Question

challenges faced by tourism

Answer 1

Last month we examined some of the challenges facing the tourism industry in 2016. This month, we examine some of the other challenges with which tourism leaders may have to contend in 2016. It should be noted that although the material in both the February and March editions is treated as separate challenges, there is often an interaction between them and these challenges are not stand alones but rather part of a total whole.

Be prepared for economic instability. We are now seeing the stock market on a roller coaster and coupled with low gas prices, there is a sense of ennui and foreboding. Last year’s feel good combination has now changed to one of wait-and-see in the United States, Latin America and Europe. Experts indicate that there are multiple clouds on the horizon. These include an unstable European economy, recession in countries such as Brazil and low employment rates, and a slowing down of the Chinese economy. It is essential to remember that although unemployment is low in the US, this figure does not necessarily reflect a strong economy, but rather that millions of people have ceased looking for work. In this world of false recoveries, low unemployment does not translate into the willingness on the part of the public to travel more.

- View the world carefully. The political world will continue to be unstable and when instability hits people are less likely to spend money on luxury items such as travel. Political instability is now a major concern in Africa and Latin America, with the Middle East, Europe, and North America open to terrorism attacks and Latin America still suffering from high levels of crime and drug trafficking. Furthermore, no one knows how Europe’s refugee crisis will play out and what the consequences of increased crime will be on European tourism. Brazil, along with much of Latin America, is suffering from both issues of crime and issues of health and sanitation.

- Be aware of the lack of trained personnel. Because many tourism areas have grown rapidly there are too many locations where there is a dearth of skilled labor. Tourism needs people who are both inspired and well trained. Yet, too few people in the tourism industry speak multiple languages, are proficient in high tech computer skills or have a good knowledge of statistics and how to utilize them. This lack of education and training creates not only numerous financial losses but also creates lost opportunities and the inability to adapt to new challenges.