Key Internal and External Influences Affecting Tourism in Brazil

1 January 2017

As Brazil is a newly emerging tourist destination, the influences affecting Brazil need to be assessed in order to maximise strengths and opportunities and reduce weaknesses and threats; in order to gain a strategic direction. This audit report will discuss in further detail the various internal and external influences that are currently affecting Brazil using relevant analysis such as PESTLE, and TOWS. 2) External PESTLE: There are numerous external factors around the world that impact on tourism in Brazil. The table below shows these external influences in the form of a PESTLE analysis.

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As you can see from the PESTLE Analysis there are numerous influences outside of Brazil that affect incoming tourism to Brazil. Below the influences in six sections of the analysis are discussed in more detail: 2. 1) Political: * Political turmoil, war and terrorism – Ever since the war on terror and terrorism attacks began it has had a huge effect on tourism. Putting tourists off traveling; to underdeveloped countries which have an increased threat of turmoil or countries with high risks of terror.

Various countries around the world (predominantly outside the EU) are currently in political turmoil for example Lebanon, Egypt and most recently the Maldives. This could have an effect on Brazil’s tourism by tourist choosing to travel domestically or to stable countries such as countries within the EU. * Tourism Taxes – tourism taxes are the taxes the government puts on tourism products and services, such as car rentals, hotels and arriving or departing from airports. Since the rise in air passenger duty governments of certain countries have also increased tourist taxes.

For example Mauritius introduced a a ? 10 airport tax on all departing passengers. Austria and Germany have introduced an environmental air tax and the Maldives have introduced a Goods and Services Tax of 3. 5 per cent, which will apply to accommodation, transport, food and drink and excursions. These taxes can impact on tourism as tourist may choose to travel to places where tax isn’t as high. 2. 2) Economical: * Recession – as the world is currently in a global recession it’s had a huge effect on tourism, including tourism organisations, destinations and tourists.

All these have less money to spend on tourism products therefore international travel has decreased. For example in 2009 the Guardian reported that in Rwanda tourism is the third highest source of foreign revenue and as a result local economic development has suffered. This can relate to Brazil as it is also an emerging developing country that heavily relies on tourism to help it develop. For example sustainable tourism in the amazon depend heavily on money from tourism, and as the recession continues less people will be likely to pay for expensive nature based tourism that benefits conservation and local people.

Also tourism organisations have had to cut back to survive in these hard economic times, and according to the 2009 article in the Guardian this often means ‘bypassing more expensive eco-conscious destinations’. * Rise in cost of fuel – because of the increase in oil prices transportation fares have also been raised. Therefore it is more expensive to travel abroad; which may lead to people travelling less or to closer destinations. Also the rise in fuel costs has had an effect on business’ including many airlines.

For example since the rise in fuel costs Qantas’ profits have been hit hard, causing them to cut over 500 jobs, closing international routes and reducing capacitates on domestic routes. This could affect incoming tourism to brazil as less airlines may fly there also passengers may choose to fly cheaper routes to other destinations. * Increased air passenger duty – air passenger duty in the UK increased in 2009 which means passenger travelling from the UK to short or long haul destinations have to pay this duty in their air ticket. The charges re ? 40 for countries within the EU and ? 0 for countries outside the EU. So this could have an effect on Brazil by tourist from the UK choosing to travel to EU destinations in order to save money on travel. * Exchange rates – in recent years since the recession began exchange rates (especially when converting from the GBP) have dropped dramatically. Currently the British Pound lowest exchange is the euro with it currently standing at 1. 1927. The pound is also at one of its lowest rates compared with the US Dollar currently standing at 1. 5790. Whereas compared with countries further afield and less developed the rates are much higher.

This could have a positive effect on Brazil tourism because as it stands now the exchange rate is 2. 7884. Which as you can see is a lot higher compared with the euro or the US Dollar. Therefore tourist may rather travel to Brazil in order to get a greater return from their money. * Unemployment / job cuts – also mainly due to the recession there is a record number of unemployed people in the UK, with many businesses; including travel/tourism organisations failing to make profits; for example Thomas Cook. This would primarily have a negative effect on Brazil tourism as people have less disposable income to travel due to being out of work.

And one the Europe’s leading tour operator has lost lots of clientele which may see tourist figures drop in Brazil. 2. 3) Social: * Social media – in today’s society social media plays a big role in many different ways. Including advertising and purchase decision making. Travellers tend to use social media to read reviews write/read blogs about tourism products, share photos and videos etc. where tourism companies tend to use social media as a form of advertising as it can reach large numbers of people in a short amount of time for low amounts of money. Social media can have positive and negative effects on tourism in certain countries.

But the majority would say it has a positive effect. Due to organisations being able to advertise to so many people and tourist being able to share positive feedback on a destination they have visited. * Trends & Demographics – tourists from various countries around the world usually have specific habits or trends when travelling abroad. For instance tourists from the EU tend to be more likely to travel to other countries within the EU where as American tourist are more likely to travel domestically or to bordering countries such as South America and Canada.

Mainly due to distance and price. Demographics also play a part in the decision process when deciding where to travel. According to the Office for National Statistics 2010, the majority of outbound UK tourists travelled within Europe, with France and Spain being the most popular countries visited throughout all age groups ranging from 0-44. The report also showed that tourists within the age groups of 35-44 travelled to more countries outside the EU than any other age group. This could be due to multiple reasons such as more disposable income and more life experiences.

Whereas the Office of Travel and Tourism Industries 2010 state that other than Canada and Mexico; the UK and Dominican Republic where the most popular countries visited by outbound American tourists followed by France and Italy. Also trends may alter depending on the season for example a UK tourist wanting a beach holiday in the winter season, probably wouldn’t travel to Spain and may go further afield to the Caribbean for example. * Events – various social events that take place in destinations will attract people to visit.

For example the London 2012 Olympics will attract millions of tourist from all over the world. This will benefit UK tourism but could hinder tourism in other countries across the world including Brazil. As tourists may choose to visit London to see the Olympics rather than holidaying in Brazil. 2. 4) Technological: * Flights – due to the increase in the demand for travel and tourism there are a lot more airlines and flights available compared with past years. As tourist are more willing to travel to far destinations and more destinations are developing into tourist destinations airlines have to keep up with these evelopments. Therefore more routes to long haul and up and coming destinations are being introduced. This will have a positive effect on incoming tourism to Brazil as it will be more easily accessible from multiple countries around the world. * Internet – the internet has played a huge role in the development of tourism. Mainly because it can be a portal into doing anything these days especially when concerned with tourism. Gone are the days when everything was left to a travel agent.

Tourists can now research and book everything themselves from the comfort of their own home. Which means all destinations; products and services are more accessible to tourists all over the world. Which means newly developing tourist destinations will be more known and accessible across the wold compared with times before the internet when people had to wait for publications to be released that contained information. 2. 5) Legal: * Visa requirements – various countries have various different visa requirements for travellers from certain countries.

For example EU citizens travelling outside the EU will usually have to purchase a tourist visa which allows them to enter the country. Whereas if they were to stay within the EU a visa wouldn’t be necessary. Visa prices and requirements vary depend on the country and the nationality of the tourist and the various requirements needed to obtain a visa could be a deciding factor on whether or not to visit a certain country. * Crime levels – crime goes on in every town in every country across the world as that is the society is today. Although various countries and towns have higher levels of crime than other.

For example under developed countries experience much worse and larger rates of crime than stable developed countries. For example comparing countries in Africa or the Caribbean to the UK there are many more crimes on a day to day basis that include crimes such as kidnap, gun crimes, robbery, drug crimes, sex crimes etc. Although these crimes also happen in the UK they are not as regular and the UK are also stable enough and have the facilities to stop or prevent crime compared with underdeveloped countries such as countries in Africa or the Caribbean.

Crime levels can have an effect on tourism as tourist will be less likely to visit a destination that is known for having high levels of crime where their safety may be at risk. 2. 6) Environmental: * Climate change – as the world has developed the climate has changed with temperatures and sea levels rising. This has and will have an effect on tourism for many different reasons. According to Climate Change and its Impacts on Tourism (1999) the most serious impacts will result from the effects of sea level rise on small island states such as the Maldives.

Other threats they suggest climate change can have on tourism are; extreme heat in Eastern / Mediterranean resorts which will cause discomfort, increased exposure to the suns harmful rays, and the risk of malaria re-emerging in Spain a popular tourism destination. Winter destinations such as ski resorts will also be affected with resorts receiving less snow fall and experiencing shorter ski seasons. Also the policies that have been put in place to prevent these changes will also affect tourism. For example transport fares have risen as to help develop greener transport. Natural disasters –when natural disasters occur they have catastrophic impact on the destination and its communities and economies. Tourism is also impacted by natural disasters; as communities, businesses and natural environments, that the industry relies, on can be severely damaged. And it can take years to fix the damaged caused by disasters. The risk of natural disasters can also strike fear in tourists and put them off visiting certain places. Certain natural disasters can also have an impact on transportation which will prevent tourists accessing a destination.

For example a recent natural disaster was the eruption of a volcano in Iceland which caused an ash cloud which shut down part of Europe’s airspace. If the volcano erupted again and the ash was to return, this will have an impact on Brazil as European travellers will be restricted from travelling. * Health issues – various countries have various different health risks that can have an impact on tourism such as the risk of malaria… 3) Internal Strengths and Weaknesses: Below is a list of the internal strengths and weaknesses compiled from the PESTLE analysis that currently influence tourism in Brazil.

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