Tourism Business Environment: Iceland Volcanic Eruption Report

This report examines the impact of the 2010 Eyjafjallajökull volcanic eruption in Iceland on the tourism industry. It analyzes the macro-environmental factors and their effects on tourism operators and the government. The report highlights the decrease in international tourist arrivals, disruptions to air travel, and the negative consequences for the tourism sector. It also discusses the government's role in mitigating the impacts through safety measures and promotional strategies. The conclusion emphasizes the importance of strategic measures for both tour operators and the government to overcome the challenges and promote economic growth in the tourism sector. References include academic journals and books that support the analysis of the tourism business environment.

The Macro
Tourism
Business
Environment
Macro Environmental Event

Tourism sector is one of the leading and growing industrial sector that have significant
impact upon overall growth of nation. This industry generates major revenue that duly
contributes in a country economic development (Ateljevic, J., 2017). This industry not
contributes in economic development but also have significant impact upon revenues,
employment, individual per capita income and development. It also helps a country to
increase their foreign-exchange earnings that helps counties to fulfil their high-priority
goals. Present report has been conducted on macro environmental factor related to impact
of volcanic eruption in Iceland 2010 eruption of Eyjafjallajokull on Tourism Operators. In
April 2010, Eyjafjallajökull, a volcano in southern Iceland, began cough out various
kilometres of volcanic ash into the atmosphere.
Impact of volcanic eruption in Iceland 2010 eruptions of Eyjafjallajkull on Tourism
Operators
Island is having various attractive geographical locations that duly attracts attention of
large number of tourists even from international marketplace. As per according to the
research of Icelandic Tourist Board country have experienced significant increase in
tourists arrivals. In addition to this with having a traditional held Iceland appeal attention
of international tourists in a significant manner. Further it has been identified that, major
GDP of country generates from its tourism industry.
Main impact of the volcanic eruptions that impact upon Tourism Operators is arrival of less
number of international tourists. As aircraft's measured threats from volcanic eruption is
contact with fine ash. This significantly lead toward causing thrust loss of engines, surging
Illustration 1:
Yearly increase foreign visitors to Iceland (Icelandic Tourist Board, 2010).

and flameout. In addition to this, there were cases in which number of passengers faced
issues related to smell of sulfur gas. In addition to this, aircraft's also measured extensive
range of damage to engines along with exterior surfaces. Along with this, due to large ash
discharge airline operations get significantly affected that further lead towards affecting
tourism in Iceland in many different ways. Thus, due to this Volcanic eruption country
have faced many negative impacts upon their destinations that lead nation to face crisis
period. Along with this, with the air transport disruptions there were many serious
consequences that majorly impacts upon tourism sector. It has been signified that this
eruption was a great point of concern to tourists operators of Iceland. Various negative
impacts has been measured by travel and tourism sector trade that affect revenue
generating capabilities of country (Walle, 2015). All these impact decreases overall
number of international tourists in a significant manner. With this decrease also affect
earning capabilities of local individuals. For this it is recommend to tour operates to lure
tourists with the help of different types of promotional strategies and techniques. In
addition with this, they are required to attract tourists attention by giving them benefits,
packages and more. By undertaking these strategies into consideration tour operators
within Iceland can effectively able to attract large base of tourists from different locations.
Impact of volcanic eruption in Iceland 2010 eruptions of Eyjafjallajkull on
Government.
In Iceland tourism dramatically increased its economic growth. In addition to this, it also
strength employment stability of country (Berry and Ladkin, 2017). But after volcanic
eruption of Eyjafjallajkull country government have faced numerous form of issues that
lower down overall economic growth of country. In addition to this, it has been signified
that due to this eruption tour have faced significant decrease in employment sector as it is
one of the leading segment in nation that provide opportunities of employment at large
scale (Clayton, 2013). Further it has been identified that, there were many disruptions that
has been measured by government due to volcanic eruption in Iceland 2010 eruptions of
Eyjafjallajkull. Some of that include decrease in employment sector, reduction in overall
economic growth of country, decrease in per capita income of individuals and more. In
order to overcome this, it is recommended to government to take use of different types of
policies and measures with the help of which they can assure safety to tourists. With the
help of this they can significantly able to attract international tourists. In addition to this, by
proving significant safety measures to tourists government of country can measure growth

in economic sector as it lead towards increasing tourism activities (Gannon, 2014). In
addition to this, government of country is also required to make significant boost in
tourism as to increase growth rate of Iceland. Further by providing regulatory changes into
safety segment government can provide tourists with the facility of safety and security. By
undertaking all these measures into account large number of tourists can be attracted
towards country with the help of which significant increase in economic growth of country
can be increase that also make rise in employment opportunities (Knežević Cvelbar,
2016). This will significantly lead country towards generating increase in per capita
income of individual with the help of which increase in economic growth of overall nation
can be duly seen.

Conclusion
As per the above mentioned report, it has been concluded that tourism industry is one of
the leading and growing industrial segment in Iceland. This industry make country to
measure economic growth. In addition to this, this industry also generates large number of
employment opportunities through which country marked its presence in international
marketplace. Thus, it in order to overcome the impact of volcanic eruptions tour operators
as well as government on country is required to take advantage of different types of
strategical measures. With the help of this, country can duly make significant increase in
overall economic growth of country in a well defined manner.
References
Books and Journals
Ateljevic, J., 2017. Small tourism firms and management practices in New Zealand: the
Centre Stage Macro Region. Tourism Management. 28(1). pp.307-316.
Berry, S. and Ladkin, A., 2017. Sustainable tourism: A regional perspective. Tourism
Management. 18(7). pp.433-440.
Clayton, A., 2013. Policy coherence and sustainable tourism in the
Caribbean. International Journal of Contemporary Hospitality Management. 15(3).
pp.188-191.
Easterling, D. S., 2015. The residents' perspective in tourism research: A review and
synthesis. Journal of Travel & Tourism Marketing. 17(4). pp.45-62.
Gannon, A., 2014. Rural tourism as a factor in rural community economic development for
economies in transition. Journal of sustainable tourism. 2(1-2). pp.51-60.
Knežević Cvelbar, L., and et. al., 2016. Drivers of destination competitiveness in tourism:
a global investigation. Journal of Travel Research. 55(8). pp.1041-1050.
Sofield, T. and Li, S., 2011. Tourism governance and sustainable national development in
China: A macro-level synthesis. Journal of Sustainable Tourism. 19(4-5). pp.501-
534.
Toh, M. H., 2018. Competitiveness of the Singapore economy: a strategic perspective.
World Scientific.
Tribe, J., 2019. The concept of tourism: Framing a wide tourism world and broad tourism
society. Tourism Recreation Research. 24(2). pp.75-81.
Walle, A. H., 2015. Business ethics and tourism: From micro to macro
perspectives. Tourism Management. 16(4). pp.263-268.