Financial Impacts

If private sector tourism businesses do not make a profit they will go out of business. This happens to many tourism businesses each year. Travel agents, small attractions, hotels and guesthouses are amongst the most likely organisations to go out of business. This happens because costs increase and/or income falls so the organisation is unable to meet its bills.  Often, as income falls the organisation does not make enough money to invest in the business and make improvements. This often leads to a decrease in the number of customers.