A Detailed Analysis of Current Issues Affecting the Tourism Industry

This essay examines the significant issues currently affecting the tourism industry, highlighting their impacts on performance, productivity, and overall operations. It identifies factors such as currency fluctuations, inflation, and rising fuel costs as critical economic challenges. The essay also delves into the profound effects of the COVID-19 pandemic, which has led to decreased profitability, altered consumer behavior, and disruptions in destination planning and marketing strategies. The pandemic has further impacted employment opportunities and financial stability within the tourism sector, leading to travel restrictions and reduced demand among travelers globally. The analysis underscores the importance of addressing these issues to ensure the sustainability and recovery of the tourism industry in the face of ongoing and future challenges. Desklib offers resources for students seeking to understand such complex topics with solved assignments and study tools.

Current Issues in Tourism

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Impacts of current issue on tourism industry...............................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Tourism industry is the combination of all businesses that directly offers products or
services to pleasure and leisure action away from the home atmosphere. Tourism industry plays
significant role in the country because it brings commercial benefits and offers opportunity to
other people to interact with new people and understand their culture. It develops demands and
growth for various hospitality industry which improve GDP rate of country. Basically tourism
industry is not only give high contribution in financial activities but also raises employment
ratio, revenue and plays effective role in development of country. Tourism industry leads
numerous benefits in country such as economical, job opportunity, infrastructure of country,
environmental, cross-cultural and promotional etc. But current situation has reductant benefits of
tourism industry which will discuss in this essay.
Impacts of current issue on tourism industry
Significance of tourism industry
Tourism sector is considered economic booster because it gives huge contribution in economic
development from past few decades. Currently people look for holiday as essential and not in the
form of luxury. Tourism act as intermediate between travel agent, tour operators and tourists and
provides proper coordination and cooperation to them. Tourism sector posses’ some essential
elements i.e. destination, attractions, sites, accommodation and other subsidiary services.
Generally, tourism industry gives it’s contribution by involving into activity of people or group
of people travelling and staying in place which is quite away from their home environment for
the business and leisure purpose (Cheng and Edwards, 2019). In used to be time tourism was
considered as traditional but with valuation of culture, knowledge and economies defines tourism
into different form as sustainable tourism. The reason behind is that management of tourism
industry initiates to create well-planned tour, well-studied destination as well as conservation of
destination for the tourist. There are several factors that influence people for travelling away
from home environment such as spends their holidays leisurely, to attend business and
professional engagement, to pilgrimage religious places, to visit friend and relatives etc. These
are the major resources that influences individuals to take travel trip and gains new experience.
Tourism management contains number of activities i.e. deep study of tour destination, planning
tour, develops travel arrangement and offering accommodation (Dinarto, Wanto and Sebastian,

2020). Tourism industry includes marketing efforts for attracting tourists or visitors to travel in
certain destinations. There are two type tourisms i.e. traditional and niche tourism. In traditional
tourism decides and plans number of days for weeks for the realistic travelling day. On the other
hand, niche tourism decides and plans tour spontaneously from date of travelling. Generally
traditional tourism takes the form of social activity in which large number of people involves.
While niche tourism takes the form of personal, family or friends’ activity in which involves
small number of people. In traditional tourism, tourists do not care for local economies, culture
and environment while in niche tourism, tourists look to supports in keeping local economy,
culture and environment for gaining positive experience of the locals, tourist business and
themselves. Both traditional and niche tourism are economy booster and develops country
effectively. Most of the countries government has taken tourism industry initiatives for economic
development perspective. Apart from this tourism industry gives high contribution to eradicate
poverty by raising large recruitment vacancies for the people as well as improves cross cultural
development.
Common Issues faces by tourism
From past few years tourism industry faces wide issues which diminishes profit ratio of them as
well as impacts on country’s growth negatively. The common issues are maintenance a
destination’s sustainable tourism development which is highly essential for keeping tourism
precious but it gives threat to the tourism management. The reason behind is that to offers
destination travelling to the guest is quite easier but keep sustainability in tourism development is
big task (Ellis and et.al., 2018). When a country unable to keep sustainability in social, cultural,
natural resources etc. makes unattractive place for visiting purpose. To concern about safety and
security is also a major issue for the tourism industry because when tourists does not feel safe
and secure then they do not prefer for travelling so it is a mandatory for the tourism industry to
give high quality services with safety and security. Climate change and global warming also
gives long-term impact on tourism industry because it reduces tourists incoming. So, it is also
major risk that faces by tourism industry from recent years which causes they unable to well-
planned tour and well-studied new destination. Due to long-term impact of climate change
demotivates people for travelling away from home environment. Leadership in tourism policy
and strategic planning is another issue which faces by travel and tourism industry because

government has imposed tourism policy for tourist welfare. In instance, tourism industry needs
good leadership style which can align all tourism policy systematically and plans effectively so
that enables to meet all guests’ objectives and in return generate huge economic benefits.
Human induced disasters, health issues and political disruption affects tourism industry sector
because tourism organizations unable to plan for destination for the tourist. Apart from this, such
kind issues reduce travelling decision of guests as well. Most of tourists seeks for quality
experience so they choose only those tourism organization which keeps effective balance
between local residents and tourists at destination. These issues are common but impactful
because it directly impacts on tourist buying behaviour as well as GDP rate of country (Karim
and et.al., 2020).
Current issue
There are some issues that develops currently in tourism industry which negatively impact on it’s
performance, productivity and operations as well (Laškarin, AžićDlačić and Suštar, 2020). for
example, rapid fluctuation in the currency price of various countries is the major issues for the
tourism sector. Currency plays significant role in choosing a tourist destination through tourists.
Currency pricing is the major issue that arises in recent years as result leads slow growth in
tourism sector. Another factor is affiliated with economic environment which is raised in
inflation. In recent years rises uncertainty in the market condition and unpredictable marketing
which improves rate of inflation in the tourism industry (Maliszewska, Mattoo and Van Der
Mensbrugghe, 2020). So, market situation and volatile currency fluctuation become one of the
major and effective issues which are obtained in the tourism sector by and by. Increase in petrol
cost is also highly impacted issue for the tourism in term of economic scenario which cannot
ignored every time. However, rise in fuel price is the major issue which always keeps in first
priority as compared rest of the issue because it has made local travelling more costly and
expensive in tourism. This element has impacted cost structure of aviation industry at high level
which is the essential source of connecting international borders. Thus, these above issues have
tended to be problematic for tourism industry.
Apart from these issues has created big threat for the tourism is Covid-19 currently. Covid-19 is
a disease that is caused by new strain of coronavirus has impacted on tourism industry’s
behaviour badly across the world (Raza and et.al., 2017). This disease is become life threatening

for everyone after outbreaking overall the world. In that case tourism sector has pointed out as a
disease spreader because this sector has played huge role to the spread of disease and has
experienced the impact of disease on all parts of tourism and supply chains. In recent months this
disease has reached globally, so to control over the disease takes some classical applications in
the form of quarantine, decreased mobility and isolation also has affected international and local
tourism. It has impacted wide range of tourism sector such as transportation, travel and booking
agencies, hotels, restaurants, conventions, events and others which has led huge financial loss in
tourism organization and country’s GDP rate (Tolkach, Chon and Xiao, 2016). There are various
impacts of Covid-19 on tourism which has negatively decreased profitability, performance and
productivity of tourism organizations in the tourism international market. Due to this pandemic
situation, consumer behaviour is negatively impacted for the tourism service. so, it may possibly
people or tourists does not prefer to buy tourism service for certain years due to current scenario.
This impact directly impacts on tourism sector’s sustainability in the tourism market. The
business nature of tourism organizations is also impacted through Covid-19 because their
tourism strategies are properly based on destination planning. Destination and marketing
strategies give huge contribution to improve tourist experience and leads sustainability in tourism
development has impacted through Covid-19. The reason behind is that when people does not
like prefer go away from home then destination and marketing strategies are senseless. It causes
tourism cannot generate high revenue for the country. Due to this pandemic situation gets
negative impact on tourism’s financial and economic strategies because they unable to offer
holidays packages and travel services to the customer as result get high loss in it’s performance
and operations. Tourism is considered the major source of employment opportunity and people
also willing to apply in this sector. But due to Covid-19 no employees want to work in the
tourism industry which reduces productivity of staff member within workplace (Yung and Khoo-
Lattimore, 2019).
To control disease’s global reach has announced to keep self-quarantine and sanction on mobility
for all people which causes tourism industry unable to undertake marketing activity for
influencing buying behaviour of tourist. The current situation has majorly impact on the
economy of country negatively. The reason behind is that tourism has primarily affected by
people or pandemics and starts to cut down on their travel budget. Basically, tourism has played
direct role when it comes to Covid-19 which has spread widely in wide number of countries

along with large number of tourists. This pandemic situation has become biggest threat for the
tourism industry because it has led travel restriction and reduces demands among travellers. It
has decreased more than 20-30% global international tourist arrivals in 2020 which is not good
sign for tourism sector. In various world’s cities has planned travel but all has gone down more
than 80%-90% due to closing of tourist’s attractions places like museum, amusement parks as
well as sports venues which has closed due to coronavirus outbreak. There are numerous
countries that has impose quarantines, entry bans and different type of restriction for the citizens
who are from most affected areas. While other countries have imposed global entry restriction
for all foreign countries and territories and bans their own citizens from travelling areas. It causes
willingness of tourist has decreased which has impacted economy of travel and tourism in those
areas negatively. There are large of number of countries whereas tourists love to visit and ready
to spend more money for taking tourism services such as Australia, India, China, Japan,
Malaysia, Singapore, South Korea, US, UK and others. these countries have become most
affected areas of Covid-19. These countries have taken different classical application to control
this pandemic in their country such as they have imposed self-quarantine, travel restriction and
bans their citizen to come from affected areas in their country (Zheng, Goh and Wen, 2020).
These countries are the main hub of travel and tourism sector but due to pandemic have reductant
all destination and tourism planning of tourism. South-Korea is highly famous for it’s travel
agency because it has world’s largest travel agency due to pandemic has received huge
economical loss from travel cancellations. While US has shut down 99.5% tourism and travel
arrivals in Hawaii along with fourteen days quarantine for anyone arriving while some tourist
came from island, they did not follow this rule were arrested. Thus, different countries take
different classical application to control on this disease which decline travellers willing to go for
visiting. Overall, this issue has harshly impacted on tourism industry in term of economic,
destination strategies and revenue. if this situation gives long-term impact on country then
tourism organizations unable to sustain in tourism sector for long time.
CONCLUSION
This brief has provided understanding about role of tourism in the country’s development
and also concluded benefits of tourism such as economical, opportunistic, cross-culture and
others. this essay has concluded some general issues that faced by tourism organization while

running it’s business in the tourism sector. It has summarized current issues like fuel price,
fluctuation in currency and uncertainty in market which impacted on tourism sector negatively. It
provided acknowledgment about Covid-19 impact on tourism currently in this essay.

REFERENCES
Books and Journals
Cheng, M. and Edwards, D., 2019. A comparative automated content analysis approach on the
review of the sharing economy discourse in tourism and hospitality. Current Issues in
Tourism, 22(1), pp.35-49.
Dinarto, D., Wanto, A. and Sebastian, L.C., 2020. Global health security–COVID-19: impact on
Bintan’s tourism sector. RSIS Commentaries, 033-20.
Ellis, A and et.al., 2018. What is food tourism?. Tourism Management, 68, pp.250-263.
Karim, W and et.al., 2020. The movement control order (mco) for covid-19 crisis and its impact
on tourism and hospitality sector in malaysia. International Tourism and Hopitality
Yournal, 3(2), pp.1-7.
Laškarin Ažić, M., Dlačić, J. and Suštar, N., 2020. Loyalty trends and issues in tourism
research. Tourism and hospitality management, 26(1), pp.133-155.
Maliszewska, M., Mattoo, A. and Van Der Mensbrugghe, D., 2020. The potential impact of
COVID-19 on GDP and trade: A preliminary assessment.
Raza, S.A and et.al., 2017. Tourism development and environmental degradation in the United
States: Evidence from wavelet-based analysis. Current Issues in Tourism, 20(16),
pp.1768-1790.
Tolkach, D., Chon, K.K. and Xiao, H., 2016. Asia Pacific tourism trends: Is the future ours to
see?. Asia Pacific Journal of Tourism Research, 21(10), pp.1071-1084.
Yung, R. and Khoo-Lattimore, C., 2019. New realities: a systematic literature review on virtual
reality and augmented reality in tourism research. Current Issues in Tourism, 22(17),
pp.2056-2081.
Zheng, Y., Goh, E. and Wen, J., 2020. The effects of misleading media reports about COVID-19
on Chinese tourists’ mental health: a perspective article. Anatolia, 31(2), pp.337-340.