Critical Analysis of Tourism Sector

Critical evaluation

In modern era, tourism sector is one of the most potential and highly competitive sector of the world. Most of the people always observe the positive aspects of tourism in countries and ignore its other drawbacks. The fact cannot be denied that tourism brings many benefits to third world countries but along with this it also encourages regional inequalities, social tension and economic problems (Oelkers, 2006). Two of the major factors which are required to develop a model of articulation in third world counties are to understand how the tourism industry manifest itself and who is going to be benefited from tourism development.

The third world counties suffers from some common characteristics and structure distortion. Counties in third world are also termed as developing countries which faces problems such as poverty and low economic growth. Further in such countries tourism can be very beneficial as it not only creates employment opportunities but also assist in economic development by bringing some foreign exchange inside the country. The travel experience format has been changed because of the growth of mass tourism in some of the nations. The travel industry has now become a distinct industry which focuses on meeting the demand of recreational travel (Wakerstein, 1979). The result of this is that it has increase the standards of travel industry  all around the world. One of the major development in tourism was in mid 1960's in which package tours were introduced. The advantage of such kind of tours was that it lower down the gap  between individual's psychological needs and their security in some strange tourist areas. On the other hand, another benefit of package tours was that in reduced the entire cost of travelling and have provided tourism companies with many potential opportunities.

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Package tours increased the number of traveller and made the travel industry more intense and highly competitive. Metropolitan enterprise are the one which are located within the main tourism markets of a country and which comes in direct contact with customers. As time passed these Metropolitan enterprise started controlling the flow of tourism in one destination and diverted them to other destinations. The main reason why these enterprise were able to take care of the flow of tourism is that they were having high degree of control over international transport. The above mentioned statement can be justified by the fact that in the year 1978, Air New Zealand and Qantas were the two airlines which carried 80% of their seats with tourist   visiting Fiji. At that time, regional airlines were associated with some problems such as high cost of operations, interest of stakeholders and the interference in their operations which was done by foreign management. The concept of tourism promotion has played a major role in the growth and development of the tourism industry. Tourist destination are attributed by different featured and attractive cultural characteristics. Thus, it become very important to promote such places and attract more and more visitors. As the time passed tourism products and services were also created in some of the underdeveloped countries. There were no facilities of manufacturing producers and agriculture industries in such nations and all these things were imported from other countries (Schmoll, 1977). This can be justified by the fact that standard hotel construction, hotel food purchase and tourist shop wares in Fiji were arranged with the help of imports. The strong marketing and promotion resulted in meeting the unique and special needs of tourist and increased the sales. Further people also started to appreciated the products and services of tourism which were delivered to them. The service deliver started to improve which also resulted in increasing the volume of tourist. The advantage of this was that it helped some underdeveloped countries to grow and developed in effective manner.

Therefore, in the 21st century government has focused on the development theory to improve the situation of poor countries that support in growing the national income of the economy so that they may lift or amend the quality of living in the economy. The development theory generally focuses on the six of approaches that is modernization, dependency, neo-liberalism, sustainable development, human development and post development. All these approaches collaboratively support the economy in developing so that they can easily focus on the tourism sector to enhance the image of leading destination. Under modernization the author focuses on the development of science and technology that advances the industry and also impact the economic growth of the third world tourism. Another approach in the development theory include dependency that focuses all countries within the world are interconnected with each other. Another approach is Neo-liberalism that generally focuses on promoting the competitive businesses through successful entrepreneurship. However, the development theory also focus on sustainable development that means taking environment factor into the consideration so that tourism sector can prevent and forbid the resource crisis and meet the environmental, economical and social needs.

Other than this, there are some advantages and disadvantage of tourism which is required to be taken care of. It can be stated that there are three main model of third world tourism. The first one is an enclave model of third world tourism (Stephen G,  1982). As per this model, some primary urban centres of ex-colonies are developed as tourist arrival points. Some towns are selected and then national headquarters of local and foreign tourism companies are developed and established in those towns. Further there are some international transport terminals which are used in case of package travel tours to transport people to resorts and hotel enclaves (Ward and A, 1980). The tourist in such model are required to travel within resort cluster and at the time of departure they need to return back to primary urban areas. The second model is a structural model of the third world tourism. The concept of system determinants is used by foreign companies to determine the activities and operation of tourism in local as well as international counties. The good, services, drinks which are duty free are supplied to tourist in such model.  According to the generalized distribution of  tourist industry, the tourism companies provided accommodation, tour and transportation facilities, shopping facilities and other miscellaneous services to the guest.

There are some countries in the third world which do not experience any kind of colonism. Fiji is one of the best traditional example of structurally dependent economy. It was linked through merchant capital in early 19th century and then colonism started to expand in England and other areas. For a particular span of time, its economy was totally controlled by Anglo-Australians industries.  The cooks Island is the one which shares some of the Fiji's colonial experience. In the year 1901, it became a territory of New Zealand. Further its economy since the middle of nineteenth century has been dominated by some of the trading and transport companies of New Zealand. The Tonga has a completely different history as compared to Fiji and cooks island. Further it was controlled by both British and Germans and the Island of Tonga was having monarchic structure.

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Fiji has the highest number of hotels and rooms which are 61 hotels and 3351 rooms. Cook Island has only three hotels with 203 rooms and Tonga has 2 hotels with 104 rooms. It has been important within the travel and tourism sector as it support in meeting the leisure andf luxurious needs of the guests and customers. Tourism is rapidly increasing the above stated destinations and they are contributing a lot to the Gross Domestic Product (GDP) of their respective countries. 6.1%  has been contributed by Tonga, 21.7%  has been  by Cooks Islands and 13.6 has been contributed by Fiji. It has been also observed that Fiji offers various kinds of luxury resort holidays and facilities associated with them. The large share of accommodation has been captured by luxury hotels but there are guest house and motels available which also provides accommodation facilities. In Tonga there are  only small guest house and motels. On the other hand, Cook Island has motels, guest house and three hotels which includes one large international hotel. Further in terms of target market or audience, Fiji attract all type of people in market such as wealthy people to budget minded ones. Backpackers are the one which are attracted more by Tonga whereas middle or low income people  are attracted by the Cooks Islands. Thus, it can be evaluated that Fiji has been developed as a very good destination  and has all those services which are required to attract different type of tourist. Britton's theory of dependency is termed as process that depicts that resource flow from the poor or underdeveloped region to the wealthy states. However, this causes disintegration within the economy and their change of direction modifies the new market. Therefore, the internal change generally focuses on determining the roles and focusing on the different modes of the production in the non-industrial country. However, there are certain criticism of the dependency theory that is it result in deficiency of the competition level within the economy. However, it also result in higher the rate of corruption within the economies.


  • Schmoll, G. A., 1977.  Tourism Promotion. London: Tourism International Press.
  • Stephen G. Britton., 1982. THE POLITICAL ECONOMY OF TOURISM IN THE THIRD WORLD. Annals of Tourism Research. pp. 331.358.
  • Oelkers, B. D., 2006. Travel And Tourism Marketing. Thomson/South-Western.
  • Wakerstein, I., 1979. The Capitalist World Economy. London: Oxford University Press
  • Ward, R. and A. Proctor., 1980. South Pacific Agriculture: Choices and Constraints. Canberra: Australian. National University Press.

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