Recently the government of UK and Bank of England (BOE) took a major step to stabilize the economy which is to increase the tax rate by 50 percent, as per their consensus higher income tax rate will ultimately positively affect on the Government’s treasury. The Government estimated that we will earn £3.6 billions from the upcoming tax policy. The chancellor said that up to half million jobs would be save by the policy measures taken by the treasury and (BOE). Another positive decision took by Alistair Darling, which is literally a great sigh of relief for the economy of Britain. According to him the government guaranteeing that everyone under age of 25 who has been out of work for 12 months will be offered a job because the government do not want to repeat the history again of the year 1980, where a whole generation of young people was lost of work. Mr. Darling mainly emphasized on the creation of jobs within the country in the budget like he is intend to funding the JobCenter plus an additional amount of £1.7 billion. Apart from the job creation policy the government have taken measures which urges the export graph to increase, such majors include the price cuts form the purchasing of a new car almost £2000 have been cut it down from every new car purchased. Some green signals are now envisage for the UK’s economy in the second quarter in the current financial year as the medium term business confidence rose to 91.2 in April from 89.9 in January.
If such majors and policy gets implemented then there would be an ample chance for the UK economy to recover quickly then any other European economy, and gains its previous health and stability.
The traveling is an essential part of our daily life. A person spends a big part of his income on traveling some have alacrity to travel because those peoples are always want to see new and diversified things in their life while some peoples travel to spend their holiday effectively as the holiday provides satisfaction to the tourist and traveling gives him an opportunity to best utilize his holiday through extensive traveling.
Travel and tourism industry has a leading position in many countries mainly due to its ability to create surplus for the economy. Travel and Tourism industry count as one of the most important resource of income and foreign exchange. Travel and Tourism business mainly emphasize to attract the foreigners. Malaysia and Switzerland are two of some countries which are the first priority of any foreigner because of the natural beauty of the country. Travel and tourism business definitely helps the country to increase its foreign reserves which eventually boost the foreign investment graph of the country.
Financial crisis are not going to forgive any one, which hurts the travel and tourism industry is well. Due to the unavailability of a sufficient amount of oil and higher interest rates which is consistently increases the cost of the industry and also urges them to increase the fare rate. Thus many lucrative business across the globe have cut back to tackle with the credit crisis. Take the same into consideration the travel industry also cuts its travels due to decreasing demand of traveling by businessman and regular travelers. The companies are intend to mitigate its traveling expenses and have actually halted all their business trips. Business Travel Coalition (BTC) is one of the top ranking companies in the Traveling and Tourism industry which conducted a survey of about 200 companies across the world and found that, one of five firms have established emergency cuts their overall expense to condense the graph of the traveling expenses merely due to the financial crisis. Peoples are not willing to deposit their money in the banks so how they are intend travel extensively as they previously did, hundred of thousand of jobs have been slashed across the globe, half of the world’s population spending their live from “Hand to Mouth”, so in these circumstances how we are expecting from the people to invest their money in traveling as well as in this business.
The financial crisis cuts the travel and deteriorated the traveling industry which led to many losses to international airlines like Etihad and Aero Asia, who were the main source to earn a huge amount of revenue for the government 1 or 2 years before.
The current economical crisis bought continuous bad news for thousand of industries and corporations in the whole world. The strategy by the traveling companies regarding the travel cut will help them up to an extent by decrease their business expense and also helps these industries to overcome on the current financial crisis and viable again in the market.
Current Financial crisis which said to be the 2nd worst after the World War II great depression grabs every country of the world in its fatal claws. Financial officials and economist are hopeful that we will overcome on the economical crisis and economy gets stabilize before the arrival of the year 2010. A $5 trillion stimulus package has been announced in the G20 summit where the top 20 economically strong countries participated and promise to pledge the money for the entire world which is really a positive sign for every economy to back on track. By contrast almost every industry gets hurts by the current economic condition; traveling and tourism industry is one of them, which was doing a great job 2 years back to aid economy but the financial crisis assault on it, which is the back bone of the economy and now the said business is in great recession, which needs immense care and such strategies which strengthen this business again, which is the best source of revenue for the government of any country.