Tourism and Trade Cointegration

This assignment delves into the relationship between tourism and trade in Malaysia, examining their cointegration and potential causal links. Students are tasked with analyzing economic data to understand the interdependence of these sectors. The analysis should consider policy implications for both tourism and trade, as well as the broader context of sustainable development.

Tourism sector

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Timeline of development of tourism sector. (Poster)............................................................1
1.2 Structure if travel and tourism. (Leaflet)...............................................................................2
TASK 2............................................................................................................................................3
2.1 Covered in ppt.......................................................................................................................3
2.3 Covered in Article.................................................................................................................3
TASK 3............................................................................................................................................4
3.1 Factors influencing demand of travel and tourism sector.....................................................4
3.2 Accomplishing demand of tourism sector through its efficient supply to customers...........6
TASK 4............................................................................................................................................8
4.1 Impact of tourism on economical, political and environmental surrounding.......................8
4.2 Strategies to enhance positive impact of tourism and reduce its negative influence..........10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
It can be understood from the development if travel and tourism sector that this activity is
carried out from long time in world. The human being are travelling one place to another because
of some reasons. Instead of that animals and birds are also visiting from one place to other for
food, shelter, reproduction etc. Similar to that human being are also engaged in different tourism
activities in search in order to fulfil different needs. But now a fays scenario has been changed
people are visiting various places all over world in order to explore their interests, knowledge
and spend leisure time. This has been observed after the industrial revolution and recovery from
financial crisis. This sector is shown as huge growth after development of transportation industry
in world. Travel and tourism sector starts its journey from the starting of empire age where king
and queen are engaged in development of various places to contribute in travel sector and also
engaged in travelling different destination to meet other emperor and expand their dynasty.
TUI group is an company which is delivering its services to different types of tourist in
order to exploit their interests through quality services and involved in making large profit
through development of tourism sector. Organisation is delivering its services to almost 30
million customers and helping them to enjoy through better holiday experiences with
organisation packages. In this report historical development of travel and tourism sector is
discussed along with studying about the advantage and disadvantage of respective sector growth
on the environmental, sociological, political and economical environment of country.
TASK 1
1.1 Timeline of development of tourism sector. (Poster)
Introduction: The development of travel and tourism sector can be traced from long time
period. Respective industry is growing at faster rate. TUI group is engaged in delivering its
services to large customer base in order to continue growth of tourism sector in future also.
Period of 1830-1840: This is the starting of tourism sector almost. King George is
engaged in developing various tourist attraction in his emperor converting the bath city as spa
city major tourist attraction of that time period. After development of western railways and Avon
canal leads to growth of travel and tourism sector to large extent.
Period of 1870-1880: In this period the tourist are engaged in exploiting tourism places
in order to explore their interests and involved in various type of activities that excite them.
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Finsbury park is exploited by various tourist in order to enjoy shooting archery activities in
tourist destination located in London.
Period of 1880-1910: In this period of historical development of travel and tourism
sector timeline tourist are engaged in preserving heritage and culture of tourist destinations.
British Museum is having great collection of heritage objects and prints of development of
civilization of country.
Period from 1950-1970: In this age the tourist and visitors are engaged in spending their
high level of income in entrainment activities like going to pubs, clubs and parties etc.
Period from 1980 to current day: From 1980 to till now the tourism sector is going
through vigorous changes and showing huge growth through development of complementary
services in respective industry through working in collaboration with hospitality industry. The
companies are delivering all type of facilities to the respective consumer starting from
consultancy to the making all travel arrangements.
Future growth: The privatisation in travel and tourism sector is having higher future
growth opportunities. Private companies are engaged in delivering luxurious facility to
customers in order to satisfy them efficiently through services.
Conclusion: It can be concluded that the travel and tourism sector is gone through
continuous changes and development process depending upon the different changes in
preferences and reason of travelling of visitors.
1.2 Structure if travel and tourism. (Leaflet)
Neil Leiper defines model which defines the structural elements of travel and tourism
sector. This is defined as foll9ows:
The Human Element: The most important aspect of tourism sector is the human being
which are linked with growth of industry. These are customers, society, their stakeholder. TUI
company is delivering its services to approximately 30 million consumers successfully.
The Generating Region: This is the reason which is source of tourist and visitors. This
develop an push factors which convert an individual as prospective client for the TUI group.
These factors can be psychological, perceptional aspects of person which encourage him to make
travel plans.
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Travel En-route/ Transit Route Region: These are places which are located in between
the destination and source point. These places are developed in order to give rest top tourist in
order to provide them and good experience of travelling by company.
The Destination Region: These are the location which attracts the potential customers
towards the location and convert them a client of company. These are affected by the pull factors
like beauty of destination, Climatic aspects of site which drives visitors to make a holiday trip.
The Industrial Element: These are elements which constitutes the internal structure of
company and travel and tourism sector itself. These are defined below.
Travel agents: These are person who act as intermediate between company and ultimate
customers and provide information about location, company packages and helps them to make
travel arrangements accordingly. Company is having about 67,000 employees which are
working in more than 16000 agencies.
Marketing: This constitutes the spreading awareness about the company products and
services in order to enhance profit of TUI group.
Transportation: This includes the convenient facilities that are given by the company in
order to facilitate travel experiences of tourist. The TUI groups is delivering their services
through their own transportation vehicles through 5 airlines, 150 aircraft and 14 cruise.
Accommodation: These are the accommodation arrangements done by the company in
order to provide them luxurious facilities working intergeneration with hospitality industry, TUI
group is having there own 300 hotels.
Attractions: These are the places by which an company is delivering its services to the
visitors. TUI group is engaged in delivering its tourism services to about 180 places in the world.
Tourism regulations: The tourism sector is largely influenced by different factors like
national and international authority, legal system of country and also affected by regional
regulatory bodies to large extent.
TASK 2
2.1 and 2.2 Covered in ppt.
2.3 Covered in Article.
Impact of Political policies in travel and tourism industry
The political environment largely influence the growth of travel and tourism sector in the
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Impact of Political policies in travel and tourism industry
country. Governmental policies and political instability is influence by the various activities
which ultimately effects profitability of tourist industry. This is regulated by governmental
policies and other factors like terrorist attack, instability of country. The UK is going through
various dynamic changes in the practical environment which affects the development an profit
rate of tourism also, this ultimately affects the economic growth of nation. The government is
continuously engaged in increasing demand of tourism in country and countlessly making effort
to supply large number of visitors to the industry through introducing new policies in
functionality. One of the major initiative in relation to the growth of this particular industry is
the UK governing body extended visa validity of Chinese traveller to 2 years which was having
only 6 month validity earlier. This is increased to 4 times approximately which will increase the
supply of tourist to country. The China traveller are contributing about 500 million euros
country travel and tourism sector which is expected to increase by more 35% in next upcoming
years. David Cameron prime minister of UK stated that chain is an highly profitable tourist
market for the UK tourism industry. This is having great capability in order to contribute in
profitability of respective industry. So, in order to enhance the traveller numbers from China the
UK government is maintaining good relationship with the Chinese government. China is
growing with faster rate and is ranked at 4th position in world which is engaged in delivering
inbound tourism activity to country in large extent. The total number of visitors travelling to
China was observed approximately 55 million in year of 2007. This come to possible after the
Mao's, all the responsibility of China development was taken up by Deng and convert the
market in an huge profitable prospective market of world.
TASK 3
3.1 Factors influencing demand of travel and tourism sector.
Demand of an tourist destination is affected by many external environmental factors and
personal behaviour if visitors himself (Travel and tourism. 2015-2017). Demand of tourism is
influenced by external aspects like political, economical and development stage of place to large
extent. The personal interest, attitude also influence development and demand for particular
locations. Some of the influencing factor of travel and tourism sector growth are defined below.
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Individual factors:- This defines the attitude, choices and preferences of an person who
is willing to travel. Individual behaviour is an important aspect in order to enhance demand of an
tourist destination. The companies are countlessly trying to explore and exploit various demand
of different types of tourist in order to attract them towards the TUI group products and services.
Like for an example individual age, sex, religion, origin largely influence the choices and habits
of traveller.
Economic factors:- Economical development stage of country and location largely
influence the travel plan of an person. If the country is well developed then person will more
preferable visit these destinations as compared to others. UK is an developed country and highly
focusing in economic development of country too. London eye is one of the most visited site of
the world as it have all luxurious facilities available which a person is requiring. Also country is
having good economical condition to invest in travel and tourism sector which largely enhance
demand of respective industry.
Geographical factor:- The location and climatic condition of an tourist destination
largely affect the desires and wants of visitors to visit these place. Good climatic environment of
location largely motivate tourist to visit place as this kind of climate highly relieving so every
person like to take reset from the busy scheduled life (Garín-Muñoz and Pérez-Amaral, 2011).
Other geographical factors like altitude location i.e. height of destination above sea level,
temperature of site largely influence as visit of tourist and contribute in the defining demand of
travel and tourism sector.
Destination factors:- The development stage of destination largely affect the desires of
an visitors. Destination s accomplished with all luxurious facility will be more visited by people
as compared to other locations. The tourist place which is easy to assess will also enhance the
demand of location. As places which are located in forest or hill top are less visited by tourist. As
these can not be assessed by visitors easily and this ultimately affects the desires and wants of
visitors.
Political factors:- Political contribution is having great influence on the profitability of
travel and tourism sector. Political factors like stability, contribution of government in growth of
respective sector and various governmental policies largely impact development of travelling in
country (Travel and tourism sector. 2017). The politically stable country comprise of higher
capability to entertain more numbers of tourist satisfactory. The wars, terrorist attacks also
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largely influence growth of travel and tourism industry. As like for an example after terrorist
attack in London growth of tourism sector decreases in many folds. But with the governmental
assistance country tourist industry shows faster recovery and develop higher demand in travel
and tourism sector.
Tourisms complementary facilities:- The complementary services of tourism sector
largely motivates and traveller to make visit place. Like for instance availability of secondary
visitors attraction also encourages and individual to make travel plans. Other complementary
facilities which explore the interest of an individual also encourage them to involved in travelling
activity. Liker for example availability of knowledge exploring places, adventures activity,
organising of various events largely motivates and traveller to explore their interest (Ghimire,
2013).
So, all these factors largely contributes in deciding the demand of travel and tourism
sector. Through making analysis of destination demand factor companies are involve in
delivering services of travel and tourism sector like TUI group company can make profit through
exploiting high demand of tourist for particular location.
3.2 Accomplishing demand of tourism sector through its efficient supply to customers.
The supply of tourism to the required demand of tourism is very much necessary by the
country in order to garb all available growth opportunities in the travel and tourism sector
growth. The travel and tourism sector demand can be fulfilled by increase available resources in
the respective sector and increasing involvement of visitors in this type of activity. Supply of
tourism can be enhanced in many folds through regulating their chosen preferences by
maintaining and sustainable development of destinations and locations. The various factors that
influence supply of tourism to the developed demand is described below.
Natural resources:- Tourism activity in the particular location can be increased for
suppliers through making sustainable development of natural resources of place. As these
resources are major motivational factors for the visitors in order to explore beauty of nature
efficiently (Economic Impact Analysis. 2017). Natural resources available in the location can be
also the fresh air, environmental and climatic condition of attraction. This largely influence the
growth of travel and tourism industry. The less polluted destination is more occupied with large
numbers of customer supply to demand. The availability of good climatic, natural resources like
food, water will impact the tourism activity in location to large extent.
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Man made resources:- The resources which are man made also largely influence the
choices and preferences of visitors to make visit. This ultimately effects the supply of tourism to
the respective sector to accomplish high demand of travel industry in order to gain higher
economic growth rate. The reason and basis of the development of man made resource can be
judged through its efficiency in exploring interest of various traveller. The reason of man made
resources in the places should be motivational explore different interests of tourist in order to
enhance supply of tourism in particular area (Hall, Scott and Gössling, 2013). The British
museum is an man made resources which help in exploring new knowledge about cultural and
heritage development of England. So, this helps in increasing supply of visitors to the visitor
attraction to large extent.
Source 1: Top Things To Do In London This Weekend. 2017
Conveyance:- The tourist attract should be easily accessible and available resources
should provide convenience to the visitors to make visit to the location and can explore their
interest of travelling efficiently (Hudson and Thal, 2013). This will contribute in supply to the
higher demand of travel industry. The transportation and other basic facilities available in the
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place provide higher convenient to the tourist to make visit to the places. Like good
transportation facilities will leads to higher and easy accessibility of action by the customers and
will leads to huge supply of the tourism in that region.
Hospitality:- This helps in increasing the tourism industry growth to large extent. As the
accommodation is major part of travelling. So the tourism companies are engaged in working in
participation with the other hospitality industry service providers (Kadir and Jusoff, 2010). This
helps in providing an better travel experiences to visitors and helps in motivating the traveller to
make visit for particular location. So, this largely contributes in supply of tourism to the travel
industry demand in the nation in order to contribute in economical growth of country largely.
TASK 4
4.1 Impact of tourism on economical, political and environmental surrounding.
The travel and tourism growth and development largely influenced by the external factors
like economical, political and environmental factors to large extent. While the respective sector
affects these aspects to some extent also (Lipman and et.al., 2012). Thailand is an tourist
destination which is growing at faster rate which is contributing in growth of economy of
country to large extent. Similar to this China inbound and outbound tourism activity also affects
the is economical growth large extent. Some of the positive and negative affects of travel and
tourism industry in the economical, sociological and environmental factors of an county are
described below.
Travel and tourism industry is largely influenced by various factors.
Effect of tourism sector growth
Basis Positive influence of tourism Negative influence of tourism
Economical  Travel and tourism sector is and
large source of employment in
country, this industry provides
employment to citizen of country
and contribute in economical
development of UK.
 Employed individual is having
 The negative impact of this
travel and tourism in economy
is that the provided salary to
employee of this respective
sector is very low as compared
to other industry.
 Another disadvantage if
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Effect of tourism sector growth
higher spending power. Like for
an example china is having large
ratio if employed citizen in
country which are involved in
spending their disposable income
to the travel and tourism sector
and contributes in economic
development of country through
increasing profitability of
tourism industries.
 Chinese tourist is having large
contribution in growth of UK
economy and GDP,
approximately 500 million euros
contributed by an visitors from
China in the economy of UK.
This amount largely help in
development of economy of an
country.
development of this sector is
that profitability of tourism
industry seasonal and its
provides employment to
people of limited time period.
Social  Travel and tourism largely
motivates social development if
country top large extent. For
example Thailand is an hub of
cultures which are preserved
through growth of travel and
tourism in country.
 Cine people are also following
Buddhism and other religion
culture. The China in also having
 Travel and tourism industry
growth is having negative
impact on society as it grows
with development of unethical
habit of youngster and people
of country.
 Youngster starts addicting to
drugs, alcohol influence by the
traveller activities. This
negatively affect the sector
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Effect of tourism sector growth
great civilization development
history along with heritage sites
which are preserved through the
development of tourism industry.
 The various issues of society and
problem faced by people are
known by visitors and this help
in spending cruel customs of
society of country which help in
resolving problem through
governmental assistance.
culture and development.
 The society of Thailand are
lagging behind with the
growth of travel and tourism
sector. The people of society
are engaged in various
criminal activities which
negatively influence the
sociological development in
environment.
Environment
al
 The travel and tourism growth
leads to higher involvement and
responsible actions from the
government of country.
 This helps in preserving the
natural resource available in
country.
 Thailand rivers and coral reefs
are protected with the
development of travel industry
and governmental assistance.
 The higher exploiting activities
of a tourist at the place of
destination affects availability
of natural resources
negatively.
 China inbound an tourism
activities involved higher
carbon foot-printing services
and increased pollution in
environment because of
increased tourist activity in
country.
4.2 Strategies to enhance positive impact of tourism and reduce its negative influence.
The negative impact of growth of travel and tourism industry can be reduces by the
following up the respective stages in practice are defined as follows:
 The TUI group is engaged in delivering its services through engaged in sustainable
development of site by reducing carbon footprint in their services.
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 Organisation is working in restricting the visitors activity in order to reduce
overexploitation by visitors (Mok, Sparks and Kadampully, 2013).
 Government is prohibiting the human activity in the protecting area of forest in order to
protect endangered species and wildlife of destination.
CONCLUSION
From this particular report it can be concluded that travel and tourism sector is having
great influence on the development of country. This sector provides an huge rate of employment
which leads to providing strength to economy of country. This sector is influencing
environmental and sociological surrounding of UK also. In one way it is helpful in maintaining
and good political environment through more responsible response of government for
development of tourism in country while in another way it also negatively effect the political
stability because of higher tourism in can city will leads to local unrest and higher chances of
terrorist attract at place of attraction. While Tourism also contribute in sustainable development
of natural attraction and also plays an important role in preserving the heritage and culture of
UK. In order to maintain an continuous growth of travel and tourism sector the country should
maintain the supply of services through private companies and governmental helps in order to
accomplish huge demand of his respective industry to make large profit.
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