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Factors Affecting the Travel and Tourism Industry 2
BTEC National Travel and Tourism

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BARRIERS TO THE GROWTH OF TOURISM
TERRORISM, POLITICAL AND SOCIAL ENVIRONMENT

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What Factors are Involved? (Week 2 in bold)
Changes in destination: growth and decline Variety of things to do: adventure, sport, activity Customer types: More market segmentation Political aspects: the µWar on Terror¶, safety and health Length of stay: a more flexible industry

Technological: growth of ecommerce and new transportation

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Political Aspects
Security concerns over travel have had a serious impact on the travel and tourism industry, leading to: ‡ Increased business failures ‡ Demise of certain destinations ‡ Loss of expected growth in other destinations
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Tourism is an extremely fragile industry a crucial consideration in a potential traveller¶s decision to visit a foreign destination is that country¶s political stability, social coherence and other real or perceived barriers like service quality, poor infrastructure and health issues. Lack of foreign exchange for tourism development, lack of skilled manpower, weak institutional frameworks for tourism planning, political instability caused by communal violence, civil war conflicts are inhibitors to tourism development.

SOCIAL ISSUES

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Security and Safety Issues
Challenge is to protect travellers as they move across this huge industry using: ‡ Rail ‡ Airports ‡ Hotels and restaurants ‡ Cruise ships ‡ Buses
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Security and Safety Issues
‡ Airport security seen as priority, so attracts investment ‡ But this may leave traveller exposed to risks at other points in their journey ‡ Expense of technological solutions to detect terrorists

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Security and Safety Issues
‡ Political barriers prevent a global response to risks ‡ Not all countries have same view of security risk ‡ Impact on individuals of anti-terror measures likely to increase inconvenience of some travel options
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Health Aspects
New epidemics (disease that spreads quickly amongst people) have power to severely affect travel and tourism industry: ‡ Impact of SARS in South Asia and Australasia ‡ Effect of Foot and Mouth Disease on tourism in UK
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Technological Change
New transportation methods: ‡ Super ferries and cruise ships ‡ New land bridges ‡ Space tourism Continued growth of e-commerce: ‡ Only 5% of global population online currently
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