Impact of Tourism: PEST Analysis of India and New Zealand Destinations

This report provides a PEST (Political, Economic, Social, and Environmental) analysis of the tourism industries in India and New Zealand. It examines the political stability, economic growth, socio-cultural diversity, and environmental conditions that influence tourism in each country. The analysis of India highlights the country's democratic government, growing economy, diverse culture, and varied climate, as well as the potential challenges of government regulations, market competition, and pollution. The New Zealand analysis focuses on the democratic government, high-income economy, and unique natural landscape, while also addressing challenges like market competition, skill shortages, and the impacts of climate change on the environment. The report references academic sources to support its findings and offers a comparative view of the opportunities and challenges facing tourism in these two diverse destinations.

PEST - Impacts of tourism on two different destinations
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Table of contents
Tourism in India:........................................................................................................................3
Tourism in New Zealand............................................................................................................4
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Tourism in India:
According to Benur and Bramwell (2015), various macro factors are detrimental in deciding
tourism options in a particular country as it gives a closer look at the political, economic,
social and environmental scenario for the business. In this context, the tourism option in India
including the political factor suggests that the nation has a democratic government and
overall the situation is pretty stable for business. This bears positive results for the tourism
industry as no political unrest or changes in rules and regulations will be present to disrupt
business propositions. One point of worry for private tourism businesses is the fact that India
has a specific ministry for tourism and since it is government run, the plans and procedures
can clash with other tourism business plans. The various states in the country makes it apt for
the tourism industry as in any case, each state has a separate tourism department of their own.
The economy of the country is extremely well suited since it has shown to be one of the
fastest growing economies in the world after global recession. Higher economic progress
gives way to higher income capability and this makes tourism profitable. It also boosts
development of infrastructure. However, this positive factor attracts numerous tourism
businesses and make the market competitive. On the socio-cultural front, India is really
diverse with a multitude of languages, cultures and traditions and this is a very good
opportunity for conducting cultural tourism in the country. The cultural aspect is a major
tourist attraction that can be tapped to its potential. However, risks of hurting cultural
sentiments can create negative impact on the business as well.
The environmental factor that comes into the picture of tourism is in favour for Indian
tourism due to the diverse climatic conditions that is possible due to the geography of the
country. Separate packages can be planned as per the climatic conditions. Landscape terrains
in many states of the country promotes tourism for hikers and adventure seekers. India
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provides beach destinations in places such as Anadaman & Nicobar Islands, Goa, Lakshadeep
and many more. However, the urban air quality is badly affected due to the increased number
of vehicles in the country. This can hamper tourism as tourists may avoid places with high
levels of pollution.
Tourism in New Zealand
As per Stylidis et al. (2014), the natural features and surroundings of a country inclines
towards the need for devising ways to promote tourism for professional and national benefits.
The overall country landscape and the natural factors allow the tourism business to fruition in
New Zealand. A thorough look at the various political, economic, social and environmental
look into the factors will help in clearly representing the true nature of the possibilities of the
business.
The political environment in New Zealand is very democratic and allows the culmination of
tourism industries that is already managed centrally by the government. The private and local
industries are promoted by the government as ultimately it adds to the national budget.
However, high number of market players make it difficult for gaining maximum market
share. On the economic front, New Zealand is considered to be a high income country with
high disposable income levels. This is a good sign for the level of investment that occurs in
the country. However, sluggish economy in the European market makes it difficult for
business propositions. Decrease in public disposable income can result in less purchases and
affect the tourism business exponentially.
Having a scarce population is considered to be a major social factor that helps in tourism
boosting options. The influx of tourism options is helpful for all round development as it will
definitely boost country locales such as Auckland, Christchurch and Milford Sound and help
in job creation as well. However, an issue that the social factors creates is the lack of
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necessary skills that is required in the profession. Moreover, the scarce population does not
include many skilled labour. On the environmental front, the climate situation in New
Zealand favours tourism facilities in the respective cities as mentioned above. However,
recent changes in climate due to global warming factors is causing warming in the northeast
regions and resulting in higher sea levels. This also is having an impact on the changes in
rainfall patterns and its effect gradually is happening on the flora and fauna in the country.
This makes tourism difficult in future years as tourism is based on natural phenomenon and if
this factor is in jeopardy than tourism will also be affected.
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Reference List
Benur, A.M. and Bramwell, B., (2015). Tourism product development and product
diversification in destinations. Tourism Management, 50(2), pp.213-224.
Stylidis, D., Biran, A., Sit, J. and Szivas, E.M., (2014). Residents' support for tourism
development: The role of residents' place image and perceived tourism impacts. Tourism
Management, 45(2), pp.260-274.
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