Tourism Industry Analysis & Trends

This assignment focuses on analyzing the UK tourism industry in 2017. Students must utilize provided online resources from organizations like Visit Britain, InterContinental Hotels Group Plc, and WTTC, alongside academic publications and journals. The task requires evaluating trends, challenges, and future prospects within the tourism sector using this diverse range of sources.

TRAVEL AND TOURISM

Table of Contents
Introduction.................................................................................................................................................7
1.1 Explain key historical developments in the travel and tourism sector..................................................7
Explain the structure of the travel and tourism industry.............................................................................8
2.1 Analyze the function of government, government sponsored bodies and international agencies in
travel and tourism.......................................................................................................................................9
2.2 explain how local and national economic policy influences the success of the travel and tourism
sector.........................................................................................................................................................11
2.3 discuss the implications of political change on the travel and tourism sector in different countries. .11
3.1 explain factors affecting tourism demand...........................................................................................12
3.2 explain how supply has changed to meet the effects of demand........................................................13
4.1 evaluate the main positive and negative economic, environmental and social impacts of tourism....14
4.2 explain strategies that can be used to minimize the negative impacts while maximizing the positive
impacts......................................................................................................................................................15
Conclusion.................................................................................................................................................15
References.................................................................................................................................................17

Introduction
Travel and tourism has been regarded as rapidly growing industry in the world as people in
present time are enthusiastic towards work as well as carry out travelling for leisure, relaxation,
adventure and many others. The need on part of this industry is to provide quality services in a
diversified manner so as to generate high amount of business from the travellers (Le-Klähn and
Hall, 2015). The report has given an emphasis on history as well as structure of UK travel and
tourism industry followed by studying how it is influenced by local/national governments and
international agencies as well as economic policies. Emphasis will further be given on impact of
supply and demand on tourism industry of London followed by analyzing the positive and
negative impacts and presenting recommendations for the same.
1.1 Explain key historical developments in the travel and tourism sector
 Early explorers – this stage was marked by first sailing vessel and invention of wheel,
building of roads and travel through caravans. Roman Empire brought travel of freedom
which is also seen during the time of Jesus when he travelled a lot with his disciples.
 Late 16th century – This was time of Grand tour which was a traditional trip taken by
upper class families of London who were accompanied by Chaperons. The 16th century
further saw the development of roman baths and tourist towns that had presence of spas
which in present era is known as spa tourism (Raj and Griffin, 2015).
 17th century - In Georgian era that dates from 1714 to 1830, City of bath became most
popular destination for spa and was later known as Georgian spa city. Grand tours were
still popular in 17th century which was followed by development of Cox and kings that
was the first known travel agency.
 18th century - Thomas Cook in 1845 ran the first commercial packaged tour, which had
railway tickets as well as printed guide (Telfer and Sharpley, 2015). Skating further
emerged as a new attraction for visitors to London. Other than this rifle shooting, archery
as well as similar such sports became popular and was played at Finsbury Park as well as
Battersa.
 19th century- French revolution marked the end of Grand Tour as rail transit came into
action during early 19th century. Due to well-built roads buses used to run for travel

purpose. 1950 also saw the creation of club holiday destination like Club Méditérannée.
Holiday pay act was further launched in 19th century that provided paid holidays to
working class employees. This century further marked the launch of guidebooks that
guided travelers about London. Separate guidebooks were also present for the females.
 20th to 21st century – Travelling has grown up since the end of World War 2 and due to
advancements in airplane technology. Usage of internet has given rise to online bookings.
In present era many different forms of tourism are popular such as medical, adventure,
sex, space, extreme, war, religious tourism among others (Hannam, Butler and Paris,
2014). Government of various nations has also started promoting tourism activities which
is known to give a boost to economy.
1.2 Explain the structure of the travel and tourism industry
Tourism industry of Britain is an affiliation of public as well as private sector firms that includes
SMEs, private business (airlines, hotel chains) as well as destination management organization at
local and regional level. In this regard, there is also a presence of regulatory bodies such as
International Civil Aviation Organization to regulate air transport services. At the national level,
UK government has the responsibility to put legislations related to health and safety measures,
airport security among others (Raj and Griffin, 2015). Local authorities also carry out work on
Travel
and
Tourism
industry
Public
sector
Private
sector
Trade
unions
Regulatory
bodies

matters such as inspection of hotel and restaurants. The European Commission also announces
protection measures for the tourists.
There is further a setting up of trade associations to present the interests of companies. These are
inclusive of ABTA which is also known as Association of British Travel Agents and it is a UK
travel and trade association meant for tour operators as well as travel agent. Other than that
AITO which is the Association of Independent Tour Operators provide support to members and
lobby the government for getting better deals (Inman, 2017). Public sector has got a presence of
government sponsored bodies such as visit Britain, departure of culture media and sport. Also
there is a widespread network of rail, road and air transport so as to aid in proper commutation of
travellers.
In private sector there is a presence of big hotels such as Hilton, Holiday Inn etc. that provide
accommodation and other services to the travellers. Various tour operators are also present in
UK travel and tourism sector such as Thomas Cook, Cox and King, Virgin etc. which provide
flight tickets, accommodating facility, tourist attractions etc. in combined packages. Airline
companies such as Virgin Atlantic Airways, TUI, Titan, Brutish airways among others also cater
to need of travellers which is followed by ferries like DFDS and Stena line etc (Le-Klähn and
Hall, 2015).
2.1 Analyze the function of government, government sponsored bodies and
international agencies in travel and tourism
The government, its sponsored bodies as well as international agencies play a key role in
regulating the overall working of tourism and travel sector within UK. They aid in taking
strategic decisions that ensure towards social and economic growth of the industry. These are
inclusive of;

 The Tourism Industry Council – It has emerged on account of collaboration between
government and tourism industry with a focus to improve the tourism sector in the area of
job, transport and deregulations. The council does the work of sounding board and acts as
point of dialogue between industry as well as ministry of UK.
 Visit Britain – Visit Britain is a non-departmental public organization and a national
tourism agency that does the work of marketing Britain on a world level. It works with
UK trade and investment, airlines, tour operators and official tourism bodies present in
London, England, Scotland and Wales (Visit Britain, 2017).
 DCMS – Department for Digital, Culture, Media & Sport (DCMS) is a ministerial
department of UK that aid in growth and promotion of cultural and artistic heritage of
Britain in other nations. It further assists business and communities to attain growth by
innovation and showcasing Britain as a fantastic place for tourism (DCMS, 2017).
 IATA – it is the International Air Transport Association which does the work of
supporting aviation and adhering with global standard in the area of airline safety,
security, efficient operations and sustainability.
 WTTC - World Travel & Tourism Council (WTTC) has been regarded as the only global
body which odes the work of bringing major players in travel and tourism so that they
can speak with one voice to government as well as international organizations. Its major
work is to increase awareness in area of travel and tourism (WTTC, 2017)
Tourism in UK
Government
Tourism
Industry
Council
government
sponsored
bodies
DCMS ABTA visit Britain
international
agencies
IATA WTO WTTC

 WTO – also known as world tourism organization is recognised by UN to represent the
view of member government on tourism issues.
2.2 Explain how local and national economic policy influences the success of
the travel and tourism sector
There is a presence of varied ways by which local and national economic policy can put an
influence on success of travel and tourism sector within UK. For example, if local government
provides subsidies for building resort in a beach city, then tourism in that city is likely to boom.
In the same way, if monetary policy of UK government causes exchange rate for pound to fall
then the country will become less cheaper for tourist form other nations (Dickinson and et.al.,
2014).
Changes in economic policy due to brexit issue have actually given a boom to tourism in
nation. Overseas visitors have flocked to UK in large numbers and have spent more than ever in
response to low pound. The fall had also made European visitors to come in largest number
which has gone up to 240,000 to 2.5 million (Inman, 2017). However, domestic and outbound
spend in UK has seen a downturn. The increased inflation rate and weak consumer spending has
downgraded the consumer spending in 2017 from 3.2% to 2.6%. As pound drops more in value
the spending power on UK citizens on abroad holidays will see a negative impact. Other than
this, an another economic policy has been introduced by Britain known as new Package Travel
Directive that is required to be issued before 1st April 2018. This policy is likely to provide
benefit to the consumers who are travelling between UK and EU in form of ensuring repatriation
if tour operator fails then legal recourse can be given to tourist for home nation. In this regard, it
is recommended that economic policy should be such that local tourism gets there share of
benefit in the area of tourism development.
2.3 Discuss the implications of political change on the travel and tourism
sector in different countries
Tourism and politics have got a presence of extremely close relationship as parties involved are
in a position o influence the view of tourists about that particular nation. As of now it is clear that
UK is a politically stable nation and this is one of the main reasons for increased tourism
activities as tourist still considers it as a safest place. But the ongoing Brexit issue may bring a

political change in UK which may directly put an impact on tourism. There can be huge impacts
on UK tourism after it decides as to whether or not the nation will stay in EU (Wilks, Stephen
and Moore, 2013). The final move will be affected by the views given by politicians in the
media. Hence if United Kingdom leaves EU then there will be an end on the freedom of
movement for UK residents around Europe and sane applies to Europeans around UK. This will
impact the free flow of tourists thereby creating a decreased demand (Raj and Griffin, 2015).
Moreover, if the ongoing uncertainty about weakening of pound continues then it can increase
the overall cost of travel. In the same lines, if the current government of UK changes and they
start taking steps to curb the issue of tourism then tuuorsm may get a boost because of the efforts
taken by government (Robinson and Picard, 2016). On the other hand, if political change in UK
brings an overall instability then tourism flow may decrease. In the same lines, political changes
may further led to creation of negative publicity of UK as a tourist destination which may put an
impact on overall flow of tourists. Hence policy makers are required to be aware about overall
risk perception of tourists towards the political situations of nations and hence form policies
accordingly.
3.1 explain factors affecting tourism demand
 Health, safety and security - UK government has adopted strict measures with respect to
health, safety and security legislation and hence the nation has been regarded as safe for
tourists. This as a safe tourism environment makes the tourist feel relaxed and hence that
may think of spreading positive word of mouth publicity or even visit the place again.
However terrorists attack in 2017 somewhere affected the tourists’ sentiments towards
London which is required to be given a due focus by the government. For example, the
2017 attacks in London and Manchester cooled down the long hauled bookings and a
material weakening was also seen in inbound passenger numbers from European nations
which were quite strong in the start of the year (Hurst, 2017).
 Availability of products and services – London as a tourist destination provides various
kinds of services to the travellers such as safe and access to transport, boarding and
lodging facilities, attractive tourist spots, guided tours, events among others. This is most
likely to put a positive impact on the demand of tourists but on a negative note presence
of tourists during peak seasons makes availability of hotel a difficulty (Mok, Sparks and

Kadampully, 2013). Tourists are asked to leave the hotel most of the times and may not
be happy and thus would not like to visit again thereby creating a decrease in demand.
 Accessibility – UK has been regarded as one of the most accessible nations in the world
as tourists can get into the nation by any means such as air, boat, ferry or car. This
increases the overall tourism demand as it is easier for them to reach London and also pay
a visit to other places in UK (Benur and Bramwell, 2015).
 Climate -UK has got the presence of unpredictable weather conditions such as snow, rain,
storm among others which may put an impact on the demand of inbound tourists. They
are likely to get disappointed if forecasts claimed for sunny weather but it starts to snow
and rain. However, it all depends of the tourists and the manner in which they deal with
weather conditions (Le-Klähn and Hall, 2015).
 Brexit issue - This issue has actually increased the tourist flow in UK rather than
decreasing it. This has been made possible on account of fall in pound which has
attracted international travlers towards the nation. On a negative note, European tourists
coming to UK may be in a need of visa for travelling and vice versa which may impact
the flow of travellers to and fro from United Kingdom.
3.2 explain how supply has changed to meet the effects of demand
In order to meet the demand of increases tourist flow in London, low cost carriers such as Ryan
air etc. are bringing an improvement in there consumer service and comfort for long haul routes.
British Airways has begun to charge for in-flight food and drink options and are also providing
price promotions. There has been a splurge in budget as well as new hotels that are giving
alternative accommodation choices in contrast to high budget hotels. InterContinental hotel are
trying to meet the increased demand by streaming the guest reservation system. They have
adopted technological innovation by introducing applications like Amazon Alexa, chatbots on
Facebook Messenger and have also partnered with Amadeus (Intercontinental Hotels Group Plc
in Travel, 2017). Hotel room opening in the year 2017 for London is 5.8 percent than what was
in 2016 (UK hotels forecast 2017 and 2018, 2017. Visit Britain has also prepared itself for the
upcoming flow of London tourists through its website which provides crucial information about
travelling in and around London. This is in form of London attractions, transport facilities,
special offers, sightseeing passes among others (Gallent, Mace and Tewdwr-Jones, 2017) Many

new attractions has been launched to lure the tourists such as York Chocolate tour, passes to
exclusive location among others. The London government has also strengthened its public
transport facility by offering varied transport location such as travelling through bus, train, ferry
or taxi. Uber is also regarded as an alternative means to transport in comparison to taxi which
was introduced in the year 2012 (Le-Klähn and Hall, 2015).
4.1 evaluate the main positive and negative economic, environmental and
social impacts of tourism
Social impacts – Tourism in UK acts as a source of international amity, peace and understanding
between the nations. Tourism may assist in developing positive attitude towards each other’s
culture and can also provide a great source of learning with respect to customs of the country. It
may bring a reduction in negative perceptions and stereotypes that people usually develop
towards different cultures which can further act as a source of friendship (Le-Klähn and Hall,
2015). On a negative note, it may result in destroying as well as corrupting the indigenous
culture of that nation where tourist activities are going on.
Economic – A huge benefit may happen to local community as tourist activities may result n
development of infrastructure in form of schools, libraries, healthcare, internet cafes. These can
act as a source of employment for the locals thereby benefitting the economy of UK. If the local
culture is famous for certain traditions and handicrafts then there may be a creation of source of
income thereby improving overall GDP of nation (Apostolopoulos, Leivadi and Yiannakis,
2013). But it is also true that in case of all-inclusive package tours more than 80 percent of
travellers’ fees goes to airlines, hotel and other firms in comparison to local business and
workers. Large hotel chains often import food items so as to satisfy the requirements of foreign
travellers and seldom employ local staff which can be a huge source of loss for the economy (Raj
and Griffin, 2015). .
Environmental – in terms of positive environmental impact, the government has made several
plans and policies to keep UK clean and green which is good for the local people as well as
tourists. There has further been a conservation of monuments, historical places and museums so
as to attract tourists towards the nation. These are inclusive of tower of London, Windsor castle
as well as Stonehenge. The negative environmental impacts of tourism can be in form of over
consumption, pollution as well as destruction of natural resources (Horner and Swarbrooke,

2016). Ecological harm majorly occurs due to traffic emission, garbage left by tourists as well as
damage caused to coral reefs.
4.2 explain strategies that can be used to minimize the negative impacts while
maximizing the positive impacts
Various strategies can be used by UK government to reduce the above mentioned negative
impacts of tourism activities and maximize the positive ones. First of all, the need is to bring a
reduction in ongoing tourist activities in areas which is resulting in destruction of local heritage
and culture. In order to bring a reduction in pollution, there should be enhancement in eco-
tourism activities on part of tour operators and government of UK. Strict laws and penalties
should be imposed on those travelers who make an attempt to spoil the national heritage of
nation or cause damage to nature. Also tourists should be provided an opportunity to live with
locals so that they get a thorough understanding about UK culture. The government in this regard
can do the work of such tourism organizations that provide an opportunity for the same. Local
population of UK is also required to understand that environmental protection is very important
for their overall survival. Other than this, sustainable tourism activities should be promoted in
poor areas of UK so that economic development can occur which can also act as a source of
revenue generation. Tour operators, hotels and resorts should also provide employment
opportunities to locals so that an overall benefit can occur to UK economy and the poor people in
particular. Proper strategies should also be taken by UK government for improving the overall
environmental management as well as undertaking awareness programs.
Conclusion
Travel and tourism business has been regarded as one of rapid growing industry of UK whose
history has seen various developments such as start of Grand tour, spa culture, travel agencies to
modern day tourism which is flooded with widespread attractions and easy booking through
internet. Tourism of UK has been affected by various economic policies as well as demand and
supply conditions that exist in the nation. This industry has benefitted the nations in terms of
promoting UK culture, strengthen the economy but has also led to negative impacts such as
pollution, destruction as well as corruption of the indigenous culture, non-employment for locals
among others. It is thus recommended that UK government along with local community should

take steps in preserving the culture and also ensure that tourism activities promote economic
development of the nation.

References
Online
Department for Digital culture, media and Sport. 2017. [Online]. Available through:
<https://www.gov.uk/government/organisations/department-for-digital-culture-media-
sport/> [Accessed on 30th November 2017].
Hurst, A., 2017. European visitor numbers down after UK terror attacks. [Online]. Available
through: <http://www.telegraph.co.uk/business/2017/07/31/european-visitor-numbers-uk-
terror-attacks//> [Accessed on 30th November 2017].
Inman, P., 2017. UK draws record overseas tourists after pound's Brexit plunge. [Online].
Available through: <https://www.theguardian.com/business/2017/sep/22/uk-overseas-
tourists-pound-brexit-ons-figures/> [Accessed on 30th November 2017].
Intercontinental Hotels Group Plc in Travel, 2017. [Online]. Available through:
<http://www.euromonitor.com/intercontinental-hotels-group-plc-in-travel/report/>
[Accessed on 30th November 2017].
UK hotels forecast 2017 and 2018. 2017. [Online]. Available through:
<https://www.pwc.co.uk/industries/hospitality-leisure/insights/uk-hotels-forecast-2017-
2018.html/> [Accessed on 30th November 2017].
Visit Britain. 2017. [Online]. Available through:
<https://www.gov.uk/government/organisations/visitbritain/> [Accessed on 30th
November 2017].
WTTC. 2017. [Online]. Available through: <https://www.wttc.org/> [Accessed on 30th November
2017].
Books and journals
Apostolopoulos, Y., Leivadi, S. and Yiannakis, A. eds., 2013. The sociology of tourism:
theoretical and empirical investigations. Routledge.

Benur, A.M. and Bramwell, B., 2015. Tourism product development and product diversification
in destinations. Tourism Management. 50. pp.213-224.
Dickinson, J.E., Ghali, K., Cherrett, T., Speed, C., Davies, N. and Norgate, S., 2014. Tourism
and the smartphone app: Capabilities, emerging practice and scope in the travel
domain. Current Issues in Tourism. 17(1). pp.84-101.
Gallent, N., Mace, A. and Tewdwr-Jones, M., 2017. Second homes: European perspectives and
UK policies. Routledge.
Hannam, K., Butler, G. and Paris, C.M., 2014. Developments and key issues in tourism
mobilities. Annals of Tourism Research. 44. pp.171-185.
Horner, S. and Swarbrooke, J., 2016. Consumer behaviour in tourism. Routledge.
Le-Klähn, D.T. and Hall, C.M., 2015. Tourist use of public transport at destinations–a
review. Current Issues in Tourism. 18(8). pp.785-803.
Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in hospitality,
tourism, and leisure. Routledge.
Raj, R. and Griffin, K.A. eds., 2015. Religious tourism and pilgrimage management: An
international perspective. cabi.
Robinson, M. and Picard, D. eds., 2016. Emotion in motion: Tourism, affect and transformation.
Routledge.
Sharpley, R. and Telfer, D.J. eds., 2014. Tourism and development: concepts and issues. Channel
View Publications.
Telfer, D.J. and Sharpley, R., 2015. Tourism and development in the developing world.
Routledge.
Wilks, J., Stephen, J. and Moore, F. eds., 2013. Managing tourist health and safety in the new
millennium. Routledge.