Question

(A) How does the tourism crisis become an opportunity?

(B) What is the long-term impact of the crisis on the tourism industry (eg in a specific destination)?

(C) What do you think is or will be the "new normal" of the tourism industry?

Answer 1

A.

With occurrence of tourism crisis, it creates an opportunity to restructure the industry with different products, services on offer as well as focus is shifted on other sectors that can generate the revenue in the economy, and help economy grow. Besides, domestic market for tourism is also examined to attract the local customers. It helps create domestic target segment and reduces reliance upon the overseas tourists. So, it is an opportunity to give a new shape, function and role to be given to the tourism industry as well as exploration in the area of other industries that can flourish and compensate for the losses due to the tourism crisis.

==

B.

Long term impact of the crisis on the tourism industry with respect to the specific tourism destination is change in capabilities and contribution to the economy by tourism. The contribution will decrease and economy and its capabilities will be negatively affected even if one destination is affected. It is due to the reason that one destination, can create huge volume of derived demand that will be wiped out and make multiplier effect ( in negative sense) upon the economy. Unemployment level will also increase due to the structural changes in the tourism industry. Besides, the crisis will make industry in a particular destination to get reorganized, and repackage its offerings to attract customers again.

==

C.

The new normal will be the reduced level of volume of tourism activities at destinations. Earlier it was considered as off season, but now, it will become a normalized level of tourism activities even during the peak or festive seasons. The reduced price level of tourism packages will also be new normal as destinations will try to attract the customers. Besides, price competition, increased level of advertising and lower traffic of customers, will also set the new normal in the industry after the crisis.