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. In fact, is this not the exact example of what is not authentic? identification before allowing a guest to use their facilities. External factors are the factors that occur outside the scope of the company or organization, for example, the economy. Or show romantic affection in public in the Middle East? What it needs is smart people, for talent to be ahead of the curve, and leaders who come up with new ideas. I also hope that it has encouraged some deeper thinking with regards to issues such as globalisation, authenticity and standardisation. The sector may have also been affected by Brexit, but as the end of the transition period coincided with the start of the latest lockdown, it is hard to separate the effects of the two. Individualism and collectivism. State of the hospitality sector. While there are several social factors which influence sustainability of any business in general, the ones which are most relevant to the hospitality industry are: Education, Life Expectancy, Income, TV index, Newspaper index, and PC index. . For instance, restaurants must comply with food hygiene standards though these standards may vary from one country to another. Likewise, the same also goes with going on holidays abroad every year. Learn how to, Our Mayo Clinic SWOT Analysis examines the Strengths, Weaknesses, Opportunities and Threats of one of, Technology is now taking over, and almost all fields are turning most tasks into digital., Schools and colleges should always take proactive steps to guarantee the safety of its students, Cyberattacks can harm your business on many levels. attacks in high profile hotels. Second, the hotel-related industry had a strong inter-dependent . Social factors that may have influences on the hospitality industry. I have covered this in my YouTube video below! Nicole refers to a recent publication,The State of Hospitality 2022by Sommet Education, Switzerland,and says, When we think about growth of hospitality and tourism, or any industry for that matter, the discussion often becomes a macro-economic one. According to Moreno (2021) just one week of lockdown cost the UK alone $412 million in lost spending on snacks and non-alcoholic drinks. Airbnb and likely find something suitable and cheaper. The last of the social impacts of tourism that I will discuss is crime, gambling and moral behaviour. This is a good and bad Hotels do offer more than the standard Airbnb Methodology This study is based on secondary data. But, on the other hand, the pandemic also gave us an opportunity to look at various factors affecting the growth of the hospitality and tourism industry. Legal factors that may impact on the hotel industry. 8. I have seen this myself in many places including The Gambia and Thailand. 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. Unquestionably, technology is playing a big role in the development of the hospitality industry. Millions of jobs were lost, and well known brands ran into losses. growth is expected into 2020 and beyond. Theres something great about trying out a traditional, yet unfamiliar coffee shop, or any independant place for that matter. luxury hotels, boutique hotels, and budget hotels. It represents 10% of the UK employment, 6% of businesses, and 5% of GDP (UK Hospitality, 2021). Hotels are also becoming more strict in terms of the To study the environmental issues of hotel industry. Porter's Five Forces Analysis The threat of new entrants The hotel industry in the UAE has been growing and advancing for some time, and now, having entered "the stage of maturity," it is rather established ("UAE Tourism Industry," 2012). Source: How does the environment affect the hospitality industry? competition with corporations like Airbnb, which offer a variety of rooms for They have learnt to speak English and to eat Western food. iHop, too. 3. Airbnb (2020) Make the most of the growing demand for longer stays, available at: https://www.airbnb.co.uk/resources/hosting-homes/a/make-the-most-of-the-growing-demand-for-longer-stays-263 (accessed 22 April 2021), BBC (2020) Marriott Hotels fined 18.4m for data breach that hit millions, available at: https://www.bbc.co.uk/news/technology-54748843 (accessed 25 April 2021), Condor Ferries Ltd (2021) Hotel industry statistics 2020/21, available at: https://www.condorferries.co.uk/hotel-industry-statistics (accessed 24 April 2021), Style, T. (2019) Where will the UKs new 130,000 hotel rooms come from?, available at: https://www.savills.co.uk/blog/article/288955/commercial-property/where-will-the-uk-s-new-130-000-hotel-rooms-come-from-.aspx (accessed 24 April 2021). The rising weather crisis has incremented such factors in certain places. This can have significant social/socio-cultural impacts. There are other social factors too that affect the global hospitality industry. All these concerns add to the economic pressure placed on hotel owners. Sure, I like Starbucks (my mug collection is coming on quite nicely! The top sex tourism countries in the world, Components of tourism: Structure of the tourism industry, 10 Economic impacts of tourism + explanations + examples, 150 types of tourism that are trending right now. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University. Aside from the economic impacts created by enhanced employment prospects, people with jobs are happier and more social than those without a disposable income. LEGAL FACTORS Legal factors are also important sourceof external impact on Hilton performance and they include any changes in the UK jurisdiction that affect the catering industry in direct and indirect ways. be truthful about the food and beverages served to guests. Social part of the PEST is split into environmental factors too as those have a significant role in the strategic management these days. Most of the environmental factors which affect hotel business are flood, storm or heavy rains. Industry Analysis is effectively covered under the Economic heading. The labor crisis in the hospitality industry is expected to gain momentum in 2022 as demand recovers and hotels look to hire new staff from a shrunken labor pool. Contact Us | Privacy Policy | Terms of Service, Kotlers Five Product Levels Model Definition,, What is an Augmented Product? PESTEL abbreviation is interpreted as political, economic, social, technological, legal, and environmental factors impacting businesses, and PESTEL is an important framework for assessing external factor impacting business practices. Globalisation is inevitable in the tourism industry because of the interaction between tourists and hosts, which typically come from different geographic and cultural backgrounds. Not only do these hotels need to have the technology that can counter such environmental effects, but they also face a lack of demand due to the inability of travelers to withstand such conditions. Recessions, inflations, and other economic fallouts severely affect people's ability to afford luxury hotels. While landscape, accommodation, food and drinks, etc., must meet the tourists desire for the new and unfamiliar, they must at the same time not be too new or strange because few tourists are actually looking for completely new things (think again about the toilet example I have previously). This will further drive up wages and . 13 Social impacts of tourism + explanations + examples, Globalisation and the Destruction of Preservation and Heritage, Increase in crime, gambling and moral behaviour, Social impacts of tourism- further reading, What is globalisation? If a (The author is a well-known travel writer. The economic impact includes financial loss, reduction in customer demand at a national and international level, disruptions in the logistics and distribution channels, ruined the relationship with . 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. Events and festivals of which local residents have been the primary participants and spectators are often rejuvenated and developed in response to tourist interest. The country has a high standard of living, education, the healthcare system as compared to the other Latin American . weaknesses, opportunities, and threats this industry faces, read our SWOT Many hotels have additional facilities, like pools, a gym, and even But at the same time, they also lead to a higher demand for budget hotels thereby increasing certain verticals of this industry. Social factors affecting Argentina Demography. Guests will appreciate offers tailored to them, which will encourage them to come back again in the future. This growth is further fuelled by the government initiatives. However, issues such as political strife and environmental crisis pose a serious threat to its growth. Tailoring Understanding the social impacts of tourism is vital to ensuring the sustainable management of the tourism industry. Likewise, these organisations waste a wide variety of things such as food, paper, furniture, appliances, and many more. Foreign The study on various articles include social factors such as: worker unions at workplace, minorities, social status, uniform or dressing, social mobility and quality of life affects human resource . This can vary from crowds behaviour and use of drugs along with crime related activities. You can learn more about globalisation in this post- What is globalisation? Because of social media, the news is available and updated 24/7. This is often an example of careful tourism planningand sustainable tourism management. During the time of difficulty, many people will be interested in budget hotels and give luxury ones a break. Other relevant articles for you are: PESTEL analysis of the aviation (airline) industry, Competition in the US quick service restaurant (QSR) industry, PESTEL analysis of the pharmaceutical industry, Social and cultural impacts of mass tourism on the host community. Any major economic change massively affects the hotel industry. on blogs can make or break a hotels reputation. Choosing a spot with low crime is crucial for all hotel owners, otherwise, Still, it took Covid 19 to force the industry to exploit its use to a. 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. Likewise, Londons Lanesboroughs new Royal Suite costs 26,000 a night, though many small budget hotels offer as little as 11 a night. The supply! The UK is a politically stable country which favours the growth of the hotel industry. Hotels Economic factors that may have influences on the hospitality industry. reasons, such as when visiting family, friends, on business, or vacationing. Read also: Environmental impacts of tourism. Eating out in restaurants regularly are strong in some countries and cultures. This is represented in Doxeys Irritation Index, as shown below. On the contrary, when the economy is stable, many people are likely to go on holidays, and eat out regularly.
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