How Does Tourism Impact The Construction Industry
Tourism affects just about everything that it comes into contact with, leading to mostly positive outcomes such as economic boosts. Local small businesses can see huge surges in sales if they happen to be tourist ‘hotspots’, especially bars, bed and breakfasts, cafes and restaurants.
It isn’t just ‘traditional’ businesses that are affected either since large influxes of people have a way of impacting almost every business type. This is especially true if the injection of tourism is sudden, or it is expected to increase considerably and over an extended period of time.
Events and Infrastructure
If a planned event is expected to draw more people than is usual, then certain things will need to be taken into consideration. Things like policing, extra public transport services for the duration of the event… But what if the extra turn out of people is expected to be more long term? Tourists can turn local, struggling economies around but only if planned for.
These are the kinds of situations that construction companies live for, especially the smaller ones. As tourism grows, so too does the impact on local infrastructure and business.
Hotels can either be extended, usually upward rather than outward (which is especially true in areas where space is already scarce such as a city centre) and local eateries and bars may also be feeling the strain and the need to expand.
Obviously, the owners of these businesses are highly unlikely to roll up their sleeves and play Bob the Builder. This is where construction companies come in. Of course, this is a great benefit to the construction industry as a whole, but local residents may not be so thrilled.
City infrastructure is also going to be affected by a surge in tourism, with roads and transport services put under extra strain.
Long Term Plans
Tourism is likely to increase in areas where something of cultural importance has taken place. Depending on the size of the town or city there may only be one train station. If the increase in tourism is expected to be sustained then local councils may decide that local links should be increased in order to cater for the extra headcount. Construction companies at this stage would be well advised to look into cheap construction insurance.
Of course, all of this extra popularity could also mean that people decide to settle in the area, which will increase demand for housing and further local amenities. Again, these are all things that local construction companies will be benefited by.
Taking advantage of these things before they even happen is not always easy, but construction business owners with an eye on the news can sometimes successfully predict demand for their services. When they are able to do this they may sometimes opt to start getting extra supplies, that are common to many different project types, so they can be ready to go and faster off the mark.
The tourism industry can be massively beneficial for the construction industry but also, as we have seen, other businesses and the local economy also.