Economic factors affecting tourism industry Rating:
The tourism industry is a significant contributor to the global economy, generating trillions of dollars in revenue each year. However, the industry is also vulnerable to a range of economic factors that can significantly impact its performance.
One major factor that affects the tourism industry is economic growth. When economies are growing and people have more disposable income, they are more likely to travel for leisure. Conversely, during economic downturns, people tend to cut back on discretionary spending, including travel. This can lead to a decline in tourism demand and negatively impact the industry.
Exchange rates are another economic factor that can impact the tourism industry. When a country's currency appreciates against other currencies, it can make travel to that country more expensive for foreign tourists. This can lead to a decrease in the number of international visitors and negatively impact the tourism industry. On the other hand, when a country's currency depreciates, it can make travel to that country more affordable for foreign tourists, leading to an increase in the number of international visitors and a boost for the tourism industry.
Inflation is another economic factor that can affect the tourism industry. When prices for goods and services increase, it can make travel more expensive, leading to a decline in demand. Conversely, when inflation is low, travel can become more affordable, leading to an increase in demand.
Political stability is another important economic factor that can impact the tourism industry. When a country is experiencing political unrest or conflict, it can make it less appealing for tourists to visit. This can lead to a decline in the number of visitors and negatively impact the tourism industry. On the other hand, when a country is politically stable, it can be more attractive to tourists and lead to an increase in the number of visitors and a boost for the tourism industry.
In conclusion, the tourism industry is influenced by a range of economic factors, including economic growth, exchange rates, inflation, and political stability. Understanding and managing these factors is crucial for the success of the industry.
PESTLE Analysis of the Tourism Industry
Tourism industry include employment in the following sectors: Hotel and other tourist accommodation, Restaurants and cafes ect Bars, public houses and night-clubs, Travel agencies and tour operators, Libraries, museums and other cultural activates, Sports and other recreation activity. Source: Swarbrooke and Horner 2007 2 nd Ed and UNWTO, 1995. When it comes to certain destination or certain tourism product, one product does not fit for all age groups. Many destinations, lesser known to the world, have got recognition due to the connectivity through the progress in transportation technology. Below, I will outline the most prominent negative economic impacts of tourism. SPA tourism is popular for those tourist who have some problem in health.
The cookie is used to store the user consent for the cookies in the category "Other. Page-6 The role of government and the political and economical environment Political Environment in International Business: Political environment has a very important impact on every business or organisation where they operation, no matter what its size or its area of operation. Coastal tourism is particularly exposed to the vulnerable risks of severe storms, winds, waves and rain causing disruption to the transport, power and water supplies that the industries relies on, CISL, pdf, p. If you glance at the taxes paid on hotel rooms and airline tickets, you can get an idea of the way taxation can negatively affect tourism. It is therefore important for the travel and tourism industry to offer competitive prices for its services and products. Tourism heavily depends upon the environment. The economic effects of tourism include improved tax revenue and personal income, increased standards of living, and more employment opportunities.
Sample Essay on Economic Factors Affecting Tourism
In this article I will discuss the importance of understanding the economic impacts of tourism and what the economic impacts of tourism might be. Tesco is currently one of the leading supermarket in the UK. Environmental factors: Good climate, Beautiful scenery, etc. Create viable, vibrant and vital town centres. Important Factors Influencing Growth of Tourism 1.
Key Factors Affecting Hospitality and Tourism Industry
This is a report for the company which is drawn from the market research and demonstrated a clear understanding on the social, economical and environmental factors affecting the travel and tourism industry. Holiday bookings and airlines and railways booking have dramatically increased after the boost in the online market. To help to make new development more sustainable the planning process provides the opportunity, both through the preparation of development plans and when decisions are taken on specific schemes. Additionally, local businesses hardly support tourism since the industry affects their businesses. Thus, some people, or leaders may not embrace tourism activities that negatively affect the performance of their local commodities. Think of it like this- we all have a specified amount of money and when it runs out, it runs out. There have lots of new destination and tourist attraction built in Europe and America.
Tourism development can cost the local government and local taxpayers a great deal of money. Additionally, the infrastructure of a country can affect the performance of the industry in different ways. PESTLE Analysis of the Tourism Industry: Final Thoughts There are a number of positive factors impacting the tourism industry. It is also clear, however, that authoritarian countries can be stable but also relatively free of events of violence if they do not need to resort to violence to uphold their authoritarian rule and dissuade opposition groups from undertaking Violent acts on their part. Tourism may require the government to improve the airport, roads and other infrastructure, which are costly. We have seen during the pandemic how the demand for hospitality and tourism dramatically dropped and now, with things opening up all over the world, it is rising again. It is important to give credit of our website as a source of your writing.
Economical And Environmental Factors Affecting The Travel And Tourism Tourism Essay
In 2020, the volume of tourists decreased by 72,6% from 10,2 million in 2019 to 2,8 million in 2020. Our Clients Review at a Glance Get a grance of our services by reading the review provided below. Whilst this may save the business money, it is usually not so beneficial for the economy of the host destination. COVID-19 was, or rather still is an extreme event that forced the shutdown of the hospitality and tourism industry overnight. The determination of the employment in the levels of income and the economy is the main consideration here. Economical And Environmental Factors Affecting The Travel And Tourism Tourism Essay.
Student mostly travel for specie place or attraction which is related with their study and can learn something from this travel. Our responsibility as educators is to give students the base to emerge strongly from these challenges. This will all contribute to an increase in economic activity in the area where tourism is being developed. Visit Britain: Traveller Tips2013. Sustainable laundry For hotel industry, providing fresh towels and laundered linen can be very demanding. Historical and Religious Factors Every place has its different historical perspectives which have the proof of it through its ancient forts, palaces, monuments and memorials.
10 Economic impacts of tourism + explanations + examples
There are a range of possible positive economic impacts. Foreign companies often bring with them their own staff, thus limiting the economic impact of increased employment. In transport there have a lots of change like travel by train in Europe is more quicker then before. Get High Grades, CONFIDENTIALLY We ensure that your details are kept safe and only notify you of your completed work via provided email. Many businesses were shut down for good.
Factors Affecting Tourism Industry and Its Impacts on Global Economy of the World by Naushad Khan, Absar Ul Hassan, Shah Fahad, Mahnoor Naushad :: SSRN
The tourism industry work and the planners together effectively to deliver, facilitate and promote new tourism developments in a sustainable way. What are the economic impacts of tourism? For example, when tourists choose to operate from a resort or cruise ship, they deprive the locals the market for their products. Good and honest staff should be appointed in the tourism industry for running the system. It is easy to fined a hotel or accommodation in the UK. The pattern of tourism sector has changed after the Second World War.