Travel Reference
In-Depth Information
Economic factors
but the recent economic recession and unfavourable
exchange rates have meant that many properties are
now worth less than when they were purchased.
Although there has been a major global economic
recession since 2008, the majority of British people
have seen their standards of living rise over previous
decades. This has increased people's disposable
income, i.e. what they have left over when necessary
household and other expenditure has been met,
allowing them to spend money on holidays in Europe
and further afi eld. Higher incomes have also meant that
tourists are willing to pay for better quality facilities and
services, such as upgraded hotel rooms and fl ights. As
tourists become more sophisticated travellers, they
will look beyond the traditional tourist experiences in
favour of more rewarding and fulfi lling activities. This
has implications for European destinations in terms
of what they offer tourists and how they market their
areas.
Activity 7.13
Choose a European destination that is declining in
popularity with British people and analyse the key
factors that are contributing to its decline.
This activity is designed to provide evidence for M3.
Butler's Tourist Area Life Cycle
concept
We saw in Unit 5 that all travel and tourism products
go though a period of change during their lifetime.
There comes a time when the product is no longer in
demand at all, or needs adapting in some way to keep
its customers. The same applies to travel destinations,
whose popularity fl uctuates in response to a number
of factors, such as changes in fashion, impact of the
media, changes in exchange rates, natural disasters,
etc. Richard Butler devised his Tourism Area Life Cycle
(TALC) concept in 1980 to explain how the popularity
of destinations changes over time (see Figure 7.7)
Increased affl uence has encouraged many British
people to invest in second homes in European countries,
particularly in Spain, France and Italy, where they may
have taken holidays in the past. Very often, the property
is old and may need renovating, but increasingly villas
and apartments are being built specifi cally to be sold
as second homes. This is especially the case in Spain,
where there is sometimes an oversupply in certain areas
causing prices to fall. A number of areas of Eastern
Europe are now being explored as destinations where
second homes can be purchased
cheaply. This is particularly the case
in Croatia and Bulgaria. In many
destinations, property companies
are being established to provide
estate agency services to British
people looking to purchase a second
home. Many second homes are
bought as a long-term investment,
perhaps by people who have taken
early retirement and can travel easily
to and from their second home.
The affordability of fl ights has also
assisted the growth of second homes
in Europe, with areas close to the
destinations served by low-cost
airlines often experiencing a rise in
property prices. Favourable rates of
exchange persuaded people to buy
European properties as second homes,
Rejuvenation
Stagnation
Consolidation
Decline
Development
Involvement
Exploration
Time
Fig 7.7 - Butler's Tourism Area Life Cycle (TALC) concept
