A Pestle Analysis of Tourism Industry

976 WordsApr 22, 20124 Pages
1.1 Using the PESTEL framework, identify and discuss the key factors in the macro environment that influence the tourism industry. Political: A large influence on the tourism industry can be the stability of government. If the government in unstable it can be viewed as dangerous and unpleasant to visit. This can have a huge impact on that countries tourism numbers. Some governments also choose to make shopping tax-free for tourists, as tourists have the right to claim back VAT (Value-Added Tax)/GST (Goods and Services Tax). By making shopping in foreign countries tax free it has attracted tourists to these countries. As stated in case one terrorist attacks in 2001 had a huge impact on the tourism industry. People were worried for…show more content…
Internet has made a huge influence on the tourism industry. There has been a steady incline of online sales. For example in 2005 online bookings for TUI were 15%, which had doubled in 2008 to 30% (Viardot, 2009). Booking online has made it much easier for individuals to book their own holidays. As well that with online bookings it allows for the customers to do their own research of where the best places for them to go is, rather than using a travel agent. Secondly, technologies are so advanced now that communicating with people around the globe is made much easier. For instance, people on opposite sides of the world can chat easily, possibly even to strangers. This leads to the new trend that people can blog and communicate their thoughts to millions of people with a simple click of a button. This new way of communicating can have a huge impact on the tourism industry. People all over the world are sharing their thoughts and feelings about everything they do, whether that’s a new product or an exciting new experience. Environmental: In this current decade environmental concerns have greatly became a huge influence in all business industries. Aviation is a large part of tourism. Sadly it is also a huge contributor to CO2 emissions. An increase in carbon emissions is a major threat to climate conditions. Consequently there have been more taxes placed on air travel. This increase in taxes will raise the prices
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