tourism and the effects of international environment(2)

8/8/2019 Tourism and the Effects of International Environment(2)

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TOURISM AND THE EFFECTS OF

INTERNATIONAL ENVIRONMENT

ADITI GAUTAM

ANUJA VERMANEHA SHUKLA

POOJA TIWARI


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TOURISM

y Tourism is one of the largest and dynamically developing

sectors of external economic activities.

y High growth and development rates

yVolumes of foreign currency inflows

y Infrastructure development

y Introduction of new management


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INTERNATIONAL ENVIRONMENT

Global strategy includes

y Economic environment

y Legal environment

y Political systemy Cultural environment


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ECONOMIC ENVIRONMENTy Level of economic development

y Population

y Gross national product

y

Per capita incomey Literacy level

y Social infrastructure

y Natural resources

y

Monetary and fiscal policiesy Inflation

y Interest rates


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Effect of economy on tourism industryy Tourism Sector is not only a major contributor to the growth of the

economy but a generator of employment opportunities as well.

y The slowdown has impacted the tourism industry in India at large

y Indias travel and tourism industry is one of the most profitableindustries in the country

y Economic growth has added millions annually to the ranks of Indiasmiddle class, a group that is driving domestic tourism growth.

y its booming IT and outsourcing industry a growing number of businesstrips are made by foreigners to India

y Tourist arrivals are projected to increase by over 22% per year through

till 2010, with a 33% increase in foreign exchange earnings recorded in2004.

y A new growth sector is medical tourism.it is currently growingat around 30% per annum. Medical tourist arrivals areexpected to reach one million soon.


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CULTURAL ENVIRONMENT

y Customs

y Language

y Attitudes

y Motivationy Social institutions

y Religious beliefs


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Impact of culture on tourismy It examines the growing relationship between tourism and culture

y Tourism and culture are together becoming major drivers of destinationattractiveness and competitiveness

y Culture creates authenticity and distinctiveness in the global tourism market

y Increased interest in culture, particularly as a source of identity and

differentiation in the face of globalisation.y Growing levels of cultural capital, stimulated by rising education levels.

y Aging populations in developed regions.

y Postmodern consumption styles, emphasising personal development rather thanmaterialism.

y A desire for direct forms of experience (life seeing rather than sightseeing).

y Growing importance of intangible culture and the role of image andatmosphere.

y Increased mobility creating easier access to other cultures.


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Impact of political conditions on

tourism industry

y The human rights violations, conflict, and other politically

motivated violent events negatively affect tourist arrivals.

y Government has to be strong enough to facilitate tourism

ySecurity should be at par to secure the travelers


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OPPORTUNITIES

y Tourism provides employment.

y Helps in growth of national income.

y Source of foreign exchange to balance foreign trade.

y The biggest pull for medical tourism is lower costs even foradvanced 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 othermedical tourism destinations.


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THREATSy Political tubulence.

y Terrorism.

y Changing trends in the west demand similar changes in India,

which here are difficult to implement due to high project costs.

y Apprehensions about the law and order.

y 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.


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References

www.bukisa.com

www.sterlingpublishers.com

www.eturbonews.com


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tourism and the effects of international environment(2)

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