Wednesday, August 16, 2006

Tourism economics

The news that the overall numbers of tourists is at its highest since 2001, as reported today, should be cause for celebration. Except... except that many don’t always believe the numbers, and also except that - and this is admitted by the tourist authorities - visitors are not spending enough. Accordingly, they are looking to find ways to increase spend.

What a ...!!!

The answer is glaringly obvious. Ok, consumers are more wary of spending generally, the euro has upped the ante, but - as or perhaps more importantly - is the growth of the all-inclusive. The market logic is so simple it barely needs reiterating. But let’s do it. If the tourist has spent once - as part of the AI package - he or she will not spend a second time, or will have less incentive to do so.

Want to increase spend? Cut back on the AIs, my friends, cut back.

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