Comprehensive Analysis of the Tourism Industry: PESTLE and SWOT

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This report provides a detailed analysis of the global tourism industry, employing both PESTLE and SWOT frameworks. The PESTLE analysis examines the political, economic, sociocultural, technological, legal, and environmental factors influencing the industry. Political factors include border policies and government stability, while economic factors encompass disposable incomes and the sharing economy. Sociocultural aspects involve social pressure and racial acceptance, and technological factors cover transport systems and booking processes. Legal obligations and environmental impacts, including pollution and waste, are also considered. The SWOT analysis assesses the industry's strengths (weather, resources, support), weaknesses (lack of amenities, infrastructure), opportunities (eco-tourism, job creation), and threats (environmental impacts, competition). The report concludes by emphasizing the positive international and economic benefits of tourism, along with its sociocultural and environmental impacts.
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For decades, the tourism sector has evolved. Since there is more time for people from
across the globe to invest and see the world's other surprises through social media, they don't
want to be shocked to fly. By using the PESTLE analysis, we will address the tourism
industry.
Political
The political factors that affect the global tourism industry are; border policy
governments, some offer open borders to foreigners other don’t. but in most of the cases, the
administration offers the open border facility to preferred tourists. Also, Government stability
is a driving political force for the tourism industry (Robinson, Fallon, Cameron & Crotts,
2016).
Economic
The economical force is considered the major force in the tourism industry. The
factors that mainly affect the economic force are; Rising disposable incomes, share economy.
Furthermore, the sharing economy is making travel more accessible, but hurting some of the
industry’s corporate providers.
Sociocultural Factors
Another driving force in the tourism industry is sociocultural factors. Factors like
social pressure and racial acceptance hold a controlling element over the industry regarding
tourism (Rouby, 2019). Sociocultural factors are the main thing that controls the tourism
experience of tourists.
Technological
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Technological achievements or availability for tourists is also a main point for the
tourism industry. Forces like better availability of better transport systems, and the booking
process and connectivity comes under the technological aspect of the tourism industry.
Legal
There are legal forces with all the other factors that control the tourism industry.
Obviously, every government and countries has some legal obligations that should be
followed by the citizens and the tourists while they are there (Razafindravelo, 2017).
Environmental
Environmental factor seems to be a driving force for the tourism industry as we all do
our tourism plans depending on the environmental factors. Furthermore, the tourism season
of a place varies mainly on environmental factors. But there is also another view of the
environmental factors. The tourist negligence and transport pollution have added up to the
problem of pollution on a global level. Tourism can lead to urban waste. In some cases,
tourists can respect a destination less than their hometown, causing it to become wasteful
and/or contaminated (Mariani, Buhalis, Czakon & Vitouladiti, 2016).
Furthermore, hereafter a SWOT analysis for sustainable tourism development on a
global scale is provided.
Strengths
The strengths of the tourism industry for any place is the region’s weather and
climate, rich tourism resources, administrative support and tourism economic potentials.
Weakness
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The weaknesses of the can are lack of minimal amenities for tourists, damaged
infrastructure of development and management, lack of marketing, intence region
competition and slow growth of the economy.
Opportunities
The opportunities that the tourism industry brings are extensive educational and
research potential, strategic eco-tourism development, development of the regions, cultural
exchange, and job creation and benefit of the local community (Zhang & Hong, 2017).
Threats
The direct and indirect threats to a region’s tourism sustainability are lack of
considering the environmental impacts of a region, negative effects of the social structure on
the industry, lack of investment in the industry, inability to sustain with the competition and
lack of favorable climate condition.
Conclusively, a number of positive factors are influenced by the tourism industry. The
international benefits of tourism are all open borders, stable governments, and fiscal
opportunities. Economic changes such as expanded disposable income and a rising exchange
market make travel more available. The tourism industry, along with the Technological factor
of improved transport, also benefits socio-cultural factors as increase racial acceptance.
Environmental factors are the only negative factors included in this PESTLE study. Sadly,
both locally and globally, tourism has a negative impact on the environment.
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References
Mariani, M. M., Buhalis, D., Czakon, W., & Vitouladiti, O. (Eds.). (2016). Tourism
Management, Marketing, and Development: Performance, Strategies, and
Sustainability. Springer.
Robinson, P., Fallon, P., Cameron, H., & Crotts, J. C. (Eds.). (2016). Operations
management in the travel industry. Cabi.
Rouby, I. (2019). Egypt’s Travel and Tourism Competitiveness Index in Comparison to
Competitive Tourism Destinations in the Middle East and North Africa
Region. International Journal of Heritage, Tourism and Hospitality, 13(1), 202-208.
Razafindravelo, H. V. (2017). Innovation Strategies in the Tourism Industry (Master's thesis,
University of Stavanger, Norway).
Zhang, S., & Hong, H. (2017, February). Research on Hainan's Global Tourism Development
Strategy Based on SWOT Analysis. In 2017 International Conference on Humanities
Science, Management and Education Technology (HSMET 2017). Atlantis Press.
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