The Effects of the Current Global Recession on the Tourism Industry - Dissertation Example

However, it is not easy to get the customer to come in with a smile and a treat. This dissertation presents a discussion about the impact of the current recession of 2008/2009 on the European tourism and hospitality industries and strategies for competition. I certify that, except where cited in the text, this work is the result of research carried out by the author of this study. The main content of the study which has been presented contains work that has not previously been reported anywhere.

 The business cycle is constantly ongoing and with it, the world moves from a bright and healthy expansion, in which everyone is optimistic and looking to fulfill their dreams, into dark and difficult recessions during which everyone is fearful (Navarro, 2005, pp. 1 – 5). The Business cycle causes jobs to be created lost, with companies rising and falling with the business cycle. An interlinked global economy makes it difficult for nations or even regions to remain insulated from what takes place in other parts of the world.

Thus, a hiccup in one part of the world often results in its effects being felt elsewhere. However, the movement from expansion into a recession is nothing new and the Great Depression, the Asian Financial Crisis, the recessions after the World Wars and the 1890 financial crisis in England are a testimony to this. Juglars eight-year cycles and longer-term waves which are cycles of 17 to 18 years coupled with the even longer Kondratevs cycles that average fifty years in length have long been studied by economists (Encyclopaedia Britannica, 2008, “Business Cycle”).

A decline in production and employment, which causes incomes and the spending power of households to decline, are the consequences of a recession.