Analyzing Tower of London: A PEST Analysis of External Influences

This report conducts a PEST (Political, Economic, Social, and Technological) analysis of the Tower of London, a world-famous historical landmark and major tourist attraction in London. The analysis explores the impact of various external factors on the Tower, including political influences such as Brexit and government policies, economic factors like recession and currency exchange rates, social aspects such as population trends and cultural factors, and technological advancements impacting tourism. The report examines how these factors affect the Tower's business, tourism, and overall economic contribution. The report highlights the effects of political factors, including government policies, and the impact of economic conditions, such as recession and currency exchange rates, on tourism. It also discusses the influence of social factors like lifestyle and cultural interests, and the role of technology in enhancing the tourism experience, including online booking and information access. The report concludes by considering the key challenges, risks, and limitations associated with the Tower of London's operations and its place in the tourism industry.

PEST Analysis

Table of Contents
PEST Analysis.................................................................................................................................1
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................5
REFERENCES ...............................................................................................................................7
Books and Journals.....................................................................................................................7

INTRODUCTION
This report is about Tower of London which is world famous monument and one of the
most tourist attraction located on the banks of Thames river. This is one of the important
landmarks in England and also played a crucial role in shaping the history of the country. Since
its inception, it was used as an armoury, treasury, menagerie, the home of Royal Mint, public
record office, the palace of Crown Jewels of England, and prisons. But in present time UNESCO
opened it as a tourist place which made an impact on economy. The report underpins the
political, economical, social and technological aspects along with key challenges, risks and
limitations. These all are the factors that impacts on the organization(Gupta, 2013).
MAIN BODY
The Tower of London is not an official name of it,, its actually named as Her Majesty's
Royal Palace and Fortress of the Tower of London which is a historic castle in the central
London. Although there was a fortress at this location, the present tower was built by the
William in 1066 and after that the adjacent premises were expanded several times with indefinite
reasons . It has been served as the royal residency of Her Highness and King. Though it has
witnessed history and that is why it has become renowned name for tourism and therefore, it has
a powerful impact on the country. So, there are few factors which defines the affect on the
tourism industry after including the palace in travel and tourism industry.
PEST Analysis – PEST analysis refers to the external factors which impact on the organisation's
business, that can have an affect in anyway cause there are such elements that bear the changes
on the business(Ho, 2014).
Political factors – Political factors are those aspects which derived by the parliament of the
country, cause there are several organisational industries working in a country. Government
defines some laws and the entire population and industries are abide to follow the rules. Political
factors are those which are governed through establishing laws, policies regarding the tourist
destination Tower of London. The UK government established a some laws in one of that is
BREXIT, in which some of the population voted to stay with European countries and some of
them is voted to stay with UK government. After the Brexit there is a huge impact on tourism
industry of the UK cause most of the people booked there holiday packages to near there home
town. That impacted on the travel industry with a huge ratio. This reduced expanses on for the
country dwellers and thus, they prefer to spend there their holidays in the country. Thus, it will
also impact on the earning of the Tower of London cause anyone who stays even in the rural area
and urban area can easily visit to the tower and can take a trail to witness the royal legacy.
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According to a study on 2000 UK holidaymakers 40 percent of them wanted to spend there
holiday in the country that can be say as it increased the business of the Tower of London due to
BREXIT policies. Due to some political factors there is also a rise in international visitors has
been noticed in the year 2017, and there was a rich figure which tells that there was a huge rise in
holidaymakers who have the money. According to the local political factors the government
develops such policies and regulations which aid to drive the increase the rate of guests, and they
found out the ways what kind of policies should be developed to attract the visitors towards the
heritage sites. As UNESCO is has done such a wonderful job by including the monument in one
of the well renowned heritage sites, because after inducing it in the list, the political parties will
will give the preference to preserve the old monuments. It is one of the most essential pillars to
conserve the old monuments because these have a powerful impact to encourage people to put
their step in to know their rich culture. The political parties maps some strategies, plans and
programs to maintain the heritage culture like GREAT Britain, it showcases the tourism culture
of the country and appeals international and domestic visitors to come and explore visitors
attractions(Talib, Hamid and Zulfakar, 2014). By introducing such programs the government
gather the funds to maintain and control the expenses of the monument. The policies are made
for the positive impacts but there are some negative impact too, like the tourists who came to
visit London but did in the bus bomb blast a few years ago in 2008, that made a negative impact
on UK tourism cause it put a question mark on the safety of people and government policies.
Because when people were not feeling safe there was a slight decline in international travellers.
The Tower of London has affected by it because that was the most source to raise the funds to
maintain the service itself also seen the changes.
Economical factors – It very often that the travel and tourism industry is derived through the its
visitors attractions like the palaces, monuments. But there are some factors which affects on the
economy like recently the whole gone through recession at that time there was an intense drop on
the travel and tourism. UK was also not remain untouched from the recession, it has also seen the
drastic changes in the industry with the comparison of previous years. The local residents of the
United Kingdom are not even in the state that they can visit to spend their holidays, yet they
have enough economy as compared with other countries. The exchange rate of currency was too
low, so international travellers was also not had small sized pocket to invest in travel. Inflation
rates was on hike that makes the currency change rates slow and that's why the travellers who
was across the boundaries not able to visit the country cause they need to spend more money for
that. This was also a reason to raise the low funds to the governing body(Doherty, Steel and
Parrish, 2012).
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Apart from the recession trends in tourism also has on impact on the tourism industry
because the tourism organizations are always try to evolve such programs that can invite the
visitors in huge volume to raise the economy in effective manner. There are various trends which
attracts visitors like sightseeing is one of that trends which easily captures the attention cause
people wanted to spend their holidays in leisure after spending their exhaustive routine. So,
Tower of London is one place of sightseeing which is preferred by the travellers and this kind of
visiting sight gives a major support to raise the economy of the country. The travel and tourism
organization orchestrate events to allure the travellers which positively impacts on economy too.
Because these events are organized at such places where people can gather at one place with the
charming beauty of places and this aid to increase the economical profit. These kind of events
which invites tourists also raise the local business in rural and urban areas, there are some
business which are dependent on tourists destinations, like the hotels, motels, and some small
vendors who are running a small businesses. For an example, if travellers will come to visit then
hotels will also increase their business cause they would looking for the place where they can
stay with all the luxury. So, hotels are there to give them service and these are increasing the
GDP of the country. The Tower of London is a major focus to raise the funds which will enhance
the purchasing power of the customers, the facilities or the services are provided by the local
entrepreneurs will get the profit. The cost of the facilities in travel and tourism industry matters a
lot specially in hospitality because there is a wide variety of hotels so customer first seeks to the
competition level and after that if they find some differences in pricing of accommodation and
facilities then they can easily switch with there choice. This will affect the business economy so,
it is essential to balance the pricing to sustain in the market. Because sustainability will increase
the economical benefit(Ramita, 2013).
Social Factors – The life style of people and the cultural aspects that mainly comprises of
population, growth, trends,careers are generally concerned as the social factors. Tourists gets
attracted towards the location due the words of mouth, articles, blogs that develops their curiosity
to visit that place. Similarly, the Tower of London is one of that place quickly draws the care as
it has many alluring features like the Crown Jewels which contains the world famous Kohinoor,
the armoury, treasures and menageries, the people are interested to know the history even they
wanted to see the lavish artefacts. Social factor is mainly considers population and demographic
factors that can be refers as population consists age aspects and desires(Lee, Chae and Cho,
2013). For an instance, kids would like to go some adventurous place rather then a heritage
place. If the children are too young then they will not feel the pleasure to see the amazing
interiors of the fortress because they would not understand it. So their desire are the most
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effective for the tourism. It is also affected by the seasonal trends because people often like to
visit the places in spring or winter season therefore, in summer season the hospitality
organisations will not get the businesses and the most struggling time for these businesses. The
demographic area affects the desires of the people like their lifestyle and their culture, the people
who are living in the rural area they may be looking for the culture knowledge because they are
from a diverse background. So they would like to get interact with other cultures to please
themselves. According to these aspects, the population has a diverse thoughts and psychologies
which impacts on the business of the organizations that involves Tower of London as a tourist
destination(ShabanovaIsmagilova and Salimov, 2015).
Technological factors – Technology is one of the crucial factor in order to extend the
profitability by enhancing the business. In many areas technology aid to make so many things
easy, in fact it makes everything so smooth. So, there is a need of innovation in technology so
that people can book their tickets online on the website or app, this will save the time for the
visitors and the authorities too. Although there are so many advancements in technology in the
UK, but there should be continuous improvement. Hospitality industry is also a sector which
offers various kinds of packages, so technology is very useful for it. Clients can compare the
offered packages to analyse the suited one, they can search on the websites to know which
package is providing all the leisures and visiting attractions with eminent features. Technology
has made entire things so easy, the entrepreneurs can put their business online and tourist can
find their business at unknown place and then they can buy the desired things. Travel and
tourism industry has the major advantage of technology because they can consumers and
industry has a transparency. People can see their packages and then they can select the one which
has the appropriate cost because in present time everything is available online that makes the
visitors smart enough, they like to search the market to get the best deal. So, people would like to
get the information about Tower of London to know what kind of interesting things are there
which are accessible to the people. Internet has made the communication easy customers can
book their flight, accommodation with a click according to their budget so that they will not face
any problem after reaching to the destination. The media technology is a mediator between
tourism industry and society that rolls out the information of sweeping changes of attitudes and
behaviour among the key actors in actors in local, national and global tourism for peace, security
and sustainable development(Gerwick and Sparks, 2014). Social media also has a great impact
on tourism cause the most famous sites owes a position on social media websites through various
bloggers who writes their experiences and post it to the blogging websites for a public. So people
also read that blogs and know their interests where they should take a step. When people will
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read the blog about Tower of London they will know why they should visit there, and they would
feel what is that thing which should not be avoid(Boykin, Schutze and Krosch, 2014).
Key challenges
There are a few key challenges in travel and tourism sector that has a significance impact
on Tower of London, that are as follows-
 The Brexit vote leaves so many issues about European Union and United Kingdom, how
they can get separated with sharing economy.
 There are restrictions on labour movement because of Brexit, so it is a big challenge for
the hotel staff how they can move from their residence to any other place. Managing the
marginal costs will be an issue.
 Regulation of the sharing economy is a hot news for the entire world, as there is a
complexity in regulation of economical aspects because of the huge size of the sector. So
there is need for different governments and jurisdiction to manage both economical
operations.
 Because of the seasonal nature of travel, firms needs effective way to sustain in the
struggling period through accessing the capital at the reasonable rates(Swarbrooke and
Horner, 2012).
Risks and limitations
There are some risks and limitations which affects on travel and tourism industry, such as
terrorist attacks because of that people get scared to visit to another country. People often feel the
restriction to communicate with foreigners cause they have language issues which creates a
problem to share information. The culture is also be a problem because every nation has different
culture and the people grown up with their cultural values and therefore, they can feel the
problem while be in contact with other culture. The visitors may also has financial limitations
that,s why they may can't afford to travel to such destination where their currency has less value.
Health can be another limitation because it may be a reason that weather would not be suitable
for them. There may be some political issue like visa, as getting visa for UK is not simple
procedure and that is the most hurdle for the tourists.
CONCLUSION
This report is about Tower of London which includes the various external factors like
political, economical, social and technological which has a significance in travel and tourism
industry. As Tower of London is one of the best tourist places across the world as designated by
UNESCO. So there are a few key challenges, risk and limitations which has a great impact on
the industry as well as the palace itself.
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REFERENCES
Books and Journals
Gupta, A., 2013. Environmental and pest analysis: An approach to external business
environment. Merit Research Journal of Art, Social Science and Humanities.1(2).
pp.13-17.
Ho, J.K.K., 2014. Formulation of a systemic PEST analysis for strategic analysis. European
academic research. 2(5). pp.6478-6492.
Ab Talib, M.S., Hamid, A.B.A., Zulfakar, and et. al., 2014. Halal logistics PEST analysis: the
Malaysia perspectives. Asian Social Science. 10(14). p.119.
Doherty, I., Steel, C. and Parrish, D., 2012. The challenges and opportunities for professional
societies in higher education in Australasia: A PEST analysis.
Ramita Verma, M.B.A., 2013. PEST Analysis for Indian Luxurious Car Market.
Lee, S.G., Chae, S.H. and Cho, K.M., 2013. Drivers and inhibitors of SaaS adoption in Korea.
International Journal of Information Management. 33(3). pp.429-440.
Shabanova, L.B., Ismagilova, G.N., Salimov, L.N. and et. al., 2015. PEST-Analysis and SWOT-
Analysis as the most important tools to strengthen the competitive advantages of
commercial enterprises. Mediterranean Journal of Social Sciences. 6(3). p.705.
Gerwick, B.C. and Sparks, T.C., 2014. Natural products for pest control: an analysis of their role,
value and future. Pest management science. 70(8). pp.1169-1185.
Boykin, L.M., Schutze, M.K., Krosch, and et. al., 2014. Multi‐gene phylogenetic analysis of
south‐east Asian pest members of the Bactrocera dorsalis species complex (Diptera:
Tephritidae) does not support current taxonomy. Journal of Applied
Entomology.138(4). pp.235-253.
Swarbrooke, J. and Horner, S., 2012. Business travel and tourism. Routledge.
Baker, R.H., Benninga, J., Bremmer, J. and et. al., 2012. A decision‐support scheme for mapping
endangered areas in pest risk analysis. EPPO Bulletin. 42(1). pp.65-73.
Babatunde, B.O. and Adebisi, A.O., 2012. Strategic Environmental Scanning and Organization
Performance in a Competitive Business Environment. Economic Insights-Trends &
Challenges. 64(1).
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