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Pestel and Porter's Analysis of Tourism Industry

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Contents:

Introduction Page 2
Macro Environment Page 2
Competitive Forces in the Tourism Industry Page 4
Conclusion Page 6
References Page 6
Introduction:
This paper will be dynamically examining the tourism industry during the 2000s. It will begin by using the PESTEL framework to analyse the macro environment and determine which factors drive the competitive forces within the industry. Following this, Porter’s Five Forces model will be used to analyse the actual competitive forces at work within the industry and determine the relative importance of these forces.

The macro environment
Before one can look at specific factors relating to the firm itself, it is necessary to first examine the nature of the external or …show more content…

It also allows more bookings to be made simultaneously, which will make it possible for airlines to process more bookings more quickly.

From an environmental perspective, it is apparent that the world is starting to realise that increases in tourism are having a negative impact on the environment. This is due to increases in energy consumption, which in turn heightens the effects of global warming (Neto, 2002). There are many controls that governments are trying to put into place, such as flight rationing (Liverpool Business School, 2009). However, it can be argued that these have not really begun to have a significant effect on tourism, as they are still insufficient to dampen demand. It may become a problem in future years, as the number of controls is likely to increase. Perhaps the largest environmental factor would be natural disasters, like Hurricane Katrina (Cashell, 2005) and the tsunami that hit Asia in December 2004 (Birkland, 2006). These will impact negatively on people’s confidence in visiting places that have been hit severely by such disasters.

As can be seen, the macro environment has had a significant impact on the tourism industry during the 2000s. The key factors affecting tourism negatively would be the political, social and

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