Report on Key Concepts and Issues in the Tourism Industry

This report provides an in-depth analysis of the tourism industry, focusing on the key concepts and issues associated with international tourism, particularly the impact of Airbnb. It examines Airbnb's role in the financialization of housing, its influence on residential real estate, and its effects on local communities. The report discusses Airbnb's impact on property owners, corporate investors, and the rental market, highlighting both the benefits and drawbacks of its expansion. It also explores the role of digital technologies and government policies in shaping the tourism landscape and the challenges of maintaining market efficiency. The report uses an academic reading to analyze the impact of Airbnb on tourism and real estate markets.

TOURISM CONCEPTS &
ISSUES
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INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................8
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INTRODUCTION
Tourism industry involves organisation in which activities related to offering services to
individual on holiday, for example tour guide, hotels and restaurant is included. This industry is
playing important role in generating revenues for countries and significantly contributed in
national wealth (Chen, Lei and Moinzadeh, 2021). This industrial sector is considered as an
important economic engine for development as well as growth that also helps in maintaining
diplomatic relationship between countries. There are some certain issues prevailing in this
industry that has been discussed in the report with the help of review of an academic reading.
This helps in understanding the key concept as well as issues associated with international
tourism.
MAIN BODY
Understanding of the key concepts and issues associated with international tourism
The article include discussion on Airbnb which is conducting their business services as
an organisation which is offering its business services in lodging industrial segment. This
company was founded in the year 2008 and offer their services worldwide with the revenue of
more than 3.38 billion dollar. In this report in depth and detailed evaluation of Airbnb channel
investment in residential real estate is been conducted that will help in identifying both negative
as well as positive impact of this industry. This article will define the manner in which Airbnb is
acting as an instrument which is significantly contributed to financialization of housing.
However it has been identified that their Airbnb provide hyper-flexible market which is duly
maximizing displacement as well as security concerns. Critical analysis of this article has been
conducted below.
.By investigation of the given article it has been stated that, this paper investigates whether
transient rental stages, for example, Airbnb direct interest in private land and the manner by
which the nearby local area is influenced by the expansion of condos leased to guests. According
to the few examinations it has been identified that they, accept that the fast development of
Airbnb may bring local area issues and advance improvement of the travel industry. Accordingly
they additionally talk about the administration of Airbnb. Lately, researchers have contemplated
the spatial circulation attributes of certain urban areas thinking about the possible monetary,
social, and social effects that Airbnb may have on networks. As per the in-depth analysis of the
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given article it has been stated that, the biggest and best-archived possible advantage of Airbnb
extension is the expanded supply of travel accommodations that will significantly offer profit to
explorers by making travel more reasonable. It has been evaluated that, there is proof that Airbnb
expands the supply of short-term travel accommodations and duly marginally brings down costs.
The clearest advantage originating from the creation and development of Airbnb accumulates to
land owners who have units to lease. Proprietors of private property have basically three choices
for procuring a profit from the property (Fahmy, 2021). This identifies that, they can live in the
home and consequently not need to pay lease somewhere else, they can lease it out to long haul
inhabitants, or they can lease it out to transient guests. In the event that the solitary obstruction to
leasing private property to momentary guests were the related exchange costs, at that point in
principle the creation and development of Airbnb could be diminishing these exchange expenses
and making transient rental choices more practical. It appears to be instinctive that exchange
expenses of screening and booking momentary leaseholders would be higher throughout the span
of a year than such expenses for leasing to long haul inhabitants. Be that as it may, the potential
advantages are just the distinction between what the land owner procured before the presentation
of Airbnb and what the land owners acquired from momentary rentals booked through the
Airbnb stage. Thus, it has been underlined that these potential advantages are likely very slanted
to those with more riches. While lodging is more generally held than most different resources,
the all out benefit of lodging abundance is very thought among white and major league salary
families. Furthermore it has been underlined that on account of the heap advantages of
possessing one's own home, almost certainly, a significant part of the advantage of Airbnb's
acquaintance and extension accumulates with those with more than one property (one for
involving and at least one for renting. The dispersion of property abundance produced by non
primary private land is considerably more thought than housing wealth overall. This has been
identified from the academic reading on tourism article that, Airbnb is basically a positive shock
to short-term accommodations. Like all certain stock stuns, it ought to be relied upon to bring
down costs. There is some collecting proof that Airbnb does precisely this. However, it has been
stated that Airbnb could significantly improve the apparent nature of facilities available. In
addition to this, it has been identified that, Airbnb duly offers bunch of benefits and advantages
that makes the STR market progressively alluring for both nearby and removed financial
backers. Along with this, Airbnb as a component of stage land that is advanced framework
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associating clients in a phenomenal way. Airbnb essentially lessens creation costs and takes note
of that hosts have free admittance to administrations like showcasing, reservation and instalment
frameworks that duly empower them to contend easily with customary convenience ventures.
Moreover, in the work to reduce expenses, it has been identified that, Airbnb has made
unregulated commercial centers that keep away from charge commitments and advance
profoundly adaptable and uncertain types of business. The ascent of expert administrators that
oversee STRs in the interest of outsiders furthermore makes interest in this market more effective
and simpler. From one viewpoint, STR property supervisors deal with the day by day the
executives of the property from advertising to cleaning and getting visitors. Then again, offices
that oversee STRs are stages themselves that gather every day information about the market and
cycle it to prompt land owners and financial backers. Besides, these go-betweens utilize
proprietor the executive’s stages that can give inaccessible landowners everyday data about the
property, permitting them to screen their organizations continuously. It stated that there is large
base of growth opportunities provided by Airbnb. Thus, this has been stated that due to the
significant development of digital technologies in the file of real estate management there is
efficient empowerment on effective control of portfolios of property that afterward supports
further interest into the rental real estate market (Ganzarain Epelde, 2021). At last, offices give
counsel in regards to neighbourhood guidelines and legitimate cycles and, accordingly, they
interface worldwide financial backers with nearby business sectors. This stated that there is
significant connect between global investors with local markets that is leading towards increase
in growth as well as development opportunities. Furthermore, this has been stated according to
the analysis of this academic literature on tourism that, Airbnb offers route to the ascent of a
hyper-adaptable rental market that stays away from the limitations that drawn out rental business
sectors have. In addition to this it has been identified that, Airbnb duly permits property
managers to repossess properties at any second, which doesn't occur effectively in controlled
long haul rental business sectors.
One of the major importances of Airbnb is that it permits corporate investors to make benefits
from rents, yet without having lasting occupants utilizing the property, which means they can sell
the property or use it as they will. This is being evaluated that, for corporate investors looking to
store their capital in private land, Airbnb permits them to sell the property liberated from
occupants whenever, then making benefits from rental lodging. Along with this, there is
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significant proof to propose that second-home purchasers are key purchase to-let Airbnb
corporate investors. The adaptability of Airbnb enables these individual corporate investors to
procure returns on their properties, leasing them out on Airbnb while they are not being used.
The ascent of expert administrators that oversee Airbnb properties for far off property managers
further works with this interaction (Khan, 2021). At last, high turnover rates permit landowners
to expand rental costs notwithstanding, in Airbnb, this lease value theory can happen
consistently. This expands the assumptions for getting more income than long haul rentals.
Airbnb has set out another freedom to additional development monetary interest into the rental
real estate market, empowering the appearance of purchase to-give capital access to certain
vacationer locations. However, it has been stated that, the stage supports the neoliberal
worldview in light of the fact that it upgrades market productivity for proprietors of land capital
and offers route to an inexorably adaptable rental market that, for occupants suggests further
displacement as well as and insecurity concerns. It has been identified that neighbourhood
change in Alfama is mainly driven by the extra-nearby interest that travel industry offers and the
job of Airbnb in making new land venture openings. Furthermore, it has been underlined that,
mostly 78% of Airbnb landowners are individual and corporate investors. Thus, it has been
underlined that Airbnb is playing most important part of the current fifth-wave improvement
wherein the appearance of worldwide land capital into specific areas progressively drives the
cycle. Along with this, it has been underlined that, Airbnb channels the ingestion of capital into
the real estate market and, accordingly, it must be considered as a significant component in the
financialization of rental lodging. For this situation, the state assumes a vital part in propelling
the cycle by means of the launch of the neighbourhood market to worldwide capital. It has been
identified that Airbnb as well as professional property managers significantly add another
motivator as corporate investors are profiting by the adaptability of the STR market to additional
utilization real estate markets as a resource for store overflow capital and in the process make
benefits from rents without the 'obstruction' of having an occupant in the property. Moreover, the
stage makes nearby private business sectors accessible at a worldwide scale, implying that the
digital platforms as well as internet are advances that accelerate the globalization of housing
markets. It is important that monetary foundations and the super-rich are not by any means the
only parts simultaneously. The ascent of STR property administrators works with second-
mortgage holders' and versatile working classes' interest in Airbnb. It appears to be that investors
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looking for promising circumstances in private land do as such in arising vacationer locations as
they might be empowered by the strengthening of land use in such places and subsequent ascents
in property estimations.
Along with this, it has been underlined that, the state carried out additional approaches to
make the neighborhood housing market more appealing to worldwide capital, for example,
offering monetary motivating forces to land speculation assets and accelerating authorizing
procedures for them. Furthermore, Portuguese banks were protected by the European Union in
2011, which included grimness gauges as well as expanded adaptability in the land area.
Especially significant was the New Urban Lease Law passed in 2012 that liberated the private
rental market (Dalir, Mahamadaminov and Olya, 2021). The new law made it simpler for
property managers to end tenure arrangements. Moreover, there could be not, at this point a base
length for new tenant agreements; beforehand the prerequisite was for in any event five years. In
addition to this it has been identified that the flexibilization of occupancy arrangements made the
rental market especially alluring to private capital. Lisbon is encountering a critical development
of the travel industry and lands speculation, the last zeroing in intensely on lodging recovery in
once-over focal regions. Restoration is quite set apart by the launch of business administrations
for guests, from inns and STRs to eateries and nightlife exercises. For example, the quantity of
lodgings multiplied somewhere in the range of 2008 and 2018, from 105 to 218. This signifies
abundance of opportunities in a well define and effective manner. The STR market allows
second-home buyers both to use the house when they are in Lisbon and to get pay when they are
not. This has been determined that Airbnb is making another part that further complements the
associations between the probability related to the transnational average workers and their
advantage in abroad homes. Property heads explained that the potential gain of the STR market
is appropriately not simply that monetary patrons secure more pay than with long stretch rentals,
anyway that the stage adds another inspiration for the people who use the housing market as an
asset in which flood capital can be taken care of. The advantages of Airbnb depend on the
opportunity that it gives to proprietors of land capital, particularly on the grounds that they can
make benefits without any inhabitants in the property.
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CONCLUSION
According to the above mentioned report it has been identified that tourism is one of the
fastest growing sector that offer number of opportunities. By offering different type of benefits to
this industry country can significantly enhance their profitability and can attract new investors. It
has been identified from this report analysis that short term rental significantly provide
significant number of benefits which is efficiently enhancing market efficiency for property
owners that will effectively help in enhancing attractive benefits for both Global as well as local
investors.
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REFERENCES
Books and Journals
Chen, S., Lei, J. and Moinzadeh, K., 2021. Capacity Reservation and Leasing Plans for Periodic
Random Demand Surges. Available at SSRN 3784812.
Fahmy, H., 2021. How technological emergence, saturation, and rejuvenation are re-shaping the
e-commerce landscape and disrupting consumption? A time series analysis. Applied
Economics, 53(6), pp.742-759.
Ganzarain Epelde, J., 2021. Evaluating Disruptive Innovation Project Management Capabilities.
Herédia-Colaço, V. and Rodrigues, H., 2021. Hosting in turbulent times: Hoteliers’ perceptions
and strategies to recover from the Covid-19 pandemic. International Journal of
Hospitality Management, 94, p.102835.
Khan, S.A., 2021. The Crisis Model Canvas.
Mun, S.G. and Woo, L., 2021. The effects of the minimum wage on the operating performance
of hotels in the US. Tourism Management, 82, p.104205.
Seidl, T., 2021. Ideas, politics, and technological change: essays on the comparative political
economy of digital capitalism (Doctoral dissertation, European University Institute).
Sitaraman, G. and Alstott, A. eds., 2021. Politics, Policy, and Public Options. Cambridge
University Press.
Timcke, S., 2021. Algorithms and the End of Politics: How Technology Shapes 21st-Century
American Life. Policy Press.
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