SCU: MKT01762 - Tourism Issues: An In-Depth Analysis

This presentation provides an in-depth analysis of the tourism industry, focusing on key issues such as safety and security, high taxation, and fluctuating fuel prices. It examines how these factors impact travelers and tourism businesses, including the effects of high taxes on airline tickets, hotel rooms, and rental cars, as well as the influence of fuel prices on various transportation methods. The presentation also explores concerns related to safety and security, the impact of technology on destination choices, and the challenges of global standardization in the hotel industry. References to relevant literature are included to support the analysis of these contemporary tourism issues. This presentation was created for MKT01762 Contemporary Hotel and Tourism Issues at Southern Cross University.

Tourism
An In Depth Analysis
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Introduction
o Tourism is developing as a
booming opportunity of
business among the modern
generation entrepreneurs.
o The industry contributed 2.7
trillion US dollars and
generated 119 million jobs
in the world (Giampiccoli,
Lee and Nauright 2015).
o The development of the
industry is pretty visible
with the GDP growth of
4.6% (Giampiccoli, Lee and
Nauright 2015).

Tourism and the problems of it
The major constraints of
the Tourism:
 Safety and security of
travellers (Jarvis 2015).
 High tax.
 Increment in the fuel
price.
 Global standardization
of hotel.
 Choices of the
location.

High Tax
The local government is
seen to earn high
revenue through the
process of taxation in the
below mentioned
sources:
Airline ticket.
Hotel rooms.
Rental cars.
Fare for the locations.
 Add-one taxes
(Environmental Charges).

Airlines Ticket and Location Charge
Airlines Tickets:
The modern tourism organizations are
forced to pay a significant amount to
the government as taxes for the flight
tickets depending on the various
classes like business or economy.
Location Charges:
Several local agencies of the
government in the rural tourism are
seen to charge the tour operators for
the fare of the location. The main
reason for this is described as the
maintenance cost of the location.
However these sorts of charges
increase the cost of travelling for the
tourists.

Hotel rooms and Rental Cars
Hotel rooms:
The modern tourism operators are
determined in providing the optimum
quality service to the tourists. In order
to do so, the operators hire the super
speciality hotels and resorts and
depending on the rating of the hotels,
they are forced to pay increased taxes
(Hannam, Butler and Paris 2014).
Rental Cars:
In modern tourism, the wild life safari
and the road trips are observed to
attract the customers in a significant
manner. The tour operators form
effective tie-up with the motor vehicle
agencies for the rental cars and through
the car providing agency, the
government charges a notable amount
of tax on the service as well.

Fuel Prices
The fuel prices are
seen to be
significantly affecting
the tourists in the
various
transportation
mediums like:
Aviation
Road transportation
Marine
transportation
Railways

Aviation and Road Transpiration
Aviation:
The increment in the pricing of the
fuel has the potential to increase
the cost of the tickets of airways
(Butler and Ivanovic 2015). At the
same time, the increment in the
fuel pricing will affect the
frequency of the flights as well.
Road Transpiration:
Similarly, the increment in the
pricing of the fuels will trigger
increment in the prices of the
tickets for the buses, rental cars
and traveller cars. The frequency of
the buses is seen to be affected by
the increment in the fuel pricing.

Marine Transportation and Railways
Marine Transportation:
The ships consume notable amount of
fuel like the aeroplanes and the
significant increment of the fuel pricing
is observed to increase the allotted
price for the fuel which will pose a
threat to the desired amount of
revenue. The companies try to
compensate it over the customers and
that increases the cost of travelling in
ships.
Railways:
The cost of the electricity is observed
to increase in a significant manner with
the sharp rise in the pricing of the fuels
and that plays a crucial role in the
increment of the tickets of trains. Thus,
the tourists are facing the impact of
the price rise of the fuels.

Safety and Security
The concerns that are affecting tourists in
this aspect are:
 Fear of increasing terrorism.
 The lack of trust on the tour operators.
 The confusion regarding the operator’s
ability of arranging the medical set up
on emergency basis (Jovicic 2014).
 The concern regarding the sense of
urgency of the tour operators.

Choices of the places and technology
 The customers are seen to
be significantly affected with
the usage of technology.
 The customers have the
tendency of ignoring the
artificial beauty in choosing
the destinations.
 The natural tourism
destinations are more
preferred by the customers.
 Any sort variation in the
choice of the destinations
becomes tough to deal with,
for the tour operators.

Global Standardization
With hotel and resorts
companies going for
global standardization,
the concern of the
customers are
mentioned below:
For customers with low
budget:
 Pricing of the rooms
(Mason 2015).
 Increased cost of food
and other beverages.