Declining demand for tourism in Europe

European markets in the current state of affairs need to maintain its top position in the international markets as a tourist destination and prevent decline. Certain areas ofEuropeare extensively exploited as a tourist destination and face many sustainability issues.  In certain other areas tourism is yet an unchartered territory. Certain typologies are more prone to situations of maturity or decline.

  • Urban destinations
  • Coastal destinations
  • Mountain destinations
  • Spa destinations

Congestion, visitor and tourist mobility, deterioration of heritage sites and the potential conflict between visitors and residents decrease the tourism in urban countries. Competition does not have a crucial role in cities as far as cultural tourism is concerned.

Coastal and mountain resorts are also affected by congestion and deterioration of the natural environment. Global competition from resorts of a similar type all over the world poses a constant threat. Because there are sudden changes in the prices of the flights and prices in emerging countries tourists prefer to choose the cheaper option.

Signals of decline:

There are certain classic telltale signs of decline and some of them are listed below:

1. Decrease in the number of visitor flows to the destination

  • Decrease in tourist arrivals
  • Decrease in tourist overnight stays
  • Decrease in the average stay
  • Seasonal concentration of flows

 

2. Decrease in the elements defining former quality of the destination

  • Decrease in the average tourist expenditure
  • Variation of the composition of visitor flows
  • Decrease in the quality of tourists visiting the destination
  • Decrease in the quality of the tourist product

 

3. Difficulty in assuring sustainable tourism

  • Physical (congestion, damage to the environment/heritage, traffic, etc.)
  • Social (tension between visitors and residents, lower quality of life, crowding-out of non-tourism activities, etc.)
  • Economic (decrease of tourist demand and contraction of economic activities catering to it)
  • Lack of adequate infrastructure and supply
  • Need for investment in human resources

 

4. Exogenous factors

  • Political factors (Gulf Crisis, terrorism, etc.)
  • Economic factors (Oil cost, travel cost, etc.)
  • Environmental factors
  • External tourism sector stakeholders
  • Competitors threats

Priya Chetty

Partner at Project Guru
Priya is a master in business administration with majors in marketing and finance. She is fluent with data modelling, time series analysis, various regression models, forecasting and interpretation of the data. She has assisted data scientists, corporates, scholars in the field of finance, banking, economics and marketing.

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