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Top 3 Challenges in the Tourism Industry

What do your peers think about Tourism Industry?

Tourism professionals have to face different kinds of problems: first, a drop in tourism, as people are scared to travel nowadays due to terrorism and political issues. Customer satisfaction is also challenging, as they need to provide unique experiences to satisfy customers. New online companies and services are also a threat for the classic tourism business.

Tourism Top 3 Peer Challenges

number-1Political Situation and Security

Political instability and the fear of terrorism have severe impacts on the global tourism industry since they prevent people from traveling and thus decrease demand in all areas (accommodation, catering, transportation, leisure…). 


Tourists demand a wider variety of attractions and services than traditional travel, so developing and providing unique services, such as cultural heritage, religion, sport, and wellness tourism, is becoming strategic for the industry.


Increasing competition, with new kinds of competitors and online companies like Airbnb and HomeAway, means that differentiation is key. To face this new kind of competition, developing technology and communication are tremendous challenges. 

Other Challenges

  • Sustainability
  • Climate change
  • Reducing costs, increase revenue
  • Economic crisis

Research-­based trends and short-term forecast

Research states that the factors affecting the tourism industry are: oil price volatility, currency exchange rates fluctuations, credit limitations and interest rates increase, the global employment crisis, public deficits and possible increases on tourism taxation, political crises and instability, etc. (World Tourism Organization).

Outbound visitors growth:

The short to medium term forecast for global outbound travel is a positive one, with Oxford Economics estimating growth of 4.3% in 2016 and 4.1% in 2017. It means a 13% rise in outbound global travel by 2017, a potential addition of 130 million arrivals worldwide. Over the next 2 years, the fast growing economies of Asia Pacific will generate the highest growth (+15.8%) in outbound volumes. (European Travel Commission)

In New Zealand the number of visitor arrivals is expected to increase to 3.8 million visitors in 2021 from 2.9 million in 2014. In the United States the annual growth rates in visitor volume will reach 90.3 million visitors by 2020, more than 15 million additional visitors compared to 2014. (MBIE, DOC)

If you are interested in getting more sector insight for the tourism industry, make sure you visit at to start your market research.

6 Comments on Top 3 Challenges in the Tourism Industry

  1. On the matter of Political Situation and Security, as much as we state that it is a challenge, for some locations/countries it boosts tourism. There are those who reap from the security threats and instability as their locations become appealing/attractive to the vast majority. For example instead of visiting the coastal town of Lamu in Kenya, one opts to visit the savannah region Maasai Mara or instead of visiting Kenya in general tourists one decides on Tanzania. It is a glass half full, half empty challenge.

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