The recession occurs when the business stops growing

February 11, 2019 Critical Thinking

The recession occurs when the business stops growing, GDP depreciates for two continuous semesters, the increase in unemployment rate and the house prices decline. Which all of these factors make the economy fall down and lead to a recession. In an economic recession, the value of pound sterling is depreciated, so when inbound visitor exchanges their money in pound they will receive more money, which makes the cost of their travelling to the UK becomes cheaper and it also increase their demand of travelling to the UK. On the other hand, this factor also affects the domestic tourist, as when the economy is struggling in their country, people in the UK will be more conscious before spending money. Especially, in travelling they will take less holiday during the period or they may be likely to look for the cheaper package holiday to save up their money. Nevertheless, sometime they may not even spend their money on any additional causes either. They may be likely to spend money on essential things like food, drinks and clothes etc. Whether, if they really want to travel they will travel more on domestic areas rather than outbound travelling. Which will help them avoid spending money on flight ticket fees or even currency exchange cost.