An Essay on Critical Issues in the Tourism and Hospitality Industry

This essay provides a comprehensive analysis of critical issues within the tourism and hospitality industry, focusing on key megatrends expected to shape the sector over the next 20 years. It identifies and examines four major trends: evolving visitor demands, sustainable tourism growth, enabling technologies, and travel mobility. The essay delves into the implications of these trends on various stakeholders, including the industry itself, tourists, destination managers, and policymakers. By exploring the challenges and opportunities presented by these trends, the essay offers valuable insights into the future development and strategic considerations for the tourism and hospitality sector, emphasizing the importance of adapting to changing demographics, embracing sustainable practices, leveraging technological advancements, and enhancing travel mobility to ensure long-term success.

Running head: ISSUES IN TOURISM AND HOSPITALITY INDUSTRY
Critical Issues in Tourism and Hospitality Industry
Name of the Student
Name of the University
Author’s Note:

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ISSUES IN TOURISM AND HOSPITALITY INDUSTRY
1. Introduction
Tourism and hospitality industry is responsible for providing assurance and pleasure
to the customers regarding travelling to different parts of the world. This particular industry is
considered as one of the most widespread industries in the world that could easily facilitate
after providing infrastructure as well as products and services and then making possible
travelling for several purposes, such as business interests and leisure (Hajkowicz 2015).
Tourism is the activity of touring and travelling to any particular place or a group of areas.
Tourism industry tries to ensure that tourists get maximum advantages and pleasure from the
tour, and they do not face any type of issue or complexity.
The entire industry comprises of all types of organizations that could provide these
products and services, required and utilized by the tourists at various stages of travel and
tourism (Buckley et al. 2015). In spite of having several advantages and high popularity in
the entire industry of tourism and hospitality, there are some of the most distinct and vital
trends that are needed to be adequately analyzed. The following essay outlines a detailed
analysis on the critical issues in tourism and hospitality industry. Different implications of the
trends on tourists, industry, policymakers and destination managers will also be provided in
the essay with relevant details.
2. Discussion
2.1 Analysis of the Key Mega Trends affecting the International Tourism and
Hospitality Sector in the next 20 years
The international industry for tourism and hospitality gets the opportunity and scope
to provide the economy of the global market. The future of this tourism industry is
profoundly affected by the larger scale social, political, technological, economic and
environmental changes; hence bringing out new as well as unseen risks, opportunities and

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challenges (Megatrends shaping the future of tourism. 2018). These distinct megatrends are
eventually slower in formation; however, once they have undertaken its bases, exercise a
lasting and profound influence on the human-related activities for tourism.
The megatrends comprise of major implications for adequately informing the policies
and even shaping the future of the industry in the next 20 years. Globalized tourism has
grown majorly in the recent days, thus providing advantages from the subsequent increase of
technological as well as globalization advance, which has led to the less expensive air prices
and even making it much easier for different individuals to plan as well as book their own
tour to share the experience with different individuals in present (Nabipour 2014). It is
expected that due to the massive changes in the global tourism sector and shifting
environmental conditions as well as technological innovations; the state of the tourism
industry will get transformed within the year of 2040, i.e. in the next 20 years.
The key megatrends are responsible for considering the most significant social,
political and technological changes for the long term. These changes have longer impacts and
comprise of the core potential for fundamentally alter as well as upend industries in the entire
international market of tourism and hospitality (Malik and Janowska 2018). The major
megatrends affecting the future of this particular industry are as follows:
i) Evolving Visitors’ Demands: The first and the foremost megatrend that might
affect the entire industry within the next 20 years would be evolving demands of the visitors
or tourists (Schwartz, Jamieson and Pitts 2015). In the next fewer years, the entire structure of
the visitors’ economy would develop as the levels of education and income increment in the
emerging economy, addressing gender imbalance as well as the emergence of a new group of
customers. As a result, these distinct factors would be impacting on the propensity for
travelling and understanding the expectations of the travellers. The changing in demographics

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would be comprised of a significant impact on the visitors' demands in the upcoming years
(TUTA and MICU 2015). The trends like continuous growth of the middle class refer to the
fact that globalized population might become more productive as well as older in the years
ahead. It is needed for advising of new opportunities or challenges for the future.
ii) Sustainable Tourism Growth: The second significant and important megatrend
that might affect the industry within the next 20 years would be sustainable tourism growth.
The entire sector of tourism is broadly identified as a specified human action, which is
majorly reliable on the natural resource and also it contributes to the overall exhaustion of the
similar resources (Dwyer et al. 2016). It is considered as the most relevant factor for energy
consumption and even generation of GHG emission. Moreover, it even subsidizes to land
usage and freshwater usage as well as in unsustainable use of food. Tourism and hospitality
industry could be playing an essential role in driving this transition of the low carbon or
resource-efficiency economies.
For the cross-cutting technique or closer connection with various sectors, the smaller
improvements would be having significant impacts on the growth and development of the
entire industry (Pechlaner, Innerhofer and Erschbamer 2019). It would even raise higher
awareness of the values for environmental and cultural values and also help the financial
department in protection as well as management of the protected areas; hence incrementing
the economic importance and benefits. As soon as major sustainable development principles
are being built upon, it is being observed that tourism could contribute to higher inclusive
growth via the employment provision so that social integration is promoted to a high level
(Weir and Fogarty 2016). It is being done after mainstreaming sustainable consumption as
well as production pattern that highly resources efficient and effective.

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iii) Enabling Technologies: Another significant megatrend that might affect this
specific industry of tourism within the next 20 years would be enabling different
technologies. The newer technologies eventually continue in reshaping the sectors and
markets in the entire international market, while checking the scale and speed of disruption to
be highly hastening (Lubbe and Douglas 2019). From the respective sharing economies to the
IoT, it is being observed that a variety of newer as well as emerging innovation is much more
capable for unlocking excess chances for their customers. The trends can make up travel
much more reasonable, accessible and efficient to different individuals.
The reconceptualization of the mediators refers to the long term tourism
representations in different area such as travel agencies or accommodation would continue in
being fundamentally redesigned with maximum traveller linking directly via scientific
platforms with the service providers (Fayos-Solà and Cooper 2019). Due to the significant
impact of the enabling technologies, it becomes incredibly more accessible for the industry to
attract more customers eventually and also involve new and updated policies. These policies
would require to consider the core process of providing the most supportive environments,
which would promote creativity when newer technologies emerging with the following
advantage of highly connected business and other requirements.
iv) Travel Mobility: The fourth vital and noteworthy megatrend that might affect the
industry within the next 20 years would be travel mobility. Since, transportation is the
important element of this system of tourism and also plays a significant responsibility in
shifting tourist effectively from the residences to the finalized destinations and even over to
the several attractions (Permani, Sadicon and Mahyassari 2017). Transportation is responsible
for linking the market in popular regions towards goals and also enables an internal
movement of tourists within different elements of the entire tourist experience, such as
commercial service, attraction and accommodation.

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It could eventually become the most important component of the experience and
attraction in their own rights. Moreover, the connectivity, efficiency, capacities and location
of transportation could play the most vital role in influencing the mobility of different tourists
for connecting the tourist experiences (Pongthanaisawan et al. 2018). The rapid development
in the entire tourism industry is in response to 2 significant factors of high income and the
emerging middle class within the emerging economy that encourages higher usage of
expenses and travelling by air has eventually become effective valuation of resources and
also for the improvised aerospace technologies and market liberalization.
2.2 Analysis of the Implications of the Trends on the Industry
The 4 megatrends of evolving visitors’ demands, sustainable growth of tourism,
enabling technology and travel mobility consists of different major implications of the trends
on the industry. The implications of these trends are as follows:
i) Evolving Visitors’ Demands: This particular megatrend comprises of a major
implication on the industry of tourism. The demographic factors appear in presenting major
growth opportunities for the entire industry. Due to a significant potential for tourism
development related to the increase of the globalized middle class, there could be several
challenges in the future (Malik and Janowska 2019). When the population in the entire
country gets increased majorly, the overall increase in pursuing tourism and travel is
observed majorly. However, this entire industry might require to get into the reason for
striking of different interests with fast growth within the emerging market that contrasts with
slower development within the developed economies.
ii) Sustainable Tourism Growth: The second megatrend of sustainable tourism
growth plays a vital and important role in the tourism industry. Customer reluctance is
majorly highlighted for this specific megatrend. The major focus is kept on total

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measurement as well as an assessment of the sustainability initiatives that could be
incrementing the entire standard for the company (Elmahdy, Haukeland and Fredman 2017).
After completing the PESTLE analysis, it is being highlighted that the consequences of the
climate change should be considered for understanding the most critical issues to be faced in
the respective industry in the upcoming years. The other vital implications of this megatrend
include season variations, extreme weather events, greater resource efficiencies, integrated
governmental approach and many more.
iii) Enabling Technologies: Digitalized platforms are required for informing that the
travel decision as well as its impacts are likely to expand in the upcoming 20 years. The
online platforms are being utilized for advertising and booking of vacations online; hence
making it quite easy and simple to plan for the travellers (TUTA and MICU 2015). Social
media are being utilized for influencing these decisions of emerging generations. The rapid
advancement in automatic mode via robotics, AI and machine learning techniques are being
dignified for disrupting the labour markets for the next 20 years. The inherent
unpredictability of the process of enabling technologies, which are already in existence,
would be continuing in evolvement for making out the most specified actions. Strengthening
the compliance and regulatory frameworks is required to be done for making them more
agreeable of creativity towards rapid technological changes (Megatrends shaping the future
of tourism. 2018). Such approaches require to be measured within the subsequent context of
the total economic as well as social policy framework that would join different operations of
local, sub-national and national governments.
iv) Travel Mobility: The managed tourism and transport synergies could improve
visitor mobility within the destinations as well as increase satisfaction of the visitors to
protect the economic viabilities of the local transportation system and service after
overhauling the tourists properly (Schwartz, Jamieson and Pitts 2015). Moreover, ensuring a

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medium to long term requirements of the entire tourism industry are being measured by the
government as being the parts of transport accessibility and even infrastructure plans. The
policymakers would require to be agile in responding effectively for these and any other
developments. As a result, the global market-based measure, which could easily integrate the
expense of carbon, are referred to be a significant mechanism for reduction of such emissions
with probable implication.
3. Conclusion
Therefore, a conclusion could be drawn that the tourism industry is regarding
providing important means for assisting the tourists in the entire travelling session. Two
important ways are present for the tourism industry, which include the demand side and
supply side. The supply side refers to the summation of ever industry that provides all the
services and products, which indirectly or directly help the tourists during their travel and
making it possible for them to travel and complete the activity of tourism. The demand side
refers to the summation of all types of products and services that are being utilized or
consumed by the tourists the provide support the activity of tourism indirectly and directly.
Travel is a little different and does not refer to tourism for all customers, and hence every
issue related to tourism should be eradicated successfully. The above-provided essay has
properly analyzed the most critical issues in the tourism and hospitality industry with relevant
details after completing a proper PESTEL analysis and understanding the implications.

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