It’s a Global World
January 2009
The start of the year is a good time to take a deep breath and reflect upon the many changes and challenges that have occurred in tourism during these last 12 months. In 2008 few people imagined the economic earthquake that has not only shaken the world’s stock markets but also much of the world’s tourism industry. From major tourism centers to small towns, the travel and tourism industry is only now beginning to awaken to the many new challenges that it will have to face during 2009. The economic meltdown is also a sign that all of us are now in a global economy. In this new world no industry, nation or economy is an island unto itself. Tourism to a great extent is in the forefront of these economic changes and challenges. How the travel and tourism industry will adapt to this new environment will teach us a great deal about what may lie ahead for all of us. To help you determine your own strategy Tourism & More presents the following ideas and possible future trends.
- This is no longer a one-country world. No matter in which nation you may be living, the local market will not be enough to sustain your growth. Even small towns will find it necessary to become part of the global market. That means that local banks will be necessary as places to change currency, restaurants will need to offer menus in various languages, traffic and road signs will need to be internationalized and police departments will have to learn how to deal with a myriad of cultures and languages.
- Do not think only in short intervals. For example, the price of fuel continues to rise and fall, but in the long term it is bound to go up. During less costly periods use the reprieve to develop alternative forms of transportation. Communities that are totally dependent on self-driven means of transportation may have much greater difficulties in attracting visitors in the next few decades. Creative thinking will be necessary as not every community can produce an instant public transportation system.
- Learn to watch trends and then incorporate them into your business model. Travel and tourism, for the most part, are expendable products. That means that it behooves travel and tourism professionals to watch cost of credit, to understand how the foreign exchange markets work, and where unemployment is headed in your major markets. In today’s interconnected world, news sources are essential. Read at least 3 newspapers a day from various parts of the world and from places that constitute your current major markets.
- Be flexible. What was or has always been may not be the same in the future. For example if you tourism industry or business traditionally drew from place X and that locale is expected to go through a major economic turndown, be prepared to switch markets or products rapidly. Every tourism community should now have an economic watchdog committee that analyzes the current situation and makes recommendations on how to adapt to a rapidly changing world. The less assets that you need to care for, such as buildings, vehicles etc, the better off you may be especially in a restricting world economy
- Think small as well as big. All too often tourism industries suffer because the spend so much time on catching the big fish that they lose the small fish. In economically challenging times, there are less big fish to catch. Thus, instead of only seeking a large convention, also consider smaller conventions. The basic principle is some profit is better than no profit.
- Look at both macro and micro economic trends. Because tourism is big business composed of many small businesses, it is essential for tourism professionals to integrate macro trends into their business plan. For example, how will new car sales impact your tourism industry? What happens if this current crisis is only the first of two or three waves of crises, how will aging populations in developed countries impact tourism? Which nations have expanding economies and where are the economies contracting? All these are essential questions that must be updated on a regular basis.
- Look at successful models around the world. All too often tourism officials have a highly parochial view of their industry. Seek out and communicate with colleagues from different parts of the world and look at their best practices. Where have they succeeded and failed? Think how you may be able to adapt or modify other people’s ideas so that they meet the needs of your local situation. Then ask yourself some essential questions such as, is my business model flexible enough to withstand rapid changes? How stable is my current supply chain? For example, if you are a hotel and the blanket factory goes bankrupt are there other sources available? If you are a locale based around a single attraction what happens if that attraction closes? Then ask yourself do you know are your business partners and how you can work with them to face an ever more challenging world.
- Adapt your marketing efforts to a globalized industry. Tourism and travel professionals may need to consider major overhauls of their world-market advertising. Magazine and local television ads may need to be replaced with innovative web strategies, monolingual website may become a thing of the past, and new direct marketing procedures will become essential. Remember that in an interconnected world, you are no longer just compared with your neighbors. No matter where you are located you community and/or business will be judged on an international scale. Think through what makes you unique and what is special about your community or business.
