Sector
Promote Tourism
Improve Infrastructure
Preservation of cultural and heritage
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References
 https://www.msu.edu/course/prr/840/econimpact/pdf/ecimpvol1.pdf
 www.london.gov.uk/sites/default/files/wp-54.pdf
 http://www.slideshare.net/SBrooker/tourism-ppt-7748923
 http://slideplayer.us/slide/732246/
 http://www.telegraph.co.uk/finance/economics/9601918/Tourist-spending-spree-at-London-2012-Olympics-boosts-UK-economy.
html
 http://www.independent.co.uk/news/uk/home-news/london-overtakes-paris-to-become-worlds-most-popular-destination-for-foreign-tourists-
9340154.html
 http://insights.mastercard.com/position-papers/top-20-global-destination-cities-in-2013/
 https://www.udemy.com/blog/disadvantages-of-tourism/
 http://www.ibike.org/encouragement/travel/tourism.htm
 http://www.visitbritain.org/Images/Final%20proof%2015%20Nov_tcm29-39296.pdf
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Thank You for your time !
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