Tourism activity and economic conditions in Britain

This study examines the impact of tourism activity on local business and economic conditions in local economies in Britain. The empirical investigation focuses on whether or not tourism activity is beneficial to local rural and urban economies and informs policy makers aiming to maximise their tourism potential. The analysis differentiates local authority areas into two distinct groups according to the intensity of tourism employment (below and above average). Whilst the empirical evidence suggests that tourism exerts positive benefits to local economies in the form of entrepreneurship, these benefits may not accrue to the tourism sector itself because in the act of “moving on” the labour force takes its improved human capital with it. This means that the promotion of tourism alone as a policy for regeneration may not be as successful as some policymakers might perceive. It is clear that a “one size fits all” prescription is inappropriate.