The Dynamic Tourism Environment

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: