Marketing assignment essay: Tourism industry – UAE
Introduction
The following report includes the discussion about the tourism industry of UAE. The report also includes the description of the macro forces and factors that are present or are active in the UAE industry and how these factors are having an impact on the industry. The report also discusses about the impact of the factors and forces that are present in this industry and how these factors will have an impact on the industry in the coming twelve months. The report also includes the reasons why these forces are applicable to the tourism industry of UAE and also the reasons of their impacts on the industry. The report also discusses about the impact of these factors on this market area under discussion with citing them with adequate examples which make the explanation logical. The report at last also includes a conclusion related to the overall discussion.
Tourism industry in UAE
Tourism industry is the fastest growing service industry in every part of the world. Tourism in simple terms is said to be as the travel for the leisure, business or recreational purpose. Tourism is said to be as the staying of people in places outside their usual place or environment for not more than a year for business, leisure or any other purpose.
Looking forward to the tourism industry of UAE, it can be said that in UAE Abu Dhabi and Dubai are synonyms for the tourism industry. This status has been achieved by them by trevelling several miles and has become the travel hub for the region. The development of the tourism industry in UAE has led to the development of the area in a very short span of time i.e. 30 years as compared to Malaysia and Turkey. Out of more than 124 countries Dubai alone enjoys 18th pole position. Dubai has been into the top travel destinations and has a ranking of 5 among 7 in the Arab world. In UAE Dubai and Abu Dhabi are main attractions. In the year 2011, the hotels in Dubai alone in UAE have recorded an increase in the number of tourists by 10 % (Mason 2012).
The total number of tourists in the year 2011 was 9.3 million up from 8.49, million which has been reported in the year 2010; this has been released by the department of the tourism and commerce marketing of UAE. The major factors that are the main attractions of the country are the malls. Dubai has the largest malls in the world. The most attractive mall which must to be visited in UAE is the Abra and Gold Souk which has-been traditionally decorated as the old Arabian market place which has been artificially preserved in order to show a depict of the old times and also has been blended by the rich glittering alley of the golden work. There are high cultural factors that pull tourists from around the world to UAE. The major factors that has increase the interest of tourists in UAE is the epic boom in the constructions at large scale in UAE, as several tourists’ attractions have been built which are attracting the tourist’s at large scale. It has been an expectation that in UAE Dubai alone will attract more than 15 million tourists in the year 2015. In UAE Dubai also ranks for the most luxurious homes in the world. The cultural values and the regional culture also support the tourism which is also one of the attractions for the country. There are wide expectations from the Dubai tourism industry in the coming period. The tourism industry is one of the wide industries of UAE from where the company earns majority of its revenue (Kotler, Kotler, Bowen and Makens 2012).
Macro Forces active in the industry
There are several macro forces that have an impact on the tourism industry of UAE. The majority of the forces are macro in nature and effects majority of the industries. The macro forces mainly include the environmental factors that impact the industry in all around the world. The majority of the macro environmental forces include the economic environmental factors, the legal factors, the social and cultural factors, political factors and the technological factors. All these factors have the major bearing on the tourism industry of each country. There are other factors as well which have a large impact on the tourism industry this includes the natural disasters and the terrorism and war conditions (Moutinho 2011). The major factors active in the industry includes:
Economic forces: This is one of the major factors that have an impact on each and every industry. Economic forces include the changes in the economic condition of the economics all around the world. The economic forces include the changes in the economic condition of the people of the economics. The changes in the level of income of people, changes in the level of employment and unemployment, changes in interest rates changes in the value of currencies. All these factors come under the economic factors that have an impact on the tourism industry (Lis 2010).
Socio cultural forces: the socio cultural forces are said to be as those forces which prevail in the each economy. The social and cultural values of UAE impact the tourism and the increase in tourism in many areas. With the increase in the tourist spots the cultural values of the economy gets affected which is one of the major concerns of the government and thus makes changes in the rules and regulations related to tourism from time to time which impacts the tourist markets (Moutinho 2011).
Legal forces: The legal forces are also one of the main factors that have an impact on the tourism industry. The changes in the legal factors or rules and regulations related to the tourism have an impact on the industry. The legal aspects of each activity in the industry like the operationality of the travel agents impacts the workings of the industry (Vellnagel 2010).
Political factors: the political condition of the economy also has a large bearing on the travel industry. The political stability and instability affects the level of tourism in the market. The change sin the political parties and the changes in the rules or implication of any rule by the political leaders also have an impact ion the tourism industry.
Technological factors: The changes in the technology have a great impact on all the industries, but the tourism industry also has a bearing of technology on it. With the changes in the technology related to the mode of transport the tourism industry is highly affected (Vellnagel 2010).
Natural disasters: The natural disaster is also one of the factors that that affects the tourism industry the most. With the expectations of the natural disaster in the economy the first industry which is impacted is the tourism industry.
Impacts these factors and forces have on tourism industry of UAE
The above discussed factors have a great impact on the tourism industry of UAE. Each factor is associated with the tourism and affects the industry in direct or indirect manner.
Economic factors: The economic condition of UAE has a high bearing on the tourism industry. With the increase in the unrest in Middle East in the year 2011, the tourism industry will be affected in the coming twelve months. With the economic downturn in the year 2009 have a wide impact on the tourism industry of UAE which is still seen in the coming period, due to which the year 2010 and 2011 has seen a slow growth in the tourism sector and is going to prevail in the coming twelve months. UAE is one of the major suppliers of the oil in all around the world, with the increase in the prices of oil and the shortage in the supply of oil the economic condition of the economy has been affected. The company relations with several countries have been effected which is impacting the tourism industry of the economy at large (Lis 2010).
Political factors: With the increasing unrest in the Middle East areas in the year 2011 the tourism industry of UAE has been impacted the most. Most of the visitors are regional and have visited the countries like Syria, Bahrain, Egypt etc, in order to escape from the strife continuing on their own country.
Technological factors: With the increase in the competition in the airline industry the airline industry has seen majority of the low cost airlines entering the market and having an impact on the tourism industry. With increase in low fair carriers the tourism has increased in the UAE areas and also has been diverted to several other areas which have not been promoted by UAE as the tourist destinations. The country need to focus of other areas a swell in order to provide the tourists with world class facilities (Vellnagel2010).
Social and cultural factors: The social and cultural values of UAE are very high, and which is one of the major factor that impacts the tourism industry. With the increase in the tourism the cultural values of the UAE are impacted which has been one of the major drawback fro the economy as these are the factors for which the tourists visit the country and if this has been impacted then the country will be impacted in long term (Lis 2010).
Natural disasters: With the increase in the natural disasters in the sea based countries, there is an increase in the risk factor for UAE, as majority of its tourism is coming from Dubai which is famous for its beaches. With the expectation of the disasters in the sea the tourism industry will highly be impacted in the coming period, so the government of UAE must develop the security measures to meet and face any kind of disaster which may come their way in the coming period (Vellnagel 2010).
Conclusion
From the above analysis of the report it can be concluded that the tourism industry has been affected by several macro factors that prevail in the economy. In UAE tourism industry is one of the major industries from where the economy generates its revenue. The tourism industry is at its boom in the past period due to the increase in the infrastructure developments in the economy. There is a high increase in the tourist destinations which are backed by the cultures and values of UAE. The government of UAE is highly focussing in developing different tourist spots in order to increase tourism and develop its economy. The tourism industry is one of the highest employers for the economy and has been one of the major sectors which have been a part for the development of the economy. There are several factors that have an impact on the tourism industry of UAE; this mainly includes the economic factors, political factors, socio-cultural factors, technological factors, technological factors and the expectation of the natural disasters. The main factors are the political and the economic factor that has impacted the tourism industry the most in the past period. The political condition and the economic factors are among the factors that will affect the tourism industry of UAE in the coming period of twelve months.
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