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Evaluation of the Macro Tourism Business Environment

University: California Institute of Technology

  • Unit No: 9
  • Level: High school
  • Pages: 7 / Words 1872
  • Paper Type: Assignment
  • Course Code: PM305
  • Downloads: 550
Question :

Learning Outcomes - 

  1. Prepare a primary evaluation of the tourism business environment.
  2. Explain some of the detailed forces for the tourism business.

Project Task

 You are required to conduct the response or recovery strategies by one or two tourism stakeholders to the microenvironmental event (as chosen in CW1).

TASK guidance

Critically evaluate the impact of the macro-environmental event on stakeholders of your chosen area, you are now required to identify the response strategies of the stakeholders pertaining to this event.

This assessment should see you to analyze the positive or negative elements of the response strategies utilized, with evidence of why you came to these conclusions.

For instance, how did the response strategy produce advantages to the organization in responding to the macro-environmental event? Conversely, did the response strategy have any unforeseen negative impacts? Or did it not achieve its original objectives?

For further guidance on this project, please access the project podcast available through Canvas.

Answer :


The macro environmental events are those events which is occurred naturally in country. To understand macro environmental events There is an example of volcanic eruption which takes place in Iceland. Eruption occurs when fine grain ash rose spread in the sky and winds picks the grain up and flow it out to the sea. The first eruption starts in 2010 and end up on 20th march 2010, while second eruption starts on 14th April and below the icecap and finish up around the middle of may. First eruption creates problem for aviation in Europe and tourism. Second eruption is too much explosive rather than first because it melts glacier into water and become more explosive for peoples. There are two stakeholders which is effected from volcanic eruption in Iceland. Local tour guide are first stakeholder who offers their services to traveller so that they get knowledge about their culture and cities. Second stakeholder is Icelandic government, icelandair and Iceland express who provides facilities tourism so that they enable to attract tourist for visiting place. Both stakeholders are impacted from macro environmental events. In this report will cover response strategies of both stakeholder on macro environmental events.

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Response strategies of stakeholders

There are two stakeholders which gives different response on macro environmental events so that organization gets profits and tourist productivity enhance out in Iceland.

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Local tour guides

They mention local peoples who guide tourist and shares their experience about place and enhances tourist experiences for place. Due to volcanic eruption 800 local peoples who live near to mountain leaves their home at night for safety concerns. Due to this tourism gets effected and traveller cancels their plan to visit place (Knežević Cvelbar and et.al., 2016). But some local tourism gives response strategies for improving tourist experiences and their survival ratio. Even local tourism also offers policies to local tour guides so that they give contribution to guide travellers. Based on the situation local guides response strategies are-

Photographic scene about volcano eruption:

Local tour guide can attract tourist by expressing volcano scene such as red-hot lava along with yellow spout makes attractive to place, after eruption which attracts tourist towards for visiting place. Even local tour can improve their experience by taking visitors near to mountain where they can take experience with plum of smoke above the mountain. It improves visiting of travellers and improve their experience. Volcanic eruption makes attractive the place and tourist who wants to adventurist trip, choose such kind places for visiting. On other hand local tour guide gets chance to generate incomes and exchanges their culture to other tourist (Altin and et.al., 2018). Local tour guide informs them about beauteousness of the place which attracts visitor to visit. Local tour guide takes them on the spot or nearby to improves their experience.

To be good instructor:

Local tourism guide keeps knowledge about macro environmental events so that they enable to give knowledge other foreign tourist who comes to visit place. They gather knowledge about events when it occurs and how it takes place and how many months takes to become non-explosive. They keep knowledge how event can give impact on peoples life and their family. Thus, kind knowledge they gather from sources and aware for changes. Thus, they keep protect themself from macro events. Based on the knowledge local tour guide enable to instruct other travellers who come to visit the place. Local guide shares their experiences during struggling from macro environmental events and informs them how they keep them safe. They also give information about events when it happens and how many places covers by macro environmental event. To understand their response there is an example local tour guide who lives surround airports and near to mountain (Paunović and Jovanović, 2019). They gather knowledge about volcanic eruption and its impact on social life. Whenever Tourist comes to visit place for taking experience about place. In that state local tourism instructs them and aware them which place can be life-threatening during visiting and which place give information about resources makes their trip adventurist. They not only give information about place but also exchanges their culture knowledge and improves traveller experiences.

Number of hiking trails: 

Local tour guide improves experience of tourist who wants some adventurists trip. They improve their experience by taking them for hiking trails where they can see natural and can measure explosiveness of ancient place. It is more adventurist things for tourist. It posses a drawback for example hiking trails are dangerous place for visitors and local tour guide and thus kind places requires police protection (Kasim and Dzakiria, 2016). It is mandatory for tourist safety. Who can observe risk and can make them safe during emergency. Thus, it can give impact on organization policies.

Thus, local tourism gives contribution to aware about place and improves their experience by taking them for visiting eruption places such as Iceland and mountain which covers Europe and generates their income by offering services which they consume. Through the strategies 5000 thousand peoples visited the place after eruption. Local tour guides offers transport services to visitors so that they visit place well-formed.

Icelandic government, icelandair and Iceland express

They are second stakeholder who gives contribution to improve tourist visiting for Iceland. Even stakeholder like Icelandic government, the city of Reykjavik , airlines icelandair and Iceland encourages tourism companies to address about situation and takes quick action about tourism travel during volcanic eruption and after eruption. Their quick action leads crisis in management which gives impact on tourist travelling. To overcomes such kind issues and improves tourism visiting stakeholder provides strategies.

Campaign strategy: 

stakeholder launches campaign to attract large number of tourist for visiting the place. The campaign is based on the theme “ inspired by Iceland”. In the campaign allows number of peoples to share their experiences and stories of Iceland which attracts visitors to travel to the country. Even Icelandic government gives campaign websites such as “inspiredbyiceland.com”. Where number of people can connects and takes knowledge about place. The main goal of the campaign to enhance popularity of Iceland (Goffi, Cucculelli and Masiero, 2019). This campaign launches on 3rd June along with Iceland hour. In this session involves number of countries and nations, singers and investors and sends them message along with video. The main goal of video to tempt number of peoples from Icelandic beauty and shows local peoples to dance joyful at various places of Iceland. Even stakeholder joins celebrities such as Yoko Ono, Eric Clapton and Viggo Mortensen are the main celebrites who shares their stories around 500 about iceland and shares on websites. Even britsh stepen who is television persenter also shares their experiences and gives statement such as “iceland is alive and charming as ever”. Thus kind contribution encourges travellers to visit place (Inglot-Brzęk and Lewandowska, 2017). Through the campaign enables to analyse global impact on iceland. Where finds Germany and Denmarke enahnces interst in iceland as destination and generates high income from tourist according season.

Icelandic music scenes: 

In 2011, stakeholder provides Icelandic music scene which is integral part of the charming and leisure time of the Iceland in North Atlantic. Nearby Icelandic music scene, stakeholder builds breathing concert hall and conference centric in Reykjavik which become harbour for tourists.


Icelandic government gives contribution to promote tourist visiting in Iceland. Government provides health insurance policies to tourist and local guide so that visitors concerns free for health and visits place. The main goal of the policies to promote visitors for visiting place and improves economical and sociocultural effects in Iceland.

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Infrastructure services: 

Stakeholder also offers infrastructure facilities to tourist which is perfect destination place for visitors who want staying that place which gives peacefulness and attracts their background scene. Tourism companies as stakeholder offers transportation facilities like helicopter, mountain bikes and cabs to visitors so that they can visit number of places in Iceland. Organization offers helicopter facilities to tourist where they can take experience close to site and can take picture. Tourism organization conducts festivals so that tourism entertain and gets value of their money (Peeters and et.al., 2019). It also offers food facilities to tourist so that they don't have to go outside for food, and can enjoy of trip. Tourism offers additional services like deluxe room with swimming pool, pub facilities and spa facilities to tourist so that their experience enhances, and they like to visit again the place. Some tourism organization also offers destination wedding facilities for those tourist who wants to make their wedding memorable in Iceland. Thus, stakeholder promotes tourist to visiting place.

Thus, stakeholder gives response and promotes tourist visiting by implementing different strategies. Thus, kind response generates income of country and popularity of place and improves tourist experiences in destination trips. Thus, stakeholder deals with macro environmental event.

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It can be concluded macro environmental event which gives impact on country and their stakeholders. Stakeholders are local tour guide and Icelandic government, icelandair and Icelandic express has been concluded. The response strategies of each stakeholder can be concluded for overcoming macro environmental event and makes their experience adventurist. In this report concluded local tour guide who enhances tourist experience by implementing recovery strategies. As same second stakeholder contribution can be concluded in the report. In this report has been analysed that strategies of stakeholders plays significant role to deal with macro environment

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