Main factors affecting tourism demand

Environmental factors Two main environmental factors that have led to the growth of tourism: Good climate is one of the most important features of attraction for any tourist place. Pleasant climate with warmth and ample of sunshine attracts tourists who come from the temperate and colder regions. For example, most of the sea-side resorts in U.

Main factors affecting tourism demand

Apart from that it has also created a very large number of jobs globally.

Main factors affecting tourism demand

In this way, the travel and tourism industry is a very important part of the world economy. The financial value that it creates annually runs in trillions of dollars. Apart from those employed directly in this sector, it also creates employment for people in the other related sectors.

With improving condition of the global economy and technological innovation, demand in tourism has also grown. However, there are several more factors that influence demand in this sector and which will be discussed in this article.

As per a report by the world Travel and Tourism Council, it created 7. It employs more than million people which is also nearly ten percent of the employment level of the world.

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This data shows the large size of the global travel and tourism industry and its importance as a part of the global economy. It is affected by several global and local trends as well as economic, political and other factors. Economical factors have a major impact on the tourism industry globally and locally.

Fluctuations in the global and local economies can affect the level of demand and supply in tourism in local areas or globally. During the recession, the demand for tourism had been affected at a global scale. Favorable economic situation leads to favorable demand for tourism services globally.


When the economic activity and employment are high, people have sufficient disposable income to spend on tourism and travel. This leads to favorable demand and on the other hand lower economic activity and employment lead to low consumption of tourism services and less spending.

During the recession demand for tourism services fell because people were forced to cut down on extra costs and the level of employment had fallen worldwide.

However, now that the world economy is back on track, demand has rise again and people are spending more on tourism. Fluctuations in the local economies of several countries have still kept happening and they can have short term impact on demand for tourism in these areas.

Moreover, the role of economic factors in churning demand in the tourism industry also gets clear from the fact that in the Asian countries where economic activity has grown faster, the demand has also grown. Apart from the Asian countries including China, India, Indonesia and Malaysia, US and neighboring countries like Canada, Mexico etc have also benefited by good economic activity and seen healthy demand for tourism services in the recent years.

In this way, the economic factors have a major impact on demand for tourism globally. However, they affect both sides — demand and supply.

A healthy economy and its agents serve tourists better. Geopolitical factors also have a deep effect on the demand for tourism. A stable geopolitical situation can lead to a healthy increase in demand for tourism while instability can affect it negatively.

It resulted in higher surveillance throughout US and such an environment makes tourists feel insecure. Particularly, it can lead to a decrease in the arrival of tourists from Islamic countries. In the middle East too, terrorist activities have affected the demand for tourism.Technological factors too have a similar effect on the tourism industry and demand for travel and tourism.

In the advanced countries, several places despite not being geographically attractive or naturally beautiful, the cities attract tourists in large numbers because of technological factors. Five Main Factors Influencing the Growth of Tourism With Diagram Now let's discuss above factors affecting the growth of tourism.

1. Environmental factors.

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Two main environmental factors that have led to the growth of tourism: Good climate: Good climate is one of the most important features of attraction for any tourist place.

Pleasant. FOCAL AREA | Addressing the major threats to biodiversity, including those arising from invasive alien species, climate change, pollution, and habitat change. Five main threats to biodiversity are commonly recognized in the programmes of work of the Convention: invasive alien species, climate change, nutrient loading and pollution, habitat change, and overexploitation.

There are several factors that affect the demand for tourism. One set of factors deals with the price people have to pay.

Main factors affecting tourism demand

The cost of getting to a destination is a factor. Higher travel costs may. Type or paste a DOI name into the text box. Click Go. Your browser will take you to a Web page (URL) associated with that DOI name. Send questions or comments to doi. Theory of International Trade International Trade takes place because of the variations in productive factors in different countries.

The variations of productive factors cause differences in price in different countries and the price differences are the main cause of international trade.

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