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Choose a specific industry in a new EU member country and discuss possible advantages and disadvantages and or concerns for this industry in terms of EU policy and regulation.

This essay uses the new European Union (EU) member country the Czech Republic (CZ) and explores the possible advantages and disadvantages and concerns for the airline industry.  The country has 44 paved airports (CIA, 2006) and international airports at the following major cities; Burno-Turany, Ostrava, Prague (A-Z World Airports, 2006).   In 2004 the Czech Republic was one of the fastest-growing tourism markets in the new EU member states.  However, before May 2004 the number of airlines flying to and from this country was restricted, allowing carriers to maintain artificially high prices on many routes (Newman, 2005). 

First this essay will explore the advantages of joining the EU to the airline industry as the travel and tourism industry constitutes an important part in the Czech Republic's economy.  Currently, every tenth person is employed in the travel and tourism industry or in some related sphere and foreign exchange earnings from tourism reached 118.13 billion Czech crowns (koruna) in 2001, constituting 5.5 % of the GNP (Czech Tourism, 2004).  The introduction of low-cost flights has boosted tourism to the Czech Republic and all the new EU countries have benefited from the expansion of low-cost airlines and favourable exchange rates between local currencies and the euro.  Also, small cities are becoming increasingly popular for weekend breaks as tourists search for new destinations and take advantage of cheaper flights. Other sectors of leisure tourism, such as spa or ski holidays, are also emerging, while business travel to central and Eastern Europe is increasing (Newman, 2005). 

However, the Europa website 2005a highlights concerns over such expansive growth of the travel industry stating the growth is unsustainable.  Also, many issues have been raised including concerns over security issues, safety in air traffic control, air pollution and fuel use and increasing energy efficiency (Europa, 2005b).  Fortunately some funding is available to tackle these issues (Europa, 2005b).

But the exchange rate will impact on the cost of flights along with rising oil prices to make them more expensive to potential buyers.

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