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
awareness. It means tourism should be responsible to the natural areas and resources so that
TUI AG established in 1997, is the undisputed leader in the European tourism TUI AG established in 1997, is the undisputed leader in the European tourism industry. They operate in over 180 countries worldwide serving more than
Tourism is considered as an exceptionally complex whilst significant economic activity that sometimes appears to have as many detractors as supporters. According to Timothy A. FaladeObalade and Suchi Dubey (2014), the tourism industry began in the year of 1960 and has developed rapidly during the last five decades in terms of income generating and the total number of tourists who travel domestically as well as internationally. It was proven that tourism industry is a powerful source of revenue, even during the economic crisis, despite some fluctuations in tourism that has been caused by certain circumstances such as terrorist threats as well as severe diseases such as SARS and HIV.
The tourism industry can become a very influential industry for any destination and can pose many effects on its country the destination in particular. These effects are mainly categorized as Social effects, Economic effects and Environmental effects.
Despite of the introduction of new security, people still turn away from travel. Those risks and threats had many knock-on effects of the tourism industry and many other industries as the tourists’ attitude to travel changed.
Beyond the organisations that immediately influence a company's operations lies the macro environment. This consists of the larger social and international forces that affect the society within which a company operates.
The reason for this is the simple fact that, as tourism development and tourist activity expands, so too does the potential harm, social impact and potential for human induced harm and disturbance to destination residents and the environment (Jackson 2006). Kenneth (2003), also concur with Jackson that even though the cruise sector has opened up an opportunity for heavy use and instantaneous cash flow from short term but intense use, this had added pressure onto land-based facilities, resulting in congestion, scheduling and control problems, which have affected visitor satisfaction which will result in decline cruise visitors. Other experts in the field agreed with the statements mention above that as the cruise ships continue to grow larger, further investment may be required. Under these types of tourism scenarios with high infrastructure or environmental costs, rapid growth of tourism may result in a stagnation of or even a decline in GDP (Gooroochurn et al (2005); Nowak et al (2003) and Nowak et al (2007).
The World Trade Organization made an important step to address the complex relation between climate change and tourism by convening the 1st international conference on climate change and tourism in Tunisia in 2003. This conference raised awareness of the inter-relationship between tourism and climate change where people were asked to take good care of the environment.
The Travel and Tourism industry is still one of the largest single businesses in world commerce and its importance is widely recognized. The tourism industry is now one of the largest sectors earning foreign exchange. In the face of many benefits, many countries have started assigning due weight age to the tourism industry in their national development agenda. Tourism is an industry that operates on a massively broad scale: it embraces activities ranging from the smallest sea-side hotel; to air-lines, multi-national hotel chains and major international tour operators. Originally, non-traditional industries such as tourism emerged as a solution to strike a balance between ecology and industry
Climate change is an issue that is currently threatening the entire world, it is occurring as a result of human activity intensifying the greenhouse effect and concentration of carbon dioxide in the atmosphere, resulting in negative changes to the global climate (Lohmann, 2002). Tourism is particularly vulnerable to the direct and indirect impacts of climate change as the climate influences the appeal, attractiveness and suitability of a destination (Rutty & Scott, 2014). Moore (2010) states that the impact of the climate can be physical, physiological and psychological, and it also threatens economic, environmental and social sustainability (Moreno & Becken, 2009).
The System of National Accounts does not include the tourism as a traditional sector; consequently it is very rare that countries produce appropriate national statistics on the energy demand or emissions clearly resulting from tourism. Just recently researchers started to study energy consumption by tourist activities and the resulting greenhouse gas emissions that contribute to the anthropogenic component of global warming.
This research report has been written based on the information found on peer reviewed journals, articles, textbook, and Internet sources. This paper carefully reviews three current trends that affect today’s resorts and how resorts are responding to these newly brought up trends to be marketable. However, this paper does not cover estimation of sustainability for each trends and possible new trends that are becoming popular as there are improvements made in various areas in the world. If required, extended research can be done on the effect of trends on economy status of countries and forecast of tourism in the future.
As we saw previously, we can divide the touristic industry into two major categories, the modern-day massive tourism and ecotourism. Both forms have a distinctive history, definition, economic benefits and environmental impact. Although both are growing at lightning speed, especially as our societies become wealthier and eager to explore the world around them, the biggest dilemma lies on which, ecotourism or tourism, is a better alternative to pursue to balance economic development and environmental protection. To find the answer, we need to analyze and compare the main premises about the two topics.
Tourism and the environment have a very complex and interdependent relationship. Today, tourism is one of the largest industries in today's
| he quality of the environment, both natural and man-made, is essential to tourism. However, tourism's relationship with the environment is complex. It involves many activities that can have adverse environmental effects. Many of these impacts are linked with the construction of general infrastructure such as roads and airports, and of tourism facilities, including resorts, hotels, restaurants, shops, golf courses and marinas. The negative impacts of tourism development can gradually destroy the environmental resources on which it depends.On the other hand, tourism has the potential to create beneficial effects on the environment by contributing to environmental protection and conservation. It is a