The Preliminary Preview of the Travels & Tours Industry. By Kaka EK


The Travel and Tourism Competitiveness Report 2019
Travel & Tourism Competitiveness
Index
The Enabling Environment subindex captures
the general conditions necessary for operating
in a country and includes 5 pillars:

  1. Business Environment (12 indicators): This pillar
    captures the extent to which a country has in place
    a policy environment conducive for companies to
    do business. Research has found significant links
    between economic growth and aspects such as
    how well property rights are protected and the
    efficiency of the legal framework. Similarly, distortions
    in taxation and competition policy—including both
    domestic and international competition, measured in
    terms of foreign direct investment (FDI) facilitation—
    impact the efficiency and productivity of a country.
    These factors are important for all sectors, including
    T&T. In addition, we consider the cost and time
    necessary to deal with construction permits, which
    is a particularly relevant issue for T&T development.
  2. Safety and Security (5 indicators): Safety and security
    are critical factors determining the competitiveness
    of a country’s T&T industry. Tourists are likely to be
    deterred from travelling to dangerous countries or
    regions, making it less attractive to develop the T&T
    sector in those places. Here we take into account the
    costliness of common crime and violence as well as
    terrorism, and the extent to which police services can
    be relied upon to provide protection from crime.
  3. Health and Hygiene (6 indicators): Health and
    hygiene is also essential for T&T competitiveness.
    Access to improved drinking water and sanitation is
    important for the comfort and health of travellers. In
    the event that tourists do become ill, the country’s
    health sector must be able to ensure they are
    properly cared for, as measured by the availability
    of physicians and hospital beds. In addition, high
    prevalence of HIV and malaria can have an impact
    on the productivity of the T&T labour force and play a
    role in discouraging tourists from visiting a country.
  4. Human Resources and Labour Market (9 indicators):
    High-quality human resources in an economy ensure
    that the industry has access to the collaborators it
    needs. The components of this pillar measure how
    well countries develop skills through education and
    training and enhance the best allocation of those
    skills through an efficient labour market. The former
    includes formal educational attainment rates and private
    sector involvement in upgrading human resources,
    such as business investment in training services
    and customer care. The latter includes measures of
    the flexibility, efficiency and openness of the labour
    market, and the participation of women, to assess
    the depth of the country’s talent pool and its ability
    to allocate human resources to their best use

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