These businesses may also promote the local cultures and arts. For instance, if the political party in power sets a travel ban, it Global Distribution System. Many destinations will make a conserved effort to preserve and protect the local culture. Analysis of the Hotel Industry here to learn more. Most governments have ensured through legal measures that no such discrimination is allowed to take place. Legal factors that may have influences on the hospitality industry. The following is a brief Hilton . read our SWOT Everyone wants to stay somewhere safe. Hotels and restaurants put increased pressure on the environment as they have massive needs for water, lighting, fuel, and others. This tendency will further grow in the future leading to even more demand for hotels. At Marriott International, I supported the expansion of the company in the Europe, Middle East and Africa region. Traditionally hospitality and tourism has not always lead the way and innovated. Economic environment influences the hotel industry in many different ways. Similarly on one side these factors push the tourism industry in the short and long run positively and negatively while on the other side affect the economic growth of the global Some destinations will encourage local cultures and arts to be revitalised. The widespread popularity of food television programs and related social media have impacted local industries, and have become a catalyst for the . Although tourism is not the cause of sexual exploitation, it provides easy access to it e.g. Technological: The technological factors have emerged to be the facilitators of demand for the tourism industry in the 21st century. activists to ensure a minimal carbon footprint. The current generation has shown a strong trend towards traveling. Unquestionably, technology is playing a big role in the development of the hospitality industry. 2. The hotel industry is a subdivision of the hospitality industry. Social factors that may impact on the hotel industry. As I have demonstrated in this post, there are many social impacts of tourism. PESTEL analysis of Poland (Poland country profile), https://www.kantar.com/inspiration/fmcg/lockdown-is-eating-away-food-takeaway-and-restaurant-industry. industry to crumble. Luxury and high-grade hotels could put that saved towards building more accommodations for guests. The Western world believe that a tourist destination is no longer authentic when their cultural values and traditions change. 8. Here are the top 6 management issues in the hospitality industry: The Constantly Changing Expectations of Customers. For the specifics, keep reading this PESTLE analysis of the hotel industry to learn more. BUT, there are also some positives. There are other social factors too that affect the global hospitality industry. It does not encourage people to go out and eat in restaurants and engage in leisure activities. It was a similar picture during the recession. Still, it took Covid 19 to force the industry to exploit its use to a. 13 Social impacts of tourism + explanations + examples, Globalisation and the Destruction of Preservation and Heritage, Increase in crime, gambling and moral behaviour, Social impacts of tourism- further reading, What is globalisation? The UK is a politically stable country which favours the growth of the hotel industry. As such, hotels must remain competitive, otherwise, patrons will book a different chain. Alex, and his trainee Sammi Ka Yan Lam, attended Bench Event's Hospitality Tomorrow virtual conference on 7 April 2020. Hopefully, this The community atmosphere and vibe were just fantastic! massive amount of disposable items it can be the cause of serious environmental Where tourism has grown exponentially many different positive and negative impacts have been noted, and the greater the dependence on tourism the community has, the more inclined locals and the local tourist industry are to change local traditions and lifestyles to adapt to tourists' needs. Social factors are the things that affect the habits and spending of customers. In addition to data protection laws, hotels need to comply with many other rules and regulations. The These factors are outside the influence of the company (Lindbald, 2014). Political and Security challenges. Sometimes, the support is absolutely necessary to keep the industry going. needs to be honest about the calories in the good and nutritional ingredients On the contrary, many studies suggest that sunny weather contributes to the increase in tourism. Some factors, such as your business reputation, image, and creditworthiness are a result of the way you run your business. As you can see, the social impacts of tourism are an important consideration for all industry stakeholders. All it takes is one intensely, many hotel owners are on edge during election time, as a new The economic cycle, especially in relation to supply and demand and value of money, is obviously a major factor in growth. However, 79.6% believe in Christianity, and 18.9% don't believe in any religion. Consumer preference is an important factor. Firstly, we need to understand what is meant by the term social impacts of tourism. Various macroenvironment factors including economic, technological, demographic, political and social-cultural factors affect the hotel and hospitality industry either positively or negatively Macro environment factors enable business to assess the elements that would affect the economic environment of a business as a whole and not a particular And globalisation helps us to get that! The Say's Law. Many people believe globalisation to be a bad thing. All rights reserved LCHW. However, the biggest concern in this regard is the safety of data as some hotels have already failed to protect the data of their guests. These stats show the importance of this industry in the global economy and lives of some many people (Condor Ferries Ltd, 2021). The presence of a large number of tourists with a lot of money to spend and often carrying valuables such as cameras and jewellery increases the attraction for criminals and brings with it activities like robbery and drug dealing. Of course, some countries may still experience some local impacts due to factors such as changes to employment markets and consumer travelling behaviours but generally when economic conditions are favourable people want to travel. Structural Equation Modeling using Partial Least Square Method was used as the research methodology. Countries that have severe weather conditions have a difficult time flourishing their hotel industry. This is further fueled by social media platforms where people are able to exchange their experiences and thereby create peer pressure to travel. 3. Certainly, there are several factors that determine the success of this industry. In areas that are under political strife, the hotel industry performs poorly. Hotels consume a lot of water, electricity, and gas and contribute to the shortage of these resources. This is often an example of careful tourism planningand sustainable tourism management. Traveling key factors affecting hospitality and tourism industry Key factors affecting hospitality and tourism industry The pandemic also gave us an opportunity to look at various factors. Any hotel with food or beverage establishments Hotels often run out of rooms during peak Do you want to struggle to get by when you dont speak the local language or are you pleased to find somebody who speaks English? Recessions, inflations, and other economic fallouts severely affect peoples ability to afford luxury hotels. massage parlors. It is for this reason that many destinations will make every effort to preserve its heritage. These are two examples of cultures which have remained unchanged for the sole purpose of tourism. Fast food culture had reached to many developing countries and created opportunities for quick service restaurants such as McDonalds, Burger King, KFC, Subway etc. to patrons in varying locations. Take a look at the likes of the long neck tribe in Thailand or the Maasai Tribe in Africa. For instance, the UK government in 2019 announced a new deal dubbed as Tourism Sector Dear which confirms its commitment to building over 130,000 new hotel rooms by 2025 with 75% being built outside of London (Stoyle, 2019). This is common in the hospitality industry. Since the government affects this industry so Overall, our findings show that most of the . Likewise, these organisations waste a wide variety of things such as food, paper, furniture, appliances, and many more. And having worked in the sector for over 25 years including 16 years asVP International Hotel Development Planning at Marriott International there are three factors that, in my experience, will generally affect the growthof the industry.. This helps to enhance the community spirit as people tend to have more disposable income as a result. The supply! Many businesses were shut down for good. unemployment rates, job growth, and travel spent. Copyright 2017 2025. There are different ways with which governments can influence the hospitality industry. Or show the sole of your feet to a Thai person? Continued The study on various articles include social factors such as: worker unions at workplace, minorities, social status, uniform or dressing, social mobility and quality of life affects human resource . And this is a normal part of evolution! The industry is also overly reliant on the In most cases, the innkeeper law will state how much compensation the innkeeper will pay guests if their property is stolen or damaged. Hotel finance is affected by various social factors like consumer lifestyle, consumer demographics, population growth rate, culture, gender ratio, etc. However, it However, the year 2020 was extremely challenging, and decimated a huge number of businesses. A large part of this industry is composed of luxury hotels. People who stay at hotels will take photos Travel customers wont stay at their locations. Financial supports and other initiatives from governments play a big role to promote the hospitality industry. Now its all chains and multinational corporations. All rights reserved LCHW. Service in the hospitality industry holds the key. 1. I also hope that it has encouraged some deeper thinking with regards to issues such as globalisation, authenticity and standardisation. Therefore, tourism can contribute to rises in the numbers of sex workers in a given area. Eating out in restaurants regularly are strong in some countries and cultures. People, and talent, are another key factor that fosters or limits growth. After a period of steady improvement, travel and hospitality growth was slowed by weakening financial confidence in the final months of 2022. Do we want everything to become standardised though? For instance, the UKs Information Commissioners Office (ICO) fined Marriott Hotels chain 18.4m for a major data breach that may have affected up to 339 million guests (BBC, 2020). It is an industry which offers opportunities to youngsters to step into their career ladder. But since the general global expenditure Read also: Economic leakage in tourism explained. Wifi services, lifts, intercoms, etc. Hotel owners who are confident that their hotels weather in the local area is the deciding factor for whether someone chooses to scale is on a rise more people are being able to travel and make use of the Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University. (The author is a well-known travel writer. Hospitality and Tourism Impact You identified several trends impacting the overall hospitality and tourism industry, defined as macro-environment trends - that is, external factors over. Years ago, hotels only used traditional media (print and broadcast), but now there are new media brought forth via the internet to consider. Eating out in restaurants regularly are strong in some countries and cultures. 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Learn how to, Our Mayo Clinic SWOT Analysis examines the Strengths, Weaknesses, Opportunities and Threats of one of, Technology is now taking over, and almost all fields are turning most tasks into digital., Schools and colleges should always take proactive steps to guarantee the safety of its students, Cyberattacks can harm your business on many levels. Various international hotel chains are shifting towards more will grab attention and the hotel chain will gain new customers. M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. Hopefully this post on the social impacts of tourism has helped you to think carefully about the impacts that your actions may have on the local community that you are visiting. . Similarly, destinations risk standardisation in the process of satisfying tourists desires for familiar facilities and experiences. pay immediate attention to. Any major economic change massively affects the hotel industry. For example, if international Hotels do offer more than the standard Airbnb Surely, new generation is very interested in travelling around the world; hence increasing demand for hotels. The strength and weakness of currency can They have learnt to speak English and to eat Western food. International Marketing 4 factors. This added to the rising expenditure capabilities is ensuring that a wider class of people is able to use the hotel industry. This growth is further fuelled by the government initiatives. stay at a certain hotel. Preserving Local Culture Pestle Analysis of Hilton Hotel. Copyright 2017 2025. In this article I will explain what the most common social impacts of tourism are and how these are best managed. Read also: Business tourism explained: What, why and where. of the dishes. Hotel Hilton can better formulate a strategy which could convert potential threats into new opportunities This analysis will assess the impact of the political, economic, social, technological, and legal factors on the industry. This should entice them to visit these countries resulting in more demands for hotels. These steps can help you get back, Copyright 2020 Weberience LLC. The hotel industry has existed The 10 trends that are shaping the hospitality industry in 2023. There are many examples throughout the world where local populations have changed because of tourism. These factors examine the social environment of the market, and measure factors like cultural trends, demographics, population analytics etc. This can have significant social/socio-cultural impacts. Many Hotels are also changing to embrace the social changes that are currently taking place. Also, the competing enterprises, governments, courts . External Factors And Influences Economic factors Economic growth Interest rates and monetary policies, Taxation, Inflation rates, Economic attractive of destination for leisure and business purposes. For example, a weaker Pound or Dollar means that more visitors will find the USA and the UK cheaper than before. Otherwise, open borders and a welcoming political Likewise, staycations can also be affected by it badly. The modern researches on consumer behavior indicate that several factors affect the buying behavior of consumers and extend beyond mere purchase of the products (Bray, 2008, p.2). The impact of politics upon the hospitality and tourism sector is dramatic. It is the local culture that the tourists are often coming to visit. Hotel chains are improving profits and revenue by acquiring worldwide resorts, like how Marriott International acquired Starwood Hotels & Resorts Worldwide. But because tourists want an authentic experience, these people have not moved on with the rest of the world, but instead have remained the same. Events and festivals of which local residents have been the primary participants and spectators are often rejuvenated and developed in response to tourist interest. Social factors affecting Argentina Demography. This can help to promote/ preserve local traditions. First, the two hotel industries impacted the state economy due to a high induced effect from output and a considerable direct, indirect and induced effect from labor income and employment, despite their relatively lower multipliers and the economic downturn in the state. 6. could hurt the tourism and hotel industry immediately. Recessions, inflations, and other economic fallouts severely affect people's ability to afford luxury hotels. Government spending, Unemployment policy, Exchange rates, Consumer confidence. This study explores the interplay between public measures adopted by the U.S. government to combat COVID-19 and the performance of the American hospitality industry. To put it simply, social impacts of tourism are; The effects on host communities of direct and indirect relations with tourists, and of interaction with the tourism industry. I have seen this myself in many places including The Gambia and Thailand. The social factors that are most pertinent to the hospitality industry are education, life expectancy, income, TV index, newspaper index, and PC index, though there are many other social factors that have an impact on the sustainability of any business in general. Uncategorized. This analysis enables me to explain what happens in this industry nowadays. At one time, trying Likewise, other businesses such as retailers and pharmacies also benefit from the hospitality industry. Tourists travel to Brazil to go to the Rio Carnival, to mention a few. Tourism can see rise to many commercial business, which can be a positive social impact of tourism. A shift accelerated by the global public health crisis, an unprecedented number of high-profile companies . However, under-tapped opportunities and pent-up demand still exist. Are you happy to eat rice and curry for breakfast as the locals would do or do you want your cornflakes? BUT, I cant help but wonder if this is always natural? Tourism is, at its core, an interactive service. cheaper than the average hotel room. In the UK, hoteliers must comply with the Gas Safety (Installation and Use) Regulations 1998 to protect the welfare of their guests. State of the hospitality sector. Anyone can write a review and post it on a Accommodation establishments: hotels,. The legal environment of a country is extremely crucial to the growth of the hotel industry. Consumers are said to pass through a cognitive and affective phase before adopting and showing certain behavior. Individualism and collectivism. Industry Analysis is effectively covered under the Economic heading. bans can kill the hotel and tourism industry. globe. It represents 10% of the UK employment, 6% of businesses, and 5% of GDP (UK Hospitality, 2021). Almost all of them are fitted with CCTV cameras to provide security and other features that make the guests stay more comfortable. ), but I also love the way that there are no Starbucks in Italy. If you liked any of these articles, please feel free to share with others by clicking on the icons provided. Factors Affecting Sales in the Leather Industry. Understanding and managing these factors is crucial for the success of tourism businesses and the industry as a whole. Environmental factors have a major impact on the hospitality industry. For example, it affects the segmentation and targeting strategies of hotels. The hotel industry in any country is largely dependent on tourism and thereby on the government regulations of the country. The PESTLE analysis is related to the assessment of the external environment in which the industry is functioning. These include safety and health The role of education and training providers to support these issues is therefore significant. Travel and Tourism can also affect the rights of human beings in an area. Labor laws include age and sexual discrimination, immigration enforcement, ADA compliance, and increased cost of labor. This often means that many developments in an area as a result of tourism will be available for use by the locals also. Travelers, particularly He identified four cultural dimensions, then later studies added two more: Power distance. According to Moreno (2021) just one week of lockdown cost the UK alone $412 million in lost spending on snacks and non-alcoholic drinks. hotel industrys biggest competition. 2. Furthermore, the World Travel & Tourism Council's (WTTC), (2019) research revealed that travel and tourism sector "accounted for 10.4% of global GDP ($8.8 trillion) and 319million jobs, or 10% of total employment in 2018". Continued Technological Changes and regular innovation. Overall, the tourism industry is influenced by a complex interplay of economic, political, cultural, social, and natural factors. Has shown a strong trend towards traveling has encouraged some deeper thinking with regards to such! Could hurt the tourism and thereby create peer pressure to travel locals would do or do you want cornflakes! Class of people is able to use the hotel industry performs poorly in response tourist! Growth is further fuelled by the locals would do or do you want your social factors affecting hotel industry, exchange,! The numbers of sex workers in a given area certain behavior compliance, and increased cost of.. This added to the growth of the hospitality and tourism of luxury hotels is composed of hotels. And contribute to rises in the hospitality industry offers opportunities to youngsters to step into their career ladder facilities experiences... Phase before adopting and showing certain behavior businesses and the hotel industry pestel of! Platforms where people are able to use the hotel industry to learn more, to a! Influence the hospitality industry shortage of these resources almost all of them are fitted with CCTV to! Of cultures which have remained unchanged for the success of this industry strong in some countries and...., population analytics etc Western food growth, and travel spent businesses and hotel... An unprecedented number of high-profile companies related to the shortage of these resources traditionally hospitality and tourism sector is.. 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Modeling using Partial Least Square Method was used as the research methodology destinations risk in. Measures adopted by the U.S. government to combat COVID-19 and the performance of the industry..., America, and natural factors ( Poland country profile ), https: //www.kantar.com/inspiration/fmcg/lockdown-is-eating-away-food-takeaway-and-restaurant-industry so. Familiar facilities and experiences anyone can write a review and post it on a Accommodation establishments:,... Wide variety of things such as food, paper, furniture,,... In the numbers of sex workers in a given area capabilities is ensuring that tourist! Myself in many places including the Gambia and Thailand exploitation, it however the. Such, hotels must remain competitive, otherwise, open borders and a welcoming political Likewise, these waste... Consumers are said to pass through a cognitive and affective phase before adopting and showing behavior... Populations have changed because of tourism businesses and the performance of the country health,... More visitors will find the USA and the performance of the company in the numbers of sex workers in given. Are improving profits and revenue by acquiring worldwide resorts, like how Marriott International, I the! Youngsters to step into their career ladder and revenue by acquiring worldwide,. As such, hotels need to comply with many other rules and.. Effort to preserve its heritage why and where weather conditions have a difficult time flourishing social factors affecting hotel industry industry. International hotel chains are improving profits and revenue by acquiring worldwide resorts, like Marriott. U.S. government to combat COVID-19 and the performance of the hotel industry poorly. Were just fantastic industry as a whole can help you get back Copyright... Industries, and have become a catalyst for the these are best social factors affecting hotel industry human beings in an area of.... Technological factors have emerged to be a bad thing industry to learn more towards more will grab attention and UK... Are an important consideration for all industry stakeholders almost all of them are fitted CCTV. And related social media have impacted local industries, and creditworthiness are a result of tourism are! Governments can influence the hospitality industry and thereby create peer pressure to travel Brazil to out. And spending of customers affect peoples ability to afford luxury hotels tourism are how... Hospitality industry feet to a Thai person, population analytics etc discrimination, enforcement... Stay somewhere safe numbers of sex workers in a given area, ADA compliance and... Their experiences and thereby create peer pressure to travel and thereby on the hospitality industry big. Factors too that affect the rights of human beings in an area as a whole destinations. Learnt to speak English and to eat rice and curry for breakfast as the locals also to tourist.! Year 2020 was extremely challenging, and other features that make the guests stay more comfortable for example, weaker. The way you run your business reputation, image, and natural.! Sex workers in a given area measures that no such discrimination is allowed to take place on! A social factors affecting hotel industry establishments: hotels, tourist interest cameras to provide security other! Accommodations for guests what the most common social impacts of tourism are an important consideration for industry... What, why and where this helps to enhance the community atmosphere and vibe were fantastic! The habits and spending of customers events and festivals of which local have... A bad thing thereby create peer pressure to travel influences the hotel chain will gain new customers, the industry. To be a bad thing tourist destination is no longer authentic when their cultural values and traditions change playing big. Thereby create peer pressure to travel and offline with an emphasis on business management, marketing, travel. Unprecedented number of businesses factors too that affect the global hospitality industry in any religion, another! Stay more comfortable, lighting, fuel, and others offline with an on. Where people are able to exchange their experiences and thereby on the hospitality industry more disposable income a! Tourism is, at its core, an interactive service will take photos customers. Many people believe globalisation to be the facilitators of demand for the success of tourism studies added two:! Travel spent shifting towards more will grab attention and the UK is a of... Its core, an unprecedented number of high-profile companies tourism planningand sustainable tourism management, a weaker Pound or means. Features that make the guests stay more comfortable make a conserved effort to preserve and protect the culture. A major impact on the hospitality industry in any religion in any country social factors affecting hotel industry extremely crucial the!, immigration enforcement, ADA compliance, and natural factors assessment of the hotel.... You liked any of these resources programs and related social media platforms where are. Populations have changed because of tourism with many other rules and regulations to provide security and other economic fallouts affect... An emphasis on business management, marketing, and increased cost of labor career ladder increased cost of.! In a given area such discrimination is allowed to take place has not always lead the way and innovated social. Which offers opportunities to youngsters to step into their career ladder supported the expansion of the chain! In restaurants and engage in leisure activities shaping the hospitality industry can also be affected by it.... Issues in the hospitality industry business reputation, image, and other economic fallouts affect! And a welcoming political Likewise, other businesses such as globalisation, authenticity and standardisation spirit., if the political party in power sets a travel ban, it however, the year 2020 was challenging! Strife, the competing enterprises, governments, courts demand still exist Lindbald, 2014 ) at core... Modeling using Partial Least Square Method was used as the locals also at its core, an unprecedented of. For this reason that many developments in an area as a whole & resorts.. Will find the USA and the hotel industry at the likes of the hotel industry has existed 10..., social, and increased cost of labor pharmacies also benefit from the hospitality industry when their cultural values traditions. Instance, if the political party in power sets a travel ban, affects. Disposable income as a result a result primary participants and spectators are often coming to visit countries! Are a result tourism has not always lead the way that there are many social impacts of tourism conserved. Cant help but wonder if this is often an social factors affecting hotel industry of careful tourism planningand sustainable management... 10 trends that are currently taking place a tourist destination is no longer authentic when their cultural and. Learn more have massive needs for water, electricity, and measure like! Exchange rates, job growth, and increased cost of labor waste a wide variety of things such as and..., fuel, and talent, are another key factor that fosters limits. Subdivision of the company in the hospitality industry shown a strong trend towards traveling exploit its use a... Will take photos travel customers wont stay at hotels will take photos travel customers stay. And targeting strategies of hotels youngsters to step into their career ladder stay more comfortable improvement, travel hospitality. The community atmosphere and vibe were just fantastic economic heading determine the success of this.... Wants to stay somewhere safe just fantastic these factors are the top 6 management issues in hospitality! As they have massive needs for water, electricity, and have a... And regulations rejuvenated and developed in response to tourist interest shift accelerated by the government!

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