Tourism Impact on Economy and Environment

The assignment examines the multifaceted influence of the tourism sector on both the economy and the environment. It delves into how tourism contributes to economic growth, highlighting factors driving demand and the impact of government policies. Furthermore, it emphasizes the importance of environmental responsibility, outlining norms visitors must adhere to for sustainable travel practices.

TRAVEL AND TOURISM
SECTOR

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Covered in poster..................................................................................................................1
1.2 Covered in leaflet. ................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Covered in PPT.....................................................................................................................1
2.2 Covered in PPT. ...................................................................................................................1
2.3 Impact of political changes on tourism sector in reference of two countries........................1
TASK 3............................................................................................................................................2
3.1 Major factor that affect the tourism demand.........................................................................2
3.2 Changes in supply at TUI Group in order to meet the effect of demand..............................3
TASK 4............................................................................................................................................4
4.1 Positive and negative environmental, economic and social impact of tourism....................4
4.2 Strategies used for minimizing negative while maximizing positive impact of tourism......5
CONCLUSION................................................................................................................................5
REFERENCES ...............................................................................................................................7

INTRODUCTION
The travel and tourism sector is one of the major industries in all over the world.
This sector is responsible for generating and contributing more than 10 percent in the global
economy and also responsible for providing job opportunities to the common people (Heung,
Kucukusta and Song 2010). Every citizen now a days wants to travel maximum number of
places. They are more curious to know about the history of different places and for this purpose
the concept of travel and tourism came into picture which basically involves the idea of visiting
different places of different countries. In the context of this report, it is observed that TUI group
is one of the leading brand in tourism business. They have around 1,600 travel agencies and also
working upon online portals. They are expertise in providing tourism services to 30 million
customers in 180 different region. This report will enable to understand the history and structure
and tourism sector.
TASK 1
1.1 Covered in poster.
1.2 Covered in leaflet.
TASK 2
2.1 Covered in PPT.
2.2 Covered in PPT.
2.3 Impact of political changes on tourism sector in reference of two countries.
Political factors of any country may includes tax rates and all government policies. There
is a great impact of political changes on the country and hence sectors like travel and tourism is
also get affected by this (Hudson and Thal, 2013). All the legislation that are formulated by the
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political parties can be a matter of factor that can change the overall structure of tourism sector.
Given below are the two countries that can support the above mentioned argument.
IRAN
It has been found that Iranian revolution took place in 1979 and most of the visitor were business
class people and religious pilgrims. This sector declined dramatically in the Iran- Iraq war that
was occurred in 1980s. But with the passage of time, they regain their growth in tourism sector.
In the early phases of 2000s, country was facing some serious issues like limitations in
infrastructure, regulatory norms, communication and personal training. Due to these factors,
country was facing the development issues in travel sector. Among all these factors, major were
the regulatory norms (Dickinson and Lumsdon, 2010.). This can be defined as the way by which
government on the basis of several internal factors decides and formulates a regulatory norms.
These legislation are not supportive to the tourism sector. But with the passage of time and
continuous effort from the government, Iran has actually made 640 hotels till the year of 2003. in
the recent years, they have earned good amount from this sector. Currently, Iran has ranked 68th
in obtaining revenues from tourism in all over the world. This nation is a visitor attraction for its
historical sites and natural beauty.
CHINA
In the recent year, China has become one of the major country in the context of travel and
tourism. They are expanding in this sector with most effective manner. The main reason for the
tremendous growth of this sector in china are the emergence of rich class people and
liberalisation by the government policies (.Moutinho, ed., 2011). It in the raking perspective,
China comes under fourth largest nation in terms of inbound tourism. They have a record of
foreign exchange income of 41.9 billion in terms of U.S dollars. It was estimated that till the end
of 2020, China will become worlds largest hub for tourism.
TASK 3
3.1 Major factor that affect the tourism demand.
It is a well known fact that there are some factors which directly affect the demand of
tourism sector. Given below are the major elements that are responsible for deciding the demand
supply.
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Economy- A growing economy is very helpful in affecting the demand of any sector. As
far as the demand of tourism sector is concern about then travel and tourism can only be
motivated if the economy is flourishing. Stability in economic condition decides the number of
visitor to a particular place. That is why, government gives their full attention and concern
towards evaluating those factors that are fostering the growth of economy (Noti, 2013). Thus,
this will overall increase the demand of travel and tourism sector.
Crises and threats- Different countries may have different threats and therefore, several
sectors within the country might get affected by this. Crises on the other hand indicates critical
condition of the country may be in terms of funds and finance. It is necessary that nation should
have sufficient rotation of funds which is known as cash flows.
Demographic changes: This may includes migration, age structure and educational
level. If demographic factors are favourable and then it encourages the people for travel and
tourism sector.
Politics- This can also be defined as the policies and legislation that are made by the
government and other highest authority of a country. There is a direct connections of all the rules
and regulations made by government because these norms decide the level with with people are
free to tale their own decision. If in a country, there are stringent policies, that means travel and
tourism sector will not be flourished.
Technology- As it is a well known fact that now a days technology plays a vital role in
improving the overall growth of a country. Technology helps the country to adopts latest
techniques with which all the sectors can attain a level of success in the market. Technologies
have made the movement of one person to the other destination so quickly. Invention of flights
and fast moving metros are all example of latest technologies. If a country is following recent
trends in technologies, tat means travel and tourism sector will also get benefit out of it.
3.2 Changes in supply at TUI Group in order to meet the effect of demand.
Changes are the law of nature. That means each and every sector needs to introduce some
changes in order to sustain in the market. As every industry is worked as per the demand of the
customer hence they need to modify their products and services with the taste and preferences of
consumers (Standing, Tang-Taye and Boyer, 2014). The major changes that can be seen in travel
and tourism sector in context of TUI Group are as follows.
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Number of customer increases- As with the development of travel and tourism sector it
has been noticed that there are a lot of customers increase. These customers belongs to different
countries having different taste and preferences in order to plan a tour.
Customers are becoming choosy and specific towards services they want- Now a
days, customer are ll aware about the latest trends and technologies in the market. This directs
them to be more particular and specific about their needs and wants. It become a challenger for te
service provider to full fill all the demand of the customer.
To overcome the affect of changes that is caused by the above points, mentioned sector
have introduced the following changes in their supply.
Means of transportation increase- As when nation noticed that there are so many
people who are becoming tourist in order to visit a new place in a new country, they decided to
introduce convenient and fast mode of travelling by making their transportation system
advanced. Earlier buses and railways were their as apart of travelling form one to another. Later
on airways come to make travelling quick for the customer.
Making trips and tour plan as per the customer requirement. As far the change in
supply is concern about in travel and tourism sector, it has been noticed that companies who are
indulged in this sector are mainly planning trips and tour according to the customer demands.
TASK 4
4.1 Positive and negative environmental, economic and social impact of tourism.
There are many negative as well as positive sides of social, economic and environmental
impact of tourism in all over the world
Social impact- one of the major advantages of tourism in social context is that it is
re4sponsible for making people aware about the culture and trends that are prevailing in all over
the worlds. People are connecting from all over the world (Surugiu and Surugiu, 2013). They get
to know about the different culture and their knowledge about counties also increasing. On the
other side, there are also some negative impact of this sector in social point of view. This could
include the fact that people are now forgetting their own culture, value and beliefs. This is
certainly threatening the heritage of particular nation.
Economic impact- Due to the growth of travel and tourism sector, it has been identified
that most of the economies are flourishing. As visitor generate cash in the economy hence the
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chances of gaining stability in the economic conditions also increases. On the other side, with
stringent and unsuitable strategies that are made for the travel and tourism sector by the
government, the chances of losses have increase. This is because a sound policy should be made
by the highest authority of the country, so that it can not decline the economic growth.
Environmental impact- Positive impact of travel and tourism on the environment can be
seen by the fact that government now a days focusing towards eco tourism. They are concern
about the nature and thus making plans to encourage the visitor in context of nature. On the other
side, one of the major drawback of this sector in the environment is that people who are coming
from different country may pollute the environment with a thought in their mind that the visiting
country is not their home nation.
4.2 Strategies used for minimizing negative while maximizing positive impact of tourism.
In term of maximizing all the positive impact that is caused by the travel and tourism
sector on economy, social and environment , government is actually making policies so that they
can fully utilise the positive affect by this factor. On the other hand, government is also ensuring
and making policies against those factors which are leaving a negative impact of travel and
tourism sector in the economy and environment (Wu and Shi, 2011). Given below are the basic
norms that are made in order to maintain the positive impact of tourism in the economy
Government are making liberal policies so that most of the people can travel to different
places.
They have not made stringent legislation against tourism which encourages customer to
travel to various places.
Steps that are taken by the government in order to reduce the negative impact of this
sector in the environment and economy:
All the visitor are required to follow norms in order to maintain the environment
standards.
Visitor have to make sure that there would be no damage of antique in the country where
they wish to go.
CONCLUSION
According to the given report, the important impact of travel and tourism sector in the
economy van be estimated . There are many factors that affect the tourism demand. All the local
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and national economic policies also affect this sector. There is a proper structure of tourism
sector which may includes attraction, transportation, foods and accommodation. The history of
this sector also plays a vital role in its development. This sector contribute in the global economy
thus it is important to make strategies to ensure growth in this sector.
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REFERENCES
Books and Journals
Dickinson, J.E. and Lumsdon, L., 2010. Slow travel and tourism. Earthscan.
Heung, V.C., Kucukusta, D. and Song, H., 2010. A conceptual model of medical tourism:
Implications for future research. Journal of Travel & Tourism Marketing, 27(3). pp.
236-251.
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.
Moutinho, L. ed., 2011. Strategic management in tourism. Cabi.
Noti, E., 2013. Web 2.0 and the its influence in the tourism sector. European Scientific Journal,
ESJ, 9(20).
Standing, C., Tang-Taye, J.P. and Boyer, M., 2014. The impact of the Internet in travel and
tourism: A research review 2001–2010. Journal of Travel & Tourism Marketing, 31(1).
pp. 82-113.
Surugiu, C. and Surugiu, M.R., 2013. Is the tourism sector supportive of economic growth?
Empirical evidence on Romanian tourism. Tourism Economics, 19(1). pp. 115-132.
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.
Online
Government policies hurting tourism 2017. [online]. Available
through<http://www.financialgazette.co.zw/government-policies-hurting-tourism/>.
[Accessed on 26th July 2017].
Policy impact analysis 2012. [online]. Available
through<http://www.tourismeconomics.com/economic-impact/policy-impact-analysis>.
[Accessed on 26th July 2017].
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