Theoretical Dissertation: information technology and new trends in the tourism

Digital economy: information technology and new trends in the tourism
Date
25

Name

Abstract
The main purpose of the study is to provide an overview of the recent development of tourism in the past 20 years. The research identified the correlation between that development of tourism and evolution of information technology. The recent two decades have introduced two major changes including digitalization and change in the society. The digitalization is evident from the new technologies and improved transportation that support the tourism. The aim of the present research is to recognize the improvement in tourism due to the improved information technology. Different factors and technical logical conditions are improving the tourism such as wearable devices, new connectivity, unmanned aerial devices, and smartphones. Further the study discuss is some possible challenges and the current relationship of information technology and tourism. The digital economy is based on the services provided through the electronical system. The electronic management and production processes provides a way to interact with the customers and web based technologies. The growing population, digital economy, and resource mobilization is improving their business trading as well as tourism. The improved digital technology increased the business of banking through electronic systems therefore the e-commerce is supporting the tourism. The rapid changes in information technology with the impact on tourism is important to be addressed. The prime objective is to show how the digital economy and information technology is introducing the changes in the tourism.

Table of Content

1

Abstract

2

1

Chapter 1 Introduction

5

1.1

Background

5

1.2

Statement of the problem

6

1.3

Aims and objectives

6

1.4

Research questions

7

1.5

Significance of the study

7

1.6

Limitations

7

1.7

The sequence of the next chapter

8

2

Chapter 2 review

9

2.1

Theoretical background

9

2.2

Tourism

9

2.3

International growth of tourism

12

2.4

Bilateral tourism flow

13

2.5

Continuity to our work

18

3

Chapter 3 Research methodology

20

3.1

Research Design

20

3.2

Research Population and Sampling

21

3.3

Data Collection Methods

22

3.4

Data Collection Instrument

23

3.5

Testing Procedure & Method

23

3.6

Variables

25

3.7

Reliability and Validity

25

3.8

Ethics

26

3.9

Research Limitations

27

3.10

Appropriateness of Research Methodology

28

3.11

Variables

28

4

Chapter 4 Results

29

4.1

Quantitative results

30

4.2

Qualitative results

30

4.3

Discussion

31

4.4

Threat of digital economy for the security system

31

4.5

Digital economy and online banking services save the personal data

32

4.6

Digital economy requires more advancement

33

4.7

It can keep tracking of activities

34

4.8

Sufficient discounts

36

4.9

Recommendation for others

39

5

Chapter 5 Conclusion

42

6

References

44

7

Appendix

46

1. Chapter 1 Introduction
The digital world is revolutionizing rapidly with a vital impact on society, institution, and culture. The digital platforms are providing extra services for advancement. The national economic systems including the world economy have been going through significant transformations. The transformations due to technology and economic systems are interrelated in various directions. The transformations can be segregated into two types including fixed and explained from the concept of theoretical approaches. provides detailed information about the transition of industrial society and the importance of the digital economy in the manufacturing process and to increase the services and goods. The digital economy development is transforming the innovative network approaches, tourism, and advancement in telecommunications. The modern technological changes are in computing technologies, telecommunication, and information technology. Digital economy and digital technology are circulating the concepts of digital technology for improved storage, the transformation of information, and human activity processes. The use of digital technologies in economic development is further expanded by the use of technology in other sectors including construction, energy, health care, retail, mass media, and education. Tourism is one of the major directions of economic development that is responsible for the growth of GDP levels. The data collected by the Tourism Association shows that the GDP level of our country has been increased by 4% due to the major role of tourism. This shows about an 8 trillion dollars increase in the GDP. Travel and tourism have been playing a major role in the development and growth of GDP. The statistics of 2018 shows that tourism is helping in the generation of 10% of the global GDP. The tremendous expansion of Tourism is growing in Asia and elsewhere in the world. It is important to formulate different strategies. The role of government and business is important to identify the levers that can activate the process of maintaining the gain market share and to maintain the infrastructure of tourism, assets, and services. The active introduction of digital technologies in tourism can be characterized in different forms and the main process is linked with human activities. The use of digital technologies leading to improve the relations between the economic sectors such as banking, construction, energy, healthcare, and mass media.

Background
Information technology is developing over society in very different ways. According to Nicholas Negroponte and Thomas Friedman, the fundamental differences between the composite atoms is making differences in digital information. They proposed a win about the constitutes over digital medium and future at the dawn of the Internet. Later Friedman (2016) presented his vision of how digital technology is transforming the 21st century. He mentioned it three main forces are named as technology, market, and Mother Nature that accelerated the transformative effect in the diverse aspects. The ideas and theories proposed by both researchers reflected the broader impact of information technology on the revolution and speedy changes at the global and social level. The invention of the Internet as a communication tool increased tourism due to intensive information availability on the Internet. Werner and Klein’s (1999) published a book entitled “information technology and tourism: a complex interconnection. The book demonstrated the conceptual framework for the understanding of word structural changes in tourism due to the digital economy (Hung & Voloshin, 2003).
Digital technology and information technology are directly linked with the improved tourism industry in our modern world. Information technology support the advancement of digital economy in tourism industry. Several research studies have discussed digital economy and improvement of tourism industry. The research studies conclude that information technology-based platforms such as web sites and social media create a linkage between digital economy and tourism industry. Now tourists can book hotels and flights for their tours. This booking websites has several functions and options for tourists to help them plan their tours easily. Until now several research studies have identified different factors which have contribution in the improvement of different business industries but directly relates to the digital economy and information technology. Utilizing this literature in background context we can further study digital economy and information technology for the better future of tourism industry.

Statement of the problem
The development of full research in the field are of tourism and the digital economy has spanned some 20 years ago. It is important to understand the relationship between tourism and the digital economy from the perspective of full technology. The digitalization is increasing that tourism and this development can be categorized in two different epochs: the first indicator for digitization was between 1997 to 2006. The second stage is the age of exploration that is between 2007 and 2016. Therefore, it is important if to view the technology in tourism management over the years. The research is designed A to draw a useful conclusion for the development of your knowledge and to identify the clues for future aspects (Manoj, 2020). The research project will study the unfolded information about the tourism industry and digital economy. How digital economy is changing over the time? What changes are introduced in the digital technologies and information technologies with expected impact on the business of tourism sector. The research issue is that still literature lacks sufficient information on the potential impact of digital economy on the tourism industry. Clear research findings supporting or discouraging the use of digital economy and information technology for the tourism industry can enable us to take right decisions regarding information technology use in tourism business. If expected impact is negative, then tourism sector should avoid otherwise they should take benefits by using information technology and digital economy in the tourism sector.

Aims and objectives
The research aims and objectives provide guideline to the whole research project therefore defining research aims and objective is essential. In this section research aims and objectives are clearly defined which will be used throughout this research study. The research aims to identify the impact of digital economy on the tourism industry by using mixed method research approaches. The research aims to investigate this topic in detail for the identification of positive and negative aspects associated with the use of digital economy in the tourism industry. Furthermore, research will also bring into light the positive contribution of digital economy in accomplishing the needs of tourism industry. It is hypothesized to find the role of the digital economy on increased tourism. The aims and objectives of the present research are listed below,
I. To analyze and understand the role of digital technology and the digital economy to deal with the needs of tourism.
Ii. To identify the unique characteristics of the digital economy with a focus on functionality and usability.
Iii. To conclude the best strategies for the improvement of the digital economy in tourism.
Iv. To identify multidisciplinary approaches to formulate the research objectives with tourism marketing.

Research questions
The research will address the following particular questions related to the digital economy and the increasing trend of tourism.
i. What is the main role of information technology and the digital economy in the development of awful tourism difference between normal display and virtual reality from the perspective of usability and performance?
ii. What are the explicit positive reasons for the improvement of digital technology and tourism around the world?
iii. The flow and immersion of digital technology in the increase of day tourism and how it can be improved for the coming future?
iv. What are the needs and challenges associated with the further increase of the digital economy and tourism?
The above stated research questions are created by using the research aims and objectives. These research questions will address the key questions that should be answered by the research project for the generalization of the final argument or conclusive research findings. Based on these research questions we will use secondary research data and primary research data to conclude whether digital economy or information technology has impact on the tourism industry or not?

Significance of the study
The research will identify the behaviour of travellers along with the consideration of the digital economy, sources, needs, and strategies to improve tourism in different areas. Considering the field of application, the research is based on a different discipline including human-computer interaction, communication among the tourist and locals, and information management system. The researchers identified the behaviour of emerging technology for the improvement and development of tourism. The research presented an engineering point of view for the development of technical solutions that can increase travel decisions and tourism. In this era of technology, the research is designed to identify the new possible strategies. The research findings will be equally usable for the business organizations operating in the tourism industry and individual future researchers. The research study will open a new research line in tourism management system by relating it with the IT and digital economy. Digital economy is a new concept in tourism industry therefore very limited research studies is previously conducted on this topic. Therefore, by conducting research on this topic we can fill out the research gap in the existing literature. While on the other hand tourism sector related organizations will also get benefit from the research findings. Based on these results they would be able to decide whether to use information technology or digital economy or in their business operations or not. Concisely they would have a clear idea of expected advantages and disadvantages regarding the use of digital economy in tourism industry.

Limitations
No one can deny that the right combination of creativity and mobility exists today. These forces unite to take on the most crucial aspect of the journey: the meaning of the journey we choose, precisely what we do once we arrive, and, unexpectedly, in the moment after we return to our experience. According to a Google Travel survey, 74% of examiners schedule their online visits ahead of time, while 13% use travel services to do so. People in their twenties and thirties are also important contributors to this psychological change. They adore to fly and are equally enthralled by new experiences. This perception has given way to a situation in which online media, apps, and websites, among other things, play an important role when it comes to a great opportunity to play tour. Similarly, the company, as it turns out, eventually remembered the pattern and followed suit by modifying its operating system and providing the object to draw in this goal. This research study has several is limitations that need to be considered while using these research findings in future research projects. Firstly, a major portion of this research project is focused on secondary data analysis obtained from the literature review. We are not sure about the credibility and validity of these secondary data information. Although we have tried to consider only peer reviewed research literature to maximize the validity and reliability of shared information sources. Secondly research project is based on a very small sample size of 300 research participants. Digital economy and tourism are broad topics that cannot be covered with this small size of sample. However, considering the time and resources limitation we could only research on 300 participants. Thirdly social economic variables and differences of different societies may have different findings. Therefore, before using the generalized final argument future researchers should consider these social economic variables.

The sequence of the next chapter
The dissertation consists of five major chapters including introduction, literature review, methodology, results and discussion, and conclusion. The first chapter is the Introduction chapter that covers the background of information technology and how it is changing the perspectives of tourists, background, statement of the problem, research objectives and research questions, hypothesis, the significance of the study, limitations, summary of the chapter, and sequence of next chapter. Chapter 2 is a literature review that provides an overview of existing literature and the conceptual framework used by different researchers. The chapter also provides the research gap identified in digital technology and tourism. In Chapter 3, the research methodology, data collection, and data processing are explained. This chapter also justifies these methods. Chapter 4 of the results and discussion interpret the findings and results of the research. Chapter 5 is about the Conclusion, Recommendation, and future aspects of the research. In the appendix section, additional information about the questions and interview has been provided.

Chapter 2 review

Theoretical background
The scholarly worker on the smart tourism and the role of the digital technology in the tourism is lacking. with the growing significance the empirical and conceptual understanding of the tourism and the role of digital economy is limited. the recent emergency is through the Journal of electronic markets which provides a special issue on the findings of smart tourism. the first two research entitled as a small tourism foundations and development provides information about the conceptual and theoretical foundations of tourism and the technological changes. the researcher demonstrated the technologies that facilitated to continuous development. Hello in this research the European Commission introduced to the communication and information strategies with the objective of human transportation and mobility. the emergence open smart tourism in China is becoming an integral part of full national policy development (Gretzel, et al., 2015; Melo, 2020).
The theory of tourism production system provides information about the apparent mismatch between the technology and tourism and how it can be re concealed by the closer examination. certainly the technology news impact on the tourism however the whole system of information technology can be adopted in many segments of travel industry. the core information system is a sensitive to the management. the theory illustrates that impact offered by the tourism on the marketing, industrial linkages, distribution, and diffusion of tourism production system in the tourism. this implies that adaptation of technology in the future for the distribution of services, future organization and the management of services (Poon, 1988; Riel, 2016).
According to the theory of Heraclits aphorism, everything flows. The theory is applicable to the intangible and immaterial relation of information technology with the core of tourism. this theory reference to the permanent changes in the traveling and tourism. according to researcher these factors are interrelated and intertwined. the researchers stated the information technology as a strongest driving force for the changes in the tourism history. certain changes are further expected with the invention of state of the art technology. the profound changes will represented the industrial and technological revolution (Werthner & Klein, 1999; Wardhani, et al., 2015).

Tourism
The role of information technology in the tourism industry has been assessed by different researchers to deal with the specific aspects, innovation development process and development of tourism in new areas with the major role of the digital economy (Watkins, et al., 2018; Akaka, et al., 2014; Backman, 2018; Ziyandin, et al., 2018; Mohsin, et al., 2016; Buonincontri, et al., 2017).
Ziyadin, Suieubayeva, & Utegenova, (2020) researched the innovation development process in the economy of Kazakhstan. The research identified the need for a digital economy and innovative development of the economy. The concern of the research was to introduce globalization in the services. The qualitative transformation in economic matters can raise tourism. The research concluded the diversification in the innovation processes (Ziyadin, et al., 2020).
Akaka & Vargo (2014) explored the role and scope of digital transformation to value the service systems and service innovation. The research argued the consideration of technology with the role of operant resources of services. The systematic study demonstrated the importance of integrated resources and innovation in the services to increase tourism (Akaka, et al., 2014).
The economic processes of tourism were classified by many researchers including (Wagen, 2010; Wells, et al., 2016). The specific aspect of economic development with innovation in tourism has been addressed by many researchers. The work emphasized the digitalization process in the tourism industry. To empower tourism the digital technology, induce an impact on economic integration and business.
Sayabek, Litivishko, Dubrova, Smagulova, & Suyunchaliyeva, (2019) worked on the development of the tourism industry with a new approach to introduce economic improvement and to attract new investment. The formation of favourable condition is necessary for the function of tourism (Sayabek, et al., 2019). The state must focus on attractive tourist areas with the characterization of insufficient levels of development. The gross domestic product can increase by 1.6%. The development of technologies can process the transmission of information. The development of technologies will improve the collaborative consumption, cluster of tourism, collaboration, and ecosystem. On the contradiction, the research was designed to find the innovative potential on the identification of influencing factors for the measure of the innovative process. Innovative management has the features of flexibility, the ability to deal with issues, and adaptability (Sayabek, et al., 2019).
Bozhuk et al (2020) worked on the transformation of the tourism industry with the advancement of the digital economy. The research further analyzed the current conditions of the tourism industries from the perspective of consumer behaviour. The worker aimed to consider the legitimate participation of consumers with the advancement of digital technology (Bozhuk, et al., 2020). The researchers assessed all the available services and the attitude of the consumers towards travel applications. The empirical basis of the work was related to Google, PayPal, and booking.com for the collection of data. The analysis was based upon the responses of our participants to the online survey. The 100 participants of this online survey were aged between 18 to 35 years. Based on the collected data the researcher concluded director relation between a digital economy and tourism transformation. The development of inbound and domestic tourism is becoming a promising area for the increase of import substitution. Different types of federal target programs are defined to increase that tourism infrastructure to make it a global trend (Bozhuk, et al., 2020). The annual report of the world tourism and travel council (WTTC) illustrated a qualitative assessment of the impact of tourism on the economy and vice versa. The collected data while further analyzed to identify the role of tourism in the global GDP. The statistical outcomes of the research demonstrated a 10% increase in the global GDP with the increase of tourism and concluded 319 million jobs. Most of the expenses of the travellers are related to the leisure market as compared to other business expenses. show that the tourism sector accounted for 6.5% of the total world export (Zhilina, 2018; Buonincontri, et al., 2017). In another research, the Russian domestic tourism market was increased by 10% and more than 43 million Russians travelled in their region. The growing tourism market in Russia is based upon the increased technological advancement in different sectors, particularly in the digital economy sector. The Association offered tour operators of Russia ‘statistically analyzed the foreign tourists in 2018. The statistical outcomes are demonstrated a 20% increase in tourism during 2018 (Group, 2019).
The research conducted by ATOR analytical services shows the promising increase in tourism with real-time dynamic services. The most promising real areas for the increase in tourism are online services for direct sales, individual services on the Internet, and self-designing tourism with advanced technology. The analysis of ATOR demonstrates fully consistent digitalization of our business as a changing factor of tourism flow which is support for all kind of tourism (Sayabek, et al., 2019; Ziyadin, et al., 2020).
(Saenko, Prokhorova, iilyina, & Ivanova, 2017) worked on the current optimized conditions that reduce the stress of echo strategies in tourism and supported the increase of tourism in the Russian areas (Saenko, et al., 2017).

International growth of tourism
Over the last three decades, international trade growth has been increased. The world share GDP increase from 7.7% in 1990 to 13% in 2017. With the growth of international trade, the tourism industry was expanded for digital services. The rise in the merchandising trade from 25% to 30% was due to the emergence of the digital economy that supports the shift of trading towards digital services. The advent of digital tools induced a profound impact on tourism. The researchers explored different aspects of the digital technologies that induce an impact on world trade services and international tourism (Ziyadin, et al., 2020). Worldwide, the travel services were 25.6% before the onset of the Great Recession. This shows the relative performance of international services. Travellers increase the growth of tourism services. The growing number of travellers is due to the increasing trend of trips and online travel agencies that serve customers through digital tools. An estimate shows 59% of trips are by EU residents who travel internationally and rely on digital tools for bookings and accommodations. Due to increased online services, the travelling and tourism of the United Kingdom increased from 42% to 52% from 2007 to 2017 (Backman, 2018). Digital travel sales were increased from USD 471 billion to USD 818 billion by 2020 (Bozhuk, et al., 2020). The digital tools increased the satisfaction levels and convenience of travelling for the users. The widespread adoption of the digital platform in the tourism industry is taking a major increase. The growing literature is towards the implication of the digital economy. There are few research studies conducted by researchers about international trade, services, and tourism. Freund and Weinhold (2004) worked on the internet shaped international tourism with consideration of merchandizing trades (Freund & Weinhold, 2002; Freund & Weinhold, 2004). Lendle et al (2016) conducted research to identify the international trade and tourism to conclude the role of digital platform and how they can impact increased tourism (Ledle, et al., 2016). Eichengreen et al (2016) worked on the identification of connectivity and foreign exchange market with the economic transformation towards the digital economy. Hoonsawat (2016) explored the role of the internet in the promotion of tourism flows. The work was based on the model to bilateral tourism flows. The researcher motivates his analysis by using the modelling scheme to emphasize internet services and to mitigate the lack of information. Empirically, the research concluded the increase in internet penetration rates with increased tourism flows. The research further motivates the use of digital platforms with the econometric specification. The econometric approach was used to find the origin of tourism in the countries and how the business to consumer internet services is getting increase.

Bilateral tourism flow
Hoonsawat (2016) explored the answer to the question to what extent the Internet is promoting tourism (Hoonsawat, 2016). The research is based upon the application of the gravity equation model in the bilateral tourism flow. The motivation behind this analysis was to model the Internet role in the traveller’s consideration for the destination. Another perspective of the research was to identify the demand for tourism services. The role of Internet penetration along with the rate of penetration was used to find the significant impact of our tourism. Besides that, the motivation for further research was to approximate the measure of digital platform usage. The researcher used the gravity model with the relation of international trade literature. The study answered the question related to the usage of digital technology and how it is different in the tourism market. The advancement in digital technology induces an impact on the supply and demand for tourism services. Based upon the econometric approaches the population on the internet select the destination country with the consideration of robustness, digital economy platform adaptation such as Google Trends, and direct use of digital tools in tourism (Head & Mayer, 2015).
According to the research study conducted by (Hojeghan & Esfangareh, 2011), e-commerce is rapidly changing the business world. Now buying and selling of products or services through e-commerce websites have change consumer preferences and choices as well. People now use e-commerce systems to book their tickets and hotels for family and business tours. Throwing light on the advanced features of information communication technologies researchers supported the idea of the digital economy. The digital economy is linked with e-commerce and IT systems. Under this economy, companies offer e-goods and e-services to their customers using e-commerce platforms. This technological advance has introduced disrupting …