A Pestle Analysis of Tourism Industry Essay

974 Words Apr 8th, 2012 4 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
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Therefore shorter and cheaper holidays look far more appealing, for instance travelling by car just for a weekend.
Social:
There is an aging population in many countries. With an aging population the needs of the market will change. People who are in a later time of their life have different needs and wants. There are more and more people who are in their later years who want to travel, to cater for this it may mean advertising focused more on comfort and relaxation rather than thrill ridden activities.
There is an ever increasing attitude for positivity towards ‘going green’. People are purposely searching to only buy products from companies with sustainable practises in place. Hence, it is important for the tourism industry to take on these attitudes as well, as it is becoming an important part of our society today to have environmental policies incorporated into everyday business practises
The Asian population is increasing at a rapid pace. There are 3.9billion people in Asia, which is 60% of the world’s population. As stated in the 2010/11 ITB World Travel Trends Report, “By 2020, the number of Chinese outbound travellers could double and the number of Indians travelling abroad could grow fivefold. This would raise both countries within a decade to the top six outbound markets worldwide.” This shows just how quick China and India are becoming powerful players in the tourism industry.

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