Report on Contemporary Issues in Travel and Tourism

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Added on 2019-12-04

Report on Contemporary Issues in Travel and Tourism

Added on 2019-12-04

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CONTEMPORARY ISSUES IN TRAVEL AND TOURISM

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................31.1 Analyzing the issues which are currently driving change in travel and tourism sector.........31.2 Analysing two different current issues by using appropriate methods and resourcesfocusing mainly on the impact of political unrest........................................................................5TASK 2............................................................................................................................................5PPT...............................................................................................................................................5TASK 3............................................................................................................................................63.1 International airline groups businesses responses to change.................................................63.2 Strategies developed by International Airline group business like British Airways andVuieling to provide response towards change ............................................................................73.3 Justification for the selected strategies..................................................................................8TASK 4............................................................................................................................................94.1 Impact of issue and trends that drive changes in travel and tourism sector...........................94.2 Consequences of the businesses failing to respond to the market change...........................10CONCLUSION..............................................................................................................................11REFERENCES .............................................................................................................................122

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INTRODUCTIONTravel and tourism is the most leading sector at present as compared to financial, retail,automation or health sector. This sector provides more than 10% share to the global economy bycontributing to gross domestic product. Travel and tourism sector also supports the economy bygenerating plenty of job opportunities for around 277 million individuals. As per the reports ofOffice for National Statistics (ONS), 1 out of 11 jobs is generated by this sector. Rapidglobalization, removal of barriers, greater connectivity between nations is helpful for assuringthe growth in travel and tourism industry (Telfer, 2014). Further, there is ample number ofbenefits of tourism like it helps in generating foreign currency, improving the standard of livingof people by giving them job opportunity, supports government through taxation, etc. It can bestated that travel and tourism sector serves as the booster for economy. At present, industry isfacing large number of contemporary issues. They are further major barriers in the growth andprogress of tourism sector. In this report, clear understanding will be shown regarding variousaspects of travel and tourism industry with reference to Egypt. In this report, issues that arecurrently driving change in travel and tourism sector will be discussed. Further, methods inwhich tourism organization responds to change will be explained. The consequences of businessthat fail in responding towards changes will also be discussed. TASK 11.1 Analyzing the issues which are currently driving change in travel and tourism sectorIn the current scenario, understanding will be reflected about the contemporary issuesthat are overcome by tour operators while designing tour package to Egypt. It is a beautifulcountry with famous tourist destinations like Great Pyramid of Giza, Great Sphinx of Giza,Valley of the Kings, Cario, Luxor temple, Sharm el-Sheikh, Hurghada, etc. Every year, countrywelcomes around 14 million visitors. Tourism of Egypt provides job opportunities around 12%of Egypt's manpower. The sector also contributes up to 11% in GDP and foreign exchangeearning profits by 14.4% (Tourism In Egypt. 2015). Therefore, it can be stated that tourism has asignificant contribution in the economic progress of nation. From the critical assessment ofpresent state, it has been identified that travel and tourism sector is subjected to various changesdue to prevalent issues. They are further described as follows:3

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Need for Improved Security: At present, the travellers are more concerned about theirphysical safety. Main reason of this is that nowadays, terrorists are targeting touristdestinations for spreading terror and misery (Sundbo, 2014). These attacks are like 2016attack on Paris, Brussels bombarding resulting into killing of around 35 people. Thisfurther result in the reduction of tourist visits to the leading destinations. Therefore, it isbecoming important for tourism firms to ensure the safety of its customers by givingthem proper assurance. In this respect, safety at airports must be increased and resortshaving high security facility must be selected in the tour package (Smith, 2014).Recently, three international visitors were attacked in Hurghada Red Sea Resort whichincreased terror and unrest among visitors. The tourism organization should assure thatthey provide safe surroundings to their customers.Advancement in technology: With the rapid emerging techniques and processes, it hasbecome important for tourism entities to use the latest gadgets. This will ensuresatisfaction among customers and would meet their technology related demand. Also,tourism companies can offbeat the rivals by using upgraded technology (So, 2014). Tosupport increase in tourism of Egypt, organization can use virtual tour. It will help insimulation of Egypt and its leading destinations with the help of videos and images so asto attract customers to personally visit the destination. Other than this, self check out ormobile check in facility must be provided to customers to increase their convenience.Further, facility of online booking and e-payment must also be provided (Xiang,Magnini and Fesenmaier, 2015).State of economy: The status of economy of selected destination is also having a directimpact on tourism. GDP, GNP, bank rate and disposable income are some of the factorsthat have affect on tourism business. It is like at present, inflation rate is increased up to12.3% which is the highest rate in past 6 years. Further, bank rate is 11.75% which hasincreased by 1% from the past that was 10.75%. Borrowings of tourism organizationhave become costly (Tourism In Egypt. 2015). This will further have an adverse impacton the sales of tour package as it will make tourism package costly. Further, decrease indisposable income will also prevent customers to spend on travelling and otherrecreational activities. 4

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