Introduction
Geopolitical events can have a significant impact on the growth of the tourism industry. Especially in the globalised world, international relations and happenings can directly affect the industry. Geopolitics and international ties, conflicts between nations, and clusters of nations will make or break the industry and thus the economic contribution that the tourism industry makes to particular countries. Thus, tourism professionals need to understand the importance and interrelationship between geopolitics and tourism. Especially for countries that are highly dependent on tourism, geopolitical factors can be a deal breaker, for good or bad. For example, conflict or political instability in a destination can lead to a decrease in the number of tourists visiting that area.
Conversely, improved political relations or stability can lead to an increase in tourism. The role of geopolitics in the growth of the tourism industry is therefore constantly changing, as geopolitical events are ongoing and can rapidly impact the industry. In this article, we will discuss how geopolitics plays a role in the tourism industry of a country. Before we continue, let us look at two examples of geopolitical situations that boosted or destroyed tourism.
How the European Union has boosted tourism in Europe
The European Union (EU), formed after the Second World War as a political entity, plays a significant role in facilitating the tourism industry in Europe by providing several benefits. As a cluster of nations with high tourism prospects, the EU plays an important role in monetising most of Europe for the tourism industry. Indeed, tourists visiting Europe increased from 265 million in 1990 to 713 million in 2018, according to Our World in Data, thanks to the efforts of the EU.
The EU harmonises policies and regulations related to tourism within its member countries. It makes it easier for tourists to travel within Europe and for the tourism industry to operate effectively with close collaboration. Over 20 EU countries, which are in the eurozone, use the same currency and notes known as euros. This largely reduces tourists' time spent in currency exchange while travelling between these countries. Also, the EU invests in improving transport links within Europe, making it easier for tourists to move from one destination to another. This includes supporting the development of air, rail, and road transport networks. With less strict border crossings between the EU countries, tourists find it easier and more flexible to visit the whole of Europe with minimal headaches.
To add to this list, the EU promotes cultural heritage sites and tourist destinations within Europe, helping to increase the visibility of Europe as a tourist destination. Even then, consumer rights, which are some of the most important rights for a traveller, are recognised and upheld within the EU. It protects consumer rights, such as the right to information, the right to safe and healthy travel, and the right to redress. This helps to build trust among tourists and encourages more visitors to choose Europe as a safe tourist destination.
While this is the story from a tourist's perspective, tourism businesses can also benefit from all the above points. Additionally, the EU provides funding and support for investment in the tourism industry, helping to improve infrastructure and promote innovation in the sector. Together, these benefits help to make Europe a more attractive tourist destination for tourists, investors, and business operators and contribute to the growth of the tourism industry.
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How international border conflicts impact tourism in Kashmir
International border conflicts are some of the worst geopolitical nightmares in the world. With that said, these regional turmoils can adversely affect tourism in several ways. The conflict-affected areas, such as Kashmir, though a heavenly place for tourists and pilgrims, is marred by the conflict between three nuclear states: India, Pakistan, and China.
The constant threat of violence in the Kashmir valley, which is backed by Pakistani terrorist organisations, has put its tourist arrivals at the bottom of the charts compared to other neighbouring states and regions like Jammu. For example, while the number of tourists crossed 150 million in adjacent Jammu, Kashmir never crossed the 15 million mark since the beginning of the insurgency until 2019 (Source: scholarworks.gvsk.edu). The reasons for such dramatic differences can be traced back to the following points.
Conflicts and violence, coupled with negative media coverage, created massive concerns about safety and security among tourists. To top it all, the worsening relationship between India, Pakistan, and China has led to a looming threat of war over international tourists. This marred the image of Kashmir on the global stage, which in turn discouraged tourists from visiting the valley. Conflicts inevitably drew stricter government actions like travel restrictions like border closures, flight cancellations, visa restrictions, and the heavy presence of security forces, which worsened tourists' interest in visiting Kashmir. This, in turn, led to reduced investment in tourism and tourism-related infrastructure from the private sector. As a result, Kashmir's natural tourism destinations remained hidden, becoming inaccessible and making it risky for the tourism industry to flourish.
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How Geopolitics Affects Tourism
As we have seen, geopolitics plays an important role in the growth of tourism or its destruction. Some points that affect the industry are as follows.
1. Political stability
Political stability and security in a destination are important factors for tourists when choosing a place to visit. Instability or conflict in a country can lead to a decrease in the number of tourists visiting that area. As political stability and internal security are almost always interrelated, tourists choose a politically stable country for all their recreational activities. They are more likely to visit a country if they feel that they will be safe and secure while they are there. Instability and conflict can make tourists feel uneasy and discourage them from visiting. A stable and strong regional administration increases tourists' trust and reduces concerns over their safety. It facilitates effective planning and prediction by both tourists and the tourism industry. For example, it is easier for tour operators to plan trips and make arrangements when a destination is politically stable, as they can be more confident that their plans will not be disrupted.
Political stability also allows for the development and maintenance of infrastructure necessary for the tourism industry, such as airports, hotels, and transportation, which are the lifelines of the industry. Such a region attracts investment in the tourism industry, as investors feel more confident about the long-term prospects for the industry in a stable environment. Finally, political stability contributes to a positive brand image for a destination, which can attract more tourists. On the other hand, political instability can damage a destination's brand image and discourage tourists from visiting.
2. Travel restrictions vs. travel integration
Political tensions or conflicts between countries can result in travel restrictions, making it difficult or impossible for tourists to visit certain destinations, which results in a decrease in the number of visitors as these situations disrupt travel plans and arrangements that have already been made by tourists. This can lead to a loss of business for the tourism industry. Travel restrictions can limit the flow of money into a country, as tourists are unable to spend money on goods and services. This can harm the local economy, particularly in areas that rely heavily on tourism.
Travel restrictions can damage a country's image and reputation as a tourist destination, making it less attractive to potential visitors in the future. Especially in this age of social media, such matters can draw international attention and criticism. Such restrictions can also disrupt international relationships between countries, which can have wider implications for the global tourism industry.
On the other hand, seamless integration of travel methods and easy and quick security checkups will be a boon for the tourism industry. As we can see from the tourism industry's exponential growth in Europe, travel integration between neighbouring countries can be a good catalyst for tourism growth.
3. Economic sanctions
Economic sanctions imposed on a country can negatively impact its tourism industry, as it becomes more difficult for tourists to exchange currency or access goods and services. Economic sanctions limit the availability of currency in a country, making it more difficult for tourists to exchange currency and access goods and services. In a globalised world, economic sanctions also limit foreign investment in the tourism industry, as investors may be reluctant to invest in a country that is subject to economic sanctions. As most banks are now digitised and integrated internationally, any economic sanctions on a country affect the operational capabilities of the country's banking system. For international tourists, this will become a huge disadvantage.
4. Image and reputation
A country's image and reputation can also be impacted by geopolitics. Negative media coverage of a destination due to political unrest or conflict can discourage tourists from visiting. A positive image and reputation can attract more tourists to a country, as they are more likely to visit a destination that they perceive as safe, welcoming, and attractive. In the age of social media, this factor gains drastic importance. An incompetent or corrupt local security force leaves room for thieves, fraudulent and malicious individuals or groups, and thugs to take advantage of international tourists. When the news gets out in the fast-paced digital world, the whole region loses its credibility and international reputation.
On the other hand, a good reputation builds trust among potential tourists, who are more likely to choose a destination that they perceive as reliable and trustworthy. Positive media coverage of a destination is crucial to promoting it as a tourist destination and attracting more visitors. All these give a country a competitive advantage over other destinations and attract international hotel chains, tour operators, businesses, tourists, and investments. This reputation can contribute to the long-term sustainability of a country's tourism industry, as tourists are more likely to return to a destination that they perceive as positive and attractive.
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5. Foreign relations
Improved foreign relations between countries can lead to an increase in tourism as barriers to travel are reduced and a more positive image is projected, as we have noticed in the case of the European Union. Positive foreign relations can make it easier for tourists to access a country, as they are more likely to be able to obtain visas and travel there without any restrictions. Even the experiences and relations they build in the country can be long-lasting as long as their national interests do not conflict with each other. Positive foreign relations can also contribute to a sense of safety and security for tourists, which is essential for attracting visitors. Interpersonal relations are smoother, and conversations are highly enjoyable.
On the other hand, negative foreign relations can create concerns about safety and security. Conversations can become difficult between two citizens of conflicting nations. Positive foreign relations attract investment from neighbouring countries, especially in the border regions, as investors feel more confident about the long-term prospects for the industry. Finally, collaboration and partnerships between countries in the tourism industry promote the industry and attract more visitors on the international stage than when done by a single country. On the other hand, negative foreign relations can damage a country's reputation and discourage tourists from visiting.
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Conclusion
Geopolitics plays a significant role in the growth of the tourism industry. Political stability, international image and reputation, foreign relations, the absence of travel restrictions, and international economic sanctions are some of the factors that impact a country's tourism industry. The European Union facilitates the tourism industry in Europe through harmonised policies, improved transport links, promotion of cultural heritage, encouragement of investment, and protection of consumer rights. International border conflicts can harm tourism by causing safety and security concerns, travel restrictions, negative media coverage, reduced investment, and deterioration of infrastructure and attractions.
The decline in tourism in conflict-affected areas can lead to long-term economic and social consequences for communities that rely on tourism for their livelihoods. A prime example of this is the Kashmir valley in India and the destruction of its tourism industry due to the insurgency. Torn between three countries, the region's higher tourism potential is haunted by violence and political instability. As a tourism manager, you need to understand the relationship between geopolitics and tourism. It can and will help you down the line if you can predict the connection and plan your decisions accordingly in a globalised world.
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Citations
KUMAR, ALTAF AHMD (2021) "Tourism and Terrorism: A Study of Jammu and Kashmir," Journal of Tourism Insights, Vol. 11: Iss. 1, Article 3.
Available at: https://doi.org/10.9707/2328-0824.117