LO2: UNDERSTANDING THE INFLUENCE OF LOCAL AND NATIONAL

LO2: UNDERSTANDING THE
INFLUENCE OF LOCAL AND
NATIONAL GOVERNMENT AND
INTERNATIONAL AGENCIES ON
TRAVEL AND TOURISM SECTOR

2.1 ANALYSING 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

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

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

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

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

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

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.

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.