Sustainability Performance in Tourism: Challenges and Strategies

This report examines the sustainability performance of the tourism industry, focusing on the key challenges it faces across economic, environmental, and social dimensions. Issues such as infrastructure, the impact of COVID-19, taxation, and cross-border regulations are discussed. The report also explores management strategies that tourism businesses can implement to enhance their sustainability, including competitive strategies, SWOT and PESTLE analysis, and the use of technology to address environmental threats and cost management. The conclusion emphasizes the importance of maintaining sustainability for long-term profitability and highlights the role of effective market strategies in overcoming challenges.

INDUSTRY SECTORS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Presenting Sustainability key challenges.....................................................................................3
Presenting management Strategy.................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................1

INTRODUCTION
Sustainability performance of a business is referring to an ability to meet the needs and
demand of customer and stakeholders in order to earn the long term profit. However, there
are three pillars of sustainability such as social, environmental and economic. The present
report is based on tourism industry that provide travel services to their customer in order to
run their business. furthermore, the report will discuss on the suitability performance of this
sector as well as strategies that can be used by this industry in order to improvement.
MAIN BODY
Presenting Sustainability key challenges
Sustainability is known as an ability of an organization to fulfil the future needs of
customer so that it can maintain its performance in long run. Along with this, Tourism sector
has been affected by the three pillars of sustainability such as economic, environmental and
social (Lee, Kwonand Ruan, 2019). The common key challenges that has been faced by
tourism sector travel marketing, taxation, cross border regulation and infrastructure issue.
The major issues that has been faced by this sector is COVID- 19 and due to that this
sector was not able to earn profit. However, it has affected global economy such as there
was drop in total profit in year 2020 likewise form 300-500billion dollars (Challenges in the
Tourism Industry., 2020). In addition to this, due to this virus many travel industry has been
shut down because of shift in taste of customer needs and demands. Along with this, this
sector has to invest more in innovative product so that it can attract more and more
customer in order to sustain in business environment. Furthermore, the cost of vacation and
inflation has been major challenge for this sector because the tourism sector price are hard
to predict.
However, tourism industry is seasonal in nature and there is no guarantee of earning
the income as that will damage the overall business setup. Along with this, the main
economic challenge that this sector has faced is tax and in most of the countries it is
heavily taxed. The various tax has been levied on this industry such as luxury,
transportation, services tax etc. (Merino-Saum and et.al., 2020). However, tax rate varies in
different country and that affects the growth of tourism sector. In addition, to this,
regulatory and border issues are visa procedure that has caused hindrance in this sector.

Due to difficulty in visa process has kept the tourist away from the destination. And
most of the tourism sector has been delayed due to non-attainment of licenses and
approval on time. However, in order to increase the tourism sector the government has to
invest more in making the effective policy as well as proper infrastructure so that it can
earn more profit. Along with this, technology has changed the tourism sector it has helped
the organization to attract more and more customer (Khatua and et.al., 2020). The
innovative technology has allowed this sector to increase the competitiveness as well as
improve the overall performance in the business environment.
Presenting management Strategy
Management strategy can be define as framework that help the organization in analysing
the external and internal situation that helps in sustaining in the business
environment. However, this strategy includes behaviour of competitors, customer and
employees that will help in predicting the future threat. The tourism sector can make use of
competitive strategy is refers to a plan that includes external environment opportunities
and threat. Along with this, this framework will help tourism sector maintain its
suitability in the competitive market (Palma-Ruiz, Castillo-Apraizand Gómez-Martínez,
2020). In addition to this, the organization can make use of strategic tool such as SWOT and
PESTLE as it will help in analysing the external as well as internal environment that
will contribute in identifying the threats and opportunity. However, following this strategy
will help the tourism sector to attract customer as well as strengthen its market position.
Moreover, the another framework that can be used travel sector such as business strategy
that is consist of plans of action that will allow organization to utilize the company
resources in order to gain competitive advantage. This tactic main focus is product
and market development, innovation and diversification. In addition to this, it includes long
term and short term plans, market objectives as well as attracting customer. It is
consisting of SWOT analysis that will allows tourism sector to deal with external and
internal issue that will contribute in increasing the growth of the industry in
competitive market. However, tourism sector can make use of technology in order to deal
with environmental threat such as pandemic (Laari, Töyli and Ojala, 2018). It can follow
the proper safety guideline in order to attract more and more customer. Along with this,

competitive market strategy will allow this sector to deal with the issues created by
cost and inflation rate. Such as this sector ca increases the price in travel season and
lower the cost in non-seasonal this strategy will help in attracting more customer. In
addition, to this, it can also set the price of the services according to customer budget
that will contribute in increasing the sales (Rashidirad and et.al., 2017). If travel
organization, make the product according to customer needs and demand it will be able
to meet the social challenge effectively. Thus, competitive strategy will help the
organization to maintain the sustainability in the market by dealing with the three
pillars such as economic, environmental and social issues.
CONCLUSION
From the above report it has been concluded that for earning the profit and to run the
business in long term business has to maintain the sustainability in the environment.
Along with this, the study has summarized about the tourism sector that provide travel
services to this customer. The organization has faced key challenges such as pandemic,
taxation and policy made by the government. That has affected the growth of this
sector in competitive market and hinder the sustainability. Lastly, it has also concluded
on competitive market strategy that will help the tourism sector deal with the key
challenges of sustainability.

REFERENCES
Books and journals
Khatua, P. K. and et.al., 2020. Application and assessment of internet of things toward the
sustainability of energy systems: Challenges and issues. Sustainable Cities and
Society. 53.p.101957.
Laari, S., Töyli, J. and Ojala, L., 2018. The effect of a competitive strategy and green supply
chain management on the financial and environmental performance of logistics service
providers. Business Strategy and the Environment. 27(7). pp.872-883.
Lee, P. T. W., Kwon, O. K. and Ruan, X., 2019. Sustainability challenges in maritime transport
and logistics industry and its way ahead. Sustainability. 11(5). p.1331.
Merino-Saum and et.al., 2020. Indicators for urban sustainability: Key lessons from a systematic
analysis of 67 measurement initiatives. Ecological Indicators. 119. p.106879.
Palma-Ruiz, J. M., Castillo-Apraiz, J. and Gómez-Martínez, R., 2020. Socially responsible
investing as a competitive strategy for trading companies in times of upheaval amid
COVID-19: Evidence from Spain. International Journal of Financial Studies. 8(3).
p.41.
Rashidirad, M. and et.al., 2017. Competitive strategy, dynamic capability, and value creation:
Some empirical evidence from UK telecommunications firms. Strategic Change. 26(4).
pp.333-342.
Online
Challenges in the Tourism Industry., 2020. [Online]. Available through
https://www.technofunc.com/index.php/domain-knowledge/travel-and-tourism-domain/item/
challenges-in-the-tourism-industry.
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