3 Aviation GDP

1.
Be able to explain
the importance of
the UK
T&T/Aviation
industry towards
the UK economy.

Classroom Expectations

1.In this classroom, we have one

voice. If someone is talking, you

need to be listening.

2.Do what you are asked the first

time you are asked.

3.Always try your best!

4.No phones unless instructed!

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Lesson Outcomes

By the end of the session, you will be able to:

▪Explain the importance of the UK T&T industry
towards the UK economy.

▪Describe the employment sectors and how they have
changed over the years, including globalisation.

▪Explain the multiplier effect and different types of
employment within the UK T&T industry.

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What does GDP stand for?

Gross Domestic Product

Open Ended

Wtite me a paragraph explaining what GDP is and how might Aviation and travel be relevent?

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GDP

“The gross domestic product (GDP) measures of national income
and output for a given country's economy. The gross domestic
product (GDP) is equal to the total expenditures for all final goods
and services produced within the country in a stipulated period of
time.”

“Definition: GDP is the final value of the goods and services
produced within the geographic boundaries of a country during a
specified period of time, normally a year. GDP growth rate is an
important indicator of the economic performance of a country.”

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Open Ended

Are we currently in a boom or bust? Why? How has this effected aviation?

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How much is the value of tourism in the

UK of GDP?

£237bn (7.2%) of UK GDP

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How does the UK Travel and
Tourism Industry affect the

UK Economy?

Fill in the Blank

On the next slide you will see a graph showing a big change in the GDP in aviation and travel. What event might have caused this? Can you guess?

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Open Ended

Why did Covid cause this big dip in the GDP in aviation and travel? Give me detail!

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Tourism and aviation is creating jobs

and boosting economic growth in towns

and cities across the UK.

Make detailed notes about the stats on the next slides!

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Open Ended

Write a big paragraph about how many jobs are created as a result of Aviation? How much money does aviation bring? How much cargo contributes? Can you tell me about more stats?

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Benefits of Tourism in the UK
Economy

1.

It increase and contributes to the overall GDP,
therefore increasing our economy and GDP
Value - inclusive of Domestic and Inbound
tourism.

2.

Employment rates increase which means
employees have more money and are able to
spend more.

3.

Infrastructure improves.

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Benefits of Aviation in the UK
Economy

Impacts of international tourists who arrived in the UK by air:

Spending by foreign tourists who arrived by air supported a £19.6 billion
gross value added contribution to UK GDP.

Their expenditure also supported 477,000 people in employment in the
tourism industries, their supply chains and through wage consumption
impacts.

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Benefits of Aviation in the UK
Economy

The aviation sector contributes £52 billion (3.4%) to UK GDP.

This total comprises: £22.3 billion contributed through the output of the
aviation sector (airlines, airports and ground services, aerospace) itself.

The aviation sector supports 961,000 jobs in the UK.

This total comprises: 341,000 jobs within the aviation sector itself.

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Benefits of Aviation in the UK
Economy

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Benefits of Aviation in the UK
Economy

Open Ended

What is an infastructure?

Infrastructure

Structures, systems and facilities e.g. airports, roads, rail networks,
hotels etc.

As tourism grows in the UK, the infrastructure must develop and
grow with it.

-More hotels where tourists can stay

-More runways and airports

-Improved rail links

-Improved road links

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Infrastructure

Good for tourists:

Good for residents:

Transport Networks

Energy suppliers

Recreational sites

Waste disposal

Communication systems

Public amenities

Activity, fill out the table in your notes highlighting why each type of infrastructure
would be beneficial for tourists and for residents. After, the next slides have the answers
Dont cheat!

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Infrastructure

Good for tourists:

Good for residents:

Transport Networks

Easy access points, easy
for travelling, more frequent
journeys

Improve daily commute to
work, reliable and safe
services

Energy suppliers

Energy is constant
throughout the day, more
use of activities

Reliable energy enables
businesses to operate more
efficiently

Recreational sites

Add to the appeal of a
destination, more choices

Encourage residents to
participate and create a
good community

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Waste disposal

Clean environment appeals
to visitors

Cleaner environment
reduces long term risk of
diseases for locals

Communication systems

Visitors can make plans,
contact people from outside
the destination

Residents can communicate
more frequently for social
and business purposes

Public amenities

The destination is more
attractive and provides
greater convenience for
stay

Society becomes more
functional and greater
convenience created by
daily lives of residents.

Waste disposal

Clean environment appeals
to visitors

Cleaner environment
reduces long term risk of
diseases for locals

Key points to consider

GDP - The value of a country’s economy, a measure of all
goods and services over a specific time i.e. how much
money it makes in a year.

Tourist numbers and the value of tourism spend: Inbound
and Domestic

Infrastructure – refers to the basic permanent facilities,
utilities and services needed for modern society to function,
e.g. roads, buildings, water supplies etc.

Employment - Direct and indirect employment.

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Open Ended

Do you know what Globalisation is?

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Globalisation

“Globalisation is the growth and spread of ideas
around the world. This can involve the movement or
spread of cultures, people, money and information.”

Globalisation describes the way in which the world
has become more interconnected. Globalisation has
led to an increase in world trade, foreign investment,
communication between different countries and the
sharing of ideas.

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Globalisation

▪ Economic Growth
▪ Cheaper goods and services
▪ Outsourcing jobs
▪ High Value production
▪ Less Manufacturing
▪ Migration
▪ Foreign Investment
▪ Inequality

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Globalisation and Travel

Globalization has created easier and more
affordable ways to travel. This means that
tourists can now choose from a wide range of
destinations, leaving behind developing
countries that may not have the infrastructure
or technology needed to welcome a large
amount of visitors.

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Multiplier Effect

Direct Contribution
Money that is spent of
travel and tourism
products and services
e.g. transport routes,
tours, souvenirs, heritage
sites, travel agents
currency etc.

Indirect Contribution
Re-spending of the
money earned from
travel and tourism e.g.
hotels will re-buy food
suppliers, they will pay
for the maintenance of
laundry, staff wages and
other hotel services.

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Multiplier Effect

“The extra revenue that is made, or the
additional employment that is created
as a result of tourism.”

Multiplier Effect

1. Sales / Transactions
2. Output / Production
3. Income
4. Employment
5. Official Government Statistics

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Open Ended

Summarise the multipler effect in detail....

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Lesson Outcomes

By the end of the session, you will be able to:

▪Explain how the infrastructure, employment rates and
GDP are all connected to the UK’s economy and
relation to T&T.

▪Outline the use of statistics.

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Activity

Research how the Travel and Tourism industry contributes to the UK Economy.

Challenge

Find statistics to support your findings.

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Answers

1.

Which region had the highest value for Day Visits
tourism? - London

2.

What was the total value percentage of London on
tourism? - 31.8%

3.

What was the total value of both Domestic and
Inbound tourism for Yorkshire? - £2348

4.

Besides from London, which region had the next
highest direct employment for tourism? - South East

5.

London had the highest value for each of the types of
tourism apart from which one, and which region had
the highest? - Domestic, South West

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Well done!

​RPlease now read the assignemt brief on the classroom for LO3 Part 3 Report

You need to write a report on Google Docs using my TEMPLATE. This should be around 2 pages with pictures/graphs and stats.

This report is all about how Aviation and Travel has an impact on our GDP.

Try your best!! You can do it!!!