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PESTLE Analysis of The Tourism Industry

Tourism has seen a boom in recent times. This has a lot to do with the rising economic capabilities of the middle class. Human behavior has also changed towards being more extravagant through traveling. But there are many factors that affect the tourism industry globally and there are threats to it as well. Tourism is one of the primary aspects that promote intercultural harmony. This is also a strong addition to any country’s economy.

In this article, we present an analysis of the political, economic, social, technological, legal, and environmental factors that affect the tourism industry. This analysis will allow you to better understand the future of this industry and the aspects that it needs to deal with on an immediate basis.

Table of Contents

  • Political Factors Affecting Tourism Industry
    • Friendly Borders
    • Political Stability
    • Government Regulations
  • Economic Factors Affecting Tourism Industry
    • Rising Income Level
    • Better Economic Models
  • Social Factors Affecting Tourism Industry
    • Trend Aspect
    • Interracial Harmony
    • Cultural Inquisitiveness
  • Technological Factors Affecting Tourism Industry
    • Development in the Transport System
    • Availability of Information
  • Legal Factors Affecting Tourism Industry
    • Easies to Access Visa
    • Tourist Loans
  • Environmental Factors Affecting Tourism Industry
    • Climate Change Crisis
    • Tourists Cause Further Pollution
  • Conclusion Pestle Analysis of the Tourism Industry

Political Factors Affecting Tourism Industry

Friendly Borders

Most of the governments across the world have their borders open for citizens of other countries. Tourists can visit most of the world if they can afford it, and this has really provided a major boost to the tourism industry. Certain countries don’t even require a visa to travel to them, allowing for an even further tourist-friendly atmosphere.

Political Stability

Countries that are under civil wars or oppressive regimes are often tourist unfriendly. But thanks to the political stability across the world people are able to visit those countries and increase the tourist economies.

Government Regulations

Certain governments allow for pro-tourist regulations, such as paying for objects purchased in a foreign country or visa fee waiver, etc. Such regulations also provide an additional boost to the tourist psyche and economic capability as well.

Economic Factors Affecting Tourism Industry

Rising Income Level

As the global economy grows, the income levels of those who were previously unable to afford international tourism are now able to do so. Since living expenses are growing slower than purchase power, people are able to afford luxuries such as tourism. Such economic growth is expected to remain and the tourism industry will only be provided with benefits from it.

Better Economic Models

Companies such as Uber and AirBnB are changing the way people travel. They have presented economic models that are more consumer-friendly, and thus is making tourism more accessible to people. Businesses on such a model are known as sharing economies. We expect further use of such economies in the future.

Social Factors Affecting Tourism Industry

Trend Aspect

Tourism has become a trend for the younger generation, and social media has a lot to do with this. While tourism was most considered as a form of wanderlust or bonding experience, it is now a means to express social class and purchasing power through social media. This factor produces a peer pressure that has recently provided a boost towards the tourism industry.

Interracial Harmony

The world has become more racially conscious and this has helped people from rather marginal cultures to be able to travel more freely. There are still areas where certain races are looked down upon but as governments modernize, more of the world will become accessible to such races.

Cultural Inquisitiveness

People are becoming more aware of other cultures in the world and thus they want to visit those places and experience those cultures as well. People in India are learning Spanish and traveling to South America and people in Russia and learning Chinese to travel to China. This form of knowledge-growth-oriented inclination towards traveling was not common for the middle class in previous eras.

Technological Factors Affecting Tourism Industry

Development in the Transport System

The transport industry has received a major upgrade in recent times due to the new and improved forms of transport services. More airplanes are now available for consumers to access. Moreover, there are also cheaper options available which provide further access to middle-class travelers. Airports have also become more advanced and air tickets can be purchased in a click.

Availability of Information

People can now get to know about places across the world through their smart devices. Travel blogs help people get the information to make the necessary journey which they otherwise wouldn’t be able to make. Technology is helping people get from one place to another with as much ease as possible. This has really improved the conditions of the tourism industry.

Legal Factors Affecting Tourism Industry

Easies to Access Visa

Gaining a Visa was a time consuming and lengthy legal process. But now applying for and receiving a Visa is accessible to almost everyone around the world. And since most of the world borders are open to tourists, governments readily provide tourist Visas since it boosts the economy as well. Other legal processes concerning tourism have also become more hassle-free for consumers to take advantage of.

Tourist Loans

Many banks now provide loans for tourism purposes. These loans are highly helpful to the everyday person in being able to tour internationally.

Environmental Factors Affecting Tourism Industry

Climate Change Crisis

The rising tourism levels across the world have also led to a massive increment in pollution levels from airplanes, ships, and other vehicles. Many climate change activists are supporting the concept of reduction in tourism to deal with the issue. The transportation industry is currently under heavy fire from critiques regarding usage of options that heavily pollute the environment.

Tourists Cause Further Pollution

Humans are a negligent lot, and they tend to carry their litter with them wherever they go. Pollution caused by the rise in tourism is destroying many beaches and coral reefs. As the number of tourists across the world increases governments are expected to take up strict action to regulate pollution levels caused by humans visiting tourist spots.

Conclusion Pestle Analysis of the Tourism Industry

So, these are the primary pestle analysis factors that are affecting the tourism industry as a whole. It is absolutely clear that this industry will grow in the recent future due to the various economic, technological, and political advantages. However, pollution is a major factor that has to be dealt with for this industry to become more ethical.

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About The Author

Umar Farooq

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