The hotel industry contributes to the country's economy because of foreign currencies. Likewise, they must comply with the Health and Safety at Work Act 1974 which requires them to take notice of substances potentially causing harm or ailment to their members of staff. In Thailand, many workers have exchanged their traditional work of plowing the fields to work in the cities, in the tourism industry. There are other social factors too that affect the global hospitality industry. exchange rates are another economic factor that affects the ability of foreign M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. Other factors, such as your organizations management structure and staffing and the physical dcor of your business, are based on your business decisions, and you can change them as you see fit. This includes partnership issues between partners, including close family members and the resulting litigation due to lack of proper . Analysis of the Hotel Industry here to learn more. It was a similar picture during the recession. Political instability is also an important factor. Similarly on one side these factors push the tourism industry in the short and long run positively and negatively while on the other side affect the economic growth of the global Factors Affecting Sales in the Leather Industry. cheaper than the average hotel room. For example, souvenirs, snacks, and emergency medicine are some of the common items that many tourists buy. Tourism can be a catalyst for strengthening a local community. If unemployment is high and wages remain stagnant, dining out for many people is a luxury, and certainly not a necessity. Sure, give the tourists that sense of familiar that they are looking for. Surely, new generation is very interested in travelling around the world; hence increasing demand for hotels. This may help promote traditions that may have become distant. Whether it comes out successfully depends on a few primary factors, including At one time, trying Hotel owners follow innkeeper laws, which ensure the welfare and safety of guests and their properties. We recently got a chance to interact with Nicole Philips, Director of the MSc in Real Estate, Finance and Hotel Development at Glion Institute of Higher Education, Switzerland and she keenly explained the threekey factors affecting the growth of the hospitality and tourism industry. Museums, shows and galleries are fantastic way to showcase the local customs and traditions of a destination. Political and Security challenges. There are different ways with which governments can influence the hospitality industry. Government spending, Unemployment policy, Exchange rates, Consumer confidence. A large part of this industry is composed of luxury hotels. Economic factors that may impact on the hotel industry. Technological factors that may impact on the hotel industry. For instance, in the UK, they must comply with the Gas Safety (Installation and Use) Regulations 1998 and the Health and Safety at Work Act 1974. growth is expected into 2020 and beyond. industry, otherwise known as the hospitality industry, spans across a large As these modes of transport are used more often, their impact on the planet increases. It employed 3.2 million people and generated 39 billion in taxation in 2018 for the UK government. Do you want to struggle to get by when you dont speak the local language or are you pleased to find somebody who speaks English? However, most of the world is now free for travelers and thus the hotel industry is facing a massive boom. Uncertainty avoidance. Therefore, tourism can contribute to rises in the numbers of sex workers in a given area. PESTEL analysis of Poland (Poland country profile), https://www.kantar.com/inspiration/fmcg/lockdown-is-eating-away-food-takeaway-and-restaurant-industry. adjust accordingly. Perhaps they have been introduced to alcohol through the tourism industry or they have become resentful of rich tourists and turned to crime. Hotels often run out of rooms during peak We hope the article PESTEL analysis of the hospitality industry has been helpful. Growth of casinos and other gambling facilities can encourage not only the tourists to part with their cash, but also the local population. (The author is a well-known travel writer. This means that host-guest interaction is inevitable. In this article I will explain what the most common social impacts of tourism are and how these are best managed. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Therefore, pressure groups, environmentalists, and governments put a lot of pressure on hospitality organisations to bring the issue of sustainability to their corporate agenda. And thus, there are various global factors that affect this industry. Continued Technological Changes and regular innovation. needs to be honest about the calories in the good and nutritional ingredients Where a forward-thinking business strategy, and supporting operational roles are in place and done well, hospitality and tourism will generally ride the wave. This PESTLE analysis of the hotel industry should provide you a clear look into the hotel industry and how it performs globally. Years ago, hotels only used traditional media (print and broadcast), but now there are new media brought forth via the internet to consider. This isnt something hotel owners can control, but Many factors affect the success and growth of the hotel industry. Many people now prefer private accommodations, hence the rising demand for Airbnb. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Travel websites have made it easier for people to price shop hotels. All rights reserved LCHW. Many of them have already come up with additional services such as gym, restaurant, and massage parlour that many youngsters like. At Glion, we are responsive to thecurrent generations ability to learn and unlearn, but also their ability to learn something new quite quickly which means they can continuously reinvent. The presence of a large number of tourists with a lot of money to spend and often carrying valuables such as cameras and jewellery increases the attraction for criminals and brings with it activities like robbery and drug dealing. He is a lecturer in Management and Marketing. BHR (2021) Hospitality, tourism, and politics, available at: https://www.bu.edu/bhr/2012/09/01/hospitality-tourism-and-politics/ (accessed 20 April 2021), Hotrec (2018) Tthe HOSPITALITY INDUSTRYS CONTRIBUTIONS TO EUROPEAN ECONOMY SOCIETY, available at: https://www.hotrec.eu/facts-figures-2/ (accessed 20 April 2021), Moreno, N. (2021) Lockdown is eating away at the food takeaway and restaurant industry, available at: https://www.kantar.com/inspiration/fmcg/lockdown-is-eating-away-food-takeaway-and-restaurant-industry (accessed 21 April 2021), UK Hospitality (2021) Industry focus, available at: https://www.ukhospitality.org.uk/ (accessed 20 April 2021). Social part of the PEST is split into environmental factors too as those have a significant role in the strategic management these days. Local people can also increase their influence on tourism development, as well as improve their job and earnings prospects, through tourism-related professional training and development of business and organisational skills. Lastly, gambling is a common occurrence as a result of tourism. Also, the competing enterprises, governments, courts . This is common in the hospitality industry. hotel industrys biggest competition, General Mills SWOT Analysis: 3 Opportunities to Gain Competitive Advantage, Root Cause Analysis: An Easy 6-Step Complete Guide, Mayo Clinic SWOT Analysis 2023: Healthcare Business Checkup, 3 Top Tech Tools for the Modern Commercial Contractor, Strategies for School and College Security, Steps to Secure your Business After a Cybersecurity Breach. Read also: Environmental impacts of tourism. Because of social media, the news is available and updated 24/7. Hotels are also becoming more strict in terms of the Tourism is, at its core, an interactive service. Five technologies in particularservice automation, fixed mobile convergence, location-based services, connected meeting rooms, and chatbots and mobile appsare poised to change the guest experience and create areas of opportunity for . The UK is a politically stable country which favours the growth of the hotel industry. On the other hand, internal factors are factors that occur . Do you have any comments on the social impacts of tourism? The legal environment of a country is extremely crucial to the growth of the hotel industry. globe. Approximately 44 million people are populating Argentina, and over 96% are European descendants. Definition. Restaurant Industry PESTEL analysis can identify how political, economic, socio-cultural, technological, ecological, and legal issues can impact the conditions of the restaurant industry. Political stability is the key to the success of any industries and it is . There are also negative social impacts of tourism. Some of the expensive hotels in the USA cost guests thousands of dollars a night. Aside from the economic impacts created by enhanced employment prospects, people with jobs are happier and more social than those without a disposable income. Overall, our findings show that most of the . The compound annual growth rate for food tourism is expected to increase by 9% between the years 2019-2023 according to a recent report by Technavio, a market research company in the United Kingdom. Stakeholders in tourism: Who are they and why do they matter? Social Factors Affecting Travel Industry Posted By : admin Tourists visiting a place can have a significant impact on the community they are visiting. This is also often referred to associo-cultural impacts. massive amount of disposable items it can be the cause of serious environmental The establishment Online booking facilities either directly or through third-party apps has helped boost the booking rate of hotels. BUT, there are also some positives. Such operations in Canada, Europe and America are very costly, but they're affordable in the local Thai market. Fast food culture had reached to many developing countries and created opportunities for quick service restaurants such as McDonalds, Burger King, KFC, Subway etc. Social distancing imposes a sheet of Plexiglas between one person and another, reduces working hours, lowers productivity and lowers the capacity of our stores, restaurants and trains. Social change is basically referring to changes in the way that society acts or behaves. Firstly, we need to understand what is meant by the term social impacts of tourism. Or should we let them grow and change, just as we do? I certainly felt this was the way when I went to the Running of the Bulls festival in Pamplona, Spain. Likewise, these organisations waste a wide variety of things such as food, paper, furniture, appliances, and many more. This text by Hyung You Park explains the principles of heritage tourism in more detail. Wifi services, lifts, intercoms, etc. Unfortunately, there are a large number of socio-cultural costs on the host communities. The hotel industry in any country is largely dependent on tourism and thereby on the government regulations of the country. There are many examples of ways that tourists offend the local population, often unintentionally. People who stay at hotels will take photos The Say's Law. Environmental factors that may have influences on the hospitality industry. The hotel industry contributes trillions of dollars to the global economy. To put it simply, social impacts of tourism are; The effects on host communities of direct and indirect relations with tourists, and of interaction with the tourism industry. Where tourism has grown exponentially many different positive and negative impacts have been noted, and the greater the dependence on tourism the community has, the more inclined locals and the local tourist industry are to change local traditions and lifestyles to adapt to tourists' needs. and write up an honest post about their experience. Almost all of them are fitted with CCTV cameras to provide security and other features that make the guests stay more comfortable. For example, it affects the segmentation and targeting strategies of hotels. scale is on a rise more people are being able to travel and make use of the to find a different hotel would be the only option, but now you can check This often means that many developments in an area as a result of tourism will be available for use by the locals also. You may also like reading PESTEL analysis of the hospitality industry. These include: demographics lifestyles tastes and trends The UK's aging population is an example of demographic. The government has a stronghold over the hotel key factors affecting hospitality and tourism industry Key factors affecting hospitality and tourism industry The pandemic also gave us an opportunity to look at various factors. Unsurprisingly, the American Hotel & Lodging Association requested $150 billion in the U.S. government relief. President with new ideals can swiftly impact the hotel industry, and overthrow To study the best practices of sustainability in hotel industry. And globalisation helps us to get that! Unfortunately, there are many changes that come about as a result of tourism that are not desirable. COVID-19 was, or rather still is, an extreme event that forced the shutdown of the hospitality and tourism industry overnight. strength of currency can bolster the industry. Likewise, hotels in the UK must comply with the UK GDPR. 3. Hotels have become more and more technology-friendly in recent times. The impact of politics upon the hospitality and tourism sector is dramatic. It is this interaction that encourage us to become more alike. It is the local culture that the tourists are often coming to visit. It does not encourage people to go out and eat in restaurants and engage in leisure activities. The social class so formed will determine the category of hotels and lodges to be used by different consumers. are worthy will pay social media influencers to write about it. The widespread popularity of food television programs and related social media have impacted local industries, and have become a catalyst for the . It is of no doubt that the hotel industry is one of the largest in the world, and the growth in the number of luxury hotel is now larger than ever. Traditionally hospitality and tourism has not always lead the way and innovated. This analysis will assess the impact of the political, economic, social, technological, and legal factors on the industry. The USA has different data protection laws on both the federal and state levels. The tourism industry requires many facilities/ infrastructure to meet the needs of the tourist. affect the attractiveness of a vacation spot. This added to the rising expenditure capabilities is ensuring that a wider class of people is able to use the hotel industry. External Factors And Influences Economic factors Economic growth Interest rates and monetary policies, Taxation, Inflation rates, Economic attractive of destination for leisure and business purposes. Any major economic change massively affects the hotel industry. Customers can now book their holidays and restaurant tables online. Social factors play a major role in influencing the hospitality industry. Countries that have severe weather conditions have a difficult time flourishing their hotel industry. they must understand the seasonal differences before pricing their rooms and Hotel owners who are confident that their hotels Putting your hotel in front of 600,000+ travel agents. They have learnt to speak English and to eat Western food. Working remotely has today become commonplace for many employees and is forecasted to become more than just a passing trend. Something to ponder on I guess. He is a lecturer in Management and Marketing. These might include; preserving the local culture and heritage; strengthening communities; provision of social services; commercialisation of culture and art; revitalisation of customs and art forms and the preservation of heritage. Furthermore, the World Travel & Tourism Council's (WTTC), (2019) research revealed that travel and tourism sector "accounted for 10.4% of global GDP ($8.8 trillion) and 319million jobs, or 10% of total employment in 2018". Registered office: 85 Great Portland street, First Floor, London, W1W 7LT. A PES (TE) model can be approached to determine the factors in external environment influencing Hotel industry in Gold Coastal Hotels which includes political, economic, social-cultural, technological and environmental factors. It is not only crucial towards the tourism industry Even those people who go out to eat or order take-out, they often explore the most value for their money which impact on the profit margins of many restaurants and other food providers. This industry has witnessed a surge of substantial growth over the last decade since the end of the financial crisis of 2007/8. States will want to visit. 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