Tourism Impacts Related to EC 92: A Look Ahead

Abstract

In January 1993, an historic event will occur within 12 countries in Europe. The European Community (EC) 1992 will signify a United States of Europe representing 322 million people and $4.5 trillion per year in goods and services. Because tourism plays such an important role in Europe and receives approximately 50% of the world's tourism receipts, changes in Europe with regard to the free movement of people, goods, services, and capital will affect international tourism. In particular, the airline and hotel industries should be heavily affected by EC 1992 because of increased competition, airline and hotel mergers and consolidations, and reforms in the banking, insurance, and construction industries. Taxation will be affected because of standardization in tourism taxes.