Business Policy and strategy: How to go ahead with tourism in Ireland
With the advancement of the third generation, marketing has experienced growth with respect to the tourism industry. Thus it is very important to analyze this market. The concepts of tourism have been discussed in several cases and the WTO describes this phenomenon as follows: ?Tourism comprises activities of individuals traveling and staying in places outside their usual environment for leisure, business or other purposes for few days or months.?
In this report we will analyze the tourism in Ireland, the global industry and more particularly, the micro-environment of tourism in Ireland. Finally, the strategic development directions for the period of 2007-2009 will be identified and evaluated.
Macro environment: To manage efficiently an organization ? in private or public sector ? managers have to understand the business environment. This can be difficult for several reasons. Firstly, the managers have to take into account the macro-environment. This consists of different factors that make an impact on the institution. In order to study the macro-environment of an organization the most relevant tool is the PESTEL analysis. According to Johnson G., Scholes K. and Whittington R. (2005: 64-65), this framework can be used to identify trends in the political, economic, social, technological, environmental and legal environments. As far as tourism is concerned, the main trends are economic, socio-cultural and environmental elements.
Economic environment: Tourism activity depends on the economic background and the preferences of the consumers. Tourism has economic consequences, both positive and negative on the nation and regions, it is truly important to study and understand the economic nature of tourism. According to Holloway J.C (2006:92), travel and tourism industry accounts to 6 per cent of the world's gross domestic product (GDP) and employs 127 million people around the world.
This activity has grown year after year and following WTO, the tourism industry has globally generated $6.2 trillion in 2004. Companies successfully caught the opportunities of the market and realized profits despite the events of September 2001. It is essential to note that, the international tourism industry plays an important role in Europe, North America, China and Japan. Tourism industry has some limits in the economic environment. For instance, tourism and leisure are seen by the private investors as high-risk investments.
Socio-cultural environment: Tourists' flows have a strong impact in this environment. Socio-cultural issues can affect the hosts and tourists. Gibson A. and Nielsen M. (2000:49-50) explained that there are several socio-cultural factors which affects an organization. The population demographics, dynamism and evolution are important. Then, income distribution has to be taken into account because it permits to segment customers in different leisure fields.
There are explorers or tourists whose core interest is to meet and understand people from different cultures and backgrounds. But there are also wealthy tourists who travel to find relaxation and facilities following their lifestyles. This component is linked with the levels of education. These criteria shows the link between cultures and nations.
Sometimes, language can bother relationships between tourists and locals. Nowadays, the most important problem between the nations is certainly the growth in global terrorism. Some people are reluctant to travel and this leads to a reduction in the flow of tourists.
Tags: Tourism, leisure, Micro environment, Macro environment, Economic environment.