Understanding the Influence of Government and Agencies on Travel and Tourism

This presentation explores the role of government, government-sponsored bodies, and international agencies in the travel and tourism sector. It analyzes their functions and the influence of local and national economic policies on the success of the industry. The presentation also highlights the importance of government involvement in promoting tourism and establishing bilateral ties with other countries.

LO2: Understanding the influence of local and
national government and international agencies on
travel and tourism sector

2.1 Analyzing function of government, government
sponsored bodies and international agencies in travel
and tourism
• The governing authority of a country is the government and they are further divided
into smaller fragment
• improve the efficacy of travel and tourism operations
• The government, sponsored bodies and international agencies are active participants
in the development of travel and tourism sector
• These are responsible for making the legal framework for the travel industry

Continued…
• Natural sites fall under the jurisdiction of the government
• The government is responsible for formulating policies and tactics which inhibit the
exploitation of these assets
• Earlier local governement was having the full responsibility of incresing th epace of
growth in the tourism sector but now each government body is partcipating for the
same

Continued…
• The government’s ministry of travel and tourism is responsible for carrying out the
development of the tourism industry in the country
• The government, as well as the government-sponsored bodies, are also responsible
for establishing bilateral ties with countries
• Government is enhancing the advertisemnet activities for the travel and tourism so
that favourable outcome can be generated

Continued…
• Existing trade barriers would be relaxed and tariffs such as service tax and value
added taxes would be reduced
• Government sponsored bodies are autonomous institutions who act on the
government’s directives so as to promote tourism products and enhance the
knowledge and importance of each of the tourist spots and sites
• The international bodies, on the other hand, are responsible for promoting
multicultural tourism and they are also responsible for encouraging the tourists to
travel to foreign lands
• Global tourism policy is integrating the various countries whcih is helpful for the
development of travel and torism sector

2.2 Explaining the influence of local and national
economic policy on the success of travel and tourism
sector
• The role of the government is to increase the influx of revenue by attracting the
investors to invest
• One of the models that can be effectively used to understand the influence and
impact of policies on the travel and tourism industry is the macroeconomic model of
operation
• The government impact on the travel and tourism is not direct as the economic
policy which formed by government is indirectly impacting the tourism vertical

Continued…
• It is the responsibility of the governments to frame policies likewise which enable
the travellers and tourists of spending their money on state-sponsored travel and
tourism which would
• Increase the sustenance of the industry
• Various socioeconomic benefits are generating by the travel and tourism industry
such as foreign exchange fund, growth in the employement, increase standard of life
of locals

Continued…
• The policy change can be either have a positive or negative impact on the industry
• Economic reforms like addition or removal of taxes, hence, plays a very decisive
role in the development and growth of the travel and tourism industry
• Economic policies formation is done in a way so that the local community can also
make benefits out of it
• Government is increasing the tranportation facility so that visitor cannot face any
disturbance

Continued…
• People confuse about local and national policies most of the time and consider them
both to be equivalent but it is not the case as the local and national policies vary
sometimes.
• One very good example of a local policy is the permission of local restaurants to run
for an extended period of time as compared to a national policy which dictates that
the restaurant is closed after a certain time.
• The world tourism organization is a leading organization it is developing the
resources for teh travel and tourism on the global level
• The government is playing their role as a guide for the travel and tourism
organziation so that the mutual benefit can be make out of it