Analysis of Tourism Industry Growth Factors

This assignment requires a comprehensive analysis of the tourism industry's growth factors. Utilize the provided sources to investigate the human resources management issues (Kusluvan et al., 2010), the influence of web 2.0 on tourism (Noti, 2013), and the role of innovation in driving tourism sector growth (Paget et al., 2010). Additionally, examine how crises and opportunities shape the tourism sector in regions like Lebanon (Jallat & Shultz, 2011) and the economic impact of tourism on countries such as Romania (Surugiu & Surugiu, 2013). Lastly, consider the implications of low carbon economy development on tourism growth (Yang, 2010) and evaluate the overall economic value of the travel and tourism industry.

TRAVEL AND TOURISM
SECTOR

Table of Contents
TRAVEL AND TOURISM SECTOR.............................................................................................1
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Key historical developments in travel and tourism sector ( Covered in poster)...................3
1.2 Structure of travel and tourism industry (Covered in leaflet)...............................................3
TASK 2............................................................................................................................................3
2.1 Functions of government, its sponsored bodies and international agencies in travel and
tourism (Covered in PPT)...........................................................................................................3
2.2 Influence of local and national economic policy on success of travel and tourism sector
(Covered in PPT).........................................................................................................................3
2.3 Implications of political change on travel and tourism sector..............................................3
TASK 3............................................................................................................................................4
3.1 Factors affecting tourism demand.........................................................................................4
3.2 Supply has changed to meet the effect of demand................................................................6
TASK 4............................................................................................................................................7
4.1 Positive and negative economic, environmental and social impact of tourism....................7
4.2 Policies used to minimise negative impacts and enhancing positive aspects.......................8
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................11

INTRODUCTION
In today scenario travel and tourism sector plays important role in developing the growth
of economy. In 2001 it has been seen that the world travel and tourism council indicated that
around 10 percent of job are created because of travel tourism sector world wide (Berne, Garcia-
Gonzalez and Mugica, 2012). Further at present it is generally seen that most of population
inclined towards travelling and like to go at famous destinations particularly choose abroad to
travel. One of the common reason behind this is massive improvement and innovative techniques
which offer attractive deals to tourists for their journey that make the whole sector developing
and profitable. Under this assignment the company which is pre-freed is TUI Group businesses
which is UK based tourism division and operating their business in 180 countries and comprises
of 30 million customers in all over the world. The whole project discuss about the key historical
development and structure of tourism sector, government role in development and factors
affecting tourism industry. The main objective of whole task is to formulate such strategies
policies which enhance the growth and market share of company.
TASK 1
1.1 Key historical developments in travel and tourism sector ( Covered in poster)
Tourism destination are the important source at the when individual think of travelling in
particular place. In UK if tourist go for travel then the places that attracts thousands of visitors
include tower of London , Queen palace, historical monuments and Buckingham palace. Number
of development which has been taken place in travel and tourism industry can stated below:-
 Before 1945: In that era individuals like to spend lot of time and money to various
destinations. Because of less facility and lack of innovative techniques people face
difficulties in travelling at various places (Choi and Turk, 2011). But due to government
support growth of infrastructure particularly in the field of transportation of goods from
one place to another. In present era, tourism industry not only know for transportation
support but also provide luxury comforts to their customers.
 1945-1979: In 1960 various factors come into practise or in other word development in
this sector in the form of attractive tour packages, Luxury hotel facility along with dining
comfort, dispose interest of clients for long trips. All these improvement increase the
satisfaction level of customers.

 1980 to current situation: In today environment tourism sector develop in better way.
Competition is high due to establishment of big travel agencies which offers clients such
comforts that give utmost satisfaction to them. In term of profitability and market share
businessman earn more because of people diverted towards travelling in order to relied
from life stress (Brida, Osti and Barquet, 2010). For example TUI business is one the top
most industry in travel industry which establish brand position in eye of customers
because of their favourable strategies and type of policies they provided.
Hence, it is proof that travel and tourism sector developed a lot as compare to past
conditions. Various advanced technologies available in market which facilitates tourism
industries to use these equipment in order to gain competitive edge over competitors.
Globalisation encouraged UK government bodies to implement such policies that liberalise all
the complex producers related to visa and passport which leads to increase in the activity of
tourism. The major benefits that UK economy gained is increment in foreign currency which
contribute in GDP of economy.

1.2 Structure of travel and tourism industry (Covered in leaflet)
Travel and tourism become world largest industry due to which process become very
complex so their structure broken in different ways which described below: Attractions: it has created when any person is highly influence with the creativity in
particular place, people and any other natural resources. Because of attraction regarding
any place individual decided to travel and go to explore interesting facts from that
geographical area. Tower bridge and British museum is an example of natural beauty
which attracts more than million visitors every year (Coles, Fenclova and Dinan, 2011). Distributors: This consists a bunch of individuals such as aggregators as well as travel
and tourist agencies who offer mixed services and facilities to large number of tourists by

collaborating with other service provide such as hotels, airlines who provide benefits to
clients in the form of affordable room, journey according to their background. Various
portals are operated online which can be used and explore by visitors. Accommodations: TUI businesses has collaboration with various luxury hotels which
provide clean hotels rooms along with fine dining at the time of lunch and dinner to all
the visitors at UK. For example , in London which consist of more than 105 hotels and 50
guest houses which offer affordable accommodation services to all the tourist come from
different background. Transport: this is one of the significant factor which must be available in particular
country in order to attract tourists. In case of travel and tourist sector which consist of
sea, road and air transport plays important role in enhancing the performance of
company. Various types of public private sectors offer effective transportation facilities
to all the visitors for visiting different destinations. Tour operators: these are one of the industry who formulates various tour packages
according to the demand of customers (Berne, Garcia-Gonzalez and Mugica, 2012). TUI
travel agency negotiated with various transport providers and benefits in order to provide
attractive deals to all visitors.
 Travel agents: this consists of those who marketed the travel companies through the sale
of brochures to target audience. They act as mediator between public and tour operators.
 Therefore they give the knowledge about the deals that travel company provided at
particular country in which visitors interested to go.
Tourism development: this include media which act as tourist boards who provide data or
information related to specific destination to all the interested visitors. The main purpose is to
develop and promote tourist destinations.

TASK 2
2.1 Functions of government, its sponsored bodies and international agencies in travel and
tourism (Covered in Leaflet)

There are different places in UK which attracts tourist for getting their better outcome.
These days, there are different reasons for which people travel such as family outing, official
trips, etc. so it is important for tour operators to understand about changes as per demand of
consumers. There is selection of two destinations i.e. Tower of London and Buckingham palace.
These are two places which is most attractive tourist destinations so number of tourists are more
at this place.
Culture feature of Tower of London is the royal fortress and Landmark of London. There
is political prison, public recorded office, etc. which makes it different from others and attracts
consumers for it. This is located at north bank of River Thames which is at the central city of
London. There is proper protection and security to people want to visit this place. UK
government is planning to secure heritage and environment under which planning is done for
framing policies. At Tower of London, there is facility of armouny, prison, treasury, home of
Royal persons, etc. which makes this tower best and relevant for others. This makes this
destination social, culture and physical aspects effective.
There is discussion that Tower of London is used as prison and a palace where people are
tortured. There are around 23500 crown jewels and treasures, so this is place which is used as
defense system. In II world war this palace gets destroyed and it gets repaired and then reopen
for public.
Buckingham palace is the place which is residential and administrative headquarter of
monarch of UK. This is situated in center of Westminster city and great attention at the time of
royal occasions. As per orders of UK King, there is construction of home but afterwards, king
changed mind to make it as palace. Budget passed for this is £450,000 but king passed it as
£150,000. there is fire broke out at parliament in 1834, then king announces this palace as new
parliament, but this proposal was not acceptable. This is the palace which is large as townhouse
having three wings. This palace is also known as Queen palace because there is specific area
which is for their residential purpose. This palace was built in 19th century by two architects.
There is change in structure in 20th century which includes balcony for the greeting of royal
family members. This place is social important because this is decorated with lighting where
people come to visit it.

There are 775 different rooms at Buckingham palace such as White Drawing room,
Throne room, etc. Apart from this there is grand staircase which is the major center of attraction
for tourist. This is the palace which is open for visiting for tourist in every summers and more
than approximately 50000 individuals for the purpose of grand lunch, dinner, corporate parties,
etc. This palace is socially important in all over the world because of its ambiance and large
spacious area. There are many state and semi- state rooms which people visits for its
attractiveness which does not get changes from ancient time.

2.2 Influence of local and national economic policy on success of travel and tourism sector
(Covered in PPT)

2.3 Implications of political change on travel and tourism sector
Political change means change in government policies. There is important role of
government in tourist sector so it is important to know changes in government al policies affects
tourist business in positive or negative way. In case of negative results there must be corrective
actions taken. There is requirement of services from various places so government must focus on
improving relations among different states. Changes in political rules may create change in
policies for organisation such as TUI. Tour business run because of these operators so it is
necessary to take care of their interest as well. Political government must focus on improving
basic services which are required for tourists (Bornhorst, Ritchie and Sheehan, 2010). It is
important to motivate TUI to give best services so that there is increase in their goodwill in
market and country's image also improves. In case of any problem faced by operators than it
must be solved.
Political fluctuation affects tourist business, government must frame policies which
promotes operators to accept changes as per modification in environment. It is important because

to run in ling term there is important role of accepting changes. Tourism business is globally
operated business so it is important to give emphasis on all over development. Government
should create good relations with rule of other country, this will help in promoting tourism
business (Brida, Osti and Barquet, 2010). Political change will affect financial issues also, which
may cause pressure in environment. Sometimes there is conflict among political parties so there
is no proper policies farmed. It gives negative impact to visitor. Government of UK can earn
revenue by opening new shops of traditional things and insist TUI tour operators to take
foreigners at such places which increase visitors attraction, this will help in reduction of
unemployment and poverty which aims at improving economic condition of country.
Political leaders plays major role in framing policies which are beneficial for countries
development and growth. In case of changes in policies it is important to communicate to TUI
organisation so that they can implement it to their operations. There must be planning done by
government to provide safety to visitors which helps in generating good image in market and
growth of tour sector.
TASK 3
3.1 Factors affecting tourism demand
Demand for tourism get impacted on the basis of number of visitors who want to visit by
help of tour operators for the purpose of services offered by them. Under this demand term
means any product or service which individual willing to buy at specific price offered by sellers.
People are only party who is responsible in generating the demand of tourism destinations . Their
are numerous factor that affect the tourism demand which include weather conditions, political
situation and various internal external drivers of environment that impact on tourism industry.
For TUI businesses it is important for organisation to develop such strategic practise which fulfil
the demand of visitors. Their are various competitors in market who come with their innovative
ideas in which clients are attracted with the proposal provided by them (Choi and Turk, 2011).
So it is vital for TUI travel industry to scan the activities of rival and come with such tourism
schemes which give fuller satisfaction to visitors.
Their are Large number of elements which affect the tourism demand which can be
understood by following points: Demographics: Geographical area of a country plays significant role in affecting the
activity of tourism. United Kingdom covers large part of demographic area in all over the

world. Countries consist of various beautiful destinations including big rivers and
mountain which attract mountaineers and those who are fully fascinated towards natural
beauty of that country. All these activity improves tourist development and provide better
outcomes (Coles, Fenclova and Dinan, 2011). Emerging economy: One of the main characteristic of United kingdom is developed
economy comprises of wide ranges of historical museum, places, mountains and rivers
which attract wide millions of visitors. So it is vital for TUI travel company to use
promotional tools Technology: It is one of the element which come with advanced technology in
accordance with changing environment. Innovation of many gadgets allows travel
industry to adopt these modern engineering in their industry because it allows them to
make their work easy and convenient for all clients to use the services without any
miscommunication. Effective communication bridge the gap between various clients who
want to know the rights and security systems of that country. Influence country exchange rate: Travel and tourism sector contribute a lot to economy
in financial terms. Further in UK various attractive destinations impact on mind of tourist
which induces them to come at that place in order to feel the beauty of such places. All
these conditions also increase the foreign currency which is coming when million of
visitors coming from different countries (Connell, 2013). Seasonality: Environment of UK is favourable for all the visitors in every month. Human
beings fell comfortable in particular month in which they decide to visit or travel at
different destinations. Mostly weather of UK is covered by winter in which all the
visitors love to visit all the attractive places where they feel joy and happiness. A recent
research has revealed that UK is flooded with large number of overseas visitors. Sustainability: Being an developed economy united kingdom spend lot of expenditure in
infrastructure development in the field of travel and tourism sector. Many competitors
from different countries uses various strategic tactics in order to attract visitors to visit
their places. But due to the availability of big travel companies in UK who offers
attractive deals to their clients which enhance economic growth and development
(Erkuş-Öztürk and Eraydın, 2010). Because of establishing strong position in tourism
sector facilitates sustainability for longer period.

 Terrorist attacks:- in order to regular the business of travel and tourism industry it is
prime duty of local authorities in UK to properly arranged all the security measures
which protect the whole population from terrorism attack. If economy is suffer from
regular attack of enemies then it is difficult for visitors to take the decision to travel that
particular country. Although UK government have strong military forces which protect
the country from terrorist attack.
 Tax benefits: UK is one of the famous tourist destination for visitors so it is common to
say that demand for travel industry are increasing day by day. Most of the tourist visit
UK because of easy availability of all facilities which they want through their whole
journey. Million of tourist visit every year also contribute in tax structure of economy and
government earns huge amount from such sector (Franzoni, 2015).
Thus it is right to say that there are various factor which has positive as well as negative impact
on whole economy but it is important for travel industry to evaluate all the measures and
formulates such proposal which increase the demand of tourism business.
3.2 Supply has changed to meet the effect of demand
It is very important that every industry must have enough supply to meet and satisfy the
demand of its products mainly in service sector. Tourism industry has to formulate their rules
and regulation according to the direction given by host country government. Proper
infrastructure facility required for tourism supply. Their are many factors that affect tourism
supply which include telecommunication, transportation and accommodation which is necessary
to make it successful. Various travel agencies, tourist office , visitor operator, hire companies
and other services which is required in tourist industry. Tourist supply means when various
business player enter into contractual agreements in order to supply products, services and
goods. Supply of various tourism products is affected by changes made in dynamic external
environment. Some of the components that impact on supply:- Accommodation: In external market due to changes in the demand of customer
regarding tourism will also affect accommodation. Varieties of accommodation facilities
are developed in different geographical region of tourist. These incentives are changed
according to family background (Fredman and Tyrväinen, 2010). For example TUI
businesses alter their accommodation benefits according to demand supply parameters of
external environment.

 Tour operators: Globalisation also lead to the introduction of various types of new
technologies which may impact on demand of tourism and travel operators. Innovative
techniques also motivates tour operator to adopt all the approaches which facilitates
growth in their business and also affect distinct marketing tools. So it is vital for TUI
businesses to make alteration in their organisation structure according to visitors demand.
 Services: These are one of the common vitals features which play important role in the
sustainability of any travel industry. Services means anything which is provided in return
of money. In order to satisfy the customers it is mandatory for TUI travel industry to
provide standard quality of services in the form attractive deals in proposal given to
customers so they easily take it. Good quality of services enhance the goodwill and
market share of company.
All the above measure need to be considered all travel and tourism industry in order to sustain
and make the business profitable. For this TUI industries comprises of professional staff which
give proper information to all the tourist visitors.
TASK 4
4.1 Positive and negative economic, environmental and social impact of tourism
Tourism business runs in society. There are many factors which has to be considered to
enhance tourist business. So it is important to analyse the positive and negative impact of
economic, environment and social impact on travelling business (Guttentag, 2015). Government
must make frame policies which are helpful in gaining good image in industry. It is important to
take care of tourist's security by which they are not doubt in mind regarding safety.
POSITIVE IMPACT ECONOMIC- As discussed above tour and travelling sector is the source for revenue
generation of country. This will help in growth and development of national. GDP, FDI,
unemployment, etc. are major benefits which country avail. There are some other ways
which help in getting direct or indirect benefits from tour business. ENVIRONMENTAL- There is requirement of resources to accomplish needs arise by
visitors. Tourist visits different places and have some good images in their mind, this they
convey to people residing at related place (Hadad, and et. Al, 2012). This boosts to keep
same image in market. So it gives positive impact on tour business.

 SOCIAL- Society is main component on tour business, it is important to give enhance
society with education related to tourist places. Actions are taken to improve position of
such places so that visitors like to visit again and have good image in mind.
NEGATIVE IMPACT ECONOMIC- it is not necessary that all over the year visitors are come and go. In case
of off season there is no revenue for tour operators. So it gives negative impact on
economy of country. It is necessary to take corrective measures because it will help in
competing with world's economy. ENVIRONMENTAL- there are sometimes wastage of resources, this gives bad impact
on tourist environment. There are chances that due to more visitors environmental
resources get influenced. So it is necessary that company such as TUI has to take care of
resources, it must be optimally utilised (Heung, Kucukusta and Song, 2010).
 SOCIAL- in case of externals coming to country, people residing there may get affected
as they might be deprived of facilities. There are possibilities that wrong activities might
occur in society, which is negative impact on society as well.
By discussing above points, it is clear that social, economic, environment al factors have
impact on tourism business, so it is important to deal with it more carefully.
4.2 Policies used to minimise negative impacts and enhancing positive aspects
Government ans well as common people can take actions through which negative impacts
can be reduced. To avoid negative impact and enhance positive points government have to
motivate operators to take care of all the aspects which are fruitful for economy of country.
There is awareness programs for common people so that they also take care of foreigners.
Government has to advertise more about their special features so this will be beneficial for
country and public also think that they are important component in promoting tourism business.
Government has to change in policies as per change in policies by international authority body.
There must be provision of taking feedback when external is leaving. This proves to be best and
corrective measures can be taken and efforts are done to give best services (Hudson and Thal,
2013).
There must be proper communication of rules and regulations to operators so they tell to
foreigner regarding fines and all. It is important to limit the number of visitors at a time so there
can be proper watch and control over activities. It is important to motivate people to opt related

field so that there will be growth in travel and tourism business. Government should promote
handicraft, traditional dancers, etc. to improve their skills so present them in front of foreigners.
This will promote culture of country in whole world. Security gives positive influence to visitors
so government must create good environment in society. In case of special occasions or pick
time for tourist business there must be proper planning done which helps in avoiding overlapping
of activities (Jallat and Shultz, 2011). Government have to motivate management of hotels,
motels, resorts, etc. to provide best services. It will make culture prominent over others.
CONCLUSION
It has been concluded from whole assignment that travel and tourism sector is the one of
the prominent department which contribute in the development of whole economy. It is affected
by all the internal and external drivers of environment so need to make changes in order to
sustain in competitive market. Government of UK also contribute huge amount in the
infrastructure and maintaining the beauty of tourist destinations. Various subsidies are provided
to all travel industry in order to promote all the places which are famous in UK so more and
more visitor approach that country which increase foreign currency. Apart from it demand and
supply of tourist places also affected by the facilities and security system available in that
country so proper arrangement of all the accommodation available for the comforts of client. In
the context of TUI travel company which already gain dominance position in this industry but
need to improved their working culture in order to provide full satisfaction to their clients.

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Online
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