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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