London 2012 and Security

The provided assignment content includes a collection of articles, books, and online resources related to tourism and hospitality. The topics covered include festival tourism, entertainment age, strategic management, budgeting, modernizing the Croatian tourism industry, generational differences in work values, international hospitality management, hospitality quality, opportunities and challenges of tourism financing, improving the performance of hospitality firms, tourism planning, environmental and tourism, trends in the international hotel industry, and more. The sources include journals, books, and online resources from reputable authors and institutions.

Travel and Tourism
Sector

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Key historical developments in the travel and tourism sector..........................................3
1.2 Structure of the travel and tourism sector.........................................................................4
TASK 2............................................................................................................................................5
2.1 The function of government, government sponsored bodies and international agencies in
travel and tourism...................................................................................................................5
2.2 Local and national economic policy influences the success of the travel and tourism sector
................................................................................................................................................6
2.3 The implications of political change on the travel and tourism sector in different countries
................................................................................................................................................7
TASK 3............................................................................................................................................8
3.1 Factors that affect the tourists demand.............................................................................8
3.2 Supply has changed to meet the effects of demand........................................................10
TASK 4..........................................................................................................................................11
4.1 The main positive and negative economic, environmental and social impacts of tourism11
4.2 Strategies that can be used to minimise the negative impacts while maximising the
positive impacts....................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Travel and tourism is the largest service industry in terms of revenue generation and
foreign exchange earnings. Tourism has the huge growth market. It is driven by the human
tendency to move from one place to another in urge of recreational desires, knowledge seeking,
business purposes, adventure and entertainment. Consequently, it brings cross-synergistic
benefits to the economy. London has the longstanding history of tourism. People have been
coming here to explore the architectural assets (Barrett, 2012). Castles, museums, art galleries,
stately homes, royal palaces, garden and theme parks, zoos, globally acclaimed universities have
been capturing the eyes of visitors around the globe. This report outlines the various aspects of
tourism in London. It states the historical development and the structure of travel and tourism in
London, the impact of Government and international agencies, economic policies and the
political change in the country. It focuses on the factors affecting tourism demand and changes in
the supplies to meet it. Further it evaluates the positive and negative impacts of tourism and the
strategies to rationalize their impacts.
TASK 1
1.1 Key historical developments in the travel and tourism sector
Travel and tourism in UK is flourishing from long history. At present travel and tourism
sector in the country holds the prime position in market share. Having the world's prestigious
destination, UK is the world's leading tourist place with around 32 million visitors a year. The
country has been capturing the interest of the tourists from all over the world with the scenic and
attractive destinations, longstanding history of accommodating and entertaining tourists;
thematic and featured tours and the business trips (Harrison, 2006). The inception of the industry
dates back to the era when movement of people from one place to the other was limited to the
visits at holy places that is pilgrimages. These tours were undertaken for religious purposes
rather than for enjoyment and fun. These trips play the vital role in realizing the importance of
preserving the relics, visual art and culture and the architectural assets. With the passage of time
these informal trips gradually were replaced by the formal tours organized by the sponsors. First
such tour was the Grand Tour. It was the traditional trip undertaken by the elite families and
groups. These were sponsored by the financial group. Till then many financial institutions and
banks came to the focus areas of the economy (Bluementritt, 2006). Predominantly they were
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sources of the finance. These tour were meant to entertain and educate the British nobility about
the cultural legacy and Renaissance. It used to last long from months to years. The transition in
the travel and tourism in UK took place after the industrial revolution. The fast pace
development of the industries brought lucrative results in increasing the income of the workers
and the owners which initiated their will to travel more for pleasure. Further, the improved
transport system made the travel easier. In the mid 19th century, the travel companies Cox and
Kings and the Thomas cook revolutionized the mass tourism. They started the era of organizing
the package tour on large scale (Gray, Matear and Matheson, 2000). Initially it was organized for
the families of armed forces and later on it has broadened it horizon to the public. With advent of
technology, evolution of travel and travel and tourism sector took place in many steps.
Technological advancement saves time and made the journey more easy and comfortable.
With the increasing number of visitor every year, Travel and tourism industry is
blooming in UK. London and The tower of London is the most visited place of the visitors. The
industry is growing with providing better services to the patrons. The area of coverage of the
industry is widened now. Operators intend to ease the patrons visit by organizing their complete
trip arranging their travel tickets, accommodation facilities, visiting places, transport and travel
arrangements, organizing their thematic and featured trips. Globalization is the key reason for the
movement of the people around the world (Mason, 2008). Tariffs and other liabilities imposed by
the government and legislative bodies have also become so smooth to access the tours with ease.
1.2 Structure of the travel and tourism sector
Travel and tourism sector is one of the largest industry of UK with the significant share in
the market. The sector is largely fragmented with certain division. Travel sector caters to the
activities related the recreation, leisure and business and official trips through all modes of
transport. Tourism sector is solely confined to the leisure and pleasure trips. It includes the
holiday trips, featured and thematic tours, destination holiday. Apart from general patrons it
organizes the trips for the sportsperson and other industries. Both the sectors affect the economy
considerably. It has emerged as the fastest growing sectors contributing to around 9% of GDP
(Crick and Spencer, 2011).
Both the sectors are divided into many fragments with some congruent parts among them.
Few departments are involved in both. Travel industry comprises the transport and distributors as
the key component, regulatory bodies and public sector organization. Facilitating the patrons
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with the arrangements in the modes of transports air, water, road and train the key components of
the travel sectors are the distributors. This includes the travel agents are the immediate between
the customers and the tour operators with whom the customers contact and other are the travel
suppliers. They contact the customers through various mediums that are through direct contacts
or through online services (Tsai, Pan and Lee, 2011). There are some firms who act as the
linkage to sell the travel services to the customers. Other bodies which play the major role in
travel sector are the public sector organization and the regulator bodies such as department for
transport, dept. for culture, media and sports, foreign and commonwealth office; association of
British travel agents and civil aviation authority. The look after the legality of the operations
conducted by the travel agents and travel suppliers.
The soul of tourism sectors lies in the tour operators and the distributors. These include
the business and leisure travel agents who organize the trips. They organize the whole tour by
making arrangement for the accommodation like hotels, villas and other venues. Further, they
arrange the travel tickets and the transport facilities. The major tour operators are the Thomas
Cook, Cox and Kings, My Travel and the First Choice. They take care of the complete journey
and intend to make their trips memorable (Advancing Tourism Research Globally. 2012). These
tour operators organize the tours of all the fields and sectors. The informal tours and officials
tours as well such as the functions of the Art industry, sports sectors and literary fests also.
Besides these informal tours the operator organizes the business and government conferences
and events. They organize the event as per the requirement of the visitors and the patrons. The
tourism agencies that act into force are tourist boards and offices which monitor all the domestic
and international tours of the country (Ray and McCain, 2009). They are also entitled for the
promotion of the visits and tours within the country and outside. The regulatory bodies that
monitor the tours are Consortium of independent tours, federation of tour operators, skills
council for tourism, Hospitality and leisure and regional development agencies.
TASK 2
2.1 The function of government, government sponsored bodies and international agencies in
travel and tourism
The functioning of the travel and tourism sector is largely influences by the working of
the government sponsored bodies and the international agencies in travel and tourism sector.
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These organizations exist with different objectives and goals. UK is the part of the European
Union. European Union works to uplift the member countries in all the sectors and intends to
bring the stability with the mutual efforts along with the countries (Mehmetoglu and Normann,
2013).
One such area EU has the prime focus is the travel and tourism sector. EU works to
promote the natural, cultural and architectural heritage of Europe. The main objective of the
country is to revolutionize the travel and tourism sector to a new level. It aims to harness the
potential to uplift the sector and hold its growth in the economy. EU has made the policies in the
tourism perspective to shape the Europe's identity and to stimulate the competitiveness in the
European sector. It aims to mordernise the tourist bodies so that they give the optimum level of
service to the visitors and reflect the true picture and showcase what country has to offer be it the
natural beauty, architectural assets or to bring the business organizations to work together in the
efficient way (UK Hotels forecast 2011 and 2012. 2011). By removing the flaws EU's policies
and efforts intend to escalate the tourism at the prestigious and high-quality destinations in
Europe.
Consortium of independent tour operators is UK's national organization with the strict
criteria committed to improve the quality of the service provided to the patrons and customers in
their holidays. It includes setting the quality standards of the accommodation facilities, food
delights arranged by the operators and services provided at the places. World Tourism
Organisation is the organisation of United Nations aims to promote the responsible, sustainable
and university accessible tourism (Muhanna, 2006). It intends the economic growth, poverty
reduction, environmental sustainability and the inclusive development by the means of tourism.
2.2 Local and national economic policy influences the success of the travel and tourism sector
Tourism sector has the significant share in the GDP of the country. The policy framed by
the legislative bodies make a crucial consideration of the tourism as it accounts predominantly.
They seek to know the impact of policy formulation and their implementation to the contribution
of tourism through Input out model, social accounting matrix and commutable general
equilibrium model. Hence, the strategy encompasses all the areas that impact the holidaying of
the people in the country (Wagen and Goonetilleke, 2007). As the country is host of the very
important international events which capture the eyes of whole world such as Olympics, Royal
wedding, commonwealth games, the government ensure that the policies framed intend to bring
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the new approach to the tourism removing all the obstacles and flaws and the backing the
industry to new heights.
Rising from the dwindling of the sector in last decade, the policies with the right
framework pledges to promote the British tourism on international platform with the investment
of a £100m in marketing. Government recognizes the taxation in tourism as the true potential
source and uses the tools such as taxes on commercial tourism products and the taxes imposed on
consumers in the act of being tourists depending on the elasticity of demand to generate revenues
(Petia and Peter, 2004).
Local and national economic policy fosters the tourism development on the following
areas:
 Policies are framed with the insight to reduce the entry restrictions.
 Depending upon the elasticity of visitor's demand, economic situation and tax bases,
occupancy tax and similar tax are decided.
 The share of budget allotted to the marketing spending plays the vital role in promoting
the country's tourism on wide scale.
 By allotting various tax and tariff relaxations and other benefits and incentives to the
financers, the tourism investment is attracted (Spilsbury, 2011).
 The domestic and the cross the border trade agreements and public-private partnerships
brings the lucrative results.
2.3 The implications of political change on the travel and tourism sector in different countries
Tourism sector has the influence of the overall environment prevailing in the country.
Political environment plays the crucial role in deciding the ratio. It has the serious impacts on the
prospects of the tourism sector. The favourable conditional attract the tourist from around the
globe and on the contrary the unrest in the country imparts the negative image on international
platform and brings down the tourists footfall. The political environment include the critical
issues such as the stability conditions, the rules and regulations, the marketing initiatives and the
support offered by the government (Holden, 2008). The favourable political environment makes
the country preferred destination and highlights the competitive position in the global market.
The Rules and regulation administered by the legislative bodies can impact the either way. Travel
and tour operators are meant to function within the framework of these policies. The policies
such as relaxation of tariff and taxes and provision of incentives encourage the tourism and the
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foreign direct investment in the country. Conversely the obligations, deviates and hinders the
visitors to come with ease. These obligations also restrict the activists and the players in the
industry and brings discouragement to them. The marketing initiatives undertaken by the
government and the agencies in showcasing what the country has to offer influence the visitors.
The prominent strategies are adopted by the government and the tour and travel operators
working in the same field. It is done by building the strategic plans and is implemented by the
travel and the media personal (Clarke and Chen, 2012). Through this the government reflects the
national interests, its resources and the philosophy it possess. The marketing becomes successful
in convincing the customers about the ability of the destination to satiate the needs of customers
and delight them.
TASK 3
3.1 Factors that affect the tourists demand
There are various factors that affect the demand of the tourist in the country. To analyse
this the PESTLE model is applied.
Political: The political factors are the key factors that affect the tourism in a country. The
favourable factors drastically attract the tourist while the unrest and the unfavourable factors
keeps the country away from becoming the preferred destinations in spite of having lots of
resource and culture to show. The promotion and the marketing by the political representatives
increase the tourism demand.
Economic: The economic policies and environment prevailing in the country affects the revenue
generation. The marketing spending ratio, tourism investment quantum and the tariffs and taxes
such as the occupancy tax depending upon the elasticity affects the demand (Mak, 2004). Other
than this the current economic situation prevailing in the country such as the stock exchange
fluctuations, interest rates, bank rates and level of disposable income also decides the tourist
demands. Such as the high level of disposable income increases the will to move other places
and explore them. Low interest rates and bank rates reduce the trip expenditure and motivate the
patrons to visit (Burns, 2000).
Social Factors: The taste and preferences of the people affects the selection of place of
destination. The country rich in diversity of culture and resources become the first choice of the
customers. Tourism demand is significantly affected by these social factors.
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Technological: Technological advancement of the country such as in providing the transport
facilities makes the journey and travelling easier. These days’ tour operators make the traveller’s
journey comfortable by giving them digital and online services. All the facilities are available
online such as tickets arrangements, accommodation and organising other leisure activities. The
sound communication system also proves favourable. Good technology drives the travel and
tourism sector through effective marketing. Advancement in the transport and travelling made
the journey very easier (Global Agenda Council on New Models of Travel & Tourism. 2013).
Legal factors: The legal factors also play the crucial role in affecting the demand of tourists. The
rules and regulations related to the entry in the country impact it. The ease of providing the visas
and the formalities related to the licencing of the travel agency and tours brings more tourists.
Various organisation and institutes are working in this respect to make the tourism sustainable
and brings development inclusively which attracts tourism demand.
Environmental factors: The climatic and weather conditions of any place are core reason to
bring in the tourist to that place. The tourist and visitors moves to other places to explore the
beauty and the attractions of the particular place (Chen and Choi, 2008). The company rich in the
natural resources and the natural attractions have become the favourite destination places.
Apart from this there are other factors as well which influence the tourism demand.
 Degree and type of service offered: It refers to the hospitality services offered by the
operators. The intention of the service provider to give them memories by making their
holidays the best leisure time intensifies the tourism demand.
 Attractiveness of the country: The diversity and quantum of recreational activities are
directly proportional to the success of the tourism. The diversity includes the variety of
flora and fauna, the architectural assets, natural resources, cultural events, festivals,
events and exhibitions on art, sports and entertainment.
 Travelling expenses: To reduce the expenses occurred on the travelling and holidays, tour
operators offer many discounts and featured schemes (Jayawardena and et.al., 2013).
Apart from this they also provide other facilities such as travel insurances and visas to
save their money and time which make them feel to travel.
3.2 Supply has changed to meet the effects of demand
From the exotic journey of the grand tour to the planned and organized trips, Tourism has
evolved a lot over time. Today's trips are more integrated than past compartmentalized trips.
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Earlier these pleasure peripheries were limited to the elites but now it permeating downwards to
the general mass of population as well. The key agents in this transition are the social, emulation,
technological advancement and the role of innovators and intermediates such as the travel agents,
tour operators and the organizers. Tour these days are the special recreational trips rather that the
routine. The tourism industry has been explored a lot. Earlier it was the leisure activity of the
affluent, now with the continuous emergence the variations came in the hospitality, length of the
visits and the economic outlays (Scheyvens, 2002). The horizon of the tourism is widened a lot
creating distinct pattern of demand and supply. To meet out these demands the pattern of supply
has been transformed significantly.
Suppliers includes the distributors such as travel agents and tour operators, the hotels and
inns, transports, foods, organizers of recreational activities, sources of entertainment and
financial services. These suppliers intend to make the holidays memorable by giving them
enjoyable experiences and helps them to spend the quality time with their friends and family.
They understand that all sizes doesn't fit to all, hence provide range of products to satiate their
desires.
Travel and journey: With huge range of options and packages, the operators provide the plenty
of deals with expensive to the affordable and economic to fulfil the needs. They make their travel
tickets arrangements and take care of their in-flight services (Veal, 2006). Apart from the regular
packages they offer the seasonal discounts and other deals such as the festive deals, for kids and
for the last minute reservations.
Accommodation facilities: The supplier's comes up with the variety of accommodation facilities
such as the expensive hotels, villas, apartments, inns, cottages, natural and thematic resorts
covering all the needs of the customers they are looking for. At theses accommodation the
special concern is given to the food delights offered to them from multi cuisines to the regional
specialties there broad stream to choices available (Hall, 2008).
Recreational activities: In this era of fast paced life, people takes out the time from their hectic
schedule for their holidays and desires to make it enjoyable up-to great extent. To make this
possible tour operators inculcates many adventures and recreational activities in the trip. It
includes above the surface activities such as the paragliding, mountaineering, forest safaris,
underwater sports such as diving and kelling and adventure trips to the forests and Atlantic.
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Other recreational activities such as spas are the part of most of the packages. Besides theses
sports like golf are the preferred choices (Uriely, 2009).
Financial services: With the Another additional service the operators are committed to
safeguard their customers. They back their holidays with the insurance packages. They cover the
credit card accident, the personal health insurance and the other covers such as the business,
cruise, sports travel and adventures tours insurance packages.
TASK 4
4.1 The main positive and negative economic, environmental and social impacts of tourism
With 126 million yearly trips of visitors in UK, London is the principle tourist
destination. Tourism is the significant sources of the social, economic and cultural impacts
involving number of stakeholders. It trickles down the impacts to both the host and tourist
destination countries. Along with experiencing the benefits on various grounds it also encounters
the negative impacts (Gautam, 2008). The influence of the tourism on various industries and
sectors of the economy is categorized in the following manner:
Economic impact: Tourism has the substantial impact on the economic sector. It brings the
lucrative results to the gross revenue and the foreign exchange earnings. Through forward and
backward linkages it permeates to the economic development of the other sectors as well. The
travel and journey that is the aviation and other modes of transport avail the maximum benefits
that are through tickets, airport hotels, convenience charges. Apart from travel expenses they
procure revenues from other arrangements such as airport hotels and lobbies and waiting
compartments (Abu and et.al., 2012). Besides leisure tourism London is the destination of
medical tourism, wellness tourism, heritage tourism, ecotourism, wildlife tourism and MICE
tourism that is meetings, incentives, conferences and exhibitions which caters mostly to business
travellers. Service providers in these sectors avail benefits with the wide pool of visitors.
Environmental impacts: Tourism brings positive impacts to the environment to a great extent. It
improves the environmental management and planning. With the analysis of the current
resources and the future potential, organizations plan to develop and manage the natural
resources and heritage. It increases the awareness for the conservation of resources (Bunja,
2003).
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Social Impacts of tourists: It enhances the improvement of the infrastructure and the civil
amenities. It also encourages the preservation of traditional customs, festivals and social assets. It
brings more connectivity between the countries. It brings the better understanding of the culture
among people. Increased mobility of the cross-border people strengthens the bonds between the
countries and international personalities.
Apart from the positive impacts, tourism affects the country adversely on some grounds.
Economic impact: Along with swelling up the revenues through the exports of the country,
leakages happen if the tourists are cross the borders outside (Bernick and Boo, 2013). It leaks to
international hotel chains and resort groups. It takes the foreign exchange out of the country.
Environmental Impact: Tourism has the negative impact on the environment and ecology of the
country in the considerable way. It leads to the increment of the emissions of greenhouse gases
and carbon in the country. In the recent survey, London was counted among the most polluted
cities of the world. The vital reason is the immigration of people in the city for various purposes.
It also affects the heritage of the country. It leads to the damage of the resources such as forest,
mountains and other nature's assets (Gautam, 2008).
Social impacts: With the immigration of tourist in the country the culture and traditions also get
affected. Sometimes it imparts the wrong influence on the countrymen. It leads to the loss of
authenticity. With the commercialization of the culture and reinforcement of the stereotypes the
traditional values get affected. With the immigration of people from different backgrounds,
national security get threatens (Holden, 2008).
4.2 Strategies that can be used to minimise the negative impacts while maximising the positive
impacts
Tourism sector proves to be very beneficial for the country. Though it has some negative
impacts steps can be undertaken to minimize it and at the same place to enhance the positive
impacts. Following are the efforts taken to rationalize the impacts of London tourism.
Economic impact:
Revenue generation can be enhanced through the promotion of the London's culture on
international grounds. Apart from the leisure tourism other tourism such as medical tourism and
MICE can be encouraged. London is the hub of international trade it brings lucrative revenue to
all the industries. Hosting the sports and entertainment events in London also help it to stand out
in market. These events bring in the multiplier effects to all the industries and sectors.
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Environmental impact
Educational and awareness programs and events enhance the awareness for the conservation and
preservation of the environment and ecology. It can be done through promotional activities done
by the government representatives to have the strong impact on public. Further, through media it
reaches the mass population. Several organizations are working to make the tourism sustainable
such as world tourism organization, it promotes the tourism for the inclusive development and
overall social upliftment. Negative impact can be minimized through the intensive care of these
heritages.
Social Impact:
Along with the external promotion of the culture, heritage and natural resources of London, the
internal promotion increases the domestic tourism. It increases the awareness to preserve the
nation’s assets and brings in the civic pride. It reduces the loss of authenticity of culture and
traditions (Petia and Peter, 2004). With increase in security at national boundaries the penetration
of illegal entities can be prevented. The rise in crime is also checked through the internal security
and awareness.
CONCLUSION
London has the longstanding history of tourism from the Grand tours for the elite nobility
to the present tourism for mass of people. It has the rich source of architectural heritage like
palaces, castles and museums and other attractions. It has the organized and planned structure of
travel and tourism sector. There is the strong influence of the national and international agencies
and through the promotion, awareness and some rules and regulations. Over the time tourism
demand in London changed a lot, to meet that demand suppliers are coming up with different
and convincing packages and services (Tsai, Pan and Lee, 2011). Tourism imparts both positive
and negative impacts on the country. It increases the revenue and foreign exchange reserves of
the country, improves the image on international platform and increases the connectivity
globally. Along with this it has some negative impacts such as damage to environment, loss of
authenticity and commercialization of culture. To stabilize the effects of tourism, respective steps
are undertaken.
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REFERENCES
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