Comprehensive Report: Current Challenges Facing Tourism Industry

This report provides a comprehensive overview of the challenges currently confronting the tourism industry. It begins by defining business management and highlighting the importance of the tourism and hospitality sectors, emphasizing their role in economic growth and employment creation. The report identifies several key challenges, including high taxation, economic crises such as the Covid-19 pandemic, inadequate travel marketing, the impacts of globalization leading to indistinguishable services, and security concerns. It further explores the future trends in the tourism industry, noting the need for adaptation to changing preferences and health consciousness among tourists post-pandemic. The report concludes by underscoring the importance of managing operations systematically for business growth and referencing several academic sources to support its analysis.

Current challenges
facing tourism industry

Table of content
 Introduction
 Understanding of tourism industry
 Importance of hospitality and tourism industry
 Current challenges facing tourism industry
 Future of tourism industry
 Conclusion
 References

Introduction
 Business management is defined as the process of
managing the coordination of business activities for the
purpose of attaining determined goals and objectives of
organisation.
 Management includes various activities such as planning,
organising, directing as well controlling organisational
operations and resources to meet desirable objectives and
policies.

Understanding of tourism industry
 Tourism industry is defined as the most exciting,
progressive and comprehensive industry that involves
various industries like hospitality, tourist destination,
transportation, travel companies and various others.
 They provide travelling and staying facility to people
outside their usual environment for less than one year
for the purpose of leisure, business, health and other
reasons.

Importance of hospitality and tourism
Hospitality and tourism is the fastest growing industry that plays
significant role in growth and development of economy in various
manner. hospitality is the service sector that provides accommodation,
transportation, travel, food and beverage to tourist. Some importance
of hospitality and tourism industry are explained below:
 Create employment: Hospitality as well as tourism industry plays
important role in creating employment in country.
 Builds infrastructure: As tourists are attracted towards good
infrastructure facilities.

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 Foreign exchange earnings: Hospitality and
tourism industry plays important role in
contributing to enhance foreign exchange income of
country.
 Boost foreign trade: Tourism is the major sector
that emerged with global business so, it plays
significant role in boosting foreign trade as well as
increase foreign exchange in economy that
strengthen its positioning.

Current challenges facing tourism
industry
Some challenges that are faced by tourism industry are mentioned
below:
 Taxation: Tourism is the sector on which government charge
heavy tax. High and changing tax rates create challenge for
industry and impact its efficiency and effectiveness negative
manner.
 Economic crisis and pandemic: The pandemic of covid-19 bring
uncertainty in tourism industry and impact its operations and
profitability level because in this period overall lockdown in
imposed on economy.

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 Travel marketing: Tourists as well as travellers faces difficulty in
travel marketing because it fails down, inadequate and
exaggerated.
 Globalization: Globalisation is the aspect the create challenge for
tourism industry because due to global standardization,
indistinguishable products and services are found in every country.
 Security: It is the major challenge for travel and tourism industry
because various leaders fail to confront the security issues.

Future of tourism industry
 Trends are regularly changing in tourism industry so; it is
important for industry to explore new destinations and routes.
As per the pandemic of Covid-19 the industry is getting
affected negatively as world denizen, slowly recuperates from
the pandemic.
 Now borders are starting to open but future of tourism industry
look a bit different than the pre pandemic situation. The future
of industry is not clear and it cannot properly forecast. In
future, tourists will become more conscious about their health.

CONCLUSION
 As per the above report, it can be concluded that it
is very important for organisation to manage
operations and activities in systematic manner that
lead business towards growth and development.
 Tourism industry is the part of service sector that
includes transportation, accommodation, travel and
various other survives.

Reference
 Avci, N., 2020. Psychological Empowerment: How Can the Tourism Industry Adopt It?.
In Organizational Behavior Challenges in the Tourism Industry (pp. 249-265). IGI
Global.
 Bec, A., and et. al.,2021. Virtual reality and mixed reality for second chance
tourism. Tourism Management, 83, p.104256.
 Criveanu, M.M. and Criveanu, M., 2020. Tourism Nowadays-Challenges and
Opportunities. Ovidius University Annals, Economic Sciences Series, 20(1), pp.319-324.
 Ozdemir, A.I., Ar, I.M. and Erol, I., 2020. Assessment of blockchain applications in
travel and tourism industry. Quality & Quantity, 54(5), pp.1549-1563.

Thank-you