External and Competitive Environment for tourism Industry Essay

External and Competitive Environment for tourism manufacture - Essay Exampletourism Industry Total receipts from tourism argon 9% of the world GDP and the tourist patience employs 2.8% of the total world population (Quick Facts, 2010). The Tenerife economy is greatly reliant on the tourism industry. The service empyrean of the economy contributes 79.4% to the GDP where hostelry comprises of 14.29% of the total of the tourism industry of the Canary Islands (Economic Sector, 2005). It is approximated that 10 million tourists chaffer the Canary Islands which includes 5 million tourists every year in Tenerife alone (Osborne). It was once viewed that more tourists meant more money in the industry but now a new concept throw away revealed (Osborne). The Tenerife Industry is centeringing more upon quality of the services provided rather than increasing their sales (Osborne). This is mainly due to the realisation that tourists enjoy quality vacation and are ready to pay higher amount s to stay in pricey quality four and five star hotels (Osborne). The volcanic eruption in Iceland in 2010 carved a caricature of the Tourism Industry in Europe. Initially, the volcano eruption rose excitement among the tourists and they went on to Iceland to have a look at the natural catastrophic eruption. However, subsequent the danger aggravated and not solely the tourism industry of Iceland but of the whole Europe was messed up. ... nge and Europe might not experience summertime which would then result in the loss of tourism revenues from countries like Switzerland, France and Italy (Gupta, 2010). Thus, the tourism industry all all over the Europe seems to face the trickle down effects of the volcanic eruption in the region. Objectives The video demonstrate a situation of the tourism industry in Tenerife and the effects after the volcanic eruption. The tourist Nigel experient the whole situation in a hotel and came up to the conclusion that he liked the hotel whereas, he wa s insatiable with the services if Ryan Airways through which he was flying. This was utterly due to the different behavior adopted by twain the organizations. The hotel was hospitable and accommodating whereas, he faced the opposite reaction from the Airways and was in a complete dismal. Thus, the focus of the report is to investigate the reasons for the two distinguished reactions of the organizations that were going through the same natural circumstances. Both the organizations are an integral part of the tourism industry, yet they resulted in different attitudes. Therefore, further analysis would seek to clarify. Spain oath summary Since the Canary Islands are a province of Spain the PEST analysis would enhance the analysis. Political abstract Spain has a mixed capitalist economy and ranks as the 12th largest in the world. The political conditions are jolly stable and hence, the economy has been successful until 2007 when the effects of recession began to be felt in 2007 (W orld Factbook, 2010). Economic Analysis Real GDP growth decreased in 2007 in the wake of recession by 3.9% and later in 2010 by 0.2%. Per capita income also saw a declining trend and the public debt increased from 53.2% of GDP in 2009 to 63.4% in 2010 (World