Tourism Business Strategy-Free-Samples for Students-Myassignment

Questions: 1.How competitive is your country across the 14 pillars in the TTCI report compared to country 2. 2.Expand your research on country 1 and review the Current National approach to tourism. Answer - where is it now? What are its 3 strategic priorities? What are the main internal and external challenges facing its tourism industry? 3.Using your knowledge from Q1 Q2 make 3 Major Strategic recommendations for improving competitiveness in country 1. Justify your answers explore the what, why, where, how, when, who etc. Answers: Introduction As a tourism consultant commissioned by the Spanish Governments Minister of tourism, this report is prepared by me to study the competitiveness of the tourism industry in Spain and to highlight areas in the tourism sector that require improvement. This report will enable the Spanish Government Ministers of Tourism to understand the areas where the government is doing excellent to boost tourism. However, there are certain areas in the travel and tourism sectors in Spain that requires improvement. The analysis of the present strategies undertaken by the Spanish government to boost tourism and recommendations of strategies for future will facilitate the Spanish government to allocate resources judiciously in the tourism sector in the next decade. Spain secured the top rank in the global Travel and Tourism Competitive Index. The natural and cultural resources of Spain, the excellent infrastructure and connectivity by air transport are some of the factors that enabled the country to secur e the first position in the Travel and Tourism Competitive Index published by the World Economic Forum. Italy secured 8th position in the Travel and Tourism Competitive Index(Weforum.org, 2017).The tourism sector in Italy witnessed a substantial growth of international tourists. The international arrivals in Italy surpassed 50 million in the year 2015. In this report, Spain is compared with Italy to understand the competiveness of the travel and tourism sector in Spain. The report also provides insights about national policies of the Spanish government to boost tourism and the internal and external threats faced by the Spanish tourism sector. Research Methodology Secondary research is used to prepare this report. The sources that already exist like the Travel and Tourism Competitive Index of 2017 published by the World Economic Forum has been used to retrieve data required for analysis of the competitiveness of the tourism sector in Spain. The report published by the World Economic forum provides a detailed analysis about the competitiveness of the travel and tourism sector of 136 economies. So this report helped in analyzing the 14 pillars of the travel and tourism competitive index of Spain and Italy. Other secondary sources like the tourism government site of Spain, news articles of the Guardian and Telegraph, books, journals available both on-line and off-line, class notes, social media sites like Facebook and Twitter, Youtube are used to obtain data and conduct an in-depth research. It was difficult to obtain information about the exact figures related to tourism budget and marketing budget of Spanish government. 1.Comparisons of Spain and Italy The travel and tourism competitiveness index of the year 2017 has 14 pillars. A comparison of Spain and Italy against these 14 pillars is done. Enabling Environment Business Environment 2007- The Spanish economy and business environment slowed down in the year 2007. In the second quarter of 2008, the Spanish economy witnessed a recession. The budget deficit of the Spanish government was 11.2% in the year 2010. The slow economic growth and budget deficit of Spain adversely affected the business environment and foreign investors were reluctant to invest in Spanish economy. But the Spanish government has made substantial efforts to make the business environment flexible(Baum, 2016). The construction permit in Spain has witnessed red tape and the labor market in the country is rigid. The travel and tourism sector contributes 10-11 % to the Spanish economy and in the year 2016, 75.3 million tourists visited Spain. For four consecutive years, Spain secured the 3rd place in terms of most visited country across the globe. Italy has secured the 3rd place in terms of economy in Euro-zone. The business sector in Italy is dominated by service sector and man ufacturing industries with a prevalence of small and medium sized enterprises. However public debt has increased in Italy which has made the country vulnerable for ease of doing business. The tourism sector in Italy has generated 189.1 billion euro and 48.6 million tourists visited the country in 2014. Italy has secured the 4th place in terms of most visited country across the globe. Spain and Italy scored 4.4 and 3.9 in this pillar respectively(Weforum.org, 2017). Safety and Security 2008Spain provides a safe environment to travelers and tourists. However, there is minor crime in the country like theft and pickpocket occurs in places which are crowded by tourists(Holden, 2016). The Southern part of Italy which includes cities like Naples has witnessed a higher crime rate by tourists than the northern part of Italy(Sharpley, 2015). Pickpockets are conducted by groups which are locally organized and these groups attack multiple people simultaneously. Spain and Italy have scored 6.2 and 5.4 in this pillar respectively(Weforum.org, 2017). Health and Hygiene- The Spanish government ensures to control pollution, the food distribution system is under strict monitoring and control so that perishable food is not distributed to the hotels, markets and restaurants visited by tourists and locals (Medlik, 2016)The government intervenes to ensure the front-line employees of the service sector of tourism industry are in good health and do not pose any risk to health of tourists. The Italian society of Hygiene, Preventive Medicine and Public Health restores health and hygiene in the country. Spain and Italy have scored 6.3 and 6.2 in this pillar respectively(Weforum.org, 2017). Human Resource and Labor Market The unemployment rate in Spain in 2015 was 22.1 %. However it can be predicted that the unemployment rate will be reduced to 17.8 % in 2017 and 430,000 new jobs will be created. The labor market in Italy has deteriorated recently and unemployment rate was 11% in 2012, youth unemployment rate was 35%. Spain and Italy have scored 4.9 and 4.6 in this pillar respectively(Weforum.org, 2017). ICT Readiness- The position of Spain in terms of ICT readiness is weak. However, the government has tried to upgrade and implemented modern technology across all sectors of industry especially retain and service sector which boosts tourism. The information and communication technologies of Italy has substantially improved in the year 2016, though implemented of ICT has shown variation across different sectors of industry. Spain and Italy have scored 5.5 and 5.4 in this pillar respectively(Weforum.org, 2017). TT policy and enabling conditions- Prioritization of Travel and Tourism- The government of Spain has prioritized travel and tourism sector and the country has large number of business travelers. The art and culture, infrastructure, music and festivals and promotional activities of government attract tourists in Italy. Spain and Italy score 5.9 and 4.5 respectively in terms of prioritization of travel and tourism(Weforum.org, 2017) International Openness-Spain is a tourist friendly destination and the harmony exists in the country between the host community and tourists. Spain and Italy score 3.9 and 4.1 respectively in terms of International openness(Weforum.org, 2017). Price Competitiveness- Spain has witnessed an increase in price competitiveness against rest countries of Euro-zone and other OECD countries. Italys rank is lower than Spain in terms of price competitiveness. Spain scores 4.5 and Italy 3.9 in this pillar(Weforum.org, 2017). Environmental Sustainability- Both Spain and Italy promotes environmental sustainability by ensuring access to clean and affordable energy. Both countries made effort to ensure that there is low pollution level and tourists dont pose threats to culture and heritage of local community. Spain and Italy scores almost the same, 4.6 and 4.5 in this pillar(Weforum.org, 2017). Infrastructure Air Transport Infrastructure-There is presence of 49 airports in Spain and there are approximately 250 airlines which makes travelling easier among main Spanish cities. There is presence of large number of medium sized airports in Spain. Spain and Italy score 5.0 and 4.4 in this pillar respectively(Weforum.org, 2017). Ground and Port Infrastructure-The Spanish ports of Valencia, Bilbao and Barcelona are connected well to the port of Madrid. Along the Mediterranean Sea, Italy is a popular cruise destination(AlSayyad, 2013). The cities of both Italy and Spain are connected by roads, railways and public transport. Spain and Italy score 5.2 and 4.7 in this pillar respectively(Weforum.org, 2017). Tourist Service Infrastructure-Spain has good infrastructure and the service industry is developed in Spain with large number of restaurants and an active nightlife. The World Heritage sites and monuments and service industries in Italy attract tourists. Spain and Italy score 6.7 and 6.0 in this pillar respectively(Weforum.org, 2017). Natural and Cultural Resources Natural Resources- The natural resources of Spain are coal, lignite, iron ore and arable lands in the country produces cotton, cereal grains, legumes. The wildlife, rocky islands, natural parks of Spain and Italy attract tourists. Italy had crude and oil reserves and natural gas. Spain and Italy have scored 4.9 and 4.8 in this pillar respectively(Weforum.org, 2017). Cultural Resources and Business Travel- Both Italy and Spain have Mediterranean culture with passion for living, parties and food. However, Spain has higher rate of migration than Italy and thus the country experiences a mixed culture. Spain and Italy have substantial opportunities for business travel. Italy has opportunity in the luxury goods segment in the industry. Spain and Italy have scored 6.9 and 6.5 in this pillar respectively(Weforum.org, 2017). 2.National approach of Spain in context of tourism The government of Spain invests in the construction of new hotels, restaurants and cafes and invests money to upgrade the service sector and retail industry of the country(Morrison, 2013). The Spanish government also invests in promotion and marketing of tourism sector. The nation hosts festivals and sports and invest to build infrastructure like connectivity by roads and rails and implements security to promote tourism(Perles Ribes, 2013). External and Internal challenges faced by Tourism industry in Spain- The external challenges faced by tourism in Spain are attack The external challenges faced by tourism industry in Spain- The tourism industry in Spain is subjected to external challenges, for instance, the recent terror attack in Barcelona and Cambrils. Terrorism poses threat to tourists(Independent.co.uk, 2017).Tourists in Spain stay for shorter period of time and opts for alternative type of cheap rentals like Airbnp. The internal challenges faced by tourism sector in Spain are political unrest and economic depression(Holden, 2016) The Strategic Priorities of Spain Spain has shifted from the sun and beach model because Barcelona and Balearic Islands of Spain have reached saturation point from tourists of Western countries(Semeoshenkova, 2015). Spain has adopted the strategy to attract more Asian tourists who prefer to shop and enjoy the service industry like restaurants and nightlife(Hall, 2014) Competitiveness of Strategy For instance, the service industry in Spain generated 862,000 jobs in 2016. The tourism sector is estimated to generate jobs which will be 4.7 % of total employment in 2017(Cazcarro, 2014). The government of Spain has promoted business travel by internationalization of Spanish companies. Competitiveness of Strategy Business travelers have spent 20.78 billion U.S. dollar in Spain in 2016(Maitland, 2014). he government of Spain spends to build infrastructure and connectivity by roads, air and rail, protects the UNESCO World Heritage sites and promotes sustainable tourism where the host community and tourists co-exist in harmony(Tribe, 2015). Competitiveness of Strategy Travel and tourism contributed EUR 57.1 billion to the Spanish GDP in 2016. The contribution of Tourism industry is expected to grow at the rate of 2 % per annum by 2027 in Spain(Weforum.org, 2017). Recommendations Spain has been able to secure the 1st place in the Travel and Tourism Index published by the World Economic Forum. The fiscal policy of Spain has been eased and the tourists in the Middle-East countries faced security issues due to which Spain witnessed a wide group of diverted tourists from these countries. The natural resources, culture, good infrastructure and connectivity across major tourist spots of Spain have boosted the growth of tourism sector in Spain. However, it is not easy to retain the top position in the Travel and Tourism competitive index published by the World Economic Forum. The tourism sector is Spain has reached a mature stage and has reached the level of saturation. The ground transportation of Spain is ranked among the top 15 economies and provides good connectivity among popular tourist sports; however the ground transportation system requires modernization. It is recommended that the Spanish government should implement modern technology and upgrade its ground transportation system to boost tourism. The service sector also requires improvement and the hotels, retail sector, night clubs, restaurants and cafes should be modernized in terms of technology to boost tourism in Spain. The tourists especially from Asia are interested in the shopping centers and nightlife of Spain. These tourists generate remarkable revenue and create employment in the service The business environment of Spain also requires improvement. It is difficult to obtain construction permit in Spain. It is recommended that the country should adopt ease of doing business to boost the service economy and increase number of business travelers. From a survey of Barcelona council, it has been found that locals consider tourism as a problem. It is recommended that the Spanish government should improve its index of international openness. The government should adopt approaches to improve collaboration and communication among host community and tourists so that the host community does not perceive tourists as a threat to their culture and environment. Also, it should be ensured by the Spanish government that the tourists do not harm the environment, ecological balance and culture of the host community. It is recommended that the Spanish government should adopt strict surveillance and security measures to protect tourists from attacks by terror groups. The recent terror attacks in Spain are an eminent threat to the tourism sector of the country. The Spanish government should combat terrorism and take help of the intelligence agency of the country to protect tourists and locals from the threat of terror attacks. It is recommended that the Spanish government should adopt a model of sustainable tourism to ensure that the tourists of the country do not harm the ecology and cause an increase in the pollution level of the country. The tourism sector in Spain has reached the optimum level of carrying capacity which can endanger the local community of Spain. Thus the Spanish government should take measures to protect its environment from the threat of pollution and the imbalance of ecological system Conclusion It can be concluded that the Spanish government has undertaken substantial initiatives to boost tourism. The development of infrastructure, natural resources of Spain, the culture of the country and support from host community are some of the factors that helped Spain to secure the top position in the Travel and Tourism Competitiveness report published by the World Economic Forum in the year 2017. While comparing Spain with Italy to analyze the competitiveness of the tourism industry in both countries, it has been found though Italy secures 8th rank, both the countries score nearly same in many of the 14 pillars of the Travel and Tourism competitive report. Though the business environment and labor market of both countries have experienced downturn, however other factors like sound infrastructure boosted tourism in both countries. The Spanish government has undertaken strategies like promoting business travel, attracting Asian tourism who contribute substantially to revenue generatio n in service sector and invested huge amount of money to develop infrastructure and boost tourism, still the Spanish tourism sector faces many challenges like terrorist attack, political unrest, economic depression, lower revenue generation from tourists due to availability of cheaper transport and accommodation. Also the popular tourist spots in Spain especially the exotic beaches are saturated by tourists which pose threat to the ecology and environment of these places. So these are the areas that require attention and the Spanish government needs to adopt strategies to address the challenges faced by the tourism sector to maintain its position in the Travel and Tourism Competitive Index published by the World Economic Forum. Reference Lists AlSayyad, N. (2013). Consuming tradition, manufacturing heritage: global norms and urban forms in the age of tourism . Routledge. Baum, T. E. (2016). Human resource issues in international tourism. Elsevier. Cazcarro, I. H. (2014). The water footprint of tourism in Spain. Tourism Management , 40, 90-101. Hall, C. M. (2014). The geography of tourism and recreation: Environment, place and space. Routledge. Holden, A. (2016). Environment and tourism. Routledge. Independent.co.uk. (2017). News terror attack in Spain. Retrieved from https://www.independent.co.uk/travel/news-and-advice/spain-travel-safe-holiday-violent-protests-barcelona-arran-attacks-hotels-restaurants-catalan-a7882481.html Maitland, R. . (2014). World tourism cities: Developing tourism off the beaten track. Routledge. Medlik, S. (. (2016). Managing tourism. . Elsevier. Morrison, A. M. (2013). Marketing and managing tourism destinations. Routledge. Perles Ribes, J. F. (2013). Economic cycles, asymmetric crises and tourism competitiveness: emerging versus mature destinations. Pons, P. O. (2016). Cultures of mass tourism: Doing the Mediterranean in the age of banal mobilities. Routledge. Semeoshenkova, V. . (2015). Overview of erosion and beach quality issues in three Southern European countries: Portugal, Spain and Italy. cean Coastal Management , 12-21. Sharpley, R. (2015). Tourism and development. Sage Publications. Tribe, J. (2015). The economics of recreation, leisure and tourism. . Routledge. Weforum.org. (2017). Travel and Tourism Index. Retrieved from https://www.weforum.org/reports/the-travel-tourism-competitiveness-report-2017