TOURISM AND THE EFFECTS OF

INTERNATIONAL ENVIRONMENT

ADITI GAUTAM
ANUJA VERMA
NEHA SHUKLA
POOJA TIWARI
TOURISM
Tourism is one of the largest and dynamically
developing sectors of external economic activities.
High growth and development rates
Volumes of foreign currency inflows
Infrastructure development
Introduction of new management
INTERNATIONAL ENVIRONMENT
Global strategy includes
Economic environment
Legal environment
Political system
Cultural environment
ECONOMIC ENVIRONMENT
Level of economic development
Population
Gross national product
Per capita income
Literacy level
Social infrastructure
Natural resources
Monetary and fiscal policies
Inflation
Interest rates
Effect of economy on tourism industry
Tourism Sector is not only a major contributor to the growth of the economy
but a generator of employment opportunities as well.
The slowdown has impacted the tourism industry in India at large
 India’s travel and tourism industry is one of the most profitable industries
in the country
Economic growth has added millions annually to the ranks of India’s middle
class, a group that is driving domestic tourism growth.
its booming IT and outsourcing industry a growing number of business trips
are made by foreigners to India
Tourist arrivals are projected to increase by over 22% per year through till
2010, with a 33% increase in foreign exchange earnings recorded in 2004.
A new growth sector is medical tourism.it is currently growing at around
30% per annum. Medical tourist arrivals are expected to reach one
million soon.
CULTURAL ENVIRONMENT
Customs
Language
Attitudes
Motivation
Social institutions
Religious beliefs
Impact of culture on tourism
It examines the growing relationship between tourism and culture
Tourism and culture are together becoming major drivers of destination
attractiveness and competitiveness
Culture creates authenticity and distinctiveness in the global tourism market
Increased interest in culture, particularly as a source of identity and
differentiation in the face of globalisation.
 Growing levels of cultural capital, stimulated by rising education levels.
Aging populations in developed regions.
Postmodern consumption styles, emphasising personal development rather
than materialism.
 A desire for direct forms of experience (“life seeing” rather than sightseeing).
 Growing importance of intangible culture and the role of image and
atmosphere.
 Increased mobility creating easier access to other cultures.
POLITICAL ENVIRONMENT
Form of government
Political ideologies
Stability of government
Social unrest
Government attitude towards foreign firms
Foreign policy
Impact of political conditions on tourism
industry
The human rights violations, conflict, and other
politically motivated violent events negatively affect
tourist arrivals.
Government has to be strong enough to facilitate
tourism
Security should be at par to secure the travelers
OPPORTUNITIES
Tourism provides employment.
Helps in growth of national income.
Source of foreign exchange to balance foreign trade.
The biggest pull for medical tourism is lower costs
even for advanced treatments. One pays a fraction of
what one spends in the West. India can offer a bunch
of services including ayurveda, homeopathy,
mediation, yoga, and allopathy for better living and
enhanced health benefits unlike any other medical
tourism destinations.
THREATS
Political tubulence.
Terrorism.
Changing trends in the west demand similar changes in India,
which here are difficult to implement due to high project costs.
Apprehensions about the law and order.
Increase in demand for medical services from foreign tourists
may lead to price hike. It may adversely affect Indians who are
not as rich as foreign tourists earning in dollars/GBP/Euro and
can certainly afford to pay a bit of extra for treatment as
compared to locals still saving substantially.
References
www.bukisa.com
www.sterlingpublishers.com
www.eturbonews.com
Thank you