The Dynamic Tourism Environment

This article explores the dynamic nature of the tourism industry and its impact on the global economy. It discusses the challenges and opportunities faced by stakeholders in the tourism sector, including the effects of events such as the COVID-19 pandemic. The article also highlights the importance of sustainability and environmental protection in the tourism industry.

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:

ABTA Travel Trends Report / CAPA / WTTC Publications / Skift / UNWTO Library /
UNWTO Tourism Highlights / Stakeholder Response Strategies / WEF Global Risk
Report
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).
Triangulation refers to operating with more than one process of assembling data
regarding a subject matter. It can also be referred as the method of finding the
location of any point by the method of forming triangles from any of its known
point. It involves measuring angles instead of measuring distances.
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: Olympics
Olympics are the sports event where several thousands of athletes around the
globe come and participate in a list of sports to compete. With participating
athletes, tourists also visit to gaze the event and cheer up participants. This in
turn enhance tourism of the host country as international tourists visit for
watching games and then the country as well. The impacts of tourism in a
country will help in enhancing economic, social, cultural, environmental and
technological factors of nation. The tourism industry assists in providing more
job opportunities, tax subsidies, revenue generation, increased sales, increase
in profit margins and income enhancement in the country hosting Olympics
that year and in after years as well. Culture of the nation is also enhanced as
host country works on improving cultural values so that international tourists
are more attracted. It even leads in increase in infrastructural facilities of
country. The host country invests in billions of amount in return to achieve
boom and establish better foreign relations with other countries, which in
return lead in more foreign investment. When a good amount from foreign is
invested, the country grows in many aspects which will help the economy. With
economic and financial development of nation, living standard of the people of
country is also increased. Sometimes host countries face negative impacts in
aspect to crowding places, lot of traffic jams, inflation and others. The nation
might face destruction of the national heritages, damage to current reputation.

Event Two: Commonwealth Games
Commonwealth Games is an association where elite employees participate all
over the world. As participants are international, the audience will also be. This
in turn provides a boom in hosting nation as more and more tourists would be
visiting for commonwealth games providing more employment, high income,
better living standards. Every country wants to boost about their traditions and
cultures when it comes to know that foreign visitors will be coming to visit.
These will create job opportunities, providing a better pay. The host country
spends several millions of currencies to show their best so that investment in
terms of foreign investors is increased. This strengthens trade, physical
infrastructure and investment. With positive impacts the nation even faces
negative impacts such as hike in prices as sellers take advantage on behalf of
foreign customers. This will affect the existing customers facing inflation. The
crowding at places increases leading to inconvenience for residents, pollution
increases in respect to air, sound, water and others. Problems of waste
disposal also occurs. When a big event is hosted, the cases of bidding are also
increased and other illegal works even as cash flow in the economy is
increased. To facilitate the event, several slum areas and temporary houses
are moved away resulting in social dislocation of people as well as
accommodation. The chances of event failure might arise.

3: In addition to events changing Tourism in the past, events are influencing the Tourism industry now. Using the WEF Global
Risk Report (2020) as your guide, choose two risks from different categories and complete the following (1,000 words):
A) Description of risk; B) Discussion of impact this risk may have on the tourism industry;
C) Deliberate on how one stakeholder could respond to each risk you have identified.
The WEF Global Risk Report (2020) “Global Risks in Terms of Likelihood and Impact can be found here:

residents reduce environmental risks
Risk One: Environmental Risks
A) The risks which causes threat to surroundings in term of emissions, wastes,
depletion of resources, pollution, destruction to physical locations and so on.
Such risks can be caused in categories like physical, chemical, biological,

cultural. Such risks exerts a high pressure on land resources, natural habitat
and species which might and might not ruin the nation.
B) The tourism industry leads to environmental risks highly as it affects the
nature and its habitats in terms of degradation to natural resources and
artificial resources as well. Tourism leads to pollution, pressure on endangered
species, loss of wildlife and nature, social relocation and others. These risks
can make land resources less fertile, increase the global warming when
pollution is increased in a particular nation. To facilitate tourists large hectares
of forests and slum areas are dislocated in order to create accommodation and
sight seeing places. To enhance attraction some of the endangered species
are targeted which might affect them and lead to their extinction.
C) Residents as one of the main stakeholders in tourism industry caters to play
a significant role in both either destructing the environment or building the
environment. They can take measures for sustainability and can come forward
in reversing the destruction. They can use public transportation or bicycles,
walking to reduce pollution and save resources. Eco friendly activities chosen
like cleaning natural resources, planting plants and others. Rather than foreign,
local business should be encouraged and purchased from.
Risk 2: Technological Risks
A) The elements causing risks of technical know how like cyber attacks,
information hacks, password theft threats, etc. Such risks can lead to failure to
any business and to nation in turn. Such risks in further case can lead to
negative impacts on conditions like financial, reputation, regulatory and others.
Such are called modern day risks even.
B) Tourism industry can cause technological risks because tourism promotes
foreign incoming in terms of individuals or technology. People from any part of
world can come for the sake of tourism and they may spread any virus or
bacteria either in physical surroundings or in technical devices. Foreign tourism
will also link with foreign technology causing in data leak, password hacking of
any major or big institutions. It can lead to hacking software and ejecting

ethical and secret information of the country.
C) Government being a powerful stakeholder in respect of money and power
may bring out plans which can prevent such risks. They can authorize to form
more secure passwords which are not easy to be hacked. The software need to
be more authentic and secured so that virus must be least affecting the
software. More emphasis on wireless networks, data backups, secured
passwords. An effective anti virus, firewall, anti spyware protections should be
made mandatory by the government for their systems so that the important
data of nation is not leaked in wrong hands.

4: The Cambridge dictionary defines a trend as “a general direction in which something is developing or changing”. ABTA
Travel Trends Report (2020) identify five trends currently taking place in the tourism industry. These can be seen below:
4: Choose one trend from the ABTA Travel Trend Report (2020) and evaluate how this trend could impact on a sector of the
tourism industry in the future. (500 words).
The one trend which has a major impact on the tourism industry is the
environment. The focus of consumers are increasing on environmental as well
as social impact of the holiday. The hectic lifestyle of consumers provokes
them to book a holiday for chilling out. At that situation the consumer wants to
spend some time with nature far from the urban lifestyle which provide them
inner peace. That is the reason that increase the consciousness of the tourist
industry toward sustainability and environment development. Officials and
people have realised that there should be more seriousness about the health
of the planet as it has a limited capacity and must be properly protected to
survive. The future of tourism industry for its development needs to be
consistent and should be in accordance with requirements of the environment.
According to ABTA, past some years rise concerns over various issues such as
climate change, animal welfare and plastic waste, etc. ABTA in its latest report
shows that half of the i.e. 50% of the people chooses green credential of a
travel company during plan of their holiday. It shows a great impact of
environment on tourism of a country. It can be very clearly seen in the near
future the people should have to follow a very busy schedule in order to earn
their livelihood. In order to take rest from the busy life they will plan a tour far
from their usual environment and will choose to go at a place with green trees
and peaceful river banks. Then it can be concluded that in future the demand

of tourism in places with so much greenery will increase. Not only for personal
holidays business trips will be at places with good environment. Although
tourism has a negative impact on nature as it increase the pollution and
exploitation of that place with increasing tourism but proper care should taken
of the environment and the organisations should believe in sustainable
development. The development of environment will not only attract visitors but
also attract new business in locality and also provide employment
opportunities to the local people and also a clean and good environment to live
in. It will ultimately help in economic growth of the country and create benefits
of tourism to everyone. That is the reason sustainable development have been
on the agendas of the travelling businesses and industry is continuously taking
actions to address the environment and social impacts which includes
implementing animal welfare policies, developing excursions which maximise
benefits to local communities, setting carbon reduction targets, single use of
plastics, etc. As environment puts a positive impact on tourism ABTA is
committed to build a sustainable industry working with its members, their
suppliers, travellers and destination governments which includes the UK
government. The tourist industry is one of best economic activities having
minimal damage to the environment and also known as industry without
smoke and pollution. But ancillary services in tourism indirectly leads to
pollution. So the development of tourism should be performed with taking in
mind of environmental protection.
5: Given the economic value of the tourism industry being $1,700,000,000,000 (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).

Tourism means travelling to a place outside the usual environment and staying
in there for 24 hours and more no matter the purpose either business, holiday
or any other purpose. Business of various organisations have high impact of
tourism industry such as hotels, restaurants, travel agencies, transport service
organisations, etc. Tourism industry is a vast industry having intense
competition between organisations which drives economic growth of the
country. But this industry just like other businesses dynamic in nature. Hence,
there is high need of events to be occurred on regular basis to attract tourism
in any country. As these event will eventually help the tourism organisations to
grow their business so organisations prefers to take active participation in
these events to increase tourism in the country as well as it also helps in
promotion of the organisation as the participants of the events will come to
know about the organisation. There are several events which takes place in a
country to attract and increase the tourism. Major events that attract most of
the tourists are Olympics, common wealth, world cup, etc. apart from these
events there are also some business events to attract the business class
people, which are popularly known as trade events. These trade events attract
large number of international suppliers, international buyers and international
media. Some of the events happened recently in 2019 in different parts of UK
are ExploreGB 2019 in Harrogate 8-10 May 2019, ITB Berlin 2019 in Berlin 6 -
10 March 2019, Destination Britain China and North East Asia in Sanya, Hainan
19-21 November 2018, etc.
The VIBE 2019 is among one of these trade events held in London and
Stratford in England in 2019. The VIBE stands for Visit Britain International
Business Exchange. It was held on 7th & 8th of October in London and on 10th
of October in Stratford-upon-Avon. In this event around 140 UK suppliers have
a meeting with 30 in-market experts who are from around the world. They met
in pre-scheduled one to one meetings to find about the market more which
includes how to reach international visitors, visitors behaviour and inbound
trends. A seminar programme was also conducted to provide updates on some
England activities like TXGB, Discover England Fund, Taking England to the
World and also include updates of research on tourism trends and
sustainability. This event attract so many visitors to England and ultimately

increase tourism activity in UK. Various organisations of tourism industry take
part in this event which helps them to grow their business as international
visitors visit in event which increase tourism in country further they know
more about the organisations take part in event by seminars which happened
in event.
References:
Hambira, W.L., Saarinen, J. and Moses, O., 2020. Climate change policy in a world of uncertainty: changing environment,
knowledge, and tourism in Botswana. African Geographical Review, pp.1-15.
Aslan, A., Altinoz, B. and Özsolak, B., 2020. The nexus between economic growth, tourism development, energy consumption,
and CO 2 emissions in Mediterranean countries. Environmental Science and Pollution Research, pp.1-10.
Zhu, W. and et. al. 2020. Landsat 8‐observed water quality and its coupled environmental factors for urban scenery lakes: A
case study of West Lake. Water Environment Research, 92(2), pp.255-265.
Poddubnaya, T.N. and et. al. 2020. Using the electronic information and educational environment of the university in the
training of tourism industry workers. Amazonia Investiga, 9(28), pp.249-259.

ABTA Travel Trends Report (2020):
“The Rise of Slow Travel”.
“Travel Agents Meeting the Demand for Customer Service”
“Electric Aviation Takes Flight”
“Touring Gets the Personalised Treatment”
“Increased Focus on Environmental Impacts of Tourism”