Travel and Tourism Sector Report

This report examines the travel and tourism sector in the UK, covering its historical development, structure, government influence, demand and supply factors in Edinburgh, and the positive and negative impacts of tourism. It also suggests strategies for mitigating negative impacts.

Travel and tourism sector

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Major historical development in travel and tourism sector..............................................3
1.2 Structure of travel and Tourism industry in United Kingdom.........................................5
TASK 2............................................................................................................................................7
2.1 Analysing the function of domestic, regional and national government sponsored bodies in
promoting tourism..................................................................................................................7
2.2 Explaining the way local as well as national economic policies have influence on success
of tourism business ................................................................................................................7
2.3 Implication of political change on travel as well as tourism industry..............................8
TASK 3............................................................................................................................................9
3.1 Factors affecting the demand of tourism product or services in Edinburgh....................9
3.2 Evaluating the way supply has changed to meet the effects of demand for tourism related
products and............................................................................................................................9
services in Edinburgh............................................................................................................9
TASK 4..........................................................................................................................................10
4.1 The main positive and negative effect of economic, socio culture and environmental. 10
4.2 Strategies which can be utilised for reducing the adverse tourism impact ....................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Tourism is considered to be as very big industry which is contributing a lot towards
economic development of nation and also in generation of employment for people in UK. It is
the sector which is growing at very rapid rate. There are several policies are developed the
government in United Kingdom to help tourism industries in achieving success and fostering
growth. Legal authoritarian have also supported travel and tour operators companies in
expanding the scope of their operations. Tourism sector is considered to be as the major industry
within the international market which have high potential to generate revenue and profitability.
Tourism includes several activities which contribute effective role for business entity to attract
and entertain tourist. Tourism industry also have vast history and there has been continuous
development in the sector.
The purpose of the report is to highlight the major development in tourism sector which
has taken place over a period. It also has focus on recognising the function of government in
tourism industry. Assignment will also reflect the way several policies have influenced the
success of tour and travel companies. It also has emphasized on analysing the factors which has
effect on demand of tourism products or services.
TASK 1
1.1 Major historical development in travel and tourism sector
Since , last few years , There has been tremendous growth in travel and tourism industry.
In last few years , many significant changes have taken place in the specific sector. On the basis's
of historical information it can be stated that the travel and tourism has contributed a lot towards
economic as well as development of United kingdom. Tourism industry has also provided the
employment opportunities to domestic people in UK. In earlier times , travel activities was only
conducted mainly for religious or business purposes. But with the passaged of time and
improvement in social as well as economic conditions, people have started travelling for variety
of objectives such for relaxation , education , business , leisure etc. Changes in social as well as
economic factor has supported tourism industry in increasing their demand for products or
services. It has also provided tourism sector an opportunity to increase their sales as well as
profitability. Regular support of government has provided tour and travel companies chance to
expand the scope of operations and enabled business entities to provide additional facilities or
services to tourists. As advancement in technology has enabled companies to improve the quality

of their goods as well as services. It has also enabled business ventures to increase their working
efficiency and promote their goods as well as services (Molz, 2012)
The tourism has evolved when nomads who travel around the world in search of food and
shelter. The purpose of tourist in 1500 Bc was to arrange for food and trade worldwide. This has
given rise to barter system. The tourism was developed by European Union.
The first travelling activity was conducted by Ascot Da gamma for business purpose. At
that time there was not much demand for tourism product or services. By analysing the fact, tour
and travel organisations in the industry has planned to introduce attractive packages for
generating the demand. The first tour package was launched by British elite class between late
16th and early 19 Th period had given rise to new apparent horizon of tourism. The tour packages
which was introduced by travel companies has supported business entities in influencing people
to travel. Tour packages includes combination of various services, paid holidays, etc. Earlier the
purpose of establishment of travel companies was to earn high revenue as well as profitability.
This intention is same in present scenario as well, but in addition to this now tour operators also
have objective to provide high level of satisfaction to clients. In present era, technology has
enabled tour and travel company to provide additional facilities to customers such as online
booking facilities. This factor has assisted tour operators in increasing sales as well as
profitability. In addition to this , travel organisation has planned to form partnership with hotel as
well as transportation industry. This strategy has enabled business entities in increasing the scope
of their operations. It has enabled firm to provide transportations, accommodation, food services
to tourist and allow travellers to have comfortable stay at destination. This activity has also
provided business entities an opportunity to influence visitors to stay for long time at specific
place and make frequent visit to Scotland (Middleton and Clarke, 2012)
The major changes in Tourism includes, development in transportation services :
Sea transportation: Earlier, people used to travel from one destination top other by walking. But
afterwards. Sea transportation option was established in year 1831.The objectives of developed
of this transportation medium is to provide good as well as comfortable working experience to
tourists.
During 20th century rail transport has emerged as the new as well as major development
in tourism sector. The objectives of providing rail as a transportation services is to provide travel
an ease and comfortableness during the journey. Recent development in tourism sector is

emergence of air transportation. It is considered to be as the best form of transportation services
which can be availed in order to reach quickly from place to other.
Introduction of new tour packages is another major and significant development which
has enabled travel companies to increase demand for products, generate revenue and
profitability. It has also provided firm an opportunity to achieve success and foster growth
(Mehmetoglu, 2014)
1.2 Structure of travel and Tourism industry in United Kingdom
The tourism industry has form partnership with other sectors such as Transportation and
hotel companies with the intention to fulfil the needs of customers and provide them with high
level of satisfaction. Each and every organisation belonging to different industry works in
coordination as well as cooperation with each other. Business operation of tourism sector are
interconnected and structured in systematic manner. Tourism industry is very big and can be
categorised into small segments.
Hospitality: This sector in tourism sector is considered to be as the most important. As by
providing the accommodations services, travel companies can influence people to stay at
particular destination for long time. Purpose of this segment in tourism sector is to provide
optimum level of services to tourist and fulfil their basic requirement.
Tour operators: These are those organisations who are responsible for managing as well
controlling the activities. Tour operators make plans and organise several activities for tourist.
These firm also offer several tour packages which assist them in attracting more numbers of
customers. Tour operators inspire people to travel by catering all the area of tourism that include
inbound, outbound and domestic services at reasonable price.
Travel agents:these people promotes products or services provided by travel companies. Duty
of travel agents is to provide complete information about the packages to customers. Travel
agents also provide advice related to several travelling options available with traveller.
Ancillary services:Financial institution, media, government is supporting tourism industry in
expanding their business and widening the scope of operations. In addition to this several public
department include culture, media and sport all business entities are providing support to travel
industry at national level.

Accommodation:Tour and travel sectors provides different form of accommodation facilities
such as cottages, apartments, villas, etc. All this services are provided by travel industry with the
support of hotels.
Transportation:It is considered to be as another most significant part of tourism industry. As
without transportation travelling activity can not be conducted. Transportation is important part
of tourism. As it allows tourist to visit from one destination to other.
Attraction:-Natural action is the central element that initiate tour and travel company. It
enables tour and travel companies to utilise different natural resources in order to attract more
number of visitors (Litvin, Goldsmith and Pan,2008)
Illustration 1: Structure of Travel and Tourism sector
Source: (Kaur, Chauhan and Medury, 2016)
TASK 2
2.1 Analysing the function of domestic, regional and national government sponsored bodies in
promoting tourism
Legal authority in nation has crucial role to play in tourism sector. The several global
institutions such as like regional tourism international Air transportation etc. are interested in
making contribution towards the development of international tourism. Purpose of global

agencies is to support tourism sector in minimising the adverse of external environmental factors
on business operations. It also intends to help travel companies in expanding business, achieving
success and accomplishing objectives. Role of government is to promote products or services
offered by travel companies, destinations etc. In addition to this function of legal authority is to
formulation of policy related to tourism industry , provide financial support to firm , built
infrastructure etc. The national government is concentrating on increasing the safety as well as
security of tourists. Function of legal authority in nation is to create special tourism agency in
order to support travel organisations in identifying the appropriate solution to problem and
overcoming difficult situation.
Sponsors bodies like d tourism council and world travel intends to promote tourism as a
leading sector. Role of sponsored bodies is to demonstrate the importance of travel tourism
industry. Role of the government is to provide sponsored bodies permission as well as financial
resources for organising several events. The most important function of sponsors are to assist
travel companies in fostering growth and facilitating innovation.
The objective of visit Scotland which is private organisation is increase sales and
generate profitability. Role of private organisation or special agencies is to assist travel firm in
managing tourism activities as well as business (Jackson,2008)
2.2 Explaining the way local as well as national economic policies have influence on success of
tourism business
Legal authority in UK has formulated several economic and other effective policies with
the intention to support travel companies in fostering growth and achieve success. The other
objective of these policies is to prevent tourism industries from unfair competition. The effect of
several policies on tourism business are
Economic policies : It has direct as well as significant influence on the economic growth of the
nation and financial,plans as well as performance of different industry. These policies have
provided several benefits to tourism sector such as tax advantage. Economic formulated by
government in United nation has allowed travel companies such as visit Scotland to increase
their profit margins and fulfil their needs of financial resources. It has also enabled business
entities to identify new as well as cheap source of raising funds. These economic policies have
supported business entities or tourism industry in improving their business practices and allowed

firm to expand business operations. Economic policies have direct impact on the financial plan
as well as budget of travel companies.
Sponsorship and Funding :These are the roles which are required to be performed by public and
private bodies with purpose of making country look attractive and effective. Financial resources
are provided by government , charitable institutions and other special agencies to tourism,
industry which are then utilised for development of destination.
Comparing of government policies in United kingdom and china
Objective of legal authority in United kingdom is to promote country interest through a
healthy, effective relationship with China. Role of legal authority is to demonstrate international
security, better mutual prosperity and help China in their procedure of modernisation
(Heung,Kucukusta and Song,2011)
2.3 Implication of political change on travel as well as tourism industry
There are several factors in the external environment such as political, economic , social,
environmental, technological and legal variables have significant impact on tourism business.
Among all the external components mainly political variables has great as well as significant
impact on the demand for tourism product or services. Political instability in the nation have
major influence on the choice of travellers related to selection of destination. Most of the
travellers prefer to avoid place which does not have favourable political situation. Political unrest
in the country have influence on the safety as well as security of tourists at specific destination.
For example , at it has been identified from given case scenario, that during 2016 there
has been unfavourable political situation in UK , as the legal authority in nation has made
decision to go for Brexit. This factor or situation has negative impact on the growth as well as
profitability of travel companies such as Visit Scotland (Clarke, I. III, and et.al., 2009)
TASK 3
3.1 Factors affecting the demand of tourism product or services in Edinburgh
There are several factors which has impact on the demand of tourism product or services
in Edinburgh are :
Economic factors: These variables includes spending by the tourist, investment made by
investors , economic condition of nation etc. All these factor has direct as well as significant
effect on the demand of tourism, products. Investment made by the investor helps business
entities in promoting the goods and generating the demand of products.

Environmental factors:The negative effect also arising out of various travel and tourism activities
ranging from
pollution, overcrowding, seasonal employment and job security etc. Environmental variables
such as strict regulation might lead to legal obligation on firm
(Christou, Sigala and Gretzel,2012)
3.2 Evaluating the way supply has changed to meet the effects of demand for tourism related
products and
services in Edinburgh
Tourism supply is defined as those process or activities which includes product or
services through which needs of tourist can be fulfilled. Management team in a Visit Scotland
company has planned to make improvement in delivery system in order to provide quicjk
supplies of goods to customers. These changes were made by an organisation in certain field
such as :
Transportation :Management team in an enterprise has planned to add more transportations
option to tourist in order to provide them an ease and allow visitors to feel comfortable during
journey. Cost effective airline transportation services has been introduced in order to enable
tourist to move from one destination to other quickly. Business entity has also planned to attract
family people by launching tourism car services .
Accommodation: Visit Scotland also offers various other facilities such as , hotel and guest
house where tourist can stay for long and enjoy their holiday.
Recreational activity :These are the additional facilities provided by Visits Scotland companies
to tourist in order to provide their customers with memorable experience
(Chang and Chen, 2008)
TASK 4
4.1 The main positive and negative effect of economic, socio culture and environmental
Visit Scotland company has to give special preference on the ways that how they are
working for margins. In the present scenario they want to rid off all the negative impact which
company has on the tourist destination and in return to create positive impact which will affect
the margin and the brand image of the company and even tourist destination. The positive and
negative impact of economic, socio-cultural and environmental are as follows-

Economic:Tourism plays essential role in the economy as it gives strength and economic
backbone of the nation. With the help of tourism there is inward and outward cash flow and
nation has the earning of foreign exchange, it also creates the opportunity or job creation which
contribute the major proportion in the nation gross domestic product and even in aggregate
revenue. Without investment and infrastructure, tourism is very difficult so due to this major
contribution is also done in this sector. Negative impact can be inflation, local shopper
opportunities are decreased and even unexpected events like terrorism or natural disaster can
give widespread destruction on a specific region which will give negative impact on inbound
tourism.
Socio-cultural: Attitude and behaviour of the person is being studied here. In the series of
positive impact it includes promotion of nations culture and heritage. It gives the opportunities to
local people for jobs and passes peace between countries. For better understanding of culture,
sometimes there is presence of personal exchange between guests and hosts. This can also be
viewed in negative manner that these exchange may lead to change in culture or religion.
Environmental: There is strong relationship between tourism and environmental factors. It
provides proper infrastructure and transportation so that one place can be linked to other. But on
the negative perspective there are loads of problem like high pollution which includes noise, air
and even land.
4.2 Strategies which can be utilised for reducing the adverse tourism impact
It is analysed that producing products of visit Scotland company effect on Edinburgh
tourist destination both positively and negatively. There are several strategies which can be
adopted by Visit Scotland company for reducing the negative effect include:
It is required by an organisation to make improvement in operational system and focus on
analysing the needs of customers. Management team in an enterprise should examine the
tourists' interests towards tourist destination belonged to different countries of the world. Thus,
identifying customer demands and their interests will be effective for maximizing its positive
effect.
Visit Scotland company should formulated effective strategies and firm needs to make
the plans for sustainable business practices.

The another strategy is that an organisation should adopt advance technology. As this
strategy will help business entity in reducing the cost as well as resources. It will also aid an
enterprise in minimising the negative effect of its operations on environment
(Carver and Byrd, 2008)
CONCLUSION
Report has also concluded that there has been tremendous growth and major changes has
taken place in tourism sector during last few years. It has also been concluded from the
assignment that there are several factors which has direct as well as major effect on the demand
for tourism product or services. Project has successfully highlighted the role of legal authority
and other sponsored bodies in tourism. It has also been concluded that government has played
crucial in driving tourism industry towards success and encouraging companies to expand
business operations.
The several plans , methods, techniques has been recommended which can be adopted by
visits Scotland organisation for reducing the negative effect of changes in external factors on
business.

REFERENCES
Journals and Books