Tourism's Impact on Economy and Environment

This assignment delves into the multifaceted effects of tourism on both the economy and the environment. Students will examine how tourism contributes to economic development through job creation, revenue generation, and infrastructure investment. Conversely, they will analyze the potential negative impacts of tourism on natural resources, biodiversity, and local communities. By critically evaluating case studies and industry trends, students will develop a nuanced understanding of the sustainable development challenges and opportunities presented by tourism.

TRAVEL AND TOURISM SECTOR

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Key historical development in the travel and tourism sector................................................1
1.2 structure of the travel and tourism sector..............................................................................2
TASK 2............................................................................................................................................3
2.1 functions of government bodies............................................................................................3
2.2 local and national economic policies impacts on tourism sector .........................................4
2.3 Political impacts on tourism sector ......................................................................................5
TASK 3............................................................................................................................................6
3.1 Factors affecting tourism demand .......................................................................................6
3.2 changes of supply to meet the effects of demand ................................................................7
TASK 4............................................................................................................................................8
4.1 positive negative impacts of tourism on economical and social factors...............................8
4.2 strategies to minimise negative impacts of tourism..............................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES ...............................................................................................................................9

INTRODUCTION
Travel and tourism sector is wide scope business with one goal is to provide necessary
product and services based on the clients requirement. This organisation has now become largest
serviceman industry. Travel and tourism industry has divided into five parts are lodging
operations, transportation services, retail stores, activities. Food and beverages. This project file
covered the importance of tour and travels. historical development in the travel sector and the
structures of this sector will be explained. positive and negative impacts of political environment
with reference to TUI group business will be discussed in this report. TUI group is the world
leading tourism business. TUI group consist of tour operators, 1600 travel agencies and leading
online portals, 150 aircraft. Overall this report conclude the power of tour and tourism and their
impacts on economic development.
TASK 1
1.1 Key historical development in the travel and tourism sector
Covered in poster
1.2 structure of the travel and tourism sector
Structure of the travel and tourism sector
This sector is known for its services like
transportation, hospitality, restaurants. These
leisure facilities help firms in satisfying
consumers. This sphere has their wide scope in
economic to impress their country. New offer
technologies, offers provide great opportunities
in this aspect (Adhikari and Bhattacharya,
2016)
in addition, this sector provide many services
in one package according to the guest
requirements. it includes the facilities of food.
Rooms, transportation, many different resorts
for night stay different lake view. It is
necessary for tour operator to create best tour
plan for the customers and give them best
services like accommodation services for the
customers like in hotels. Villa, resort according
to the clients. Along with these facilities, many
tours and travels operators arrange parties and
conferences for the business clients in beautiful
places and the transportation services this
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services is very important to connect the clients
through like ship, train, air. For example TUI it
provides many national or international tours
with different packages like accommodation
transport facilities and all leisure services
according to the clients.Catering services are
another part of structure that helps in fulfilling
needs of consumers. This part of structure
supports in making people loyal towards the
brand (Chaiprasit, Jariangprasert and et.al,
2011).
In tour and travels industries the main point is
to grab customers attraction. For that they offer
them various accommodation facilities and
satisfy their needs. Travel agents continuously
work for providing attractive services to
consumers which can change their mind and
can enhance their interest towards travelling
(Chang and Lai, 2011). . Catering services are another part of structure
that helps in fulfilling needs of consumers.
This part of structure supports in making
people loyal towards the brand.
TASK 2
2.1 functions of government bodies
Government bodies in tours and travels protects different feature like national income
country growth, employment opportunities, protection of historical monuments it could helps to
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achieve overall developments goals. Government bodies are protect the interest of customers and
take action against fraud companies (Dickinson and Lumsdon, 2010).
 Local government body in tourism sector : local government bodies are the
authorities to promote tours and tourism sector government local bodies are
develop different projects to promote this sector and coordinate with international
tourism this government bodies generate different parks and museums to promote
the country or city through which they get maximum visitors.(Moutinho 2011.)
Also they organise different parties and culture fest for the visitors to attract
towards the place. Proper communication also very important to communicate
with international clients (Domínguez, Fraiz and Alén, 2013). Local government
bodies are also improvise infrastructure or transportation facilities for the visitors.
They also helps public.
 National government body in tourism sector : National government bodies are
protect the economic growth national government bodies are helps to develop
new opportunities and innovative ideas national bodies of UK promote travel and
tourism by supporting activities they working ethics to organisation towards
country (Dwyer, Forsyth and Dwyer, 2011). national government body provide
guidance and rules and regulation about work ethics so that they respect to the
country and be a good host in front of the visitors. National government bodies
improves the country infrastructure in respect of different areas to support tours
and travels industries. ABTA (Association British Travel Agents) it is the agency
who analyse and identify and collect the data of other tours and travels agencies
trends and develop new ideas (Frey and George, 2010.).
 International government bodies in tours and travels : international government
bodies helps tours and travels industries to provide rules and regulations,
communication, respect, develop infrastructure, new strategies etc. it also helps to
develop new agencies and company to p[promote tourism sector and attract more
new visitors.(IATA) international air transport tourism association it is a
international airline body which provides safe air transport to the clients (Page,
2014).
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2.2 local and national economic policies impacts on tourism sector
Tourism is the main sources of economy in London. It helps to increase employment
opportunities economical. Economic polices helps industries to increase GDP and provide many
opportunities for this sector. (Patterson, Pegg and Litster, 2011)There are many economic policies like
foreign exchange,monetary policies, fiscal policies which affects company directly or indirectly.
Direct effects
Economic polices of the government affects to help in growth of infrastructure to
increase other opportunities. These economic policies improve the performance of industries and
helps to expand their business in positive (Scott, Hall and Gössling, 2016).
Indirect effects
economic policies are the important for economic growth some policies affect company
negatively for example government changes the interest rates and increase the tax in this
situation company has to increase the package of tour in this case they suffer from loss but if
government changes in the monetary policy in that case customer pay less amount for their tours
and benefits. In that case hotels, accommodation, resort all things will cheaper and available at
low cost. All economic policies are changes due to changes in economic developments
(Spenceley, 2012).
Local policies of the government helps to increase development and communication. But
foreign exchange policy affects company and reduces the business because in foreign exchange
sometimes company has to increase the touring packages and in that case visitors have not
interested in this offers. Local polices of the economy is always give positive impact and helps to
increase the business (Ekanayake and Long, 2012).
2.3 Political impacts on tourism sector
Introduction
political changes depend upon the community in particular country political changes are
either positively or negatively it all depends upon the new polices this effects can the change the
business of tourism.(Gabor, Conţiu and Oltean, 2012). Tourism is the sector where company
depends upon the choices of the customer for getting good profit in the business a good policies
has to be there for support some political parties helps company to grow positively and earn
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maximum profit but some of these are give loss to the organisation political impacts are related
to some policies like expensive fairs, increase service tax. Tariffs etc. so all these policies may
affect positively or negatively it all depends on the situation (Han and Hyun, 2014).
Political impacts on tourism in china political changes
China is the fast growing country in the word many tourism industries situated in china.
China is the fourth visited country people are came from Hong Kong.(Fennell 2014.) Macau and
Taiwan china has different attractive places like china wall many tourist are visit to see new
places (Kapiki, 2012). In china have two democratic parties which has their own rules and rights
in context of china if there is changes of political parties so many things has changed like interest
rate, taxes, tariffs these are the factors which change the product and services prices for example
In china inflation rates get increased in this situation of inflation all the product and services
priced are high and there is the situation of high expensive in the country this effect tourism
sector negatively because customer face high price product or services than they prefer less to go
for china tour also may happened that their new political party helps to start new tourism
companies and provide fund to enhance the market or enhance more opportunities in the country
for tourism sector. Political party should remove corruption rates so that it helps increase
corruption rate (Mancini, 2012).
In Positive sense these political factors also may impact positively by providing less
interest rates, low inflation, and provide funds to develop new places infrastructure for visitors it
is very important for the country to maintain good environment and services china is the wide
country many of the people came for visit china because there is no kind of corruption rates this
very important to maintain the corruption rates in the country so that people feel safe and wants
to come again and again (Tour Operators P, 2016.).
Political impacts on tourism sector in UK
Political factors are measured on the basis of environment of the country. There are many
factors like tariff rates, corruption rates, taxes, rules and regulations, discrimination rate,
employment law etc. in the context of all factors show the country image in front of the visitors
in tourism sector. Political impacts in UK is very stable UK political policies are very helps to
grow infrastructure and services for the visitors UK political parties are very stable and strong
they increase new technologies and opportunities in tourism sector and helps to develop
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employment policies in the country these are the positive impacts of political factors. Negative
factors are UK has involved high tariff rates which is not safe for tourism (Kapiki, 2012). These
all factors of politics which affects tourism industries on the other side UK has good
infrastructure wide transportation facilities for the visitors which increase the rates of income in
tours and travel.
TASK 3
3.1 Factors affecting tourism demand
According to the tourism sector few factors has to be taken seriously to grow in the
market. In context of tours and travels is to create healthy environment, infrastructure, rules and
policies, corruption rates, good communication technology, transportation, economic threats,
demographic change, government policies these are the factors affect the demand of tourism
sector some of the internal factors are geographic, consumer attitudes some of the factors are
explain below:
Demographic factor : demographic factors are the factors which affects the income of the
company before taking the tour customer go through the country feature weather it is safe or not
weather it has good environment less of corruption and low population everything has to be
correct in terms of demographic factors it helps to improve the brand image of the country as the
manger of TUI due to having more corruption rates visitors show less interest towards the
country (Han and Hyun, 2014).
Technological : Technological factors gives more opportunities to increase the interest for tours
and travels new technologies are more interacting and helps to communicate better with the
employees.(Ekanayake and Long, 2012) For example TUI provide their own website for the
customers where all the information about the different plans are available and exciting offers
and discounts. Technological factors affect to increase the demand of tours and travels in
positive sense.
Changing in working patterns : This factors affect the most on the demands of travels and
tours for example if country have tight scheduled and high pressure of work in that case people
are not interested to plan holidays this is the reason when demand for going on holidays get
decreased. As the manger of TUI Country should adopt better employment policies and give
time for vacations so that they planned some galvanic vacations with family (
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).
3.2 changes of supply to meet the effects of demand
Tourism sector required to make balance between demand and supply . Every industry
required good demand for growth there are many factors by which company increase their
demand for example good quality product and services, good accommodation plans,
transportation facilities, hospitality services etc (Chang and Lai, 2011). government bodies also
helps to increase tourism sector by providing resources and funds to improve their qualities.
Government also helps to build infrastructure and various facilities for visitors so that they wants
to come. For example TUI company give offer in which they provide complete tour at low price
or they provide tour by air transports because most of the customers like sea travelling and love
to see coastal places. Also TUI provide good accommodation, food facilities for the customers.
Second main thing is designing of plans how company present their tourism plan to the
customers to purchase them for examples TUI improvise their services and give pic and drop
facilities to the customers for this new offer to attract clients. To increase the demand of tourism
government provide funds to open new companies at low rate of interest also the government
provide less restriction policies for tourist and make healthy environment for them it helps
company to increase the demand and earn maximum profit.
government policies of the country should be good and better to increase more tourism
they have ton remove discrimination, corruption etc. (Frey and George, 2010)Also they provide
good policies for the tourist and help them if they stuck in particular country.
TASK 4
4.1 positive negative impacts of tourism on economical and social factors
Tourism sector of the country gives positive impacts on economy growth like Greece and
turkey has more tourism scope where number of visitors coma and visit apart from positive
impact in social economy some negative impact has also came along.
Positive impacts
Increasing employment opportunities : tourism sector provide many employment opportunities
for the people like in Greece there are many places to go such as Meteora, temple of Olympians,
Ionian islands (Gabor, Conţiu and Oltean, 2012). These places have different activities provided
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to attract tourism this gives opportunity to earn money this factor of tourism helps to increase
employment.
Direct and indirect income : tourism is sector where consumer wants to get fully satisfied with
the services of company they love to visit new places and purchase their famous products and
invest on food items and services they invest lots of money it helps gives development in nation
(Dickinson and Lumsdon, 2010).
Apart from positive impacts of tourism sector there is negative impacts too. For example
Tourism, sector increase the chances of corruption, crime, pollution damage of natural resources.
4.2 strategies to minimise negative impacts of tourism
To minimize the negative impacts from tourism TUI should take good business plans
according to the customer needs also company knows all about the customer to protect from risk
company should make proper design plan to attract the new customers give them flexibility to
select their own plan.(Spenceley, 2012.) To minimize the terrorism rate company should modify
tier policies and check the background of the customers.
Ways to minimize positive impacts : positive impacts of tourism is to provide job opportunities
for local peoples but along with that government should enhance the other facilities so that
people increase their standard of living too.
CONCLUSION
Summarised part of this project is that the travels and tourism has wide scope in helps to
maximize economic growth and improves economy policies this project explained about the
importance of tourism that it helps to increase national income and factors affect tourism like
demographic and government policies. Which factors helps to increase demand like good
designed plans and new technologies or in last segment explained about the precaution of
negative impacts.
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REFERENCES
Books and Journals
Adhikari, A. and Bhattacharya, S., 2016. Appraisal of literature on customer experience in
tourism sector: review and framework. Current Issues in Tourism. 19(4). pp. 296-321.
Chaiprasit, K., Jariangprasert, N. and et.al., 2011. Tourist expectations toward travel and tourism
websites in Thailand. International Business & Economics Research Journal
(IBER). 10(3). pp.41-50.
Chang, S. C. and Lai, F. T., 2011. Intra-continental and intercontinental service trade in the
travel and tourism industry. Tourism Economics. 17(5). pp.963-982.
Dickinson, J. E. and Lumsdon, L., 2010. Slow travel and tourism. Earthscan.
Domínguez, T., Fraiz, J. A. and Alén, E., 2013. Economic profitability of accessible tourism for
the tourism sector in Spain. Tourism Economics. 19(6). pp. 1385-1399.
Dwyer, L., Forsyth, P. and Dwyer, W., 2011. The travel and tourism competitiveness index as a
tool for economic development and poverty reduction. Strategic Management in Tourism.
pp.33-52.
Ekanayake, E. M. and Long, A. E., 2012. Tourism development and economic growth in
developing countries. The International Journal of Business and Finance Research. 6(1).
pp.61-63.
Frey, N. and George, R., 2010. Responsible tourism management: The missing link between
business owners' attitudes and behaviour in the Cape Town tourism industry. Tourism
management. 31(5). pp.621-628.
Gabor, M. R., Conţiu, L. C. and Oltean, F. D., 2012. A comparative analysis regarding European
tourism competitiveness: emerging versus developed markets. Procedia Economics and
Finance. 3. pp.361-366.
Han, H. and Hyun, S. S., 2014. Medical hotel in the growth of global medical tourism. Journal of
Travel & Tourism Marketing. 31(3). pp.366-380.
Kapiki, S. T., 2012. The impact of economic crisis on tourism and hospitality: Results from a
study in Greece. Central European Review of Economics and Finance. 2(1). pp.19-30.
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Mancini, M., 2012. Access: Introduction to travel and tourism. Nelson Education.
Page, S. J., 2014. Tourism management. Routledge.
Patterson, I., Pegg, S. and Litster, J., 2011. Grey nomads on tour: A revolution in travel and
tourism for older adults. Tourism Analysis. 16(3). pp.283-294.
Scott, D., Hall, C. M. and Gössling, S., 2016. A review of the IPCC Fifth Assessment and
implications for tourism sector climate resilience and decarbonization. Journal of
Sustainable Tourism. 24(1). pp. 8-30.
Spenceley, A., 2012. Responsible tourism: Critical issues for conservation and development.
Routledge.
Online
Tour Operators P, 2016. [Online] Available through: <http://theworldoftandt.weebly.com/tour-
operators.html>. [Accessed on ].
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