Factors Which Affect The Travel And Tourism Industries Tourism Essay

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Introduction to Hospitality Industry

Hospitality Industry, historians have traced the development of the hospitality industry through of thousands of years and many cultures. The term of hospitality industry can define as an age-old industry because historians speculate the first overnight lodging structures were erected along Middle Eastern. Viewing the industry through the e lens of history is helpful because it reveals the strong relationship between the shape of hospitality and the needs and want, the hospitality industry will continue to change in what they need and want, the hospitality industry will also continue to change. The hospitality industry encompasses a wide range of businesses, each of which is dedicated of the service of people away from home. (Chon, 2010)

The hospitality and tourism industries are the largest and fast-growing industries in the world. The hospitality industry consists of wide category of fields within the service industry that includes lodging industry components, food industry components, recreation sports and entertainment components, transportation industry, and supplementary fields within the tourism industry. (Chon, 2010)

Advantages in the hospitality industry

From the simple origins as privately owned, independently operated businesses are the hospitality industry because has grown in complexity and size. Today's hospitality businesses interact with one another on a global basis, and must stay aware of what is happening around them. For an example, management companies and hotel chains now spread across the world; economic conditions in Singapore affect a company's holdings there and elsewhere.

Hospitality businesses are closely intertwined with those in the travel and tourism. Tourism is travel for recreation or the promotion and arrangement of such travel. Tourism and the hospitality industry so strongly affect one another that some associations and industry leaders, including the Council on Hotel, Restaurant and institutional Education (CHRIE), consider the combined industries of hospitality and tourism as one large industry- the hospitality and tourism industry. The components of this large industry include: (Chon, 2010)

Food and Beverage Service

Lodging Service and Ski Resort

Recreation Service

Campground and Theme Parks

Travel- Related(Tourism) Service

The Gaming industry

Product provides with personal service in conjunction with the first four components.

Because these components are separate and often competing industries, this group industries will be referred to in this text of an interconnected set of parts or components.

Channel Distribution is one of the important uses in hospitality industry. Channel distribution is used to transfer merchandise from the manufacturer to the end user. An intermediary in the channel is called a middleman. Channels normally range from two-level channels without intermediaries to five-level channel with three intermediaries. For an example, a caterer who prepares food and sells it directly to the customer is in a two level channel. A food manufacturer who sells to a restaurant supplier, who sells to individual restaurant, who then serve the customer, is in a four-level channel. Intermediaries in the channel of distribution are used to facilitate the delivery of the merchandise as well as to transfer title, payments, and information about the merchandise. For example, a manufacturer may rely upon the workforces employed by a distributor to sell the product, make deliveries, and collect payments. The channels used by a marketer are an integral part of the marketing plan and play a role in all strategic marketing decisions.

Global distribution system is the worldwide computerized reservation network used as a single point of access for reserving airlines seats, hotel rooms, rental cars, and other travel related items by travel agents, online reservations sites, and large corporations. The premier GDS are Amadeus, Galileo, Saber, and World span owned and operated as joint ventures by major airlines, car rental firms, and hotel groups and also called automated(ARS) or computerized reservations system(CRS).

1.3 Disadvantages in the hospitality Industry

The disadvantages of Globalization on the hospitality industry are as follows:

Language Barriers

Due to Globalization, the hospitality industry can employ people from different countries- as it is usually cheaper - they may sometimes have problems in communicating with the customers. Many customers get quite irate as a result of this. (Chon, 2010)

Cultural Barriers:

As there are people from various cultures, one needs to be careful not to offend them. For example, a Muslim will not eat pork - one needs to make sure not serve food which contains pork. (unless specifically asked). What's acceptable by one culture may be frowned upon by another.

Events/Disasters in other Countries:

A disaster or even taking place in one country may affect our country (the home country) also. For example, the financial crisis makes less people want to spend money or travel; due to increase in terrorism some visitors get are not ready to travel to certain countries.

Seasonal Employment:

During peak periods, a lot of jobs are available but as soon as the tourists go back the jobs disappear as well. For example: Goa - India; the locals in Goa get their income only during the peak season, (Dec-Feb and April - July) after which they have no jobs and no income.

Increasing use of technology to communicate:

Due to international barriers, there has been a steady increase in the use of technology for communication (through the internet, voice recordings). This removes the human touch.

Developing Countries:

Countries that are unable to keep up with the advancement in technology tend to lose out. Example: Africa does not have the infrastructure or technology as yet to welcome a large amount of foreign visitors, though it does have a lot of natural attractions. To increase the flow, it would have to improve conditions; otherwise tourists have a vast sea of areas to choose from.

Increase in Crime Rate:

With the increase in tourists, crimes increase too. Example: pick-pocketing, hustling, rape, smuggling.

Bad Habits:

People from other countries sometimes influence the local youth in a bad way. Increase in drugs and promiscuous behavior, etc.

Environment Depletion:

Globalization causes an imbalance in the eco system. People usually throw their garbage around everywhere which could cause sickness, to encourage more visitors, areas of greenery are cleared and wildlife killed - which is a major cause for global warming.

Loss of Cultural Pride and Values:

To suit customer needs to change or modify various services and products. For example: Certain food dishes are changed ( in taste, names become more westernized ) to make them more attractive to visitors. This, in a way, leads to the loss of culture as one wants to become and behave like the tourists that come into our country.

1.4 Conclusion

Hotel business is growing and developing a career centre, Includes travel, tourism, restaurants and recreational facilities and the government more and more people are turning to industry to make money. For those planning to venture into the hospitality industry, it helps to know the common terms and words of a particular industry.If we manage a restaurant in the street with heavy tourist traffic for example, we wound want to stay current with local attractions and question beyond the experience of visitors to our restaurant.

This will enable our customers to get the best service the focal point of the hotel industry. Experienced travelers may want to know the abbreviation for the hotel industry, the industry stands and password in order to plan the best possible vacation. Beginners may want to be informed about the latest jargon in order to make their trip go more smoothly.


Find out the factors that affecting travel and tourism. Explain in detail.

2.1 Introduction to Travel and Tourism

The travel and tourism industry is the largest individual industry in the world and the largest contributor to global economic development. Worldwide, this rapidly changing industry generates more than $2.5 trillion annually and provides jobs for more than 112 million people. In terms of total revenues, investment and employment travel is also the fastest-growing industry. (Chon, 2010)

The components of the hospitality network may be independent and competitive businesses, yet they share an interdependency that has evolved over the centuries. The relationship can be seen in the roles that destinations and hospitality facilities play in motivating people to travel.

Although travel encompasses all movement or displacement of people, not all travel involves tourism. Refugee, migrants, explorers, nomads, soldiers, and commuters certainly travel, but they are not tourists. Tourism-related travel involves the movements of visitors to a place to enjoy attractions, special events, hospitability, lodging, food, and entertainment. The tourism industry is concerned with attraction and events that draw tourists and excursionists to an area. (Chon, 2010)

2.2 Factor which support the growth of tourism

The most effective factors that inspire the growth of tourism of a country are the stability of Politics of a country. This is because the country is safe from crime, wars and helps to protect the safety of tourism. For an example, Singapore the fast growing country is focusing more on safety of tourist, so that the political stable will be respected and impressed by the tourist and also will generates the growth of a country.

Furthermore, one of the important aspects is Economic development of a country. To relate this, if the economy of a country is stable, there will be more investors to invest in our country as well joint ventures. For an example, if the economy growth is higher than, the number of tourist will be also increase.

Besides that, more strategic tourist spots are being built to attract the tourist to come over to experience as well as to have leisure time. Also, this is mainly to promote the entire region or city as either a business or pleasure destination. In addition, one of the strongest factors in choosing destination is the desire to visit family and friend. Although people visiting other people often do not need commercial lodging, they probably will take advantage of other hospitality and tourism service such as transportation, recreation, food, museums, entertainment, and product during their trip.

As a final point, the most imperative dynamics that can boost the growth of tourism is through Education. In today's world, education plays a vital role for every individual to be successful in life. In addition, the Ministry if Higher Education can come out various types of education plan in order to promote the eminence of education of our country as well as to be hub for foreign countries to twin-up their educational programmes.

2.3 Factor which effecting Travel and Tourism

There are quite a number of factors that could most likely to contribute to boost up the Travel and Tourism Industry of country. A healthy tourism trade benefits countries Economically, Sosioculurtrally, and Environmentally. Of course, some effects the travel tourism also exist. Careful planning and management can help lessen negative impact.

2.2.1 The Economic Affect of Tourism

In a narrow sense, tourism refers to the activity or practice of travelling for personal enlightenment, education or pleasure. In a broader sense, tourism is the business of providing information, transportation, accommodation and other service to all types of travelers, whether travelling for business or pleasure.

Tourism is now firmly established almost where in the world, from the high mountains of Tibet to the Amazon jungle of Brazil. Whether the sites are ancient ruins, mountain, forests, or beaches, tourism development has inevitably followed discovery.

The Economic benefits of tourism are undeniable. The most visible economic benefits of tourism is employment. Tourism provides jobs such workers as hotel employees, taxi drivers, tour guides, construction workers, entertainers, restaurant employees, and transportation workers. Many such jobs would not exist if tourism had not been developed. Foe example, if taxi drivers in Malaysia could not transport visitors to hotels, they might not have a livelihood as taxi drivers at all. (Chon, 2010)

Besides employment, tourism also generates revenue that benefits the local population by increasing economic activity. Taxes paid by tourist help local government fund education, health are and other service.

Money spent by a traveler at a hotel or restaurant help to pay employee wages and support other business. Eventually, the same money is used to by food, clothing and other products and services, further benefiting the country. (Chon, 2010)

2.3.2 The Culture Affect of Tourism

One of the most positive effects of tourism is cross culture awareness, the fostering of understanding between people of different nations and culture. The opportunity to exchange knowledge, ideas, and tradition is more available today than at previous time in history. Aside from merely satisfying curiosity, tourism promotes international good will and the exchange of culture values.

For statistical purpose, the United Nations divides countries into two broad categories:

developed countries and developing countries. The developed countries include all North America and European countries, as well as Japan, Australia, New Zealand. Developing countries are nations that have relatively poor economic and lack advanced Technologies. They are located in Africa, the Middle East, the Caribbean and the Asian mainland. (Chon, 2010)

Tourism is a major economic factor in most developed countries. According to the World Tourism Organization (WTO, 90 percent of all tourism are concentrated in 15 Countries in North America and Europe.

To support a thriving tourism industry, airports must be built or expanded to accommodate jet aircraft and tourist facilities such as hotels, restaurants, and recreational sites must be constructed for visitors. The underlying framework of facilities and systems required to support a tourism industry is called tourism infrastructure. Particularly in developing countries, the creation of a tourism infrastructure can have a profound social, culture and environmental affect.

2.3.3 The Sociocultural Affect of Tourism

The affect of increased hospitality and tourism activities on the ways individual interact with other members of their society also may be positive or negative. Changing family lifestyle and cross- culture contacts may result in either positive or negative influences. However, most concern surrounds the social ills that can results from countries. (Chon, 2010)

Changing Family Lifestyle

Many local residences find their lives changed when obtain tourism- related employment. Young people may enter the job market for the first time when tourism development occurs. On the positive sides, this may contribute to increased family income, allowing families to buy products that were previously beyond their means. The changes in lifestyles may also lead to demands for better housing and change in dress and eating habits. When local people adopt practices from tourists, this is known as the demonstration effect the demonstration effect can have a negative outcome, though if local residents come to realize that, even with their increased income, they cannot afford to live like the tourist. A feeling of envy or resentment toward affluent visitors may results. This situation tends to occur most in those destinations where the economy is based primarily on tourism. (Chon, 2010)

Social Ills

Social ills include such problems as crime, displacement and discrimination. Organized crime and prostitution are sometimes associated with tourism. Indeed, research studies show a correlation between growth of tourism and increased crime. Promoters, law enforcement officers, and other stakeholders may have to deal with the facts that tourists who do not know their way around a city may be targets for criminals. The negative publicity from such attacks may be difficult to overcome. (Chon, 2010)

The negative effect of tourism may be included discriminations. Hiring and promotion practices of corporation new to an area may be discriminatory against local employees. A community may be discriminate agents transplanted corporate employees. When there are not enough local workers to build and manage the tourist business, workers may be brought in from outside the area or even the country. A sudden wave of large numbers of outside workers may cause resentment in local workers. This is especially true if the incoming employee's occupancy menial jobs to local workers. For an example. If local worker see a higher standard of living for the newcomers, they may actively discriminate against them. On the other sides, if the culture and lifestyle of the local residents is very different from that of the newcomers, the newcomers may by uncomfortable in theirs situation. (Chon, 2010)

2.4 The Environmental Affect of Tourism

Protecting the environment is now one of the most talked about and hotly-debated topics across the globe. Many companies are spending hundreds of millions of dollars to create products or make their products environmentally friendly. An example is the electric car that is being looked at as a viable option to that of the present gasoline powered car.

In 2009 world leaders met in Copenhagen to discuss ways in which they can prevent global warming and reduce on the effects of climate change, in effect protecting the environment. The travel industry too has nit been left out of this issue. In a industry where the number of people engaged in international travel has been predicted to reach the billion marks in 2010, there is concern about its contribution to the damage bone to the environment. Also like every other industry the travel industry needs to be concerned about ways of doing business that are environmentally friendly.

Outlined below are some of the environmental issues affecting the travel industry which stakeholders need to address and in some cases seek out long term solutions?

Aviation which ferries hundreds of thousands of tourist across the globe is of great concern to those seeking to protect the environment. A major concern for the industry is greenhouse gas emissions. One way the aviation industry is working on this problem is by rolling out newer planes that have fuel efficient engines which means less carbon emissions. However not all airlines especially in the poor countries can't afford buying new aircraft.

Mass Tourism, with the cost of travel becoming cheaper and more and more people venturing away from countries to place that were previously inaccessible but can now be reached because of air transport, areas of environmental and historical significance are becoming crowded. This is putting pressure on ecosystems within these areas and threatening the flora and fauna. Also climate change is going to mean that certain place will not favor visitors because of weather conditions becoming extreme which will lead to overcrowding in other place with more favorable weather conditions. Again this presents a danger to the ecosystems in the overcrowded areas and to the tourism of the area. (Chon, 2010)

Deforestation, in spite of the worldwide call to protect the environment there are still areas where massive logging is taking place. This is also contributing to destruction of flora and fauna and is a threat to the tourism of the area. Besides that, with the call to go green affecting all industries across the globe the tourism industry has not been left out. There is pressure on those who are in the industry to find methods of doing business that are sustainable and environmentally friendly. For example, can the hotel industry builds hotels that are more environmental friendly? What methods can they use to conserve energy and reduce on chemicals that are in the dry cleaning of tons of laundry used in the industry?

Human Encroachment, with populations continuing to grow worldwide there is mow competition between man and animals for space. Human are now encroaching on areas like National Part that are protected and marked for wildlife. This has led to reports of people and their livestock being killed by wild animal's which in turn leads to people hunting and killing these animals that are considered to be a threats this is a threats to be tourism of the area. Human encroachment is also forcing animals to move away from their habitat to other areas where they cannot survive leading to the extinction of certain species.

2.5 Conclusion

The travel and tourism field is the fast growing paced and rapidly growing in world. Each year, the tourism industry is increasing seems more difficulty to employees to undertake the trainer of new entrants to the fields. The parallel growth in the use of sophisticated technologies has complicated this situation. At the same time, travelers throughout the world have becomes more sophisticated, more knowledge and more demanding.


Websites Reference

Scribe(2011), Hospitality Industry, Retrieved on February 12,2011

from http://www.scribd.om/doc/8691190/discuss-the-impact-of-globalization-on-the-hospitality-industry

Business Dictionary(2011), Global Distribution System, Retrieved on March 13,2011

from http://www.busineedictionary.com?definition/global-distribution-system-GDS.html.

Bized(2011), Factors Affecting the Travel and Tourism Industry, Retrieved on March 13,2011 from http://www.bized.co.uk

Book Reference

Kaye Chon, Thomas, A. Maier, 3rd Edition, Welcome to Hospitality and Introduction, USA: Delmer.