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Option E — Sports, Leisure, Tourism

Example of horizontal integration in TNCs

• International Airlines Group owns Aer Lingus, British Airways, Iberia, Vueling Airlines

Example of vertical integration in TNCs

• EasyJet Holidays handles transport, accommodation, planning, etc. all at the same time

Niche markets example

• Deep Sea Freediving is a niche of Deep sea diving, which is a niche of Diving

Role of TNCs in tourism

• In 2023, tourism accounted for $9.5 trln. US of the global GDP
• In Spain, 150,000+ protestors from 40+ cities (including Madrid) have opposed the presence of Airbnb due to conversion of rental properties to tourist Airbnbs)
• In 1950, the average price of air travel per tonne kilometer was ~$7.5 US. In 2010, it dropped to ~$1 US
• Even older plane models are still in active use (e.g. Boeing 737-200 began mass-manufacture in 1964)

South Africa World Cup 2010

• Used 10x the money to host the world cup that they spent on fighting HIV that year
• Spent 40 bln. Rand
• Football fans were very satisfied and South Africa's global image improved, and tourism continued at similar increased rates
• Local stores mostly did not benefit from increased tourism because the government did not let tourists visit them
• Poor population not taken care of infrastructurally

Unsustainable tourism in Iceland

• Tourists outnumber locals (2.3 mln. arrivals in 2018 vs 347,000 local population)
• Number of visitors to Blue Lagoon increased from 50,000 (1994) to 1.3 mln. (2018)
• Tourism is the country's biggest export accounting for 8.4% of GDP

IPL and cricket

• Franchises are in India's urban centers ensure a massive fanbase, high stadium attendance, and high TV views; examples are Mumbai (20 mln.), Delhi (16 mln.), Kolkata (14 mln.), Bangalore (8 mln.)
• The league targets young audiences and 81.8% of IPL viewers are aged 18–25, making cities with large younger populations (like Bangalore, Hyderabad, and Pune) ideal locations for the league
• The IPL's value reached $18.5 bln. US in 2025, a 12.9% increase from 2024
• IPL 2025 generated $600 million in advertising revenue, a 50% increase from 2024 due to platforms like Jio Hotstar and targeted MSME campaigns
• Flight bookings to cities increased by up to 25%, while train bookings to cities like Hyderabad increased 183%
• Star Sports attracted also had 253 million unique TV viewers over the season, a 14% increase from 2024
• The per-match value increased by 62.7% from the previous cycle

Olympic Games in Rio 2016

• 30 mln. items bought
• 17,000 tons of waste produced
• 6,000 tons of food consumed
• 28,500 athletes and staff flown in
• 1500 buses used
• 29,500 gigawatt hours of electricity consumed
• 23,500 liters of fuel used
• 3.6 mln. tons of CO2 emitted

Overtourism in Dubrovnik, Croatia

• Mass influx of tourism due to being declared a UNESCO world heritage site and being used as a film location in the Game of Thrones TV series
• 60,000 location-spotting tourists per year
• Air flights are affordable due to European budget flights, cruise ships disgorge thousands of tourists each day
• Tourists mostly spend the money of their stay on Airbnb and other TNCs, with locals receiving very little money
• Permanent population reduced from 5,000 (1991) to 1,500
• "Respect the City" initiative focuses not on limiting tourist numbers but on making the flow of tourist activity throughout the city more even
• Through tourism control, now only two cruise liners can disembark per day, and tourists must stay for at least 8 hours before reboarding
• Smaller cruise companies (such as those operated by the Small Cruise Ship Collective) work with the city, carrying no more than 100 passengers and only providing one- or two-night stay options, stimulating the local economy
• Up to 200 daily buses during peak season (July and August)
• Dubrovnik Pass created that requires a fee to visit key attractions (around 80% of tourists get it)