The travel and tourism industry is one of the largest industries worldwide. In 2016, it was said to account for $7.6 trillion globally from money generated by accommodation, transport, leisure and entertainment. Accounting for so much money it’s not hard to see why more and more people are going into business in the tourism industry either.
Travel anywhere in the world and there will be business purely running on tourism, beachside restaurants, streets salesmen or hotels. In developing countries especially, whole communities are dependent on the tourist sector, without it, there would be nothing. Locals have developed the industry, but now more and more foreigners are moving in to set up business, drawn by the easy lifestyle, money to be made and beautiful weather, it seems like a simple decision. Rules can be laxer in these countries so barriers to entry aren’t as high either. What can be the drawbacks of setting up shop in these countries though?
You’ve been on holiday to South-East Asia several times and you love it. You’ve spotted a gap in the market and decided to move over and set up your business. What’s stopping you? Local laws for a start. Many countries in this part of the world maintain the need for a national to be involved in setting up and running the business. This all sounds great as they can speak the language and know the local market, until they take advantage of this and take over the business leaving you with nothing.
Different cultures can be a significant barrier to success no matter what country you are working in. Time frames in which you want to have something done might not mean so much to local suppliers who move at their own more relaxed pace. Dealing with holidays can also be difficult as countries close for a business for a long period during times unfamiliar to you.
You start up your business in the summer months and it’s booming. Thousands of tourists flock from Europe and America. You think you’ve hit the jackpot, making more money that you originally thought possible. Then the slower months hit, and you’re left sitting staring at the ceiling for most of the day while your only source of revenue dries up.
A popular tourist destination may seem like the perfect place to set up a business but be careful what you wish for. You may just have more time to sunbathe than you originally wanted.