The Impact of Tourism on Economic Policy

This assignment delves into the complexities of tourism's influence on economic policy, highlighting the roles of government bodies, international organizations, and the interplay between demand and supply in the tourism sector. It examines how these factors shape the economic policies of countries, such as the UK, and provides insights into the strategies employed by governments to promote tourism while managing its economic implications.

Running Head: Tourism 1
Fundamental Travel

Tourism 2
Contents
Introduction......................................................................................................................................3
Key historical and current development in tourism.........................................................................3
Reason to select particular destination............................................................................................5
Demand for tourism.....................................................................................................................5
Push pull factors..........................................................................................................................6
Tourists’ motivation and topologies............................................................................................6
Factors affecting tourists’ motivation..........................................................................................7
Elements to develop new destination..............................................................................................8
Organizations involved in ‘Tourism supply chain’.........................................................................9
Conclusion.....................................................................................................................................10

Tourism 3
Introduction
Travel and tourism industry is now quickly emergent industry in current complicated
market. People in current time are very elegant and passionate for the business as well as to the
tours. Tourism is basically a part of lavish services given by diverse organizations across the
world. This report focuses on the structure and historical developments in travel and tourism
industry of UK. The term ‘tourism’ can be described as the travel for pleasure along with many
other services i.e. accommodation, hotel room occupation, amusement arrangements and many
others (Evans, Stonehouse & Campbell, 2012).
Key historical and current development in tourism
The travel and tourism industry is growing quickly with the transformation of human
behaviors and the expectations. It is observed that the development in the tourism industry was
started since 1945. People are interested in spending money for their vacations in different places
from those where they have been already. Due to changes in the human behavior and their
expectations, the growth in the tourism industry is possible. In the starting period, the growth in
the industry included traveling and transport of the goods. Now, tourism not only includes
traveling but also the factors that are important for soothe of the customers. From 1960 onwards,
there are various factors that must be noticed i.e. increment in the interest of clients for the long
tours, inclined free time availabilities, growth in the per capital income of the customers in UK,
and various attractive tour packages offered by different organizations etc.
In current time, arrangement of travel sector is influenced by the establishment of various
sectors in such sections. New entrants in this industry are providing special packages that are
customer oriented so that more business can be brought out of the market. There are various
tactics used by the organizations in the travel market. The tourism industry not only includes the
traveling services but also manages the facilities for the clients. Along with this, tourism
organizations also change the services as per the requirements of the customers. The tourism
industry is classified based on the diversification in the business i.e. tour operations, travel
services, arrangements of passports and visa, hotel industries, conducting events and
conferences, and exploring the clothes and other defined stock etc. It can also be said that with

Tourism 4
the diversified business, tourism industry is divided into various parts (Evans, Stonehouse and
Campbell, 2012).
In UK, tourism industry is the important part in the growth and development of economy.
UK is the only country that provides various people across the world and enhances the amount of
tourism. British tourism provides the experience of soothing holidays which people can drive by
getting away from their daily lives, it is observed that there are various places in the country that
are prominent and famous among the tourists and promotes the level of tourism in order to
enhance the economic prosperity. During the 18th century, tourism for health became very crucial
for UK with various Spas including health-giving mineral waters. High level of income in
tourism has spent on the growth of economy of the country that demonstrates the proportion of
tourism development. After the industrialization in UK, travel has become more affordable and
easier. There are ranges of people that contribute huge resources in order get luxury travel and
tourism services (Martínez-Ibarra, 2015).
In ancient time, rich people spent their time in making tour in different areas. In the
medieval time, the tour to pilgrimage area came into existence. This made the significant
presence of the tourism business among all the travelers. In 18th century, the health and culture
played an important role in the growth and development of tourism business. People who have
sufficient income were able to avail tourism packages. Further, in 19th century, the tourism
industry in UK has been gaining popularity among large number of travelers. The improved
income level of people in the tourism industry was also improving their spending desires. At the
same time, the commercial aircrafts also came into continuation. Along with this, there was the
growth in the railway and charters that increased the number of tourists in the country. Next, in
the 20th century, the growth and development in hotels, transports, and resorts attracted the
travelers to the famous destinations (Boniface, Cooper & Cooper, 2012).
Reason to select particular destination
The reason behind selection a tourism destination is an important area in the tourism
literature. It is observed that tourists maximize their satisfaction while selecting a range of
destinations, services and goods. The key factors while making decision for destinations are the
preferences and expenditure budget of the tourists. Along with this, the decision making process

Tourism 5
of the customers can also be analyzed on various factors. According to Honer and Swarbrooke
(2007), there are some internal factors i.e. lifestyles, hobbies and interests, personality, past
experiences and attitudes etc. and some external factors i.e. availability of appropriate services,
word of mouth, offers and promotions, climate etc. All these factors have significant impact on
the selection process of destinations (Crouch, 2013).
Demand for tourism
Price is significant driver in terms tourism trips and prices paid as there is the average
price for a foreign holiday. Since the year 1995, prices of domestic and foreign holiday have
risen faster as compared to the consumer price index. It is also observed that the foreign holiday
prices are also increased from the year 2000. The demand in tourism can be described as number
of tourist in the destination on specific time.
The notion of demand in tourism consists of those factors that enhance the ratio of tourism in the
country. Environmental factors have significant impact on the decision making process while
scheduling to travel. Along with this, civilizing and political have both positive and negative
impact on tourism and openly impacts on the demand of tourism. The demand of travel sector in
UK has enhanced after the event of London Olympics 2012. Further, there are a range of famous
tourist places in the country that increase the demand for travel and tourism. In UK, the demand
for cultural tourism has also increased after the success of Olympics and tourist are much
attracted towards the Albert and Victoria museum in London (Hall, Scott & Gössling, 2013).
Push pull factors
There are some push-pull factors that can impact on tourism as well as repeat visit. Such
information is important to enhance the marketing strategies and identify the most important
customers need to target. Visiting foreign countries is always excited for the people as they are
not familiar with but like to experience, always gives them excitement to travel. Along with this,
food and market are the pull motives that are important factor in the tourists’ decision making.
Good weather is also considered as the crucial factor. Some push factors are quality and
credibility of message services and spa as that is only available in high markets (Becken, 2013).

Tourism 6
Tourists’ motivation and topologies
Every destination provides range of products and services in order to attract the
customers. Based on destinations’ point of view, it is crucial to understand the reason to choose
particular destination by the customers. By the analysis of tourists’ motivation, various factors
like satisfaction push and pull motivations and destination loyalty can be analyzed. The decisions
of tourists are complex. In order to understand the complexity of tourism, it is very important to
understand the interactions available between environment and tourism (Harris, Williams &
Griffin, 2012).
Factors affecting tourists’ motivation
Income level: One of the key factors that impact on the demand of tourism is the income level of
tourist. It is clearly observed during the past years that flow of money is very effective to

Tourism 7
enhance the demand of tourism. But, at the time of recession, travel industry is also affected the
most.
Development in the security program by government: In the country, development in
government security programs and tourist benefits also impact on the demand of tourist services
and goods.
Demographic: The changing demography of the customers has significant impact on the
demand. The reason is that tourists now have higher spending power including high traveling
frequency and high number of young customers. These factors basically shape the demand in
tourism in the positive manner (Leslie, 2012).
Fluctuation in currency rate: Declining rates of currency in the particular country also attract
the travelers to select that particular destination as they would be able to get more services in low
rates in that country. For instance, the currency rates would fall as compared to US dollars then
there will be high demand of tourism in America from UK (Durbarry, 2011).
Globalization: New and increased trends of globalization and movements of tourist and service
providers in various countries has increased the demand in the travel sector so more customers
are going in various countries. So, globalization has generated high demand for the service in
UK travel sector (Blake & Jiménez, 2007).
Elements to develop new destination
There are basically six elements that are considered by the tourists while making
selection for new destination. Tourism destination can be described as the area that is selected by
the travelers which meet all the requirements of tourists i.e. accommodation and entertainment.
According to Buhalis (2000), there are ‘6As’ of tourism destination that are helpful in selecting a
new destination. Those factors are attractions, access, accommodation, awareness, amenities and
available package.
Attractions- Tourists are motivated to leave their residential place and travel to various
destinations. Tourist attraction is the place of interest where tourist visit including exhibited
cultural value, natural beauty, historical significance and delight opportunities. Some example of

Tourism 8
tourism attraction are monuments, historical places, art galleries, botanical garden, buildings and
structures, ethnic enclave communities, carnivals, cultural events, theme parks, national parks
and forests etc. Along with this, many tourist attractions are also landmarks.
Access- Transport is important to physically move tourists from one place to another. At the
global level, air transport is popular among the international travelers. In UK, roads and private
vehicles serve as the important form of access. Sealed roads provide higher opportunities for
vehicle access. Healthy ground touring sector is also needed to serve the requirements of tourists
who do not prefer transportation themselves (Albalate & Bel, 2010).
Accommodation- All the tourist destination require accommodation nearby otherwise tourist
have to face many difficulties in the selected country. This is the basic need but investor will
only invest in the accommodation on the condition of high economic return. Many areas in UK
have excellent attraction point with tourist attraction. The successful accommodation depends
upon providing right type of facility in order to meet the needs of tourists.
Amenities- These services that is important to meet the requirements of tourists while they are
planning to travel. This service includes retail shopping, public services, restaurants and café,
telecommunications, visitors’ centers and emergency services. In UK, many of the amenities are
provided by government with local, state and national agencies. In such service, high degree of
co-operation in required in order to meet the needs of the tourists (Buckley, 2012).
Awareness- With the best attractions, access, amenities and accommodation, awareness is an
important factor. People must have a positive attitude toward tourism. Those who directly
interface with the tourists should have positive and strong attitudes towards tourists. This
consists of road houses, shops, post offices and those businesses that come in the contact with the
travelers. Along with this, awareness also includes market awareness as the image of that
particular destination in the mind of the tourists (Dredge, 2015).
Available package- This factor includes the items related to the available packages in the
particular tourism destination. Packaged tours organized by travel agents and that must be
attractive to target the tourist.

Tourism 9
Organizations involved in ‘Tourism supply chain’
It is understood that tourism is the big segment of different industries and organizations
are trying to provide the best services in the diversified manner so that high amount of business
can be captured in the market. Tourism in UK can be affected by various factors including prices
of the services and goods purchased by the tourists, prices of foreign holidays and spending
income. Along with this, weather is also an important factor affecting tourism in UK. The
decision making process is affected by the number of internal and external factors. Tourism can
be seen as a simple concept and there are various interacting factors that have significant impact
on the tourists’ motivation. Government has crucial role in the functions of tourism sector.
Tactical decisions are taken by the government of UK in the supply chain process in order to
ensure the economic and social growth. The involvement of government in the tourism sector is
significant to enhance the demand of tourism in the country. With the government, there are
some organizations that are engaged in the supply and demand of tourism in the country. Those
organizations are as follows:
Local government- Local government of the country is responsible for the demand and supply
of tourism sector. In initial days when railway started providing the transportation services, the
tourism industry started achieving success. The local government operates in the way alike to the
national government. Travel industry is private industry and expansion of the hotels and resort is
initiated by UK government in order to enhance the demand of tourism (Delaney & MacFeely,
2013).
International organization- There are various international bodies including government
sponsored with the interest of tourism. Government bodies focuses on the tourism intervention.
In UK, the organizations are responsible to enhance the tourism activities with coordination and
cooperation at the national level. The main sector of industry bodies focus on enhancing the
modes of transportation in the competitive circumstances. Thus, combined tourism approach is
used to sustain the demand of tourism.
World tourism organization- The world tourism organization is the specific organization of
United Nations and famous organization in the field of tourism. The organization puts efforts to
strengthen the connection with government and non-government partners by the system of
membership in order to take competitive actions in tourism sector.

Tourism 10
Conclusion
Tourism is the fastest growing industry in all over the world because of diversified
culture. People want to explore new places by traveling and tourism industry develops it by
fulfilling the requirements of tourists in all over the world. Tourism is actively provides benefit
to the country socially and economically. There are various aspects of tourism i.e. function of
government, structure of tourism, international agencies and government structure and bodies
that impact on the economic policy of UK. The factors also impact on the demand and supply
and tourism by attracting the tourists in the country.

Tourism 11
References
Albalate, D., & Bel, G., (2010), Tourism and urban public transport: Holding demand pressure
under supply constraints: Tourism Management, 31(3), 425-433
Becken, S., (2013), "Measuring the Effect of Weather on Tourism: A Destination- and Activity-
Based Analysis", Journal of Travel Research, 52(2), pp. 156-167
Blake, A., & Jiménez, I. C., (2007), The Drivers of Tourism Demand in the UK, accessed on 16th
March 2018 from
http://tourismanalysis.yolasite.com/resources/Drivers_of_Tourism_Demand.pdf
Boniface, B., Cooper, C., & Cooper, R., (2012), Worldwide destinations: the geography of travel
and tourism, Routledge
Buckley, R., (2012), Adventure Tourism Management, Routledge
Crouch, G. I., (2013), The study of international tourism demand: A survey of practice: Journal
of Travel Research, 32(4), 41-55
Delaney, J. &MacFeely, S., (2013), Extending supply side statistics for the tourism sector: A new
approach based on linked-administrative data: Journal of the Statistical and Social Inquiry
Society of Ireland, XLIII, pp. 136
Dredge, D., (2015), Policy networks and the local organization of tourism: Tourism
Management, 27(2), 269-280
Durbarry, R., (2011), Tourism taxes: Implications for tourism demand in the UK: Review of
Development Economics, 12(1), 21-36
Evans, N., Stonehouse, G. & Campbell, D., (2012), Strategic Management for Travel and
Tourism, Taylor and Francis, Jordan Hill
Evans, N., Stonehouse, O. and Campbell, D., (2012), Strategic managemen: Jor travel and own,
Taylor & Francis.

Tourism 12
Hall, C.M., Scott, D. & Gössling, S., (2013), The Primacy of Climate Change for Sustainable
International Tourism: Sustainable Development, 21(2), pp. 112-121
Harris, R., Williams, P. & Griffin, T. (2012), Sustainable Tourism, (2nd), Taylor and Francis,
Burlington
Leslie, D., (2012), Responsible tourism: concepts, theory and practice, CABI, Cambridge, MA;
Wallingford, Oxfordshire
Martínez-Ibarra, E., (2015), Climate, water and tourism: causes and effects of droughts
associated with urban development and tourism in Benidorm (Spain): International Journal of
Biometeorology, 59(5), pp. 487-501