Explain in detail. Service in the hospitality industry holds the key. We will better understand how VR has affected the tourism industry and significantly influenced the results. Therefore, one can see that the hospitality and tourism industry is closely interlinked and regulated by law. The political factor reflects to the degree where government’s role impact son the organisation’s operations in tourism and hospitality industry. • The link between politics and travel is, from a data standpoint, tenuous. In 1938, the UK government introduced the holiday with pay act that enabled UK citizens to earn their salaries even when on holiday. This includes rules on health and safety, employment and data protection. It shouldn’t come as a surprise that the power of review is highly important for most tourists. Sociocultural factors such as social media pressure and … 66 pages. Almost unlimited are the ways in which governments influence the delivery of hospitality and tourism products, whether through regulation of commerce, business and real estate development initiatives, cultural and historic preservation strategies, and taxation policies. It must not be used for commercial gain. These are: tourist boards, travel services, accommodation services, conferences and events, attractions and tourism services. PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental factors. Legal factors that impact on the restaurant industry Assessing the legal environment is the last component in the PESTEL analysis of the restaurant industry. They will, however, provide a foundation for working in the tourism industry, and for further study. Know how technology could affect adversely the tourism industry; 4. Colonial rule contributed to tourism development in many ways. Nigeria’s tourism industry is regulated by the following set of laws governing business entry/establishment generally in Nigeria: The Companies and Allied Matters Act Cap C20, LFN 2004; governs the formation and regulation business entities in Nigeria. pestle analysis of maldives tourism industry. And since most of the world borders are open totourists, governments readily provide tourist Visas since it boosts the econo… Gaining a Visa was a time consuming and lengthy legalprocess. As business travel providers, your responsibilities to travelling employees are ever increasing, and the blurring of … Legal Factors. Gharibeh A. This is a large category of factors affecting demand, where great changes have happened during the last century which have facilitated the emergence of charter and mass tourism, amongst other things. Health and safety laws. Legal aspects of hospitality and tourism. By on November 8, 2018. Whether it is the changing government regimes worldwide or terrorism, the effect is always direct on the industry. 2. 0. 11. This course examines this framework and covers the key principle of law applicable to hospitality, tourism and related industries. In Tourism marketing we focus on performance rather than a physical good, which can lead to problems of standardization and control. Legal factors include discrimination law, consumer law, antitrust law, employment law, and health and safety law. Entrepreneurship involves the formation of new business ventures. Entrepreneurship involves the formation of new business ventures. Official data on visits to the UK by overseas residents up to Quarter 2 (Apr to June) 2020 can be found in Overseas travel and tourism, provisional: April to June 2020.According to these estimates, in Quarter 2 2020 overseas residents made 96% fewer visits and spent 97% … Skip to main content. Global forces may be defined as those factors which impact on the tourism industry worldwide. It examines the Political, Economic, Social, Technological, Environmental, and Legal factors in the external environment. This analysis will assess the impact of the political, economic, social, technological, and legal factors on the industry. Indians currently adopting to lavish lifestyles and the GDP growth rate at almost 6% per annum ensures income rise and thus more disposable income to be spent in domestic tourism. This figure rises to €7.3 billion when fare receipts to Irish carriers are included. Introduction Legal and regulatory framework of travel and tourism covers so many aspects depending on the different parties involved in it. Legal aspects of hospitality and tourism. It will also investigate consumer behaviour towards it. “Even if you are held not liable, your legal fees could be hefty,” Pestronk said. This course examines this framework and covers the key principle of law applicable to hospitality, tourism and related industries. Holiday Inn & Hospitality Industry The hospitality is all about customer satisfaction and the industry is built on leisure and meeting different needs‚ the industry is set up with different services from hotels‚ airlines and all other systems in the travel and tourism which all fall in the realm of the hospitality industry.The hospitality industry is not only about hotels or restaurant … Everything You Need to Know About Travel & Tourism Industry. Technological Factors Affecting Tourism Tourism is an industry that is considered to be quite volatile and unpredictable. The business legal environment plays a very important role in determining the success of any businesses around the globe. Intellectual property … The government taxes that are being imposed among other regulatory measures help to promote economic growth and to protect consumers from exploitation and other illegal factors. According to MoCT (2012) visitors’ survey, few tourists have been visited the Gambella Region; and also the region has not been listed under the influential tour and travel operators’ package. We are still witnessing the continued interest of many people preferring to spend their spare time on travel. There are many components of tourism that make up the industry. What’s more, Economic changes like growing disposable incomes and the rise of the sharing economy are making travel more accessible. Since the 1960s the key legislations within travel and tourism are the development of tourism act, package travel regulation, air passenger duty, the future of the air transport white paper and the development … Governments introduce different laws and regulations which every individual and business must follow or adapt to, organisations often have to change the way … 15.14 Legal Rights Granted for a Finite Period. Know how technology could affect adversely the tourism industry; 4. It contributed around $580.7 billion to the U.S. GDP, 35.37 billion Canadian dollars to the Canadian GDP, and 47.5 billion Australian dollars to the Australian GDP in 2019. Political constraints imposed on imports and exports in one way or another affect the food industry (Joslyn 2012). Civil rights laws (discrimination) Employment laws. Tourism demand refers to the total number of people who travel or wish to travel, and use tourist facilities and services at places away from their places of work or residence (Cooper et al. Examples are provided that apply to principles of risk management for tourism and hospitality operations. for only $16.05 $11/page. Legal factors are those that emerge from changes to the regulatory environment, which may affect the broader economy, certain industries, or even individual businesses within a specific sector. Important Factors Influencing Growth of Tourism 1. Borders opening up, stable governments, and tax incentives are all Political pros for tourism. The regulatory environment in the tourism industry is complex. It is because both labor and public security are important concerns. Apart from it, there are other laws too that influence the sector but public safety and labor laws are two most important concerns for it. Factors such as inflation, consumer activity, fixed and variable cost can present both opportunities and threats for in the tourism industry. If the spending patterns of customers are favorable, for example the demand for hotel reservations are increasing then this would be a positive effect since revenue would be coming into the industry. Learn some ideas on how factors affecting tourism and hospitality industry can be mitigated ; and 5. Around 319 million people were working in this industry and the number grew to 330 million in 2019. Learn some ideas on how factors affecting tourism and hospitality industry can be mitigated ; and 5. Two main environmental factors that have led to the growth of tourism: Good climate : Good climate is one of the most important features of attraction for any tourist place. As a tourist accommodation provider, you are responsible for health and safety of your guests whilst they are on your premises. By and large, the tourism industry continues to be a major contributor to the growth of the Philippine economy. Tourism flourishes in an environment free of turmoil. Economic factor. However, legal scientific research on the nature of tourism rules is not fully extended Tourism is vulnerable to exogenous factors; these factors can disrupt the tourism industry, lead to the decline in tourists, and influence their choice of destination. The five biggest legal issues for business travel providers in 2018. Within government there is debate as to where one sphere’s responsibilities end and another’s begins. Views: 2. It falls under the preview of Tourism Act 1969; Travel Act 1985and Package Tour Regulations 1992.There is surface law, sea law and air law in relation to the carriage of passengers within the legal and regulatory framework. This seems to be a lucrative business, however, as tour operators receive about 87.9% of their revenue by planning, assembling and selling package tours. 810 certified writers online. These are just some of the latest tourism trends that, along with many … (Nickson D, 2007, p. It attempts to look at what is threatening society, and makes suggestions on what the impact will be and how tourism will be changed to integrate with the new socio-economics of a newly emerging society with its novel … Introduction. Hospitality industry, in specification Hotels are of course affected by political factors, such as negatively or positively. Changes in taxes and increase in the price of items are also coming under these factors which can affect the hospitality industry. • ENVIRONMENTAL Factors. Natural disasters are a major disaster resulting from natural progresses of the Earth which can include: floods, volcanic eruptions, earthquakes and tsunamis. Below, I will explain what each of the components offer to the tourism industry and provide some relevant examples. Chapter 9 and 10 Outline. employment laws, consumer protection laws, contract law and the law of tort helps to ensure that both the seller and the buyer of goods and services are … The graph below shows these fluctuations. The tourism and hospitality industry operates within a comprehensive domestic and international, legal and regulatory framework. Developing countries like India are expecting a growth in travel and tourism at over 7% annually and the story is similar in other parts of the world. Signed at the end of last year, ATRA is a good example of how legal changes relate to the industry. Health, safety and security legislation focus mainly on the possible hazards in the travel and tourism sector and ensure that risk of accident minimised. One of the Macro environmental factors is Economic. If Health and safety is not well managed, adverse accidents can significantly impact the profitability and … 806 certified writers online. … The composition of the population in a country plays a major role in affecting many dynamic industries like the tourism industry. The Maldives, situated in South West of Sri Lanka on the Equator comprises of 1,190 tropical islands stretching over an area of 90,000 sq Km. The eighth economic factor that affects tourism is the social factors that have direct effects on the tourism industry. The legal system provides for a fair and equitable environment in which the industry can operate in. All spheres of government have a constitutional mandate to address tourism. As any regulations imposed by the government changes occasionally it can have no control over the hospitality industry. Based on the review of 35 papers that studied the tourism industry in the wake of the pandemic, we propose a resilience-based framework for reviving the global tourism industry post-COVID-19. Source: Annual Statistical Report of Sri Lanka Tourism -2007 & Sri Lanka Tourism Development Authority. Legal factors which affect the tourism sector include health and safety regulations, employment laws and competition laws. Negligence can be defined as “the omission to do something which a reasonable man, guided upon those considerations which ordinarily regulate the conduct of human affairs, would do, or doing something a prudent and reasonable man would not do” (Cloutier, 2000, p. 13). References. The illustration of Lebanon is widely known as hostile and dangerous environment. Legal Factors in your PESTEL analysis. Last year, there have been many changes made which affected behavior of firm. Political and legal factors that impact the airline industry. Register Now. (Nickson D, 2007, p. 9. Since TUI works on different countries for import, export and shipping purposes, there might be restrictions or rules and regulations that vary for different countries which could create an inflexible environment for the company. The largest share came from the … Beginning with the negative part, an example shall be set to clarify the point. Legal and Regulatory Framework. This one is one of the key success factors in the hotel industry. Health and safety in tourism businesses. For example, risks affecting game farms might Tort law in Canada refers to the “body of the law which will allow an injured person to obtain compensation from the person who caused the injury” (Tort Law, n.d.). There are a number of positive factors impacting the tourism industry. POLITICAL. The useful economic life of an intangible asset is therefore the shorter of: Introduction Legal and regulatory framework of travel and tourism covers so many aspects depending on the different parties involved in it. Introduction. Be quick. Know the possible effect of politics in tourism industry; 3. One of the aspects of establishing whichever new business venture is bearing in mind the legal impacts on the anticipated project and ways in which the company can best be cosseted through the law. The tourism industry is very expansive and incorporates other many sectors thereby enhancing the great need of using well established marketing strategies. The travel and tourism industry is one of the biggest and fastest-growing industries in the world. Try our corporate solution for free! Some factors are more fluctuating than others. The EU’s tourism industry in the strict sense of the term (traditional providers of holidays and tourism services) is made up of 2.3 million businesses, primarily small and medium-sized enterprises (SMEs), employing an estimated 12.3 million people. Acquire knowledge on various factors affecting tourism and hospitality industry in any destination; 2. Make your mistakes and apologize. Know the possible effect of politics in tourism industry; 3. Customer Insights and Going Online. Pro-poor tourism, often shortened to PPT, intends to provide net benefits to the poor. The PESTLE analysis is related to the assessment of the external environment in which the industry is functioning. Political constraints imposed on imports and exports in one way or another affect the food industry (Joslyn 2012). In 1998, travel and tourism contributed $91 billion to the U.S. economy, … The tourism industry has a complex nature, which shows how political, economic, social and cultural factors are interrelated with each other (Bergner & Lohmann, 2014)1. The gut reaction, of course, is […] Getting sued for violations of labor laws or civil rights. There are various factors hindering the development of the tourism industry in the region. Legal Aspects of Hospitality and Tourism Management. A study published jointly in 2017 by the Federal Ministry of Economic Affairs and the Federal Association of the German Tourism Industry (BTW) entitled Tourism as an Economic Factor in Germany shows that tourism generated an annual turnover of 290 billion euros in 2015. 2.1 Evaluating the implications of health & safety and security legislations of travel & tourism industry. for only $16.05 $11/page. Find out the factors that affecting travel and tourism. Legal factors are external factors which refer to how the law affects the way businesses operate and customers behave. Legislation- different kinds of law have been introduced into the travel and tourism industry.Legal responsibilities of hospitality operator to guests are one of them. Legal Factors in your PESTEL analysis. Factors affecting Travel and Tourism. Event planning can be fun, but there are serious aspects that event planners must consider, including the legal aspects. Trump Donald Trump source: IBtimes.co.uk The victory of Republican Donald Trump in the president election and the defeat of Democrat Hillary Clinton has shocked… Even though this role varies from country to country, there are various factors, which affect the performance of the tourism industry. 10. •In order to judge the Internal factors of a Tourism Industry, a SWOT analysis has to be performed by each and every Tourism Industry respectively. The popularity and so is the economy will be increased when having tourist from other countries. International tourism is among the economic sectors most impacted by the COVID-19 pandemic. In most studies a clear link between increased travel and increased income can be seen. In 2007, the tourism industry was considered the third pillar of the economy after Sugar and Textile, and currently it plays a vital role in the economic growth of the country. Any changes in the law and order also will affect the tourism and hospitality industry. 2018 will see a number of legislative changes including the General Data Protection Regulation (GDPR), new Package Travel Regulations and the new Payment Services Directive (PSDII). Product transportation, profit margins, and viability of certain markets are all examples of things which may be influenced by legal factors. 3.2 Tourism Investment Opportunities Some factors will be more important to different types of businesses, and a PESTLE analysis will help identity risk factors for the SWOT analysis. This study will find the impact of virtual reality on the tourism industry. Pro-poor tourism is not a sector of the tourism industry per se, rather it is an approach to the industry. How high is turnover with tourism in Germany? This guide also explains planning permission and business rates for tourism businesses. A look at international tourism trends on the back of a possible ‘Trump slump’ While the U.S. still makes up a sizable chunk of world travel, new data measuring 2017’s first seven months of international travel to the U.S. from the U.S. Commerce Department indicates a dip of 4 percent year-over-year. Be honest. In 2010 the arrival of international tourists has increased by 940 million. One of the aspects of establishing whichever new business venture is bearing in mind the legal impacts on the anticipated project and ways in which the company can best be cosseted through the law. Demographic. It falls under the preview of Tourism Act 1969; Travel Act 1985and Package Tour Regulations 1992.There is surface law, sea law and air law in relation to the carriage of passengers within the legal and regulatory framework. The marketing of tourism is an application of the marketing process to specific characteristics of the tourism industry. Recommendations from friends and relatives. A PESTEL … Legal factors affecting business include all regulatory and law determinants that can negatively or positively affect results of market actions and decisions of management of company functioning in particular country. The illustration of Lebanon is widely known as hostile and dangerous environment. Lead. ... national and global legislation on an organization's operations. Legal factors that impact on the restaurant industry Assessing the legal environment is the last component in the PESTEL analysis of the restaurant industry. Tourism Management, 30(1), 75-82. • LEGAL Factors. Top 5 legal issues facing hoteliers. Figure 14.10 A crowd gathers at a former airport that now acts as a historical site. The legal environment is essential for the growth of hotel industry. In the past four years, the number of tourists coming from China to the Philippines increased by 19.2 percent, and during the first eight months of 2016, Chinese tourist arrivals jumped 50.3 percent to 484,567. Economic factor. The contribution of the travel and tourism industry to the global GDP was 10.4% in 2018 and 10.3% or $8.9 trillion in 2019. Gartner predicts that by 2020, consumers worldwide will handle 85% of their interactions with a business without the need of a human agent. Compliance & Legal. Top 5 Challenges Confronting Tourism and the Travel Industry. Political stability is always good for the hospitality industry. The United Nations World Tourism Organization (UN WTO) estimates a loss of 850 million to 1.1 billion international tourist arrivals, $910 million to $1.1 … All in all, politics does impact tourism. This report analyzes the environmental impacts of the tourism industry, which is the third largest retail industry in the United States, behind only automotive dealers and food stores. In the United States, only the terrorist attacks of September 11, 2001 seemed to have a prolonged impact on American travel. Tourism is one of the biggest and fastest growing industries in many countries. The report and its contents must be used as Tourism rights and the foreign tourists. Key to this study was the identification of strategies for The major objective of the study was to examine the factors which affect tourism industry positively and negatively while also study its impact on the global economy of the world. The gut reaction, of course, is […] Each of these influencing factor has been described below: 1. Chapter 2 service characteristic of hospitality and tourism marketing.ppt. International travelers face too many hurdles before even setting foot in Canada for business, travel, or short-term study. tourism industry to determine the overall effect of risk is the fact that not just one company is involved, but rather a whole industry or destination, which is usually made up of many attractions and businesses. Tourists visiting a place can have a significant impact on the community they are visiting. Act with commitment. Consider these 5 Key Legal Issues That Affect the … This is because the industry as a whole deals in a wide range of issues and aspects that need to be fully adhered to for customer satisfaction. 2.1) FACTORS THAT AFFECTING TRAVEL AND TOURISM It is the dream of every country to be listed as the first country one would like to visit for holidays or business. As the world economy struggled in 2009 and into 2010, the travel industry suffered along with other businesses. We can see that the ratio of tourism is changing and rising rapidly between 2005 and 2015. 2. 2. Economic factors: 1. Global forces encompass political, social, technological, demographic, geographical, climatic and environmental type factors. The economic viability of a country, interest and exchange rates, prices of inflation, globalization, wealth distribution, and industry ownership are some of the economic factors that must be included in any PEST analysis targeting the tourism sector (Swartbrooke & Horner, 2001). understanding of the tourism sector and the factors affecting it. The place or destination of travel affects the tourism business to a great extent. The primary objective is to maintain safety in all respect in the working environment. When it comes to volatile industries, there are many that come to mind. unemployment rate is 8.2%. The Tourism Law, its Implementing Regulation and the ITC Law have created a legal framework for investment in Oman’s tourism sector by local, regional and foreign investors. For the travel and tourism sector, customer engagement and the subsequent experiences are critical for continued success. It is therefore vital that the different levels of government work together. Economic factors that may have influences on the tourism industry. According to Wall & Mathieson (2006), one of the three main factors influencing travel most is higher incomes. Economic uncertainties for the tourism industry have persisted, however, leading many industry insiders to monitor several economic trends, including collaborative consumption, shifts in emerging economies, and conscious consumerism. tourism, exemplified by cultural tourism (Hunt, 1991), and also popular. It allows a company to form an impression of the factors that might impact a new business or industry. Environmental factors. •As far as Tourism Industry is concerned, it is also affected by both; the Internal & External factors i.e its Business Environment. The impact of crisis events and macroeconomic activity on Taiwan's international inbound tourism demand. Now let's discuss above factors affecting the growth of tourism. Figure 1 shows the flow of risk relating to the tourism industry. The tourism industry in Sri Lanka has gone through an up and down road mostly due to the instability of the country. The table below lists just some of the laws that might be considered when analyzing legal factors: Zoning laws. The last decades have witnessed a large number of studies that have been produced on the special topic of tourism activities with emphasis on the internal movements of tourism. However, legal scientific research on the nature of tourism rules is not fully extended