Global Financial Crisis and Tourism

Many entrepreneurs are already complaining that their businesses are dramatically declining, and they are aware that this is due to the effect of the global financial crisis. The statements of some officials saying that this ongoing crisis will only cause insignificant impact to the local economy is contradicting what the operators and hoteliers are actually experiencing.

All over the world, stock markets are starting to deteriorate and their owners are already counting their losses. Even large financial organisations are expected to collapse. The manager of Arusha Tourist Inn, Solomon Laizer, related that many of his guests who had made reservations from Europe and the U.S. had cancelled. He noted that he experienced almost 60% cancellations. In Jamaica, the tourism sector is already making major modifications, as their country is starting to face the depressing effects of the financial crisis. The Jamaica Hotel and Tourist Association (JHTA) gathered the major stockholders to a meeting. The goal of the agenda is for them to come up with a strategic plan so they can effectively counter the effects of the imminent fallout in their tourism sector.

Presently, there are many tour travel companies that are expressing concern regarding the impact of this financial crisis on the industries of travel and tourism. There is a high possibility that the industry of tourism will be jeopardised if the economic crisis will persist in its damaging effects.

Tourism is a chief foreign exchange earner, but the U.S. meltdown broke the foundations of the global financial system, and the rippling effects on local tourism are already being felt.