The Travel and Tourism Sector

TRAVEL AND TOURISM SECTOR

Table of Contents
INTRODUCTION......................................................................................................................1
TASK 1......................................................................................................................................1
1.1 Key historical developments in the travel and tourism sector..........................................1
1.2 Structure of the travel and tourism sector.........................................................................3
TASK 2......................................................................................................................................5
2.1 Function of government, government sponsored bodies and international agencies in
travel and tourism...................................................................................................................5
2.2 Local and national economic policy influences on the travel and tourism sector............5
2.3 The implications of political change on the travel and tourism sector in different
countries.................................................................................................................................6
TASK 3......................................................................................................................................7
3.1- Explain factors affecting tourism demand......................................................................7
3.2 How supply has changed to meet the effects of demand in LONDON............................7
TASK 4......................................................................................................................................8
4.1 Evaluate the main positive and negative economic, environmental and social impacts of
tourism....................................................................................................................................8
4.2 Explain strategies that can be used to minimise the negative impacts while maximising
the positive impacts..............................................................................................................10
CONCLUSION........................................................................................................................11
REFERENCES.........................................................................................................................12

INTRODUCTION
Tourism is considered as the main industry throughout the world. It has been indicated
by The World Travel and Tourism Council (2001) that more than 10 percent of universal
economic output are created by tourism. Also, tourism is seen as global phenomenon with
inexplicably immense infrastructure. Its significance is evident from the reality that its effect
thoroughly penetrates politics, society, culture and the economy as well. Tourism begins with
the images of an esteemed visits to seaside spas, resorts and grand tours plus business
enterprise activities.
Here, the paper is describing travel and tourism industry history and structure along
with its influence on government, international agencies and economic policy. Moreover, the
demand and supply effects on travel and tourism industry is discussed in the following
content. At the end positive and negative impacts of tourism is being summarized. The
overall attempt in the present research is made to explore tourism sector of LONDON
because it is the most popular destination of tourist around the globe. The country is
attracting 30 million of visitors from other nations every year. Here, people travel from all
corner of the world to admire several impressive monuments of London, explore city’s rich
vibrant culture and take in a theatrical presentation in the West End. Additionally, around 26
million of overnight visits are made every year in the London and these visits are mainly
made by tourists resides in other parts of LONDON.
TASK 1
1.1 Key historical developments in the travel and tourism sector
The below is past and currents developments in the LONDON travel and tourism sector:
Post-war developments–Since the end of Second World War in the year 1945, the global
travel and tourism sector had improved so much that it is taken as biggest or dominant sector
around the globe. In the last 40 years the particular industry developments has been shaped in
range of factors. Such aspects are divided into four categories (Ashley, 2000). These are:
 Modifying socio-economic situations;
 Product development
 Developing technology
 Changing needs of buyers
Modifying socio economic situations–This term is given to combination of both economic
and social factors. Such aspects are add to the travel and tourism sector growth from the
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Second World War. The time for leisure activities has been greatly increased in past several
years for the LONDON people. Now people in this nation take it very easy to enjoy holiday
without any fear of short for money while they return to home. These paid holidays have
enhanced demand for seaside hotels and resorts (Bramwelland Lane, 2000).
The right of four to five weeks of paid holidays has supported domestic tourism sector
of LONDON by inspiring customers to take short breaks in addition to main holiday. Also,
the overall length of working week has been largely reduced. The average week of working
in the period of 1950’s was 50 hours in LONDON. The typical week of working in the
country range from 37-40 hours. Various workers are now have good choice about their
working week pattern. The increased number of retired individuals and unemployed in
present times has seen for demanding leisure activities (Cooper, 2005). It has been an
important factor in the development of organizations, such as SAGA that is specialize in
selling holiday packages for people of above 50.
Disposable income – It is money that remain with the individuals after the payment of
necessities like household bills and mortgage. This remaining amount is said to be disposable
income. During the buoyant condition of economy, individuals are confident enough to spend
on travelling. It has significant economic influence on the sector of travel and tourism, as
result in fluctuations in the total amount people wish to spend on visiting different
destinations. But the disposable income can fall and rise in the periods of economic recession
and decline. The last recession of LONDON in 1990’s saw the decreased demand for
overseas holidays. It was due to the fear of unemployment. Moreover, rates of exchange have
always been an essential part in the patterns of taking holiday. Any increase in the pound
value and decline in the currency of overseas would encourage outbound tourism
(Goeldnerand Ritchie, 2006).
Developing technology – Transports has greatly improved in the past several years. Trains,
ships and aircraft, etc. can carry many passengers quickly as well as safely to different
destinations. Technological advances in the design of aircraft after the Second World War
meant that airline became available as a mass transport since the period of 1970. Also, the
rise in ownership of car has been the highest feature of single transport that has promoted
enhanced demand for local tourists. A range of technological improvements in the
transportation system have influences the travel and tourism industry development from
1950’s to these days (Gyr, 2010). There are various way to travel, which all have come a long
way from the period they were invented. Additionally, there is up-to-date travel like
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