The Impact of Current Trends on the Tourism Industry

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This article discusses the impact of current trends on the tourism industry, including the effects of Covid-19, extreme weather conditions, and infectious diseases. It also evaluates the rise of packaging holidays and how it could impact the industry in the future.
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The Dynamic Tourism Environment.
Driven by a relatively strong global economy, a growing middle class in emerging economies,
technological advances, new business models, affordable travel costs and visa facilitation,
international tourist arrivals grew 5% in 2018 to reach the 1.4 billion mark, UNWTO (2019).
Furthermore, export earnings generated by tourism grew to USD 1.7 trillion in 2018, making the
tourism sector a true global force for economic growth and development, driving the creation of more
and better jobs and serving as catalyst for innovation and entrepreneurship.
In short, tourism is building better lives for millions of individuals and transforming communities.
Then, Covid-19 happened.
The coronavirus (COVID-19) pandemic has triggered an unprecedented crisis in the tourism
economy, given the immediate and immense shock to the sector. Revised Organisation for Economic
Co-operation and Development (2020) statistics estimates on the COVID-19 impact point to 60%
decline in international tourism in 2020. This could rise to 80% if recovery is delayed until December,
with unparalleled economic and societal impacts.
However, although Covid-19 is the primary talking point in Tourism currently, it is not the only force
of change within an industry that is susceptible to shocks and crises.
The World Economic Forum (2020) writes “today’s risk landscape is shaped by an unsettled
geopolitical environment in which new centres of power are forming—as old alliances and global
institutions are being tested”. For the economy, “ammunition to fight a potential recession is lacking,
and there is a possibility of an extended low-growth period. Climate change and related environmental
issues are ranked highest in terms of likelihood”.
ABTA (2020) predicted that 2019 would be the year that sustainability issues would go mainstream
and that has proved to be the case, with a spotlight thrown on climate change in particular. Greta
Thunberg and Extinction Rebellion have become household names and there is an increasing appetite
to understand the environmental impacts of travel and tourism. Tourism can be a tremendous force for
good, although impacts on destinations, their natural environment, economies and communities need
to be managed.
This module, and the assessment you are undertaking, will evaluate current trends within tourism.
You will identify key forces of change in the industry and the impacts these changes have. A
discussion on how a tourism stakeholder responds to changes or events that impact upon the tourism
industry will also take place.
Key Reading:
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ABTA Travel Trends Report / CAPA / WTTC Publications / Skift / UNWTO Library /
UNWTO Tourism Highlights / Stakeholder Response Strategies / WEF Global Risk Report /
Dynamic Tourism Environment “Book Club”
1: Definition Triangulation.Triangulation is the use of more than one method of research to add depth
to data and analysis, contributing to greater confidence in findings (Bryman, Bell, &Teevan, 2009).
Using the triangle below, source three definitions of “Tourism”. When this has been completed, create
your own working definition of this term. (50 words).
Textbook: (Craig, & Feng,
(2018) )
Year: 2018
Author: Craig, & Feng
Definition: tourism is
another term for
exploring the world
with new experience
and facilities.
Journal: (Craig, & Feng,
(2018))
Year: 2018
Author: Craig, & Feng
Definition: tourism is
all about experiencing
new places in the
different parts of the
world. It includes
society, community
and engagement of
the people in the wider
world.
Other source: (Ogbeide,
(2020) )
Year: 2020
Author: Ogbeide
Definition: tourism
involves fulfilling
feeling of wanderlust
by experiencing new
areas.
Working Definition:
Tourism management always resemble the
perception business in providing great facilities to
the clients on national and international level.
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2: Historical development of Tourism. As a constantly evolving industry, Tourism is in its current position due to a series of major, and minor, global events.
Choose two of these events and discuss the impact they have had on the tourism industry. (450 words).
Event one:
Covid-19 is one of the major events that have caused much impact on tourism industry. Before the pandemic the industry was taking immense rise in the
sector which has created many technological advancees and new Business models to facility tourism arrivals and reaches to the mark of 1.4 billion. The
happening of Kuwait 19 has Trigger many crises in the tourism sector. It impacts on the overall business of the industry due to endemic and people were
not allowed to go outside or travel to another City or country. Covid-19 pandemic has created various issues in sustainability and climate changing. Due to
fear of corona virus people were not taking any leniency with their health and engage in any trouble activity (Malchrowicz-Mośko, & Poczta, J (2018) ).
. It has analysed that this is the major event which is the reason behind falling down of tourism industry. it has reduced employment, economic GDP,
tourist events and a positive environment for people. The pandemic has caused to hold economy in relation to inflation and demand and supply as the
tourism industry contributes a great part in the economy. It is a serious major event which has triggered issues in hospitality, event, tourism and other
sectors as well. Therefore, it is one of the most major events that has impacted on tourism sector. It has created a low growth period for the economy of
you came that has created climate change and environmental issues are on the major risk. Due to not using resources efficiently and effectively industry is
not likely to cover its cost and utilise it properly.
Event Two:
Another most important event which has caused minor impact on tourism sector is rise in whether events in which many unwanted causes like Hurricane
and earthquake may happen that destroy the attractiveness of tourism industry. Customer change their travel plans and do not want to indulge in any
unnecessary practices to get harm. For example, UK is now facing many heat waves which is causing danger for the people living in particular areas. It
impacts on British tourism and does not have favourable conditions on most of the destinations which every customer seek to visit in UK. This is also
problem situation for tourism industry as whether creates impact on customer engagement and their interest in travel around. When whether is in favour,
tourism industry Rising on great standards whereas fluctuating climatic conditions please a negative mark for customers to explore somewhere. This
impact on tourism sector minor as these are the unexpected situations that customers may not take to consideration for much while as they prefer travelling
to enjoy and involve in entertainment (Baumann, & Matheson, (2018) ). There are various causes of climatic conditions that are unfavourable climate and
destinations me not accept customer arrival due to losses and abnormal conditions. It creates safety problem and environmental issues that is not fruitful
for the industry and businesses.
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3: In addition to events changing Tourism in the past, events are influencing the Tourism industry now. Using the WEF Global Risk Report (2021) below as
your guide, choose tworisksfrom different categories and complete the following questions (1,000 words):
A) Provide a description of therisk; B) Identify potential tourism destinations where the risk could impact upon; C) Discuss the impact this riskmayhave
on the tourism industry either locally, nationally or globally.
Risk One:
A)
Extreme weather conditions are the foremost risk which can be cause on the tourism sector. This
risk involves any miss happening unexpected events danger and natural calamities. Weather
conditions the risk for tourism business as they growth may stop and low customer engagement the
may face. When weather conditions are not favourable, the customers are not likely to travel around
the world and wants to be in there locality to feel safe. This is the risk for tourism sector to expand
the reach to other countries and foreign market (Raad, Sharma, & Nicolau, (2021) ). Also it is
required to maintain favourable weather conditions in UK as the heat wave is hitting badly on the
country which impact on tourism business.
B)
Another risk involved in tourism sector is of human environmental damage which is affected on the
various destinations of UK like Stonehenge and tower of London. This place is affected with the
pollution, waste cause by the human activities. Tourism is all about providing beauty of nature to
the worldwide people to experience something new and peaceful by going to visiting other
countries. Humans are the only one who damages environmental pollution and other harmful
practices to destroy it. Therefore, tourism industry could not survive without environmental safety
as it is the only one concern which is necessary for future growth of tourism sector. The more they
gave rise to environmental safety, the more tourism will grow and harmful causes will be decline.
The environmental damage could be done by excessing waste, using resources in extended ways
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and give rise to water pollution by throwing dust and wastage in river and ponds in UK like
Stonehenge and tower of London. All these practices are affecting the tourist places only by the
humans. When it gets affected, people blame the industry and care takers but do not control on their
acts done intentionally or unintentionally.
C)
The risk of weather conditions has impact on tourism sector local nationality as well as globally.
When the conditions may become Harsh at any country or city that may impact on tourism when
people come from Different cities or anywhere around the world. Therefore, the risk of human
environmental damages creates whether climatic conditions more harmful which can impact on
various destinations such as the UK is facing right now. Over use of chimneys and other industrial
equipment’s lead to causing heat in the country which has great impact on weather conditions of
UK and it decline
Risk 2:
A)
The risk is of infectious diseases which also creates impact on tourism. This is all about facing viral
diseases which move from one person to another. For example, Covid 19 is one of the major
infectious diseases that cause decline in the sector. It spread by being in contact with another person
so that travel gets impact much as people could not able to meet or get in contact with them. It
almost eliminates customer engagement and revenue for tourism sector as all the destinations get
restricted to engage people to lower down the causes of infectious diseases.
B)
There are various destinations on which the risk could impact upon in many cases. One of the most
important tourism country is UK which has contributed a large share in economy but now the cause
of weather and infectious disease has brought potential risk of danger and rise in inflation.
The infectious diseases have impact around all the destinations of UK and other countries as all
were under restricted areas to cover in pandemic (Tohmo, (2018) )). These destinations are not
allowed to open for people as per the government rules they should be no crowded place at the time
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of pandemic. Due to this hospitality industry reduce their clients and providing accommodations
and the destinations were free from the revenue as no one was there to enjoy the nature. There are
several destinations in UK such as Museum, Gardens waterfalls and other specialities are not much
in running as the viral diseases can be spread at any time which will give rise to the Covid patients.
Therefore, these destinations bear use losses at the time of pandemic that lose the whole tourism in
employment rate and as well as operations. This shows that, the infectious diseases have risk on the
tourism industry in which, there is requirement to shut down the operations or maintain social
distancing among people. There should not be any harm or trouble must be caused to the tourist.
The destinations in UK such as like Stonehenge and tower of London has to avoid people arrival to
keep society and surroundings safe.
C)
The infectious disease like Corona virus has impact on all the tourism industry due to unexpected
pandemic which has created diversified impact upon various department and areas of business.
Tourism is the main area which has got decline as it all depends on customer engagement and its
seasonal activity which could not be take place due to the Global pending situations. This disease is
causing high impact on the tourism sector as it involves human participation and interaction with
the virus is which lead to that. Therefore, it is not in favour of society and economy when
population get the client and fear of death is regulating. It has impact on global tourism sector
except sum of Areas where the Corona has not hit much. The countries like India, UK come here
Italy are the main destinations where the pandemic took place in critical situations.
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4: A dictionary definition of “trend”is “a general direction in which something is developing or changing”. The ABTA Travel Trend Report (2022) identifies
trends currently taking place in the tourism industry. These can be seen here and found following the link:https://tinyurl.com/48689pyy
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Choose one trend from the ABTA Travel Trend Report (2022) and evaluate how this trend could impact on a sector of the tourism industry in the future. (500
words).
The ABTA travel trend report 2022 has shown that the packaging is the king of tourism in the
current year. This trend is almost growing after the covid-19 Pandemic. the reason behind making
packaging holidays is a strong point of appreciation for giving convenient and protected type of
booking to the customer in travel industry. There are many booking processes done in almost every
regulated sector in which the pandemic has created its impact. Post pandemic situations were quite
competitive and crucial for the tourism industry in travel sector. in order to attract large number of
tourist to the destinations in order to balance their revenue growth and Re gain their market share.
The holiday makers have 27% of package holidays which gives a financial protection to the
customers as well. This strength is going into rise as it has positive impact on customer
engagement. People find it safe and secured when the travel agency promise to keep all the things
sorted and taken care of by them. The customers can freely enjoy their trips and Tours without any
hesitation and trouble (Choe, Wang & Song, (2021). It has evaluated that the strategy of providing
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packages can lead to add more number of destinations in order to attract customers in low budget.
When The Deals get done in bulk or in large quantities it minimises cost as well as the expenses. It
has analysed that up only 22% of people make their personal packages otherwise all the 70%
people has them believe on the Agencies who provide great services and facilities in packages
regarding flight booking, accommodation, food, destinations and other recreational activities. The
trend of providing packages is vital for the travel sector as it helps in attracting large number of
customers by giving them plans on their tips. When customer gets all the facilities without making
much efforts, it will lead to make their more interest in the travel. customer engagement. People
find it safe and secured when the tourism agency promise to keep all the things sorted and taken
care of by them. Due to this hospitality industry reduce their clients and providing accommodations
and the destinations were free from the revenue as no one was there to enjoy the nature. There are
several destinations in UK such as Museum, Gardens waterfalls and other specialities are not much
in running as the viral diseases can be spread at any time which will give rise to the Covid patients.
Therefore, these destinations bear huge losses at the time of pandemic that lose the whole tourism
in employment rate and as well as operations. For that instance, the trend for providing package
will eliminate any issue to the customers to find the places and reach to correct destination.
Therefore, these trends have evaluated that, customer seeks for facilities and ready to give high
prices to enjoy their trips and make it memorable. There are many booking processes done in
almost every regulated sector in which the pandemic has created its impact.
5: Given the economic value of the tourism industry being $1,700,000,000,000 (pre-Covid) (UNWTO 2019), there is intense competition between
organisations for financial gain. However, given the dynamic nature of the tourism industry environment, events occur regularly that require a response from
these organisations.These responses impact on profit, reputation and image of the organisation or destination.
Identify one event that has happened in the last five and analyse the response of a tourism organisation to this event. (500 words).
Due to the decline in economic value of tourism industry which has created a lot of competition in
the businesses to regain their market and financial shares. The Brendan Vacations company have
impacted through the Covid 19 in the last 5 years that the tourism had on every organisation of
tourism sector. No business is running successfully at the time of pandemic as it created serious
restrictions in curfews outside on travel. Any emergency cases only give format to go outside and
just to buy the daily Essentials. The government does not provide any leniency on the Corona virus
as it is the most dangerous event has occurred in the last five years’ history. The tourism sectors
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reduce their employment by terminating employees because of getting insolvent or lack of funds to
run the company. Many Agencies have shut down who just operated their small business. Also, the
pandemic was the reason behind price in inflation and poor demand and supply due to which the
Brendan vacations and suffered decline in the tourist arrival. This event is the most critical due to
which the companies need to look for good financial budget in order to regain the market share
after the pandemic. All the operations and work get stopped which create pressure on travel
agencies. All the tourism agencies are affected by the protocols of Covid-19. This event is the most
strategic which has stopped all the operation of Brendan vacations (Travel Alerts, 2022). This
shows that, when economic power gets down, environment gets polluted and caused by the virus, it
will lead to have great impact on the company's performance and targets. This shows that how can
a company will avoid this impact by attracting large number of customer towards the company.
After the Covid-19 pandemic, there will be a boom in the industry which will increase the
competition so far. The company have impacted through the Covid 19 in the last 5 years that the
tourism had on every organisation of tourism sector. No business is running successfully at the time
of pandemic as it created serious restrictions in curfews outside on travel. This shows that, it is
necessary for the development of travel sector to get rid of this event as soon as possible. There is
requirement of the key concerns due to this pandemic situation which is impacting the travel sector.
People could not explore the nature because of this global trend happening around the world. it
shows that, there is requirement of protective measures which needs to be adopted by the travel
sector of UK. They must maintain all safety protocols, social distancing and areas of development.
It has analysed that this is the major event which is the reason behind falling down of tourism
industry. it has reduced employment, economic GDP, tourist events and a positive environment for
people. The pandemic has caused to hold economy in relation to inflation and demand and supply
as the tourism industry contributes a great part in the economy.
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References:
Craig, C. A., & Feng, S. (2018). A temporal and spatial analysis of climate change, weather events, and tourism businesses.
Craig, C. A., & Feng, S. (2018). A temporal and spatial analysis of climate change, weather events, and tourism businesses. Tourism Management, 67, 351-
361.
Ogbeide, G. C. (2020). Pandemic (COVID-19) Implications: Recommendations for the Events and Tourism Industry: COVID-19 Implications:
Recommendations for the Events and Tourism Industry. Events and Tourism Review, 3(2), 32-38.
Malchrowicz-Mośko, E., & Poczta, J. (2018). A small-scale event and a big impact—is this relationship possible in the world of sport? The meaning of
heritage sporting events for sustainable development of tourism—experiences from Poland. Sustainability, 10(11), 4289.
Baumann, R., & Matheson, V. (2018). Mega‐events and tourism: The case of Brazil. Contemporary economic policy, 36(2), 292-301.
Raad, J., Sharma, A., & Nicolau, J. L. (2021). Will your majesty marry me? The effect of royal weddings on the tourism industry. Tourism Economics,
13548166211004361.
Tohmo, T. (2018). The economic impact of tourism in Central Finland: a regional input–output study. Tourism Review.
Choe, Y., Wang, J., & Song, H. (2021). The impact of the Middle East Respiratory Syndrome coronavirus on inbound tourism in South Korea toward
sustainable tourism. Journal of Sustainable Tourism, 29(7), 1117-1133.
Online
Travel Alerts, 2022. [Online] Available through <https://www.brendanvacations.com/travel-resources/travel-alerts/>
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