International Tourism Management and the Economic factor

SIGNIFICANCE OF ECONOMIC FACTORS ON INTERNATIONAL TOURISM MANAGEMENT
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Tourism industry has become a global force for economic and regional development that accrues with it a blend of benefits and costs. The growing tour ism industry has import ant economic contribution in business environment. Development of tourism sustainability has been appreciated because it is an essential element of tourism economic viability. The economic dimensions of sustainability constitute the social, environmental and political dimensions. A significant role is played by the government in development through extensive engagement in planning and strategies, marketing and development of infrastructure. The ability of recognizing and to deal with the changes across a wide range of behavioral, environmental and technological factors, and the way they interact provides a principle element for success in tourism industry.
There have been shifts in the industry which reflect the dynamics of customer values, political forces, environmental changes and the rapid growth of information technology. Every aspect of the tourism industry will be touched by these factors, generate challenges to stakeholders, both public and private sectors to account for changes proactively so as to attain and maintain their competitive advantage in their organizations. This essay examines the way in which external environment drives would affect the tourism industry locally and internationally. This examination will allow significant changes on both the demand and supply side of the industry to highlight strategies to be formulated to develop tourism in a sustainable manner. Moreover, economic efficiency has to be achieved and the overall objective of sustainable development of the tourism industry.
The Global Trends Affecting Tourism
The global feature are being advanced where a wide range of experts have worked tirelessly in an effort to identify the global drivers of tourism which will shape the industry in the future. Globalization, social trend, political trends, environmental trends and advancement in technologies are the major factors which contribute to the dynamics of tourism industry (Dwyer, Edwards, Mistilis, Roman, Scott, & Cooper, 2008). Every driver has its impacts on the industry and their reinforcement will enable them to work in co-purposes.
Economic Factor
Global market boom and recession or inflation has the effect of changing the manner an organization plans for the future and how it operates currently. Economic factors are often difficult to assess because economic forecasts and analyses vary with respect to different experts (Dwyer, Edwards, Mistilis, Roman, Scott, & Cooper, 2008). Unemployment levels, relative foreign exchange rates, and the state of the global economy can either help to improve or hurt a business' ability to get needed elements in order to attain and maintain a sustainable growth and profitability.
The aspect of Globalization has brought about rapid global economic growth with reports indicating that the growth will continue to grow over the next decade. Most countries globally are benefiting from the gains because it is enhancing fast growing consumer markets. The increased interconnectedness in expanded transfer of technology, information, capital and human resources through out the world is an overarching trend which will shape other major trends (Dwyer & Forsyth, 2008). The modern life is increasingly being shaped by the interconnectedness which diminishes constraints of physical boundaries extending the scope of social network. The integration of global economies as one has resulted in increased employment with increased labor mobility and demand for people from different cultural groups.
The easy access across borders provide a foundation for increased tourism as w ell as increased global competition on for destinations. Tourism will be influenced by globalization in various ways. Economic growth combined with greater spending power allows a large number of people to travel. Globalization will continue to improve economies enabling markets to have more disposable income for high value products, tourism inclusive. Since there is increased disposable income in many countries, there will be an increased number of domestic and international tourism. The diffusion of information and communication technology offers a competitive advantage in the tourism industries as operators seek situations to operate strategically to gain more visitors (Van Ho, Dwyer, Pambudi, Spurr, Forsyth, & Hoque, 2007). Failure of industry players to embrace this technology will lead to them lagging in maintaining a competitive edge in tourism industry.
The dynamic of economic and growth is promoted by the political pressure for higher living standards which raises higher aspirations through information flow and democracy. Improvements in economic policy set the stage for future economic change through rapid decrease in inflation across a range of economies. Liberalization and increased trade across borders has enhanced the growth of tourism since there are no barriers in trends toward expansion of businesses (Dwyer & Spurr, Tourism Economics summary, 2008). The rapid expansion of trade in emerging markets spurs the economic growth by generation of competitive pressure for effective utilization of resources. The efficiency in trade is enhanced by increased diffusion of information in developing markets by providing brain power between developed and developing countries. Information technology enhances countries and interest groups to access and adapt new technologies which define the terms of investments. The multinational companies will require global workforce thereby increasing movements of people increasing mobility of business that will raise the growth in business travel.
Social Factor
The growth and management of tourism industry is affected by social factors categorized in social values, lifestyles and demographics. The interconnectedness of social factors with cultural factors forms the larger social group which influences behaviors of society which are affected by surrounding culture’s beliefs, attitudes and values (Dwyer, Edwards, Mistilis, Roman, Scott, & Cooper, 2008). Every social institution is affected by unprecedented social and demographic changes because of variables such as population and aging, urbanization, health, dynamics in social structure, aspirations and expectations, change s in work patterns and values and lifestyles.
Population and Ageing
The world population is steadily growing more so in developing countries which are expected to reduce by the year 2015. This will affect the life expectancy and fall in fertility rate resulting in aging population and with improved medical care; people will be expected to live longer. The reduced rate of workforce will encourage retaining of existing labor for longer while expanding the size of workforce to reduce youth bulge, fostering economic growth. The age complexity will occur due to destabilizing youth population and the old age will fill the gap. Products will be developed to satisfy the needs of both young and old almost equally because of the similarity in their lifestyles (Dwyer & Forsyth, 2008). People develop the pressure of raising stress which can be eradicated through escape holidays. The ageing group will have the implication of the type of tourism experience in demand and the type of new products t hat should be developed.
Urbanization
The trend toward urbanization is rife around the globe and the large portion of population increase will be realized in developing countries in all expanding urban areas. This is an implication that more than half of the population will be living in cities with the number of cities increasing. The number of increasing urbanization is contributed by rural poverty, competition for land use, environmental pressure specifically in marginal and ecologically significant areas, which diminishes the viability of traditional farming. Also ageing population will be seeking amenities in the city thereby raising services at expense of other sectors of the economy (Hing, McCabe, Lewis, & Leiper, 1998). The increased social and environmental pressure on individuals specifically in developed nations will seek authentic tourism experiences as participators to seek a variety of options.
Social Structure Changes
Households are becoming more diversified from the traditional family structures. More families are becoming smaller due to lower fertility rate leading to a family consisting of two adults and one child more in developed world. The current generation or the millennial generation have declined to accept jobs in order of salary rank, work flexibility and management style. This generation does not live to work but rather, they work to live. Therefore, they have to work in order to get what they want (Dwyer, Edwards, Mistilis, Roman, Scott, & Cooper, 2008). The result of this is fragmentation of the target tourism market into sub-sets of unique experiences. The evolution of tourism presently can be said to be experimental travelers. Although there will remain family holidays in this industry, the greatest growth will occur for the retired and millennial generation which mostly consist of single people.
Health, Aspiration and Expectations
Health is paramount in determining the living standards of society. High health standards in developed countries have contributed to longevity thus making individuals to live a productive life. Baby boomers will have to take an opportunity to travels since they have the attitude of can do coupled with health and demand for new products to cater for their ageing needs.
The twenty first century has provided a complex need in an attempt to seek a deep sense of personal meaning in all aspects of life. This new era of high economic offing has generated high demand for the highest value returns. The current tour ism industry has to embrace travel for health reasons and new products which will fulfill the individuals’ future aspirations.
Education
Education provides the basis for skilled workforce able to adapt to the changing technology in the current globalized economy. The new technological age requires self-motivated individuals to enable innovation of businesses that meet consumer needs. The tourism industry requires investment in technology, distribution and human resource for it to acquire a competitive advantage (Lohmann, 2004). The imbalance between these factors calls for qualified innovators and professionals to provide good management practices that will enhance success. Individuals have become more inte...