External influences and there effects on tourism

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External influences and there effects on tourism

Tourism is one of the many growing industries in the world, a lot of money is made from it and it provides many jobs. There are external factors that can effect the tourism industry and which tourism related businesses have no way of planning for.

        It is possible for many businesses to be aware of and be able to cope with certain external factors, for example a business specialising in summer holidays knows that in winter, because of the weather, their gross profit will fall. It is impossible however for businesses to plan for such things as political issue's e.g. terrorist attacks and environmental issues such as floods, fires, earthquakes etc. These external factors can all effect the tourism industry in many ways. It is hard to be able to prepare for such external issues “ the need to balance a company’s strategy and structure with changes in the external environment is obvious in any industry” (Alberto Landero Sept 1997)

        The political environment has had a huge impact on the tourism industry; the greatest example of this is the terrorist attack on September the 11th to the United States. This was an unexpected attack that no business would ever have been able to anticipate. “ Reports indicate that the September events had a major impact on tourism world-wide” (The daily news) Tourism has been effected hugely by these events because of peoples unwillingness to travel, due to being frightened and scared. Airlines.hotels, travel agencies any business connected to tourism was effected by these unplanned events.

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        “There was total panic in the airline industry at the highest levels” (Rogate Mshana Feb 2002). Due to the fact that people were scared to fly anywhere the airlines lost millions and millions of pounds.         Many jobs were lost and many airlines were close to going out of business. This had a knock on effect around the world because the countries that rely on tourists to help them survive where receiving less because nobody would get on a plane.

        Therefore if nobody was going on holiday, travel agencies were losing out, 359,000 jobs were lost, revenue was down “ 25% ...

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