Ethics and Law in the Tourism Industry

This assignment delves into the complex interplay of ethics and law in the tourism industry. It analyzes the ethical dilemmas faced by businesses like British Airways and explores their Corporate Social Responsibility (CSR) programs to demonstrate ethical practices. The legal framework governing tourism, particularly the Package Travel Regulations, is also examined, highlighting its importance in ensuring consumer protection.

Legislation and
Ethics

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASK 1A.........................................................................................................................................3
Explanation of legal and regulatory framework..........................................................................3
TASK 1B.........................................................................................................................................4
Role and responsibilities of regulatory bodies in travel and tourism industry............................4
TASK 2A.........................................................................................................................................5
Task 2b.............................................................................................................................................6
Assessment of legislation regarding Equality in the English Legal System while engagement
of employees................................................................................................................................6
Task 3a.............................................................................................................................................7
Difference between Sale of Goods Act 1979 and the Supply of Goods and Services Act 1982.7
Difference between The Unfair Contract Terms Act 1977 and the Unfair Terms in Consumer
Contract Regulation 1999............................................................................................................8
Task 3b.............................................................................................................................................8
Explanation of EU and UK legal responsibilities of holiday Tour Operators for description of
services rendered by them ...........................................................................................................8
Task 4a.............................................................................................................................................9
Identification and analysis of instances of ethical dilemma faced by travel and tourism entities
.....................................................................................................................................................9
Task 4b...........................................................................................................................................10
Analysis of corporate social responsibilities of British Airways...............................................10
Conclusion ....................................................................................................................................11
References......................................................................................................................................12
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INTRODUCTION
Travel and tourism industry is continuously expanding and providing significant
contribution in the development of economy. By considering the continuous growth of the
industry, it is essential to develop standard legal norms for the UK parliament for assurance of
fairness and protection of interest of weaker party (Moriarty and Manthorpe, 2013). Business
entities operating in travel and tourism sector are required to act in accordance with the described
legal norms else they will be liable to pay damages for non-compliance. Present study is focused
on evaluation of legal and regulatory framework applied on travel and tourism industry. By
considering this aspect, description of legal and ethical provisions will be provided which are
applicable on travel and tourism in order to provide justified recommendations to the given case
scenarios.
TASK 1A
Explanation of legal and regulatory framework
Legislation of the UK is bifurcated into criminal and civil law for better governance of
operational activities. Description of these laws by considering travel and tourism industry is as
follows:
Civil law
Civil law is developed by the UK parliament to provide standard norms for the
completion of regular operational activities in an appropriate manner and prevention of civil
crime. Civil law is applicable on both organization and individual working. In accordance with
the provisions of English law, civil crime can be defined as an act that is not justifiable to the
public. Example of civil crime is providing non-satisfactory or poor services (Slapper and Kelly,
2011). By considering this aspect, Mr. David is initially required to complain to management of
Going Abroad Ltd for the breach of civil obligation. If management of the tourism organization
does not resolve their issue then, he can go to regulatory authorities such as Advisory,
Conciliation and Arbitration Service (ACAS). They will provide advice to Mr. David for the
legal claim by which he can avail remedy in order to compensate with his injury.
Criminal law
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Formulation of criminal law is done to ensure that organization operating in travel and
tourism industry is complying legal provisions developed by the UK parliament. It is because;
criminal action shows breach of conduct to the norms described by government. For the criminal
conduct, damages are paid to the government. These provisions are applicable in case such as;
harassment, dealing in restricted conducts, sexual assault, discrimination, industrial espionage,
embezzlement of tax and cash etc (Carlsen and Andersson, 2011). Case proceedings for criminal
conduct are dealt in crown courts. On the basis of described aspects, provisions of criminal law
will be applicable in situations where management of Going Abroad Ltd had provided wrong
information to the Mr. David. For this aspect, Going Abroad Ltd will be liable to pay penalty
charges as they are using misleading facts in order to attract customers.
TASK 1B
Role and responsibilities of regulatory bodies in travel and tourism industry
In order to assure standard performance of organization operating in travel and tourism
industry, various regulatory bodies are established for each sector. Description of these bodies
with respect to the travel and tourism sector is as follows:
Air tourism and transport
For governance of air tourism and transport, Civil Aviation Authority (CAA) is
responsible. They are obliged for the regulation of professional and private pilot through issue of
license by assessing their qualification. They control air traffic by managing airlines. Further,
they also provide standard norms for entities involved in the design, production and maintenance
of aircraft (Fernick and Boo, 2013). In accordance with the English law, all organizations
operating in air tourism and transport are required to hold Air Travel Organizers’ Licensing
(ATOL). Objective of these provisions is to ensure that provided money by customers is safe and
organization will provide those services accordingly. Further, liabilities of transporter are
described through provisions of Carriage by Air and Road Act 1979. Main objective of this act is
to indemnify the potential losses of the customers.
Sea tourism and transport
International Carriage by Sea Act is applied by the UK government for regulation of
operational activities of organization operating in sea travel and tourism industry. Provisions of
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this Act impose liability on the corporate entities to provide damages to the customers if they are
not able to satisfy their standard duties (Ritchie, Tung and Ritchie, 2011). In addition to this,
International Carriage by Sea Act prohibits business organizations from unfair dealings in order
to protect interest of customers. Civil and criminal offenses in sea tourism are dealt in
accordance with the provisions of Offenses at Sea Act 1799 (39 Geo 3 c 37). Cited Act provides
extension to the authorities of the UK jurisdiction to deal with offenses committed in overseas
area. However, provisions of this Act are not applicable for foreign companies and non-residents.
Surface transport
Association of British Travel Agents (ABTA) is established for the governance of travel
and tourism activities conducted through road. This body is governed by trade entity and
provisions described under Carriage by Air and Road Act 1979. These regulations had formed
right for the consumers by which they make claim for damages if; business entity had not
provided satisfactory performances (Alshubaiki, 2013). In accordance with the provisions of this
Carriage by Air and Road Act 1979, organizations operating in this sector are responsible for
damages occurred to the customers due to their non satisfactory performance.
TASK 2A
Rainbow Hotel is operating in travel and tourism industry of the UK thus; management of
organization is required to comply with legal provisions related to the health and safety issues in
a proper manner. In this aspect, director (Miss Kaur) has following responsibilities towards
invited and uninvited visitors:
Health and safety at work Act, 1974
In accordance with the provisions of this Act, director of Rainbow hotel is required to
maintain safe working environment by considering hygiene factors. For this aspect, Miss Kaur is
required to make proper arrangements for the safety of customers and staff members. Further,
proper arrangements should be made for the areas where there is a risk of injury (Vance and
et.al. 2011). Hazardous equipments should not be kept in the reach of public. In addition to this,
employees should be provided with proper training so that they accomplish duties in an effective
way.
Occupier’s Liability Act 1984
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Provisions described under Occupier’s Liability Act are supported by tort legislation in
which individual and business entities are required to take care of actions for the prevention of
risk of injuries of the related parties (Thorbjørnsen and Supphellen, 2011). By considering the
provision of this Act, director of Rainbow hotel is required to take care of activities conducted in
the premises to reduce risk of injury of visitors and trespassers. In this aspect, case of British
Railways Board v Herrington 1972 AC 877 can be considered where occupier was held liable to
pay damages in order to compensate the injury of trespasser.
Vicarious liability
Doctrine of vicarious liability in English law states that individual is held liable for the
negligence of other individuals who are influenced them (Brotherton, 2012). As per this
approach, employer is said responsible for the action of employees conducted in the workplace
in the course of employment. Due to this aspect, director of the Rainbow hotel is obliged to
provide proper guidelines to the workers and monitoring their work in a proper way.
Data protection Act 1998
Provisions of this Act imposes obligation on the director of Rainbow hotel to protect
information provided by employees and customers in an effective manner. They must not use
this information for unjust benefit (Moriarty and Manthorpe, 2013). For provided information
should be secured in a data base so it can be derived while it is required.
Consequences of non-compliance of described provisions
In situation where, management of Rainbow Hotels will not be able to comply these
norms then they have legal obligation for the payment of damages in order to compensate the
injury of aggrieved party. For civil misconduct damages will be payable to the injured party
while in criminal conduct damages will be payable to the government in form of penalty charges.
TASK 2B
Assessment of legislation regarding Equality in the English Legal System while engagement of
employees
Discrimination on the basis of protected characteristics is ethical and legal misconduct as
per the standard norms of UK legislation. All business entities are required to provide equal
opportunities to the worker for the compliance of equality legislation described by English legal
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system (Moutinho, 2011). Being on a position of director, Miss Kaur is required to consider
following legal norms while engagement of employees: Employment Act 2002: This Act provides guidelines regarding standard behavior of
employer towards their employees (Blanke and Chiesa, 2013). In accordance with the
provisions of this Act, employer must provide fair opportunities to the worker for
recruitment and promotion without getting affected by their protected characteristics. Employment protection (consolidation) Act 1978: Formation of this Act is done by
combining provisions of Redundancy Payments Act 1965 and Contracts of Employment
Act 1963. This Act was formulated by UK government to ensure payment of fair wages
to the employees (Dickinson and Lumsdon, 2010). Further, provisions of this Act also
imposes restriction on discrimination in payment by considering race, gender, religion or
ethical values of employees. Disability discrimination Act 1995: Provisions of this Act states that, employers are
required to make appropriable adjustments for the workers who are disabled but qualified
for the business activities (Moriarty and Manthorpe, 2013). Employers are required to
provide them fair opportunity for employment.
 Human rights Act 1998: According to the provisions of Human rights Act 1998,
employer should respect fundamental rights of employees and do not insert work policies
which are contradictory to this.
Miss Kaur is required to assure that all the described legal provisions are complied in the
Rainbow hotels else employees of the company will be entitled for the payment of damages
(Evans, Stonehouse and Campbell, 2012). For this aspect, there are required to assure that
employment polices are free form partiality and biasness.
TASK 3A
Difference between Sale of Goods Act 1979 and the Supply of Goods and Services Act 1982
Sale of Goods Act 1979 and the Supply of Goods and Services Act 1982 has been
introduced to protect customers for unfair activities of seller. Provisions of these Acts imposes
implied term in the contract where there is transfer of product and services by one party to the
another (Middleton and et. al., 2009). Provisions described under Sale of Goods Act 1979 is
applicable only on product contracts while provisions of Supply of Goods and Services Act 1982
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deals with the contract in which services are also provided along with the products. In SOGA
1979, protection can be availed by customers if provided good is not of satisfactory quality.
Further, seller has obligation to ensure that delivered goods are in accordance with the provided
description and free form material defects (Evans, Stonehouse and Campbell, 2012). On the
other hand Supply of Goods and Services Act 1982 provides protection in situation where
services are provided with diligent skill and care. Further, seller are required to complete their
work in timely manner without making unreasonable delay in their work.
Difference between The Unfair Contract Terms Act 1977 and the Unfair Terms in Consumer
Contract Regulation 1999
Exclusion clauses inserted in consumer contracts are considered effective if it satisfied
provisions described under the Unfair Contract Terms Act 1977 and the Unfair Terms in
Consumer Contract Regulation 1999. However, there are various differences in provisions of
both the Acts. UCTA is part of primary legislation while UTCCR is part of secondary legislation
(Miguéns and Mendes, 2008). Provisions of UCTA is applicable only on commercial contract
but provisions of UTCCR deals with the both consumer and commercial contracts. Damages
under UCTA can be claimed only if claimant is able to satisfy the test of reasonableness on the
other UTCCR consider the claim of damages if test of fairness is satisfied. It is because, UTCCR
aims to create balance between right and obligation of both the parties in order to provide
justifiable decision in the dispute.
TASK 3B
Explanation of EU and UK legal responsibilities of holiday Tour Operators for description of
services rendered by them
Organizations operating in travel and tourism industry are required to operate in a fair
manner. Further, they should not provide misleading facts to the customers in order to
manipulate their purchase decisions. Objective of these legislatory norms is to protect interest of
customers and prevent organization from unfair transactions (Witt, Brooke and Buckley, 2013).
Description of consumer protection legislation in context of package holidays is enumerated as
below-
Trade Description Act 1968
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Provision of Trade description Act 1968 states that travel and tourism entities are
required to describe vital facts in their brochure. However, they are entitled to make use of
trader's puff to attract customers but this fact doesn't imply that management can use misleading
facts in their brochure (Evans, Stonehouse and Campbell, 2012). In addition to this, they are
required to charge fair price from the customers in accordance with the quality of services
provided.
Package Travel Holidays and Tour regulations 1992
In accordance with the provisions described under Package Travel Holidays and Tour
regulations 1992, tourism entities are required to provide services similar to the description given
in the brochure (The Package Travel, Package Holidays and Package Tours Regulations, 2014).
There must not be material difference between described and actual services. In situation where
customers are not provided with the appropriable services then they are entitled to make claim of
compensation from the organization (Bennett, 2014). In situation where organization deny for
the compensation, then parties are entitled to take their case to ACAS for further advise.
Provisions of this Act cover liability under both civil and criminal law. Civil law imposes
obligation for providing satisfactory services while criminal law provides duty for compliance
with the law.
Consumer protection Act 1987
This Act is developed to protect customers from the unfair actions of the selling parties.
Provisions of Consumer Protection Act are also applied on travel and tourism entities to ensure
standard performance on their part. However, they can make reduction in their obligation by
insertion of exclusion clause but such terms are considered effective only if it properly
incorporated (Delbard, 2008). Although organization cannot reduce obligation regarding act
which can cause personal injury or death to the person.
TASK 4A
Identification and analysis of instances of ethical dilemma faced by travel and tourism entities
Ethical dilemma for environment factors faced by travel entities in wild life tourism
Organization engaged in wildlife tourism have ethical and legal responsibility towards
the environment but along with this there is also continuous increase in demand of customers.
This aspect creates issue between preference of sustainability and profitability through
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operational activities (Mills and Law, 2013). It is because, increasing tourism activities in nature
place have adverse impact but if demand is not satisfied then benefit is taken by competitor
entities (Hayek, 2012). This dilemma can be solved by promoting sustainable tourism by
organizations. In this form of tourism, they can consider environment aspects along with the
profitability factors. In this manner, management will take care of actions that can have adverse
impact on environment and attempt to find other suitable alternate for that aspect.
Ethical dilemma for environment factors faced by travel entities such as British Airways
In order to provide better customer services, travel organizations are required to expand
their business activities. For this aspect, they are required to consume excessive natural resources
which is harmful to the society. In addition to this, if expansion is not done then benefit of this
opportunity is taken by competing firms. In order to resolve this dilemma expansion can be done
by considering ethical aspects (Ethics: Absolutes and Relativists, Rules and Consequence, 2015).
For example, expansion is not supported by the activities such as deforestation. Further,
resources are used with the sustainability approach through applicability of updated technologies.
In this manner, travel and tourism entities are able to maximize their output with minimum
consumption of resources.
TASK 4B
Analysis of corporate social responsibilities of British Airways
Corporate social responsibilities can be defined as duties of business towards the external
environment in order to implement the approach of sustainability in their work policies (An
Effective Corporate Social Responsibility Programme, 2011). With the increasing environmental
issues all organizations are required incorporate corporate social responsibilities in their
operational policies.
British Airways is one of the leading tour and travel entity in UK. Management of
company is concerned with the environmental sustainability along with the factors of
profitability (About British Airways, 2015.). In this aspect, they had added following factors in
their objectives:
 Minimizing emission of carbon die oxide through operational activities
 Improvement in technology to reduce adverse impact on environment
 Reduction in pollution occurred due to noise.
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In addition to the above described aspects, they are contributing funds to social care
entities. They are marketing their operational activities through charity event by considering cost
and profitability factor. Management of company has also applied regulatory norms in their
operational activities to reduce adverse impact on environment.
CONCLUSION
In accordance with the present study conclusion can be drawn that legislation of UK had
developed various regulator bodies for the governance of operational activities of travel and
tourism industry. Penalty charges for the non-compliance of legal terms is enforced by
considering bifurcation of legislation in civil and criminal law. Organization operating in this
industry are required to assure implementation of health and safety legislation and equality law
in their operational activities. For this aspect, they are required to promote fairness in workplaces
by preventing biased practices. In addition to this, management of travel and tourism entities
must not use misleading guidelines to attract customers. Further, along with the profitability they
should also take care of social and ethical aspects in order to reduce adverse impact of their
operational activities of environment. Annual report of British Airways shows that management
of company is focused towards their corporate responsibilities along with the profitability.
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