How Does The Travel And Tourism Sector Get Hit By Political Unrest?

The study investigates the impact of government and public sector agencies on tourism development in politically unstable or recently unstable environments. In Cyprus, the study found a strong interrelationship between political instability and tourism development. Political instability leads to negative impacts on a country’s tourism industry, such as decreased revenues and reduced economic growth. High levels of corruption, political instability, and violence pose a significant barrier to the beneficial effects of tourism on economic prosperity.

In highly developed countries, increased political stability does not impact tourism revenues, but improved political stability can have a significant positive impact. Political instability also exerts negative effects on both own-country and cross-country spillover effects on tourism receipts and contribution. Two dimensions of governance, political stability and absence of violence/terrorism, and government effectiveness, exert a significant influence on tourism.

One of the side effects of political instability on tourism is the increasing influence of government travel advisories on destination choice. Travel advisories are issued or bans are imposed periodically for political reasons. This results in a decrease in the number of tourists visiting Bahir Dar town, leading to a decline in revenues.

Political unrest, such as the Arab Spring and terror attacks, has had an increasing impact on tourism demand. In recent years, political factors like the Arab Spring and terror attacks have disrupted visits by both domestic and international travelers, stifling tourism.

Inevitably, countries affected by political unrest experience a decline in the number of international tourists and tourism receipts. Negative media reports about political instability often direct tourists to other countries with similar attractions. The more sensitive potential tourists are to political instability, the more aggressive the marketing and promotional strategies of a tourist destination should be.

How do political factors affect an organization?

The political environment exerts a significant influence on a business’s profitability and customer retention. Similarly, employment laws and other factors impact employer-employee relations, potentially resulting in the loss of crucial resources.

What is the political factor affecting the economic?

The political factors that shape a country’s government form, also known as regime type, can have a profound impact on the policies and restrictions imposed on businesses operating within that region. This, in turn, can influence the broader political landscape.

What are the factors affecting tourism worldwide?

The tourism industry is subject to a number of external influences, including cultural factors, peace and security, infrastructure development, visa facilitation, and pricing. These can exert a positive or negative impact on the global economy.

How is tourism affected by recession?

The Global Financial Crisis (GFC) from 2007 to 2009 was the world’s deepest economic recession since the Great Depression. Tourism was one of the first industries affected, with airline stocks declining and hotel, resorts, and cruise lines falling. However, the industry shake-up forced major hotel chains and airlines to restructure and consolidate, leading to a surge of growth in both sectors. Research conducted over the past decade shows that the new airlines, hotel chains, and online booking accessibility emerged due to the recession, massively impacting outbound travel in emerging markets. As of 2016, China, India, and Latin America now make up 41 of outbound travelers, making travel more accessible and desired for people worldwide.

What political issues have affected tourism in Greece?

Greece’s tourism industry, crucial to its economy, has been severely impacted by political turmoil following the May 6 election and growing speculation of a Greek euro exit. Bookings for Greece have slumped by 50% since the vote, according to George Drakopoulos, the director general of the association of Greek tourism enterprises (SETE). The decline is attributed to the political uncertainty and the importance of security and value for money for many tourists visiting Greece, as well as appealing hotel offers.

What is the biggest problem in tourism?

Overtourism poses a significant challenge to the tourism industry, impacting the environment, local communities, and overall tourism experience. To tackle this, sustainable practices, effective visitor management, alternative destinations promotion, community engagement, infrastructure investment, awareness raising, and external shock preparation can be implemented, promoting a more sustainable and balanced approach to tourism development.

What is the main problem facing tourism?

The phenomenon of over-tourism in popular destinations has the potential to result in a range of adverse consequences, including environmental degradation, a strain on local infrastructure, and a deterioration in the quality of life experienced by residents. The implementation of sustainable tourism practices, the promotion of lesser-known destinations, and the management of visitor flows can effectively address these issues while simultaneously addressing environmental concerns such as carbon emissions and waste generation.

How does political stability affect?

Political stability and long-term dominance by a single party or coalition can boost economic growth by supporting productive activities and investment projects, minimizing investor risk, and increasing return on investment. The Himalayan state of Sikkim, in India, has a unique political culture and social environment that could be replicated. The collective Sikkimese identity has taken precedence over narrow ethnic identity politics, leading to a more politically stable and better-governed state.

This has resulted in rapid economic growth, thanks to the charismatic quality of political leadership and the people’s collective vision of an inclusive Sikkimese identity. This unique political environment and inclusive Sikkimese identity can be replicated in other regions of India.

How does geopolitics affect tourism?

Global geopolitical crises have the potential to significantly impact tourism, leading to a range of adverse outcomes including riots, social unrest, and even wars (Usman et al., 2022; Kuok et al., 2023; Xu et al., 2023).

What are the main causes of tourism crises?

The tourism sector is highly susceptible to disasters and crises like earthquakes, natural disasters, political instability, pandemics, and epidemics, which can significantly impact tourists’ perception and destination image. These disasters also influence the use of cookies on this site. Copyright © 2024 Elsevier B. V., its licensors, and contributors. All rights reserved, including text and data mining, AI training, and similar technologies.

How does a recession affect the hospitality industry?

The Indian hospitality and tourism industry has been experiencing a slowdown due to the global economic slowdown, affecting business travel and tourist arrivals. The industry experienced a 64 percent fall in profit in the January-March quarter of 2009, largely due to liquidity crunch, Forex reserves fluctuations, and project delays. However, the positive effects include increased medical tourism and dental tourism. Innovative ways of handling problems in hotels, new management concepts, and staff training for multi-skilling are also being implemented.

Hotels have adapted to recession challenges in various ways, but more needs to be done in this area. The industry has 25+ million members, 160+ million publication pages, and 2. 3+ billion citations. Despite these challenges, the emerging Indian economy in the 21st century presents both challenges and opportunities. The industry must continue to adapt and innovate to overcome these challenges and ensure its continued growth and success.