The Travel and Tourism Sector

This report covers structure and history of travel & tourism sector as well as influence of national and local government and international agencies on it.

The Travel and Tourism
Sector

Table of Contents
INTRODUCTION .........................................................................................................................3
TASK 1............................................................................................................................................4
1.1 Key historical developments in travel and tourism sector....................................................4
1.2 Structure of travel and tourism sector...................................................................................5
TASK 2............................................................................................................................................6
2.1 Function of government, international agencies and government sponsored bodies in
travel and tourism........................................................................................................................6
2.2 The way in which local & national economic policy impacts the success of travel and
tourism industry..........................................................................................................................7
2.3 Implications of political change on travel & tourism sector in different countries..............8
TASK 3............................................................................................................................................8
3.1 Factors that affects tourism demand.....................................................................................8
3.2 The way supply has changed to meet effects of demand......................................................9
TASK 4............................................................................................................................................9
4.1 Evaluation of positive & negative environmental, economic and social impacts of tourism
.....................................................................................................................................................9
4.2 Strategies that can be utilized to decrease the negative impacts while increasing positive
impacts......................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................13

INTRODUCTION
Travel and tourism is identified as one of the rapidly growing sector of economy that
plays vital role in development of country. This industry is the largest foreign exchange earner of
world among all sectors and administers employment directly to many peoples. Travel and
tourism industry constitutes of exchanging tourists within nations and render them with all
required facilities (Travel and tourism sector. 2017). In the present assignment, chosen
organisation is Touristik Union International (TUI) which is an Anglo German tourism firm
headquartered in Berlin, Germany. This report covers structure and history of travel & tourism
sector as well as influence of national and local government and international agencies on it.
Apart from this, it also defines about effect of demand and supply on travelling industry and
impact of tourism on TUI group business.
TASK 1
1.1 Key historical developments in travel and tourism sector
In 1945, agriculture is seen as the major source of employment for most of the people. In
between this era, only 'elite' individuals utilized to optimise travelling luxuries or extravagances
in moving from one place to other. After revolution in travelling industry, more drastic
alterations were expected by people however, there were less changes saw in this sector. A
negative influence were made by Industrialization on this section as individuals were selecting
holiday services more probably. In this time, tour administrators, travel agents and hotels were
working independently. In recent time, most businesses were confronting issues because of
world war so nobody was convey much attention to economical condition of nation.
Between 1945-1979, critical changes were takes place in travelling and tourism business
as this has increase most extreme development and growth in certain time frame. Demands of
customers were considering by hotels and began to provide diverse exotics and plans to make
such administrations accessible for distinctive income groups (Buckley, 2012). Transport group
operations start new offers & services for example, travelling insurance with help of aircraft
ventures. They were additionally rendering accommodation facilities that was pulling in more
potential customers. Before year 1980, people were investing their leisure time in opting
travelling services in holidays. These new alterations bought various positive changes in
industry. As technological developments introduced in this sector, the division has achieved new

statures. This leads to decline in operational cost and emphasize more on target market. Life
standard of people of UK community was developing so they started to deploy travelling
activities more.
In current situation, travel and tourism sector play essential part in economic
development of country. It creates a lot of employment opportunities for local people of
respective country who are more disposed in business exercises like working as travel agents,
business guides etc. In this period, the legal authority or government were not aware more about
promotion & benefits regarding tourism sector (Evans, Stonehouse and Campbell, 2012). TUI
render all kinds of travelling arrangements to people along with accommodation, transportation
and some more. Thus, youth is receiving profession in tourism division as there are different
visitors who are moving from one destination to other. They want to visit various destinations.
Photography has significant part in the progression and advancement of tourism and travelling
sector along with social media. Potential clients get more pulled in toward these promotional
exercises and became inquisitive for such places. It inspires people to visit more and make trip to
specific places.
1.2 Structure of travel and tourism sector
Structure of tourism and travelling industry is complicated or complex in some nations. It
is that segment which does not rely upon one area or locale, state or division. They are
thoroughly rely upon travel arrangement which are existing in different countries. Fascination is
one of the significant component inside the tourism business, it can be made or arranged. There
are different components which exist in this industry that are not extremely conceivable.
Alongside this, transportation is critical part in whole system because of this, explorers can move
from one country to next. In current situation, clients are prepared to give careful consideration
in more sum which give better administrations and facilities. At that time, there maybe a couple
of transportation mode that are accessible however, in recent time people can move from one
place to another with the assistance of trains, cars, airlines and so on (Garín-Muñoz and Pérez-
Amaral, 2011). TUI group has incorporates 150 air plane and 14 luxury ships. Travel specialists
as well as tour operators are identified as medium between clients and association such as TUI.
They are buying different sorts of tour packages and a few handout and after that offer them at
higher cost for getting substantial measure of gainfulness. Such program and sessions can be sold
which straightforwardly influence to the clients and furthermore take help with operators.

Human components has give measure up to importance if this is thought about from attractions.
Alongside this, representatives in lodgings, drivers in transportation, and so forth are available
which isn't conceivable. There are sure factors, for example, environment, systems, arrangements
and innovation, and so forth that are considered as most essential part travelling and tourism
division. For the advancement in the market, association are plan to grow their business because
of this, association are attempt to extend their business as they are make positive condition
session future extent of this industry (Ghimire, 2013).
TASK 2
2.1 Function of government, international agencies and government sponsored bodies in travel
and tourism
Tourism is universal formulating and developing industry. This is one of the significant
area which help in creating outside salary and income as opposed to import and fare industry.
The experts or government has real investment in travel and tourism industry, for example,
political improvement and market balanced framework. Alongside this, travel and tourism
division is basically influence by tax assessment approaches, condition, transportation
framework and procedures and furthermore administration has been assume critical part in this
segment. The travel and tourism arrangements are chiefly trailed by government in regards to
with social, financial and infrastructural change in better way. They are activity that laid by
specialists are bury administrative, after that empowering their new high to make cordial
relationship and monetary development of an association.
Working of government – For travel and tourism area, government outline or forced a
few arrangements and techniques which incorporates shopper intrigue, goal, well being and
security, blend of exchange, foundation, for example, stay spots or areas, transportation,
relaxation administrations or offices which draw in extensive number of clients towards their
viable merchandise and enterprises.
Government supported bodies – Government has additionally approved certain
legislature for advancing their tourism administrations or facilities. They are giving exhort in
regards to compelling advertising techniques which offer openings and furthermore counsel and
collaborate with private enterprises that pull in huge number of guests. It will help with deciding
the outcomes and ensure that it is required to development of voyagers.

The primary function or activity of the tourism service and then again, government has
been supported approved body which depends on arranging, promoting, examining,
measurements, exchange directions, advancement, improvement of tourism assets, spreading
mindfulness among clients, and so forth.
International agencies – There are diverse number of government bodies and non
government experts which have some tourism interests. Alongside this, administration bodies
exhibit the political enthusiasm in regards to tourism. The universal tourism segment, an
intergovernmental body has aggregate perspectives in the travel and tourism issues and issues.
This includes association alongside non government and business accomplices which aiding
relevant direction and it depends on helpful movement.
As indicated by the extension of intergovernmental approved, exchange segment are
sorted out and led at both national and worldwide level which want aggregate work. There are
distinctive outside gatherings or affiliation which has been built up for advancing tourism, for
example, International Hotel Association (IHA), International Airport Transport Association
(IATA), International Chamber of trade (ICC), Universal Federation of Travel Agents
Associations (UFTAA) and so on.
2.2 The way in which local & national economic policy impacts the success of travel and tourism
industry
The greater part of the country does not know importance of travelling and tourism sector
before 1950. They are excluding in this arrangement and formulation of economic strategies. In
current period of time, they can comprehend significance of such area because of this it will
assume a basic part in international reserve increment of the nation. In recent development, the
government of United Kingdom is expanding legitimacy of visa of Chinese traveller from a half
year to 2 years.
Economic development of china is higher, and their expectation for everyday comforts is
improving at regular basis over time. Per capital income is likewise improving and in regards to
population so, the country is becoming more popular everyday in every manner. There are some
critical reason that legislature is giving extraordinary treatment to Chinese sightseers. In current
period of time, the commitment in UK economy are normal that it will pass by expanding 35%.
Due to their decisions, international exchange reserve is improving. After Brexit, estimation of
pound is decreasing in strong manner. The change is imperative for Chinese traveller which are

accessible in various administrations or facilities that brings down cost. They can purchasing
more items and accomplishing additionally shopping from UK. For Chinese individuals, United
Kingdom will be least expensive tourism because of this estimation of other currency in Europe
nation will down that is lessening at constant time period. They can get more fun at reasonable
price which draw attention of large number of customers.
2.3 Implications of political change on travel & tourism sector in different countries
Political changes are assuming an essential part in failure and progress of travel &
tourism industry of a specific nation. If there are any sort of changes occurs, then it will directly
affect the people who are related with the business. In case if changes are positive then
population will procure advantages by it and if contrary, at that point individuals may need to
confront different sorts of misfortunes or losses. The two nations which are selected here are
China and Iran.
China: Earlier china was renowned for its entrance and leave confinements for travellers
so it was not in list of individuals to consider it for the purpose of travelling. However, later on
China was open up its doors for investment and thus travelling sector get the chance to develop
themselves in nation too. There are numerous wonderful destinations in China among which one
of the most popular attraction is Great Wall of China.
Iran: After year 1980 war, tourism began declining. Therefore, they altered themselves
after which the no. of visitors began to increasing each day. Since, Iran is likewise well known
for religious reasons so large portion of the explorers who came to Iran is coming for religious
reasons only. Thus, the legislature of this nation assessed that they are having a decent chance to
build the no. of travellers by making utilization of religious convictions of individuals.
Additionally, they executed different strategies for creating employment in the nation too. There
was no separation done between individuals who came to visit different sorts of pilgrimages.
They have developed their foundation too and constructed nearly 640 hotels and in this manner
they are presently procuring 1 billion US dollar.
TASK 3
3.1 Factors that affects tourism demand
Tourism sector is playing an essential and significant role in developing and betterment
the economy of the nation. There are different types of factors that are highly impacts on the

perception of the clients which affects the supply and demand of hospitality sector in direct
manner (Lee and Brahmasrene, 2013). Such factors can be categorized into different parts
including taste, choice, income of the consumer, product cost and many other Like, if there will
be a maximise in the recession occurs, travel fares and holiday is in off time of year then it will
have an direct effect on the travel and tourism. Demand and supply of the tourism industry is
highly effects on its growth and development in an effective and efficient manner. There are
some factors that define the effects of tourism demand which are shown as below:
 Economic system with matters factoring from politics, environment, exchange rate and
taxation.
 Threats and crises of natural structure,
 Variation in Demographic
 Immigration impacts
 maximise in educational level
 Product and services consistency
 Strategies of price
Thence, it can be said that all these factors are having more effects on the demand and supply of
tourism in a direct manner. Due to this, clients are modifying their judgement regarding the
particular destination. Thence impressive strategies are state developed by business entities so
that they can highly attract various number of audience. TUI understand that if they will yield
services and products in different varieties then it will get easy to maximise customer base in the
organisation. It is to be detected that there are few nations where legal authority is helping
travelling industry more which is good for the growth and success of organisation in an effective
and efficient manner (Lew, 2011).
3.2 The way supply has changed to meet effects of demand
It is large important for making better assessment from view of demand and supply. The
entire effect of tourism sector is principally analysis by government according to large number of
traveller. Tourism has battle beside with effect categorization without any needs or requirements.
For taking into consideration, it will impact on society, environment and taxation system which
generators as useful data. Beside with government policies and strategies are guided by
optimistic effort and main problem which require to be determined. The product quality is
supplied according to the sustainable goods for betterment and growth of tourism sector. At the

time period when large number of population have to lookup for different person for booking of
cab, hotel and many other but now an individual venture can supply entire services and create
right plan and strategy for their travellers. TUI group have interpreted this work for meet the
customers demand that can effect on hospitality industry. These are determined as below:
 Discussion with neutral such as customers, tour operator, hotels, airport and so on.
 Assemblage of information such as providers spend water usage, employees welfare
electricity and customers spending information (Mammadov, 2012).
TASK 4
4.1 Evaluation of positive & negative environmental, economic and social impacts of tourism
There are different sorts of advantages which a nation derives in the wake of advancing
the travelling area like increment in work rate, money related benefits and so on. In any case,
there are different sorts of negative effects too that a nation causes. Both these variables can be
depicted as takes after:-
Economic effect:
Positive outcomes: Through tourism advancement, government can make large measure
of openings for work for the general population of nation (Economic Impact Analysis. 2017).
They are additionally taking advantages as benefits and income also and China is one of those
nations.
Adverse impacts: If a man is working in tourism part then they won't get a decent
measure of cash. Likewise, to attract the clients; organizations need to keep up great foundation
and go to the visitors in best way and in doing this bunches of cash is utilized.
Social effect:
Positive outcomes: Tourism division is dealing with customary traditions and
celebrations so they can pull in the clients in a simple way and make them agreeable too. They
are additionally focussing on different sorts of social exercises like human rights and destitution
and so forth.
Negative impacts: Behaviour of guest at times have impeding effect on life of nearby
network. Alcohol, congestion, drug problem and swarming maximize crime level which are seen
as negative impacts. The negative effect of social factor identified with loss of social
enhancement of the specific country (Guttentag, 2015). The commercialisation of the specific

country of the way of life like tunes, different kinds of moves customary occasions, loss of
neighbourhood workmanship realities or verifiable component , nearby conventional abilities,
loss of realness in al distinctive structures, prompts increment in wrongdoing prompts give
negative effects on the tourism area.
Environmental effect:
Due to increase in the contamination and globalization it makes heaps of issues influence
the regular asset which gave by the nature and it additionally bother the untamed life of the
diverse creatures which lives in the wildernesses. This occurs because of expansion of populace
of person and furthermore extend the zone of tourism. Expanding in the waste transfer is turning
in negative effect on characteristic asset. It likewise give negative effect on the greenery fauna ,
highlight of the scenes harm of the rare assets and numerous others. Which are affecting dangers
to the tourism part (Hudson and Thal, 2013).
4.2 Strategies that can be utilized to decrease the negative impacts while increasing positive
impacts
Tourism which isn't supervised properly has various negative effects on the earth of
travellers. Another tourism style is named as ecotourism which get recognized worldwide and
give valuable result in condition and gives good position to adjacent gatherings too.
Strategies for restricting negative effects:
 In the event that travellers will live with neighbourhood individuals other than living in
resorts and motels, so they will prepared to get information about presences of close-by
gatherings and can fathom their lifestyle.
 Data should be given to tourists with respect to low impact on condition. This thing can
be created if tourist will get fitting direction as for this (Moutinho, 2011).
 Tourism should be controlled so that there will be constrained mischief on nature
Beside this, particular constructive outcomes are also there on account of tourism which
can be portrayed as takes after:
 With the help of tourism, there will be change in natural association and orchestrating.
 There will be enhancement in informational activities and commonality with condition.
 There will be addition in security and approval of principles and bearings of condition.
 Tourism helps in giving cash related duty and moreover reinforces in guaranteeing
condition and making neighbourhood social requests (Khare and Khare, 2011).

In this context, there are some strategies which helps in improving the positive impact on tourism
sector. All these are as follows:
 Communicating as well as interacting with society to promote cultural values in order to
inviting as well as impressing number of visitors.
 Enhance visitors by making political stable.
 Reduce negative impact on national economic by making an effective as well as
appropriate policies.
 In addition of this, UK government needs to maintain the attractiveness of destination.
This will leads in inviting number of customers over there.
 Eliminate all the unethical practices as it helps in developing the economic growth of the
nation (Klint and et.al., 2012).
CONCLUSION
As per the above mentioned report it has been concluded that travelling and tourism is a
vital industry which helps in building up the economy of the nation by giving different sorts of
occupations to the general population living in the nation. It is having an extremely strong
connection with legal administration of the nation as they are the main ones who offers help to
this sector to develop and grow in the nation. They provide them monetary help by which they
get support to lead every one of their exercises in a compelling way. For this industry, clients are
everything & they are making every single plan by remembering the necessities and demands of
clients. Some factors are also influenced their demand such as economic situation, political
conditions and so on. They are exceedingly supported by innovation too and it is endeavouring
them to develop in technology also.

REFERENCES
Books and journals
Buckley, R., 2012. Sustainable tourism: Research and reality. Annals of Tourism Research.
39(2). pp.528-546.
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and
tourism. Taylor & Francis.
Garín-Muñoz, T. and Pérez-Amaral, T., 2011. Internet usage for travel and tourism: the case of
Spain. Tourism Economics. 17(5). pp.1071-1085.
Ghimire, K.B., 2013. The native tourist: Mass tourism within developing countries. Routledge.
Guttentag, D., 2015. Airbnb: disruptive innovation and the rise of an informal tourism
accommodation sector. Current issues in Tourism. 18(12). pp.1192-1217.
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.
Khare, A. and Khare, A., 2011. Blending information technology in Indian travel and tourism
sector. Services Marketing Quarterly. 32(4). pp.302-317.
Klint, L.M. And et.al., 2012. Climate change adaptation in the Pacific Island tourism sector:
analysing the policy environment in Vanuatu. Current Issues in Tourism. 15(3). pp.247-
274.
Lee, J.W. and Brahmasrene, T., 2013. Investigating the influence of tourism on economic growth
and carbon emissions: Evidence from panel analysis of the European Union. Tourism
Management. 38. pp.69-76.
Lew, A.A., 2011. Tourism's role in the global economy. Tourism Geographies. 13(1). pp.148-
151.
Mammadov, R., 2012. The importance of transportation in tourism sector.
Moutinho, L. ed., 2011. Strategic management in tourism. Cabi.
Roxas, B. and Chadee, D., 2013. Effects of formal institutions on the performance of the tourism
sector in the Philippines: The mediating role of entrepreneurial orientation. Tourism
Management. 37. pp.1-12.
Shaw, G., Bailey, A. and Williams, A., 2011. Aspects of service-dominant logic and its
implications for tourism management: Examples from the hotel industry. Tourism
Management. 32(2). pp.207-214.
Wu, P. and Shi, P., 2011. An estimation of energy consumption and CO 2 emissions in tourism
sector of China. Journal of Geographical Sciences. 21(4). pp.733-745.
Zapata, M.J. and Hall, C.M., 2012. Public–private collaboration in the tourism sector: balancing
legitimacy and effectiveness in local tourism partnerships. The Spanish case. Journal of
Policy Research in Tourism, Leisure and Events. 4(1). pp.61-83.
Online

Economic Impact Analysis. 2017. [Online]. Available
through:<https://www.wttc.org/research/economic-research/economic-impact-
analysis/>.
Travel and tourism sector. 2017. [Online]. Available
through:<http://www.economist.com/topics/travel-and-tourism-sector>.