PESTEL analysis for tourism (Peru and India)
Peru PESTEL Analysis
Political
Democratic government:
The government in Per is
unitary, representative,
decentralized and organized
according to the separation
of powers.
In the last 4 years, Peru has
had 3 presidents and the
last 6 leaders have been
involved in corruption
scandals.
However, the tourism sector
receives economic support
from the government
especially in the situation of
COVID-19
Technology
In 2020, spending on
information technology (IT)
in Peru was forecasted to
decrease by approximately
12.2 percent, compared to
values reported for 2019.
The source also projected
that in 2021, IT expenditure
in the South American
country would bounce back
and grow by nine percent.
Economic
However, Perú faced
economic difficulties in 2015.
The GDP in Perú is 195,74
billions USD, in 2020, GDP
fall to -13.9%, due to
COVID-19 pandemic
In 2020, the unemployment
rate throughout Peru has
doubled, reaching 12.5%, due
to the outbreak of the
COVID-19 pandemic
Moreover, the country has
high levels of inequality, with a
significant concentration of
wealth, and a poverty rate of
20.2%.
The tourism sector is
developed but suffered falls
due to the current pandemic.
Environmental
In 2021, it has approved the
actualization of diverse plans
to conserve the biological
diversity in Peru.
If we do not diversify our
energy matrix, Peru would
be left without oil and gas in
20 years, for which the
Ecological Transition bill is
being reviewed.
Social
According to the Promperu
2019 report, about the
foreign tourist profile, 90%
of foreign tourists carry out
cultural activities during
their stay in Peru. The
majority of foreign visitors to
Peru are in an age range of
25 to 34 years (32%) and
35 to 44 years (20%).
According to studies carried
out by the Peruvian
government, 71% of foreign
tourists travel to the country
to visit Machu Picchu;
however, other places of
cultural interest remain
unknown.
Legal
Based on the context of
COVID-19, Peru has laws
to the entrance in the
country, also all the regions
have different restricts to
avoid the spread of
COVID-19. These
restrictions are basically
about having a negative
COVID-19 test. In case
some countries prohibit the
entrance, as an example if
you come from Brazil, you
cannot enter the country.
Some regions have hour
restrictions, it means that
after 7PM or 9PM
everybody should be at
home if you are not doing
something that is extremely
necessary.
INDIA PESTLE ANALYSIS ON TOURISM
Political ● Terrorism: is triggered due to the political party in front of the people. This scares away
tourists because they do not feel safe in the place.
● Democratic government: which provides stability in decision-making and tranquility to
tourists. Also a well established federal government creates an environment of safer
business practices and gives confidence for foreign investment.

Economic ● GDP: since economic growth is around 9%, it attracts people to visit the country.
● Increase in national income: Due to the spending that foreigners make in the country,
the income of the industry improves.
● Growth: because it is high, you can invest in infrastructure, avenues and towns that
attract people. Which contributes to a stable economy presents opportunities for
several different companies to invest.
● Wealth distribution gap: is a big problem for Indian society, where there are millions of
poor people and just a small percentage that control most of the wealth.
● The government needs to include the local in every policy so they must have the
tourism disposal income.

Social ● Demographic changes: because the population is young, they are the ones who want
to visit new places. But a negative part, is slowly turning old will soon be the majority
and government subsidies and the lack of workforce will become a problem.
● Peaceful way of living: People visit these places to improve their practices on health
issues like practicing yoga. For example:Rishikesh,UK.
● Diverse cultures: because there is a wide variety both the language, traditions and food
can attract attention. For example, because a large part of the population speaks
English, it is a useful tool for foreigners to have good communication with residents.
● Access to education keeps the people constantly innovating and creating a competitive
and very cool social environment.
● As the population is vast in India it influences the Culture of the people and Tourists
need to respect the culture of local society.

Technological ● Cutting edge technological infrastructure permits India's population to stay ahead of
the curve when it comes to tech.
● Platforms: because of this, there is a better network in terms of transportation and
hotels.
● Health: because a good investment has been made in treatments, people go to that
country to receive them.

Environmental ● Effects of global warming: due to warming, temperatures rise causing the melting of
the Himalayan glaciers. Given this, due to the drastic change in temperatures, it can
keep tourists away.
● India's air quality is still one of the worst in the world, but several NGOs and
government agencies are working on efforts to lower this.
● Recycling laws that are in effect, work to try to convert India into a greener country.

Legal ● A comprehensive law system provides good security for investors and tourists. (Visas
and travel visitations have become easy thanks to good lawmaking in India.)
● Developed tax plans and regulations give India the ability to present decent
infrastructure and better opportunities for travel. They vary according to the states
especially on food and soft drinks.
● Even now in India there are some destinations where you need a special permit as a
foregin tourist.
● Policies towards tourism: sustainable development and preservation of animals.