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Tourism Business Environment

   

Added on  2020-10-04

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Tourism Business Environment

A PEST analysis of an Inbound Tourism Market.Political factorsCategoryGovernment.Tax policy Trade restrictionRelevance to Potential Inbound MarketIn every nation the political factors are the major impact on thePotential inbound tourism market that can be describe as follows:Japan Government intervention on the tourism market withimplementation of different policy and procedure related businessfor ethical practices and objectives to bring the development ofsociety by attract-in tourist in different destination of Japan. Fromthe prime minister Shinzo Abe takes the charge of governmentand promised in their campaign to promise for boost developmentof nation Mihalič Žabkar & Cvelbar, (2012).Due to changes in the new taxation policy 2014 for the businessclass have the large impact on the inbound tourism market. 8%tax will be impacted on the citizen while the business people haveto pay 30.86% which is high for them. If these much of tax haveto pay from the business which will directly impact on therevenue of the organist. The firm will raise the cost of goods andservices related to the tourism market.If the government will restricted the trade between the two nationwill affected to the tourism market in terms of supply anddemands of the particular goods and services Will availability atthe high cost in the local market. The bilateral relation with chinaand Japan can be impacted on their trade Carlisle, Kunc, Jones &Tiffin (2013). If any nation will restriction then tr4ade than thetourism market will be impacted on the nations resources.CategoryEconomicGrowthExchangeRateInflation andGDP Unemployment rateRelevance to Potential Inbound MarketIn every nation the Economic factors are the major impact on thePotential inbound tourism market that can be describe as follows:The growth of the japan economy is faster in comparison of othernations and inbound tourism market is also in developing stagedue to the third largest economy in the world which is theindication for Chance of high growth of inbound tourism innations. But due to the globalization and downward slopingeconomy of other nation will less impact on the japan economicgrowth. As the new government have been focus on theaggressive policy to inject the economic condition.In the period of 2001 and 2007 the change for the Japanesecurrency yen wakening against the sterling in which for the touristof Britain it will be more burden on the different goods andservice relates with tourism such as reduction of price of airlines.If the exchange rate of the currency will be down than it will bedirectly impact on the flow of money in inbound tourism marketin which the economy will be face many challenges.The growth of the economy will be direct impart on the GDP ofthe Japan. The real GDP of the nation have been decreasing in theyear 2013 from 1.4% but in the year 2014 it was 1.7 slightlychanges as compared with year 2012 from 1.9. it shows thateconomy need to stimulate to with step for the business to attractthe tourist. Also the purchase Powers of the customer is increasewhich can be relative price level. The inflation of the nation alsoone of the major factor for the Japan.These are the major problem for the japan which have the

consistency of 4% unemployment in the nation will give changesfor increasing the tourist help to lower the unemployment in thenations. Due to the average earning of citizen had increased from3.1 % which is reconcilable but the tourism will give morechanges for setting up business for people who are not able tobalance their livelihood Sotiriadis & Van Zyl (2013). Social FactorsCategoryLanguages andCultureRelevance to Potential Inbound MarketIn every nation the social factors are the major impact on thePotential inbound tourism market that can be describe as follows:Japan have the most Customer and discip0ilne society in thenworld. Due to the culture of the nation will give more attractiontoward the tourism sectors. The vacation leave for the Japaneseemployees get approximately 16.6 days with half of amountCompensate to them. But 8% people will allotted these levelwhile rest of them need to work. These can be the major factorsfor inbound tourism market. The kawai is the Japanese termwhich means cute and beautiful. The cuteness is highly values inthe japan pop culture. The most important things in the termskawai can be used for the animals as well people Mason &CategoryInternet AutomaticsRelevance to Potential MarketIn every nation the technological factors are the major impact onthe Potential inbound tourism market that can be describe asfollows:These can be the major changes in the technological sector of theJapan which can be increase the inbound tourism. In japan thenumber of internet users are 27.7 million broadband lines. Due tothe Internet people can be easily access the information ofdifferent tourism destination. The business are doing easy withthe help of internet to get the idea about each and every thingabout to attract tourism,Webster & Ivanov, (2014).Japan is most advanced nation in terms of automation. The

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