Change is inevitable, especially in the case of tourism. People's tastes change, and so do the external factors that force people to move or travel to new places or destinations. Some are ready for change, while others are trying to cling to the usual state of affairs. This article talks about changes in tourist flows and what innovative solutions can help the hospitality industry adapt and thrive.
Determining the success of a tourism and hospitality business depends directly on its ability to attract travellers. Some firms in the host market depend on international travellers to function effectively. The Covid-19 pandemic has made the interrelation between host and source markets as clear as possible, showing how an external factor can dramatically affect and cause serious harm to the industry.
Everyone in the industry has been waiting for the resumption of international travel from China. For three years, tourists from China have been unable to travel, dramatically affecting the global tourism industry. According to the World Tourism Organisation, this is a significant measure to rebuild the tourism sector globally. Asian host markets will benefit the most from the return of Chinese travellers in the short term.
Following the Chinese government's announcement, Thailand has changed the projected number of international travellers in 2023, increasing by 5 million. It is a clear indication of the decision's impact on host destinations. However, it is worth realising that not all countries in the Asian region will benefit equally from this. Outbound group tour service has been resumed to 20 countries, 11 of which are in the Asia Pacific region: Cambodia, Fiji, Indonesia, Laos, Malaysia, Maldives, the Philippines, Singapore, Sri Lanka, Thailand and New Zealand. The remaining lucky ones are the United Arab Emirates, Egypt, Kenya, South Africa, Russia, Switzerland, Hungary, Cuba and Argentina.
Nine other countries in different parts of the world can benefit from the decision of the Chinese ministry and are listed below: South Africa, United Arab Emirates, Egypt, Kenya, Switzerland, Russia, Hungary, Argentina and Cuba. As a result, the countries can expect an increase in the number of tourists from China this year. However, due to flight restrictions, visa issues and entry regulations, many tourists from China may prefer to travel to Southeast Asia, despite their initial interest in visiting the UK, Europe and Australia.
The external factor described above is a turning point for the industry globally. However, other developments in the source markets have also recently impacted the industry, albeit on a smaller scale. The first is rising inflation in the UK. This event has negatively impacted the Swiss hospitality industry, as British clients have begun to travel less to the Swiss Alps due to the high inflation in their country.
Another important external factor is India's growing population. According to experts, India could become the most populous country in the world in 2023, thereby opening up prospects for the industry.
A third external factor that could harm the host markets is the lack of willingness of Japanese tourists to travel abroad due to fear of COVID-19. This state of affairs will eventually have a negative impact on the most popular destinations they used to go to.
Most of the factors we have described have the effect of reducing the flow of tourists coming from certain source markets. Meanwhile, some host markets need help with the opposite situation: excess tourism (e.g. Barcelona). Some popular destinations are making decisions to reduce the flow of tourists.
In this context, industry professionals should diversify their client base as much as possible because the more diverse it is, the more sustainable their business will become.
Fortunately, innovation can help meet this challenge by embracing a wider range of source markets and implementing alternative strategies. In addition, innovation can help offset the impact of external factors on business.
For example, tour operators in Israel are turning innovation into bait by offering individual guests and families access to start-ups and innovation centres.
It is essential to remember the successful urban business models. Singapore and Dubai are some of the most influential and economically significant cities, home to superb luxury hotels, haute cuisine restaurants and world-class museums. The flow of tourists, support for multiculturalism, excellent transport systems and the organisation of international events all bring them fantastic revenue.
STATK Hotel Administration programmes are designed to equip students with the knowledge, skills, and expertise required to excel in the hospitality sector. We cover many topics, including front office management, housekeeping operations, food and beverage management, marketing, financial management, and human resources. For more information, don't hesitate to contact us at info@statk.co.
