Negative Effects of Tourism

The assignment content highlights the positive and negative effects of tourism on local communities. According to travel tips from USAToday, tourism can have both beneficial and detrimental impacts on destinations. On one hand, it generates revenue, creates jobs, and fosters cultural exchange. On the other hand, it can lead to overcrowding, strain on infrastructure, and degradation of natural resources. The articles by Suntikul and Butler (2015) and Travel and Tourism (2014) also emphasize the importance of understanding the complex relationships between tourism, politics, and local communities. Furthermore, improper understanding of roles and responsibilities in healthcare can lead to negative factors such as poor coordination among treatment procedures. Effective communication is crucial for successful partnerships and learning disability centers. Overall, the assignment content underscores the need for responsible tourism practices that balance economic benefits with social and environmental considerations.

Travel and Tourism Sector
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TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
1.1 Key historical developments in the travel and tourism sector in London.................................3
1.2 Explanation of the structure of the travel and tourism sector....................................................4
TASK 2.................................................................................................................................................5
P2.1 Analyses the function of government, government sponsored bodies and international agencies
in travel and tourism........................................................................................................................5
P2.2 Explanation of the local and national economic policy influences the success of the travel and
tourism sector...................................................................................................................................5
P2.3 The implications of political change on the travel and tourism sector in different countries..6
Task 3....................................................................................................................................................7
P3.1 Description of factors affecting demand in tourism................................................................7
P3.2 Explanation of change in supply in order to meet the effects of demand................................8
Task 4....................................................................................................................................................9
P4.1 Evaluation of positive and negative economic, environmental and social impacts of tourism9
P4.2 Explanation of strategies that can be used for minimization of negative impact and
maximization of positive impacts .................................................................................................10
Conclusion..........................................................................................................................................11
References..........................................................................................................................................12
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INTRODUCTION
Tourism sector is defined as the industry which provides the visitors to visit interested places as
well as fund the commercial operation of holidays by the tourists. Travel and tourism sector is one of
the largest and fastest growing industries in the UK (Travel and Tourism, 2014). For conducting the
present research, travel and tourism sector is selected is London. This report includes historical
development and structure of travel and tourism sector of the London. It also gives introduction about
domestic and international government, demand and supply of this sector and various effects on this
sector.
TASK 1
1.1 Key historical developments in the travel and tourism sector in London
The key historical development in the travel and tourism sector in London is developing day-
by-day to attract large number of customers of the London. There are numerous sites, buildings;
individual structures, which are there from many different periods. The London city dates back to the
Roman times so there is no shortage of historic attractions to visit by the people. In mid of 1800, there
were very short lived attractions and charges to see that monuments were very high which cannot be
affordable to all the people. In late 18th century, travel and tourism sector started the new craze in the
visitors which is skating (Dickinson and Peeters, 2014). For that, tourism industry started ice skating
which could be enjoyed at numerous sites in severe winters.
In 18th century era, women could not join new and fashionable amusements like rifle shooting,
archery etc. but slowly this changes and later on women can also enjoy these various developments. In
early era, women were restricted to enter various monuments and churches but slowly time changed
and they started enjoying various attractions which were introduced by travel and tourism sector to
attract women visitors. By the end of 19th century, the various exhibitions had attracted number of
visitors to the London (Wells and et.al., 2016). This exhibition was aimed to attract large scale of
customers to know their expanding culture and to increase their reputation as a global city.
Today, people from every corner of world are visiting to see their impressive monuments, its
vibrant culture and the theatrical performance. The travel and tourism sector is developing these
historical attractions so that people can know more about these places. This also increases their social
condition in terms of infrastructure and technology. The revenues which are generated include all
aspects of the tourism industry such as accommodation, transportation, eating out and attraction
entrance fees (Mason, 2015). There are some of the important London landmarks which are Tower of
London, Buckingham Palace, Tower Bridge, Westminster Abbey, Kensington Palace, Windsor Castle
etc. These places are the main attractions for the people who visit there and know more about them.
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Buckingham Palace is the most famous tourist attraction in London which is the royal residence of
Queen. But some of the rooms are opened to the public during the summer months when special
guided tours are conducted. Kensington Palace also serves traditional afternoon tea to the visitors.
There are various museums which are also opened for the visitors which include exclusive objects.
1.2 Explanation of the structure of the travel and tourism sector
The structure of the travel and tourism sector can be analysed through vertical and horizontal
integration which focuses on its diversification. It can be classified on the basis of six components and
are hospitality, transportation, attractions, tour operators, tourists etc. and they are as follows: Hospitality: In this, one of the important aspects is accommodation which is very important to
the travel and tourism industry. It consists of hotels facilities which comprises of travel inns,
camp sites, self catering villa which contributes the industry (Estol and Font, 2016). The
tourism industry is also increasing its self catering where they supply their own meals to their
customers. The travel and tourism is also growing their popularity by offering breakfast and
evening tea with snacks. Transportation: This is one of the essential parts of the travel and tourism industry. There are
four modes of transport in tourism and they are road, rail, water and air. The tourist's choice of
transport mode is dependent on several factors (Leung and Baloglu, 2013). According to the
distance and time involved between the places and its geography, status and comfort of the
visitors is also one of the factors. Safety and price of the transportation also plays major roles in
the choices of transportation.
 Attractions: In London, there are various attractions in some, they are natural and some are
man-made. Man-made attractions like Big Ben are made to attract large number of tourists to
the London by which they can generate revenues (Morrison, 2013). Buckingham Palace, St.
Paul Cathedral, Tower of London is some of the famous attractions of the London which has
different culture and values.
 Tour operators: They produce holidays in the form of a package. The tour operators sold to the
travel agents which buy in the bulk which reduces overhead costs and the holiday is presented
as a brochure to them (Buck, 2011). There are mass market tour operators and one of the most
famous tour operator of London is Thomas Cook.
 Tourists: it is one of the essential part of the travel and tourism industry which helps in
developing the travel and tourism industry. The industry is trying their best in developing this
component of the structure to grow its profitability (Goeldner and Ritchie, 2009). It ensure that
prospective visitors learn of their location and all it has to offer by extensive advertising and
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promotion work.
TASK 2
P2.1 Analyses the function of government, government sponsored bodies and international agencies in
travel and tourism
The position of government is vital and important aspect of travel and tourism industry.
Governments and its sponsored bodies are involved in tourism for a various functions. Tourism has an
impact on the economy of a country which brings foreign currency, impact on the balance of payments,
increases employment and aids regional development (Nunkoo and Smith, 2013). Government have to
control and monitor tourism movements across national frontiers. Government should ensure that other
countries visitors should have positive perception of UK. The tourism merchandise may need
protection and development through government aid. The industry is very diverse and government
participation is necessary to regulate and coordinate activities and provide consumer protection. UK
use tourism as a source of revenue, it taxed on accommodation and meals, air travel, car rental and
package holidays (Local government & the visitor industry, 2015). The principal functions of a
Ministry of Tourism i.e. Government or government sponsored bodies control are research, statistic
and planning, Marketing, Development of tourist resources, trade regulation, Training and education
and Liberalization.
There are number of international bodies which are both governmental and non governmental
with interest of tourism. The travel and tourism industry is also experiencing rapid internationalisation
of ownership (Smith, 2014). This development has been accelerated by the process of harmonisation
within the European Union. For example, Thomas Cook, probably the most famous name in UK travel
and tourism is owned by the German conglomerate Preussag, which also owns the German market
leader in travel and tourism (TUI or Tourist Union International).
P2.2 Explanation of the local and national economic policy influences the success of the travel and
tourism sector
The local and national economic policy which influences the success of the travel and tourism
sector in UK are created under the Development of Tourism Act. By this Act, this legislation centred on
the government’s concern to increase the foreign exchange earnings produced by visitors to UK,
thereby improving the balance of payments. The primary function of a National Tourist Organisation is
to facilitate and coordinate the marketing of the country as a destination for visitors (Scheyvens, 2012).
There are different tourists boards in the UK which helps in establishing the tourism sector as well as
monitor the different monuments responsibility. The establishment of the Department of Tourism,
Culture and Sport is constituted because to faced the major challenges. The department is responsible
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for to control and monitor the culture, arts, the heritage buildings, ancient monuments, historic
monuments, architecture etc. The government is planning to minimize the negative effects of tourism
and wants to maximize the positive impacts (Everett and Slocum, 2013). The positive impacts of
tourism which influence the success of the travel and tourism are as follows:
 Jobs for the local people will be provided.
 It helps in the income of the local economy.
 It assist in preserve rural services like buses, village shops and post offices.
 It also increased demand for local food and crafts of the UK.
The other prime role of the economic policy is that the UK government has launched “GREAT
campaign” which extend the economic potential of London by promoting the things that make UK
outstanding among other countries. The themes of the campaign are culture, heritage, creativity,
entrepreneurs, countryside, green, knowledge shopping music, innovation, sport and technology. The
main objectives of this campaign is to increase the number of tourists visiting UK (Suntikul and
Butler, 2015). The government is also providing their tourists the new online visa application. The
government has introduced new policy i.e. “Red Tape Challenge” to reduce the regulations which
includes 60 regulations in food and drink, hospitality etc.
P2.3 The implications of political change on the travel and tourism sector in different countries
Tourism growth in many countries has not been this high, in particular, those countries which
faced with a range of lack of political stability that have made happen to hold back development in
tourism. Tourism is a tool which not only used for economic purposes but also used for political means.
Political change can either increase or decrease a country's attractiveness for tourism, depending on
what the change is. If a country is perceived as unsafe before the change and the change results in a
feeling of increased stability, then the country can slowly recover to a natural state of tourism
(Mowforth and Munt, 2015). But if the country is perceived as unstable as a result of the political
change. If the UK has reduced the tax rates then more number of tourists will get attracted to the
United Kingdom so by this other countries will also make special packages to attract large number of
tourists. Understanding marketing environment is considered to be very essential for marketers to
decide about their marketing offer.
Marketers who fail to recognize the changes in environmental forces have great difficulty in
preparing to capitalize on marketing opportunities or to cope with threats created by changes in the
environment. Political environment impacts working and efficiency of tourism industry in any country
no matter what its size, its area of operation. Whether this industry is large or small, political factors of
the country is located in and will always have an impact on it (Buckley, 2012). Political factors of the
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UK consists of the law, regulations and government policies which facilitates or obstruct direct
marketing. The political factors influence Tourism industry of any countries in many ways. The
political factors can create advantages and opportunities for tourism industry. The political
environment includes critical issues such as management, strategic planning, adapting to restructuring,
globalization, sustainability and the creation of social capital. This also comprises all laws, government
agencies and lobbying groups, individuals or organization in the society.
Governments, and by their extension their public services, are the bodies that formulate the
framework within which tourism must operate. If there is any flaw in the framework, then the tourism
environment is not conducive to success. By these all government regulations and laws of UK, other
companies may get affected. The most important of the political conditions that concern tourism
marketing is the stability or instability of the prevailing government policy (Sinclair-Maragh and
Gursoy, 2015). For example, in economic crises, the prices of tourism places in UK is lower because
the country is facing recession. To gain profitability for the economy, the travel and tourism sector is
providing with less fare so that more tourists gets attracted. By this, other countries suffer the
consequences because the more visitors are getting attracted to the UK because of low prices.
TASK 3
P3.1 Description of factors affecting demand in tourism
TUI is British leisure travel group operating in 180 countries by providing range of services to
the customers. Management of organization continuous makes modification in their service policy by
considering factors having direct influence on market demand. In this aspect, there main focus is on
demographics and emerging economics (Buck, 2011). It is because; on the basis of these factors they
make allocation of their resources in order to maximize their output. In present era, India and China are
emerging as growing nations due to which increasing their services for them for the enhancement of
revenue and profitability. By considering demographic factors (such as age, income level, lifestyle of
individual), management of the TUI is able to develop effective strategies in order to enhance the level
of customer satisfaction. For example, service users in UK are price sensitive due to which changes in
pricing policy direct affect the demand factor (Witt and Song, 2012). Thus, management of TUI is
required to keep their prices in accordance with the competitors for survival and growth. In addition to
this, youth is more attracted towards travel and tourism services thus packages are required to be
designed in accordance with their demand.
Political and economic stability also affects the demand of the travel and tourism sector because
adverse changes can make severe decline in the demand. Similarly, favourable changes have positive
impact of on the demand. In addition to this technological changes also affect the demand of the
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services users. It is because; customers prefers the organization providing services with new techniques
and methods (Wagen and Goonetilleke, 2007). Similar to the external factors, internal factors such as
changing work patterns and workforce also affect the demand because it affects the level of customer
satisfaction. Due to this aspect, management of organization is required to assure there policies are in
aligned with the standard norms in order to develop good image in the market. In addition to above
described factors influence of interest rates, inflation, currency exchange rates, level of disposable
income can also be noticed on demand (Uriely, 2009). These factors make changes in cost of the
business due to which their pricing policy is modified. Furthermore, disposable income affects
purchasing power of the customers which affects the demand in tourism.
P3.2 Explanation of change in supply in order to meet the effects of demand
Organizations operating in travel and tourism sector are required to supply services in
accordance with the changing environmental conditions for effective market growth. By considering
this approach, it is important for management of TUI to design their service system in an effective
manner so they can satisfy market demand. Management of company should quantify as their services
as per the demographic factors in order to allocate their resources in an optimum manner (Tsiotsou and
Ratten, 2010). Further, they should consider taste and preferences of services user in designing policies
in order to enhance the level of customer satisfaction. In festive seasons, special arrangements should
be management of TUI. For this aspect, they can provide complete packages by aligning with the other
suppliers. In this manner, they will be able to deliver better services in low prices and good margins of
profits.
TUI is required to consider environmental change such as economic factors and government
policies to reduce future risk. For this aspect, they are required to consider margin in budgets are there
can be fluctuations in currency, inflation and interest rate. In this manner, organization will be able to
cope up with the changes in the economy. In each country, there are different government norms and
regulations for travel and tourism entities (Reyes, 2010). Thus, TUI is required to ensure that they had
considered diverse policies and procedures such as government standards of the nation effectively in
service policies while operating business in diverse nations (Witt and Song, 2012). Any kind of
avoidance in this regard may impact operational activities of sector in negative manner.
Further, they incorporate emerging technological development in the operational activities in
order to accomplish their aims and objectives in an effective manner. By incorporating updated
techniques they will be able to reduce adverse impact on environment and can make optimum
utilization of available resources. Management had made proper arrangements for accommodation as
per the demand of customers (Pechlaner, Bò and Volgger, 2012). Furthermore, some rooms are
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designed by considering specific requirements for extra charges. Hotels services are in combination
with the transportation services in accordance with the convenience of customers. For this aspect, they
are aligned with the travel entities. By this strategy, they are able to make reduction in cost along with
providing qualitative services to customers.
TASK 4
P4.1 Evaluation of positive and negative economic, environmental and social impacts of tourism
Tourism provides various social and economic advantages that lead to the development of the
country. However, mass tourism is also associated with the several negative impacts. Description of
these factors along with their outcome is enumerated as below:
 Economic: Economic impact is related to changes in cost and prices of goods and services,
wage rates, exchange rates etc. All these factors affect the capability of tourism entity in
generation of revenue and profitability.
o Positive impact: In present tourism environment, there is continuous increase in tourism
demand due to which organizations are in position to attract more customers. This factor
makes increase in frequency in tourists by which growth opportunities are raised for
both business and economy (Simm, 2016). In addition to this, positive changes in rates
enhances profitability of business as they are able to better margin and can plan for
further development. It also provides job opportunities to youth.
o Negative impact: Generally successful tourism relies on the establishment of basic
infrastructure which enhances the cost for government. These cost is finally borne by
residents in form of tax charges. Job created by travel and tourism provides seasonal
employment as it is poorly paid (Goeldner and Ritchie, 2009). In addition to this,
generated money is not beneficial for local community in all situations. There is also
high risk of economic recession, terrorism and natural disasters on places dependent on
tourism.
 Environmental: Tourism have huge impact on environment because as environmental factors
plays significant role in the success. However, relationship of tourism is complex with
environment because it has both good and bad side.
o Positive impact: Tourism promotes environmental protection and conservation through
the concept such as eco-tourism. This approach also assists in developing funds for
maintenance of animal reserves and other natural assets (Travel and Tourism, 2014).
Furthermore, it also raises awareness among tourism entities for incorporation of
environmental values.
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o Negative impact: The major negative impact of tourism is that it destroys environmental
resources on which they are dependent. It is because; tourism imposed threat on cultural
and natural resources of the region (Robinson, 2009). Tourism also make increase in
pollution by increasing emissions in traffic, noise and littering.
 Social: Social factors affects living standards of the society. There are continuous change in
these facts on the basis of operational activities of commercial entities.
o Positive impact: Tourism makes improvement in infrastructure and develops new
leisure amenities by which benefits are attained by local community (Simm, 2016).
Tourism also encourages preservation of social resources such as traditional customs,
handicrafts. Interfaces between hosts and guests create an effective understanding and
promotes awareness of social issues.
o Negative impact: Increasing tourism activities have various negative impact on the
society. It is because, behaviour of visitors can have significant impact on the life of the
host community (Mehmetoglu, 2004). For example, tourism enhances crowding,
congestion consumption of drugs and alcohol. Further, interaction with tourist also lead
to erosion of traditional values and cultures.
P4.2 Explanation of strategies that can be used for minimization of negative impact and maximization
of positive impacts
Tourism can only be sustainable if it is managed in an appropriable manner. Thus, private and
public sector in tourism is required to manage the negative impact on the host community by
maximizing the benefits (Goeldner and Ritchie, 2009). Following strategies can be used for
minimization of negative impact and maximization of positive impacts in tourism sector: Motivation by government and local authorities: Local community should encourage tourism
entities for minimizing adverse impact of operational activities on environment (Tsiotsou and
Ratten, 2010). For this aspect, they can promote sustainability in tourism by providing benefits
in monetary and non-monetary way. Social events: Government can conduct social events at tourist destination in order to promote
tourism (Damonte, 2013). For this event, national and international tourists will be encouraged
for visits. Further, they can also make use of promotional techniques to enhance visitors. For
this purpose they make use of social media platform. Use of technology: Organization operating in tourism sector can make use of updated
technologies to reduce pollution and disposal of waste in an effective manner. By this approach,
they will be able to save cost and can operate in more effective manner.
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 Standard norms and regulations: Government and local authorities can establish standard
norms through policies which must be mandatory for organization to comply (Goeldner and
Ritchie, 2009). In this manner, environmental issues can be reduced such as increasing
conservation and erosion of natural resources.
By the applicability of above described strategies there will be reduction in adverse impact by
which sustainability can be promoted in tourism sector (Wagen and Goonetilleke, 2007). Further,
maximization of positive impact will provide growth and development opportunities to the society.
CONCLUSION
In accordance with the present study conclusion can be drawn that travel and tourism provides
significant contribution in the development of country. This sector is continuously expanding and
providing various growth opportunities to the organization operating in it. For survival and growth,
management of TUI is required to consider factors affecting market demand. Further, on the basis of
these factors they should design their supply policies in order to enhance the revenue and profitability.
Tourism activities has positive as well as negative economic, environmental and social impacts.
Organization are recommended to make use of effective strategies for minimization of negative impact
and maximization of positive impacts.
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