This is because Tourism is an industry with a lot of hidden under currents. If you see only the superficial nature of it and jump into it, your hard earned money will be nowhere to be seen.
Hence before taking a decision, please note the following points –
1) Tourism is a service industry, and is highly perishable in nature. You cannot keep it for another period. Just like a fish spoils after the recommended period, once lost is lost forever!
2) The gestation period of a tourism product will be very long as compared to that of any other product. That means, making a profit will require a relatively long time.
3) Once a tourism product catches in the attention of the market, it can successfully run for a long period. That means, the shelf life of the product is very long.
4) In tourism, the demand-supply ratio is inelastic to a great extent. This means that demand & supply will not always be proportional. With an increase in demand the supply may not increase within a short period of time and vice versa.
6) Tourism is a field where unpredictability plays a very big role. Even an earthquake, a disease, a war, an accident…. any calamity will bring down your business to the danger mark!
7) A tourism product can be offered only with a combination of services. If any component fails, a total negative impact will result.
8) Unlike a manufacturing industry, precise quality control is not possible in the tourism industry as in most areas humans are involved who are subjective to a certain extent.
9) Unlike a manufacturing industry, the production, distribution & supply are taking place in the same place as far as tourism industry is concerned. Hence the role of intermediaries should be handled carefully.
Even after reading this, if you still prefer TOURISM as your choice of investment, assess yourself according to the following criteria -
1. Are you a businessman or a person working on salary basis?
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