5. The service economy Flashcards
How has technology changed central urban areas?
Cars and fast trains mean easier access to the centre of cities without living there, contributed heavily to suburbanisation in the late 20th Century.
Increase of quaternary and tertiary industry likely to lead to a less polluted inner city environment.
Technology changes the types of work that predominate in central urban areas (e.g. financial), and as a consequence, also the type of workers/residents.
Internet shopping has decreased high street footfall and led to ‘shopping’ being less of a popular activity in central urban areas. Shops have therefore closed, and often remained closed, contributing to decline in the area. Similarly, chain shops tend to be more resilient and therefore the shops that remain tend to be more homogenous (contributes to clown towns).
How has affluence changed central urban areas?
International and national economic trends and policies are now felt more quickly due to globalisation and can affect consumer spending, and therefore spending habits in central urban areas are more volatile.
Higher levels of income beginning to lead to re-urbanisation and gentrification.
These people want leisure access in central areas. Therefore seen a rise of gyms, cafes etc.
Also mean “building up” more to cater for increased desire to live in the city.
More people from suburbs and rural areas have cars and want access to out of town shopping centres which they can access easily, and park easily, rather than going into central urban areas. Therefore increased rates of building vacancy, declining environmental quality in CBD.
How has leisure and tourism changed central urban areas?
Increase of tourism as industry has seen many urban areas develop to accommodate and maximise this. E.g. hotels and development of attractions.
There has been a development of 24-hour consumption of services provided in central areas.
Increased demand for leisure vs. consumption has meant proportionately less disposal income is being spent in high street shops – leading to closures and homogenisation.
Who benefits from the recent changes in the central areas of cities?
New and increased opportunities in skilled technology work likely to benefit (male?) white middle class more than some other groups. Older people and young families unlikely to benefit from 24-hour entertainment culture in some urban areas, whilst younger age groups make full use of the services provided. Similarly, older people likely to feel the social benefits of changes less e.g. young people will enjoy increased late night entertainment, older people less likely to go out, but may experience the potential increase in anti-social behaviours such as drunkenness, vandalism and littering. New job opportunities created by globalising economic development in urban areas likely to benefit working age people, but areas of local identity e.g. Brixton may be lost through an increasingly corporate homogenous urban landscape. Older people less likely to be internet shoppers, and therefore may feel the decline of shopping in the CBD more significantly.
What is ‘gentrification’?
Gentrification: A process by which change in social structure and housing market occurs in areas (usually inner city).
It is the process by which wealthier (mostly middle-income) people move into, renovate, and restore housing, and sometimes businesses, in deteriorated areas formerly home to poorer people.
How does gentrification happen?
Gentrification gathers momentum over time. The first step in the process consists of urban pioneers. These are people who move into run-down areas with potential for redevelopment. Usually artists and other groups who are tolerant of problems associated with the inner city.
Over time, these urban pioneers help to redevelop and “fix-up” run down areas. After doing so, prices go up and the lower income people present there are priced out and replaced with middle and upper income people.
These people then demand greater amenities and housing stock and businesses change to cater to them, again raising prices.
These rising prices then force out the remaining population of lower income people and more middle and upper income people are attracted.
Why are central areas experiencing re-urbanisation?
People want to live closer to work (time vs. money preference for younger generation).
Decrease in time and cost efficiency of cars from suburbs.
Initiatives to revitalize and re-brand inner city and CBD areas.
Gentrification affects an area’s demographic characteristics because:
An increase in middle income individuals and families often results in an overall decline in proportions of ethnic minorities, and working class groups.
Average household size decreases on average because low income families are replaced by young single people and couples desiring to be closer to their jobs and activities in the urban core.
Proportions of people working in high earning employment sectors increases as people cannot afford to live in the area unless they earn well.
Gentrification affects cultural and social characteristics because:
It changes the types of people and associated business in an area.
Gentrification affects economic characteristics because:
The housing market increases in rents and home prices.
Land use is also altered. Prior to gentrification areas consist of low income housing and sometimes light industry. After, there is still housing but it is usually high end, along with offices, retail, restaurants, and other forms of entertainment.
POsitive of gentrification
+ Improves image of place, which might increase local business, as people attracted to visit the area, and residents more likely to have higher spending power.
+ Often leads to people owning their homes instead of renting, it can sometimes lead to more stability for the local area.
+ Less vacant buildings as demand for areas increases.
Negatives of gentrification
Can force out original residents who can no longer afford to buy.
Cultural loss e.g. Brixton
Increase in community division
Building monocultures in an area (loss of building diversity).
What changes have occurred to services on high streets in recent years?
Increase in budget shops such as poundland
Increase in vacant shops on high streets.
Increase in charity shops (as don’t pay tax on vacant properties).
Decreased proportion of ‘local shops’, high proportion of ‘chain shops’.
Why have there been changes on high streets?
Decrease in footfall due to:
Rise of internet shopping
Rise of convenience of out of town shopping centres for customers (parking etc).
Tax incentives, and difficulties in local council rules in high street areas, encourage large business to relocate to OT shopping centres.
The ability to have on site warehouses in OT centres make OT centres cheaper for businesses.
Why is/has e-commerce (internet shopping) rapidly increased?
Confidence in online safety e.g. paying by card and PayPal.
Greater access to devices. E.g. smartphones and laptops.
Faster internet connections.
Investment in delivery services by companies e.g. Amazon prime. So goods delivered faster, and often at a lower cost.
Easier access to global markets. E.g. goods from US.
