Tourism Industry and Economic Policy

This assignment examines the profound influence of economic policy on the performance of the tourism industry. Students are tasked with analyzing how local and national economic policies directly and indirectly shape the success of tourism destinations. The assignment encourages critical thinking about factors such as taxation, currency exchange rates, infrastructure investment, and trade agreements, and their roles in attracting tourists, fostering growth, and ensuring sustainable development within the tourism sector.

TRAVEL AND TOURISM
SECTOR

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Covered in poster..................................................................................................................1
1.2 Covered in poster..................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Covered in ppr.......................................................................................................................1
2.2 Covered in ppt.......................................................................................................................1
2.3 Implications of political change on travel and tourism in different countries......................1
TASK 3............................................................................................................................................2
3.1 Factors impacting demand and supply of tourism................................................................2
3.2 Role of supply side in meeting effects of demand................................................................3
TASK 4............................................................................................................................................4
4.1 Positive and negative effects of tourism...............................................................................4
4.2 Strategies to minimise the negative impacts.........................................................................6
CONCLUSION ...............................................................................................................................6
.........................................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Travel and tourism are the main sectors in present time that is delivering its various types
of services all around the world. This sector has many different services that are included with it
form a necessary part in travel and tourism sectors. The major services adjunct to this sector are
hospitality industry, transportation services, entertainment facilities etc. These mixed services
have resulted in various tour operating agencies which use to give complete packages of
transportation, hospitality services and other amusements for travellers (Cuccia and Rizzo,
2011). The TUI is a similar tour operating company that delivers a complete service to the
customers which provides amenities of best tour destinations, transportation bookings,
hospitality services etc. The said company is one of the leading tour operating agency of UK.
The report has taken into consideration about historical tourism and changes taken place in it.
Apart from this, the report has also made an attempt to discus about various local and
international agencies that are concerned with travel and tourism sector. Further, the report has
focussed on various factors that have an influence on demand and supply of tourism.
TASK 1
1.1 Covered in poster
1.2 Covered in poster
TASK 2
2.1 Covered in ppr
2.2 Covered in ppt
2.3 Implications of political change on travel and tourism in different countries
The political changes have great implications on the countries that can be positive or
negative as well. For this, the implications can be understood for various countries which are as
follows:
 India: 'Incredible India' campaign of nation to draw attention of tourists is an outstanding
step towards evolution and promotion of tourism in country. Indian government has taken
the initiatives that can contribute towards the development of country's tourism. It makes
various campaigning programmes that are focussed on highlighting the culture and
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attractive places of tourism in country (Hudson and Thal, 2013). It has also made a focus
on tourism activities in five year development plans so that various developments can be
made in this area like infrastructural developments. There are some negative factors as
well which is related to political disturbances. The increasing case of terrorist activities
play an important role in decreasing the tourism activities. Apart from this, the natural
disasters can also act as a barrier in development of this sector. Therefore, it is necessary
to make disaster management agencies who can provide all required assistance and in
recovery of losses. Further, the issue of corruption which is very high in country also
impact the tourism activities and make bad image of various tour operating agencies
(Denicolai, Cioccarelli and Zucchella, 2010).
 UK: The tourism sector in UK plays an active role in increasing the economic
development in countries. The said country is rich in various historical and natural places
that can attract the tourists of various countries. A famous movement took a shape of a
revolution with the purpose of getting rid of British legal power from Ireland originated
PIRA (Provisional Irish Republican Army). This resulted into bad relation between both
countries that had an impact on country's tourism sector as well. The recent issue of
BREXIT can also have an impact on tourism activities. However, its step of flexible visa
policy for Chinese tourists have helped in development of tourism in great way (Yang,
2010).
TASK 3
3.1 Factors impacting demand and supply of tourism
The factors that have various impacts on demand and supply of tourism are highlighted in
below section:
 Demographic: The demographic factors include age, income, educational level,
population etc. which has a foremost role in impacting the tourism activities in the
country. When the income level of people will be more, it is obvious that they will be
ready to spend on travelling purposes. Further, the age of population is also a main factor
where students can take interest in having college trips, aged people can involve in
tourism for religious purposes etc (Heung, Kucukusta and Song, 2011). Role of tour
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agencies like TUI come into play here as people like to book their entire trips through
such agencies so that they can take the facility of all required things.
 Environment: The issues related to environmental pollution, global warming etc. With
these issues, various plans have been made by the government so that sustainability in
tourism can be encouraged. The TUI group has taken initiative where steps have been
made for preservation of wildlife natural environment. Moreover, it encourages the
travellers to make efforts that can save environment and give less harm to it (Reddy,
York and Brannon, 2010).
 Technologies: The growth in technologies have impacted the tourism sector in a great
way as it provided large facilities that has played an active role in making travel and
tourism activities easier. With the help of internet, now people can access various
information related to their favourite destinations where they are planning to go. Besides
this, they can also get information about different places that are worth watching, hotels
and resorts which provide best facilities for accommodations etc. On this basis they make
bookings of their places. The said organisation helps in making advance booking of
travelling and staying of customers (Jackson, 2008). Apart from this, the agency also
offers some packages that provide overall amenities on discounts.
 Level of disposable income: Every person have a fixed budget according to which he
plans his various expenditures. In recent years, there have been an increase in per capita
income of people because of which their purchasing power has enhanced. The companies
like TUI make a market analysis and collect data to know the level of income and
expenses patterns of people. On this basis, they provide offers to consumers that can
attract them towards travelling activities. They make segmentation strategy to target the
intended customers and make positioning of products (Mehmetoglu, 2014). This proper
analysis helps in giving better results.
3.2 Role of supply side in meeting effects of demand
 Service quality: The services provided by organisations indulged in travel and tourism
activities should be of high quality that will assure frequent visit of travellers. Besides
this, TUI and other similar agencies make a tie up with various transportation and
hospitality companies soi that customers can be provided with overall facilities. The
travellers expect high quality services from all these organisations. Therefore, the
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companies provide training to employees so that they can be trained to handle customers
in most efficient way (Moutinho, 2011). Apart from this, they adopt quality checking
measures through monitoring so that best services can be provided to guests.
 Accommodations: The TUI has contacts with various distributors who provide the details
about various offers that are provided by hotels and resorts. The customers are given
offers on this basis and they select from this large range of choice as per their needs and
budget. Apart from this, nowadays, the hotels also started providing other additional
facilities apart from accommodation, food, cafes and recreational activities (Petrova and
Mason, 2014). This has helped in increasing the business in this sector in a great way.
 Seasonality: The demand and supply side are affected largely by the seasonality of this
sector. It is evident that in many people have their vacations at the time of summers
therefore they plan for trips in such season while some plan it in winters. Thus, seasons
also play an important role in affecting the demand and supply factors of tourism and
related activities.
 Sustainability: The sustainability in supply chain management will help in attaining
several aspects (Hudson and Thal, 2013). The sustainable supply chain management
helps in better designing of products, its distribution and procurement as well. The TUI
makes its products in a way that can help in attainment of sustainability through best
prices and products so that it can attract the customers towards it. It ensures that
distribution can also be done in best way which provides various platforms through
which products and services can be accessed. Thus, the cited firm makes its objectives
based on same perspective that can give more exposure to products and services along
with its greater sales.
TASK 4
4.1 Positive and negative effects of tourism
Positive impacts
 Economic effects: The travel and tourism activities make economic growth of country
more as they are enhance the foreign reserves of country (Yang, 2010). Besides this, it
also contributes in generating various employment opportunities like tour operating
companies, travel agencies, tour guides, more hotels, resorts,, lodges etc. Further, the
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taxes that are posed on different products that are purchased by people also give revenues
to government which are invested in developmental works.
 Environmental impact: In Egypt and Spain, tourists come in large number which has
increased the awareness among government to take some steps that can help in
preserving the environment. The government has taken initiatives to encourage eco
tourism and green tourism (Heung, Kucukusta and Song, 2011). Apart from this, Egypt
is famous for its Pyramids so it becomes necessary that some measures are developed as
more tourism will definitely increase the wastages near such places. Social: The Spain and Egypt are famous places for heritage and cultural sites that attracts
a large number of tourists in these places. Therefore, to maintain the tourism activities,
government in these countries have taken measures that assist in development of such
locations. Besides this, the authorities take care of these places by timely maintenance
and repairs. This helps in preserving the culture and heritage of these countries (Reddy,
York and Brannon, 2010).
Negative impacts
 Economic: The economic growth has been encouraged through travel and tourism
activities but it is also evident that due to it is a seasonal industry that provides growth
opportunities at the time of particular seasons. Other times, it gives less opportunities to
have good development and revenue generating opportunities. Thus, it can result in
slower growth at the time of off seasons (How a country's economic policy influences the
success of the tourism industry, 2011).
 Environment: With increased level of tourism facilities, pollution and issues of global
warming has increased a lot. The increased traffic and crowds results in more harm to the
environment. Spain is famous for its beaches and similar places where marine life is more
developed. Due to more number of travellers, the marine life has disturbed a lot. The
sewage and garbage which are generally dumped in areas nearby water also increases
more pollution (Evans, Stonehouse and Campbell, 2012).
 Social: The issues related to intake of drugs, alcohol and other unethical practices are
increasing due to cross culture impacts. It also disturbs the tradition and culture of
various places. To establish hotels and resorts, the places in society have been changed
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and turned into commercial buildings that disturbs the society. Apart from this, terrorist
activities in Spain and Egypt has also disturbed the tourism activities.
4.2 Strategies to minimise the negative impacts
 Imparting education: It is necessary to make people educated so that they can easily
understand the positive and negative impacts (Xiang, Magnini and Fesenmaier, 2015).
Further, they can be made aware of various aspects in easier way through this. The
education can be imparted with the help of various mediums like newspapers, internet,
radio and Televisions. Their contribution towards development of tourism activities can
also be encouraged. They can be made aware of making efforts that can help in
preserving heritage and culture of country.
 Regulatory bodies: The interference of government and other related authorities is
necessary in framing policies and strategies that can help in minimising the negative
impacts of tourism activities (Thakran and Verma, 2013). The issues related to terrorism
and corruption is high which creates barrier for tourism. Therefore, it is necessary that
regulatory bodies make strict steps that can help in solving these issues.
 Utilisation of resources: It is necessary that all the resources and funds that are generated
through tourism activities are invested in the development of country. The revenues and
tax collection done by government must be invested in improvement of infrastructures,
roads, transportation facilities etc. Apart from this, these funds can also be invested in
development of wildlife reserves, environmental reforms etc. (Molz, 2012) so that it can
attract travellers and can again be used in developmental works.
CONCLUSION
The present report is based on Travel and tourism sector which is a most recent topic that
helps in understanding the importance of this industry. The report concludes that role of
government and other agencies is very important in the development of these sectors. They
provide financial support as well as frame various policies that helps in enhancement of tourism
activities. Further, it aids in development of infrastructures of nation with economic growth. The
role of TUI has been discussed which is a leading tour operating agency of UK that makes
various plans and policies that results in more tourism in country. Issues like terrorism and
corruption have negative affects on the popularity of tourism. Apart from this, it is also evident
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that there are various positive and negative impacts that has on environment and social aspects
due to increase in demand and supply of tourism in country.
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REFERENCES
Journals and Books
Cuccia, T. and Rizzo, I., 2011. Tourism seasonality in cultural destinations: Empirical evidence
from Sicily. Tourism Management. 32(3), pp.589-595.
Denicolai, S., Cioccarelli, G. and Zucchella, A., 2010. Resource-based local development and
networked core-competencies for tourism excellence.Tourism management. 31(2), pp.260-
266.
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and
tourism. Taylor & Francis.
Heung, V.C., Kucukusta, D. and Song, H., 2011. Medical tourism development in Hong Kong:
An assessment of the barriers. Tourism Management. 32(5), pp.995-1005.
Hudson, S. and Thal, K., 2013. The impact of social media on the consumer decision process:
Implications for tourism marketing. Journal of Travel & Tourism Marketing. 30(1-2),
pp.156-160.
Jackson, L., 2008. Residents' perceptions of the impacts of special event tourism. Journal of
Place Management and Development. 1 (3). pp.240 – 255.
Mehmetoglu, M., 2014. Tourist or traveller? A typological approach. Tourism Review. 59 (3).
pp.33 – 39.
Molz, J.G., 2012. Travel connections: Tourism, technology, and togetherness in a mobile world.
Routledge.
Moutinho, L., 2011. Strategic management in tourism. CABI.
Petrova, P and Mason, P., 2014. The value of tourism degrees: a Luton-based case study.
Education + Training. 46(3). pp.153 – 161.
Reddy, S.G., York, V.K. and Brannon, L.A., 2010. Travel for treatment: students' perspective on
medical tourism. International Journal of Tourism Research. 12(5), pp.510-522.
Thakran, K. and Verma, R., 2013. The emergence of hybrid online distribution channels in
travel, tourism and hospitality. Cornell Hospitality Quarterly. 54(3). pp. 240-247.
Xiang, Z., Magnini, V.P. and Fesenmaier, D.R., 2015. Information technology and consumer
behavior in travel and tourism: Insights from travel planning using the internet. Journal of
Retailing and Consumer Services. 22. pp. 244-249.
Yang, W., 2010. The development of tourism in the low carbon economy.International Business
Research. 3(4), p.212.
Online

How a country's economic policy influences the success of the tourism industry.2011. [Online].
Available through: <http://www.enotes.com/homework-help/explain-how-local-national-
economic-policy-239811>. [Accessed on 9th February 2017].
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