From your work on this unit so far, you will realise that tourism organisations have to operate within a business environment over which they have little or no control. Tourism organisations must react to decisions by government and economic conditions which are constantly changing. During the last 20 years or so there has been a massive social change in the UK and continuous developments in technology. More recently, for some families, wages are not keeping up with inflation and disposable income has decreased.
At the same time, freak events of nature, such as flooding, or terrorist activity might impact on tourism businesses at any time.
Some of the major effects on tourism organisations caused by the external business environment include:
- Financial impacts
- Visitor/customer numbers