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The resort industry today faces a set of new challenges arising from changing travelers and environment. Aging of population in the tourist-generating countries, increase of two-income-earning households, increasing technological and service orientation by aging baby boomers, and the continued shift to a global economy are some of the new challenges the resort industry will continue to face throughout the 1990s and beyond. This article provides a state-of-the-art review of recent developments in the industry with respect to the environmental challenges the industry is facing today. It shows that only those resorts which recognize the changes occurring in the market place and ‘proactively’ responding to these changes will continue to be successful in the future. It also shows that resorts of tomorrow will have to implement ‘focused’ marketing strategies and deliver positive ‘product value’ to their clients.