Impact of Tourism on Economical Development

The assignment provided is related to the impact of tourism on economical development. It highlights the benefits of tourism, such as job creation and economic growth, but also mentions negative influences that can be addressed with effective strategies. The document references various books and journals, including 'The Travel & Tourism Competitiveness Report 2015-Growth through Shocks' and 'Health and the International Tourist'. It also explores the role of social media in tourism and hospitality, citing articles such as 'Social Media in Tourism and Hospitality: A Literature Review' and 'Sharing Economy in Travel and Tourism: The Case of Home-Swapping in Italy'.

Travel and Tourism

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Historical development used to take place in travel and tourism sector...............................1
1.2 Structure of travel and tourism sector...................................................................................2
TASK 2............................................................................................................................................4
2.1 Functions of government, government sponsored bodies and international agencies on
travel sector.................................................................................................................................4
2.2 Influence of local and national economic policy on success of travel and tourism sector. . .5
2.3 Implications of political change on travel and tourism sector in different countries............5
TASK 3............................................................................................................................................6
3.1 Factors that affecting tourism demand..................................................................................6
3.2 How supply has changed to meet the effects of demand.....................................................7
TASK 4............................................................................................................................................8
4.1 Main positive and negative economic, environmental and social impacts of tourism .......8
4.2 Strategies that can be used to minimise the negative impacts while maximising the
positive impacts...........................................................................................................................8
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................10

INTRODUCTION
One of a major sector which promote and support the economy of a country is travel and
tourism. With change in time, many individuals used to visit to some other cities with a clear and
single motive to feel relax and remove burden of tension. It could be determine as one of a major
driver which facilitate the economic development of a country (Baker ,2014). This project is
based on travel and tourism sector by including example of TUI group whom are one of a
famous travelling service providers. In this project, some major aspects will lead to included
about historical development and structure of travel and tourism sector. It will also reflect about
the role of national, local and government influences on travel and tourism sector. Further it will
also going to depicts and describe about the rule of supply and demand on travel and tourism
sector. Moreover, at last it will define about the impact of travel and tourism on a place.
TASK 1
1.1 Historical development used to take place in travel and tourism sector
Travel and tourism one of the important sector that shows the beauty of historical places
in that particular country. In whole world people belong from different country have desperation
to see the different things which are famous at that place. Due to change in technology many
modification has been coming in environment which taken into account for the success of travel
and tourism sector that leads to generation of revenue for that particular economy.
In history people uses animals in order to carry out their business so that they deliver
products and services from one place to another. But due to advancement in technology this
sector improved so much now people got transportation facility due to development of
infrastructure. Now they can reached at less time with the assistance of train, bus and flights so
that they go to their destination within an specified period of time. In 3000bc people are using
animals for travelling purpose from one place to another which affects their mind and health. But
due to change in technology various types of improvements coming in organisation. Following
are the major historical achievements in travel tourism sector are stated below:-
 In 1936, Billy Butlin was the first man that introduced first holiday packages in Skegnes.
 In 1938, important thing that was introduced in travel tourism sector is the pay act
enforced by government in holiday packages.
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 In 1950, it has been observed that all the major areas like Hotels, Restaurant and all tour
travel operators works separately without any interaction and communication which
create different problems and issues but after the time move on in 1950 their was major
changes through innovative techniques. Now, travel sector understand the importance of
effective communication and cooperation and they are planning to come in strategic
alliances with these divisions so proper and advanced facility is given to all the visitors
who visit that particular area.
 In 1980, different agencies were coming in travel tourism sector who provide adequate
knowledge to their target audiences about the services given by travel industries at
affordable prices. Now these agencies also uses marketing tools that create awareness
among customers about all the upcoming offers they are given to their customer who are
planned to their place.
 In 17-18 century the term grand tour was introduced by Richard Lassels and along with
tourism industry developed and grew more in order to meet the needs of male and female
travellers and people in European country can easily afford the expense of journey.
 Rome was initially the southernmost point where people likely to travel and its began to
Herculaneum in 1738 and Pompeii in 1748 the two major destination of tourists.
 The main goal in 17 century is of grand tour in which lot of time and money was spent on
extensive drinking, gambling and counters also and their return to England tourist were
ready to take responsibilities of an aristocrat.
 According to the research and reports it has been found that growth of travel and tourism
sector touch the heights of success in effective manner. The main reason behind it is the
regular scanning of external environment to know all the modification coming in
atmosphere. Apart from this sufficient services has been given to them along with
attractive holiday packages that induces customers to use it.
Different reasons for major growth and development in this industry are as follows:-
1. Provide employment opportunities to the audiences of particular country which uplift the
living standard of people in society.
2. Different improvements has been made in travel industries which increase the revenue of
UK government that also help in increasing GDP.
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3. In 17 century lots of improvements has been made in travel tourism sector that fills the
gaps which arises in the development of this sector.
Therefore, it has been clearly understand that from last 50-60 years travel and tourism sector
become one the top most earning industry where lot of opportunities are opened from where
individuals can easily enhance their growth and create special position in global world.
Therefore, it is important for TUI group to consider all the above points in order to strengthen
their position in travel tourism sector and also make improvements in their services as compare
to their previous performance in order to gaining competitive advantages over rivalry.
1.2 Structure of travel and tourism sector
Structure can be defined as systematic procedure in which particular individuals has to
work in proper manner. Further it helps them to designed their framework in which strategic
planning has been made in order to achieve all the organisational objectives. That also allow
them to optimally utilised all the available resources that reduce cost of production and ensure
maximum outcomes from their quality services.
In dynamic external environment many changes were coming due to advance technology
and digitalisation which also increase the growth of travel and tourism industries. TUI Group one
of the famous multinational travel tourism company whose headquarter is in Germany having
their own travel agencies, hotels, airlines and retail stores. But due to huge competition in travel
industries TUI now planning to adopt new organisational structure in order to accomplish their
vision and objectives in effective manner. Management require to enlarged their tourism services
by taking the assistance of marketing team which promote their services at global level which
ultimately maximise their profits and sale. Following are the systematic structure of travel
tourism group which described below:-
 Basically the structure of travel tourism is divided into three parts i.e. public, private and
voluntary sector that help in bringing economic prosperity to our economy because of
advanced technology and better facilities given to all visitors who visit their country on
daily basis. Further this industry contribute to the growth by providing different
employment opportunities to all the people who want to start their career from this sector.
 According to the research and media information it has been find out that around 7.1%
contribution is given by travel tourism industry towards the development of UK
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economy. Travel tourism industries provide different types of advanced facility to their
clients so that they easily reach to their destination without any difficulties and problems
in their journey.
 During the whole journey of visitors the agency through which they travel must ensure
that customers getting all types of benefits like food accommodation, hotel facility,
transportation and shopping entertainment modes that facilitates fuller satisfaction to all
the visitors.
 Further, TUI group has different agencies which are interconnected with each other that
provide services by using various innovative modes through their marketing team in
which they offer different attractive holiday packages through social networking and by
opening official site through which people can get various information about all the
prices, benefits company is given in respect of that destination where they wants to travel.
 Their is a need to maintain coordination with different sectors that help in satisfying the
needs and wants of visitors that give competitive edge over competitors.
So, it is vital for TUI group to manage their organisation structure in effective manner so they
understand all the requirement of modern customer which they want in their whole journey and
on the basis such observation make improvements in their existing packaging offers for
enhancing sales.
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TASK 2
2.1 Functions of government, government sponsored bodies and international agencies on travel
sector
In UK different company work in travel tourism sector which help in managing the safe journey
for all visitors who visit that place. Government of UK plays an vital role in order to develop all
the tourism in their country by investing funds in the infrastructure and development of all
famous historical places which are top most tourism destination in the mind of whole country.
Following are the function of all the government bodies for travel tourism sector are described
below:-
 Government formulate different legal laws and compliances that assist in solving all the
matters and issues arises between clients and service providers. Firstly local government
formulate different domestic laws that ensure the decorum and fair practices in this
industries.
 Different facilities has been provided by UK government in the form of finance to all the
tourism industries which need them in order to implement their upcoming projects, if
government ensure that particular tourism assignment provide them maximum return.
 Another major function of government is to manage all the legal issues in relation to
travel tourism sector through allotting responsibility to different private company for the
purpose of managing all the tourism places.
 Apart from it, for the security of all visitors from terrorist attacks, unfair practices of
fraudulent people and also from natural disasters UK government arranged specific
forces who secure them from such attacks. Further they delegate all the task related to
cleanness of tourist place and establish such strong IT department that secure all the
personal data of international visitors.
 Further, these international bodies and sponsor managing different facilities related to
hotel booking, transportation facility and holiday packages to visitors through various
travel agencies and companies.
 Recent example regarding the contribution of government in travel tourism were shown
at the time of royal wedding in 2011 will consider as major international events and in
2012 Olympic and Paralympic games were they contract with different travel agencies
for the management and security of all visitors.
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2.2 Influence of local and national economic policy on success of travel and tourism sector
Their are different policies establish at local and international level that help in bringing success
in all over the tourism sector. These policies ensure ethical and fair trade practices adopted by all
travel companies for securing the interest of visitors. Further there are different policies and
strategies made by government which spread positivity in whole economy. Following are the
points which need to consider under it are stated below:-
 Government forces all the travel companies to adopt such policies that increase the
number of tourist. Firstly destination marketing must be included in their working style in
which they aware visitors more about all the offers and facilities they are going to
provide that give them utmost satisfaction.
 Further in relation to economic policy where they provide separate funds to travel
agencies in order to increase visitors which leads to increase in revenue of particular
economy.
 Their are some legal regulations and compliances which are related to visa and
immigration policies that must be fulfilled by visitor in order to visit that places. Further
government allow the people to visit destination on the basis of their skills, taxes levied
on travellers, better and good facility for traveller, training education for skilling up for
different places.
 Most important whether government invest money on the infrastructure in order to
provide better airports, road transportation facility, hotel accommodation and navigation.
Travel industries develop with the help of government and infrastructure is one of the
important component that attract more visitors.
2.3 Implications of political change on travel and tourism sector in different countries
Travel and tourism sector
Date:- 5 March 2018
In order to carry out all the process of travelling sector in proper manner stability in political
sector is mandatory. Proper management in this field ensure safe and secure environment and
good economic conditions in all over the country. If operation and working is not good that it
create the bad or negative mindset of individuals.
Different changes has been arises in government policies, procedures and regulations which
also affect the working operations of business. This sometime dis-balance both economic and
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political conditions which create negativity in the mind of customers at the time they plan to
visit at particular country due to fear of terrorist attack, natural disasters and lack of transport
facilities.
After Brexit Britain separated from European union which affect all over growth of different
types of industries. Change in exchange rate because of which visitors of china is increased as
value to yuan is more than UK pound and life of visa extended from six months to 2 years.
Further Chinese tourist have curiosity to visit different famous destination which increase the
revenue of government and country growth. Implication of political alterations are following:-
 Their will be the less development in tourist sector.
 Higher fluctuation in currency rate either increase or decrease number of visitors.
 Complex procedures and legal regulation are hard to understand which create hurdles
for tourist to travel at tourist destination.
Hence, it is vital to maintain political stability in order to operate tour businesses in successful
manner. Further TUI group must ensure to provide quality services to their visitors as well as
guarantee of security in relation to any fraud and big problems at the time of visiting tourist
destination which enhance their sales and profits.
TASK 3
3.1 Factors that affecting tourism demand
Their are different types of factors and elements that affect the popularity and demand of tourism
industry. Change in these components will impact on demands and wants of customers in
relation to particular place (Chaisawat ,2012). Customer preferences and choices fully depend on
the popularity and facilities that given in particular country. Different point need to be focused
which impact on demand of travel and tourism sector are described below:- Economic conditions:- basically under this policies related to economy must be consider
like change in exchange rate, inflation, deflation and BEP policy. Instability in these
components will impact on purchasing power of customers which also has bad impact on
the sale and profit of business especially the tourism sector affected by it. Political conditions:- Stability in political sector will ensure the growth and development
of particular economy. If government of different countries change in legal laws and
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political condition then it create problems for tourist industries to provide their services in
different countries. Therefore TUI group must acknowledge about all the changes in
political conditions for better brand image and profitability. Price and quality:- In tourism sector management at the of formulating policies related to
price fixation and quality standard maintain in their services must consider all the factors
related to recent customer demand and trends. TUI group must scan all the latest
techniques through which they understand all the requirement of customer related to
holiday packages that leads to rational decision making.
 Advance technology:- In competitive dynamic market competitors coming with different
technology and digitalisation in their products and service. Therefore, TUI group in order
to remain sustain in that market for longer period require to include some advanced and
innovative offers in their travel packages for their better and convenient journey.
3.2 How supply has changed to meet the effects of demand
In every economy for proper stability it is important to maintain balance between demand and
supply in order to meet the equilibrium point (Clift,and Page ,2015). Further five factor which
affect the supply of particular economy include attraction, transportation, services, information
and promotion. Popularity of particular country increases because of attraction they have in their
historical monuments and uniqueness of various places which inclined people towards it.
TUI in order to develop in tourism sector require to maintain balance between above
elements. In UK, tourism are attracted towards various destination so to remain their interest in
such places company need to convince government to incurs funds for the development of
infrastructure in the field of transportation so visitors not face any difficulties. After that services
provided by them must be standard quality by using innovative and digital mode which enhance
technology in all the things they offer to tourist.
Further, it is important for TUI group to communicate all the information and data they
want deliver to them which they need to consider at the time of visiting at different places and
destination where network is not possible so available data help them to go their destination
without facing any problems. Apart from it this group must choose effective marketing strategies
in their business so they promote all the offers they provided to their agencies through
advertisement, social sites so target audiences know about all the beneficial deals before travel to
particular country.
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TASK 4
4.1 Main positive and negative economic, environmental and social impacts of tourism
Positive and negative impacts of economic, social and environmental factors are describe
below:- Economic factors:- Travel and tourist sector contribute to the revenue of economy which
increase the GDP in the form of generating different employment opportunities will
consider as positive thing (CrottiMisrahi ,2015). On the other hand demand of travel
industry increases on seasonal basis which consider negative point for their growth.
 Social factors:- These factors related to thinking and opinions of society and their whole
groups. TUI group is one the multinational company in travel tourism sector that given
their services according to the culture and creativity which create positive image of
company among them.
Major drawback may related to unethical practices like drug supplying by tourist which
affect their health and reduce growth of this sector.
 Environmental factors:- If in particular country if tourist visitors increases day by day
then it is utmost duty of tour operator and government to implement all measures and
mechanism that secure the wildlife of that country. Further TUI group must execute such
operations and activities that create good impact on environment.
Negativity arises at the time when company uses such bad practices which increases
carbon footprints and harm the ecological life.
4.2 Strategies that can be used to minimise the negative impacts while maximising the positive
impacts
Different strategies which were established by organisation through their proper framework
which reduce negative impacts are discuss below:-
 Provide adequate salary or remuneration to those people which help them at the peak or
complex situations. Further proper benefits provided to their family members increase the
trust of them regarding company (Forno, Garibaldi ,2015).
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 Social factor can be balanced when company uses ethical mechanism in their working
style at the time of providing services to them which create long term relationship and
trust with their clients.
 Further use of different promotional tools of marketing where they aware society about
all the holiday packages which they avail easily by just clicking on the website of
company that save their time, money and efforts.
 Also company must promote sustainable tourism factor in which they give direction to
visitors to do all activities which are in favour of environment.
Therefore, it is important for TUI group to establish such strong marketing strategies which
enhances their sales and increase the chances of growth and sustainability in external market.
CONCLUSION
It get concluded from the project that travel and tourism sector play an important role in
order to enhance the economic influences of a country. There are various kind of key historical
development used to take place in the field of travel and tourism sector. Although, government
and other bodies also work and functions in order to manage this sector properly and try to avoid
the negative aspects in better and effective manner. Although, there are diverse factors assess
which define and ultimately response towards the demand and supply of travel and tourism
sector. Travel sector made vast impact on economical development by which more and more
jobs used to get provided. There are certain negative influences as well but they could deal out
with effective and appropriate strategies.
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REFRENCES
Books and Journals
Baker, D .M .A., 2014. The effects of terrorism on the travel and tourism industry. International
Journal of Religious Tourism and Pilgrimage. 2(1). p.9.
Chaisawat, M., 2012. Travel and tourism education in Thailand. In Global Tourism Higher
Education (pp. 209-236). Routledge.
Chaisawat, M., 2012. Travel and tourism education in Thailand. In Global Tourism Higher
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Clift, S. and Page, S., 2015. Health and the International Tourist (Routledge Revivals).
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Crotti, R. and Misrahi, T., 2015. The Travel & Tourism Competitiveness Report 2015-Growth
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Forno, F. and Garibaldi, R., 2015. Sharing economy in travel and tourism: The case of home-
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Hall, C .M., 2010. Crisis events in tourism: subjects of crisis in tourism. Current issues in
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Hall, C. M., 2011. Consumerism, tourism and voluntary simplicity: We all have to consume, but
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