The Macro Tourism Business Environment

Macro Environmental Event:

Brexit is one of the macro environment event that impact on travel and tourism business negatively. It is abbreviation for British Exit, refer to UK decision referendum to leave the EU. This event affects overall growth of businesses and success as well as economic growth within UK and other countries as well. It increases rate of unemployment and decrease the living standard of local people. After Brexit, border between Republic of Ireland and Northern Ireland will become only EU and UK land border, there concern over this becoming hard Border with limited controlled customs checks and crossing points.

Stakeholder 1:

Benidorm is the first stakeholder that affected by Brexit, it is one of the most popular tourist destination in the world, when the first hotels were built and its port was extended. However, the actual boom of this city as coastal resort that gain the attention of people from different countries like UK (Vitaliev,  2016). The relationship between Benidorm and UK suffer due to Brexit, it creates issues for this city to drive local people from Europe towards beauty of Spain, tourism sector organizations blaming this specific macro-environmental event for blow to number of British travellers. Spanish vacation hotspot, a most favourite for those seeking a destination for winter sunshine, which fallen down of potential no deal scenario that could become reality with 15% drop in visitor numbers. Brexit's discussions on Britain's separation deal from EU may not have been completed, yet impact of uncertainty is being felt within Benidorm. After this event, the number of holiday packages decrease consistently, sold to Britons amounted to 46,000 in 2019, as compared to 54,000 just in 12 months before. 16% drop in bookings is the result of Brexit that directly impact on profit margin and productivity of travel sector negatively. In simple words Brexit damaged the relationship of UK and Benidorm, hotel association find out the number of overnight stays in the most famous resorts of city like Costa Blanca by British travellers last year drooped by 454,000, the plummeted represented an 8% fall. On the other hand, after Brexit still five million overnight stays in hotels within Benidorm registered by UK travellers made Britain Benidorm number one foreign tourist place. In December 41.7 % of foreign holiday makers who stayed in city were British, compare with 3% from second placed Belgium and 2.2% from Holland that is third placed. Along with this, Benidorm is famous with tourists from Germany, UK, Belgium, Ireland, Netherlands etc. Its initial growth in popularity will be attributed to continue year around and package holiday, due to night-life based near central concentration of clubs and bars. Brexit affect relations between both stakeholders negatively, it is one of the biggest threat to Tourism in Benidorm. Furthermore, the majority of Britisher who go on holiday to Benidorm are pro Brexit as are majority of ex-pacts in city. They know their vacations after this event will become more expensive than previous and when it's a no deal Brexit which is seemly an accelerative certainty, people might not even acquire to Benidorm for their family or annual holiday. Before Brexit the relationship between both stakeholders is quite effective, most people go to Benidorm to cheer up their mood and enjoy the precious movement of life away from stress full environment. A lot of Britisher go to this city to for several purposes such as to work in cafes and bars but after this happen they will need Spanish work permits which possible to be scarce and only accessible to Brits who have skills and qualifications that Spain is in want of not for kitchen porters and cafe assistants. Spain contending with few expensive holiday destinations outside EU as booking to Tunisia, Turkey and Eqypt have jumped over 30%.

Stakeholder 2:

United Kingdom comprises four nations: Northern Ireland, Scotland, England and Wales, the relationship between UK and Benidorm affect due to Brexit, it is withdrawal of United Kingdom from European union (Dhingra and et.al, 2016). British parliament decide which components of that law to keep, repeal or amend. No-deal Brexit hit travel in as well as out of Europe and UK the most, as it decrease the number of travellers rather than the past few years. Prospect of Britain crashing chaotically out of EU seems increasingly likely as times pass way. Such as circumstances could change the travel plan of million of individual people into misery of cancellations, delays and bureaucratic night mares. Majority visitors seeking to heard in of UK face many uncertainties that almost impossible to plan efficiently to avoid them. Meanwhile, potential of this event has impacted passport concerns as well as pound to euro exchange rate, it impacts on people decision to go UK. Freedom of movement rules for EU citizens will change immediately due to Brexit. Between summers when cost of going abroad increased by roughly 25% the number of foreign holiday packages by Spanish holiday makers reduced by small proportion. Visitors who decide they are going foreign anyway even when it costs more, will be less willing to take an additional short break in Britain. Brexit is having negative impact across much of European tourism in summer, with many nations echoing a similarly worried out look for Ireland. UK tourism is vital for Spain with 18.5 million of their citizens having holidayed, number of represents an essential lynchpin on their travel industry (MacDonald, 2016). UK, like other nations had felt backlash with number showing Spain travellers figures dropped by over 5% in the year. From above analysis, it can be said that Brexit impact on both stakeholders negatively as it decrease the number of tourist, and also impact on profit margin of Travel and Tourism industry. The package travel regulations permits tour operators to enforce overcharge when cost of holiday package goes up after people booked because of currency fluctuations due to Brexit.