Tourism Economics and Growth

This assignment delves into the multifaceted relationship between tourism and economic development. It examines key concepts like tourism demand and supply, analyzes the role of innovation in the sector, and explores the impact of global economic crises on tourism. Furthermore, it discusses the environmental implications of tourism and its potential contribution to sustainable growth.

Travel And Tourism
Environment and Activities
Table of Contents

INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Historical developments in the travel and tourism sector of London...................................1
1.2 Structure of the travel and tourism sector in UK..................................................................2
TASK 2............................................................................................................................................3
2.1 Functions of national government, government sponsored bodies and international
agencies in promoting travel and tourism in UK........................................................................3
2.2 Local and national economic policies which includes the success of travel and tourism
sector in UK................................................................................................................................4
2.3 Implications of political change on the travel and tourism in different countries................4
TASK 3............................................................................................................................................5
3.1 Factors affecting the demand of tourism in London.............................................................5
3.2 Change in supply for meeting the effects of demand............................................................6
TASK 4............................................................................................................................................7
4.1 Positive and negative economic, environmental and social impact of tourism....................7
4.2 Strategies that can be used in minimising the negative impacts while maximising the
positive impacts...........................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Travel and tourism can be determined as a way of enjoying and experiencing the culture
and heritage of different places. In today's world, improvement in technology has helped people
to know about different places and to plan visit systematically (Gössling, Peeters and Scott,
2010). In this context, there are many organizations which develop packages with the help of
which individuals can learn and experience their visit to other countries. With this respect, firms
understand the taste and preferences of people and accordingly, develop packages so that they
can provide better services. This report is about understanding the developments or changes
which took place in travel and tourism industry of South of England. Further, it will cover the
structure of travel and tourism sector in context of South of England. Lastly, it will include the
implications of political changes on travel and tourism sector in different countries.
TASK 1
1.1 Historical developments in the travel and tourism sector of London
Countries around the world understand the importance of travel and tourism.
Accordingly, they make changes so that they will be able to attract people around the world
(Narayan, et.al., 2010). In this context, UK has a huge market in travel and tourism sector and as
per the case, in the year 2009 it was estimated that tourism contributed about £115.4bn to
economy of UK. There are many reasons because of which people travel to different countries. It
includes reasons like education, business meetings, religious visits, etc. With time, there were
many changes which took place in the travel and tourism industry of UK. These are as follows:
Ancient times: The first tour in UK took place at the time of Babylion and Egyptian.
Roads were developed by Romans to trade and it gave rise to travel and tourism (Ritchie,et.al.,
2010). As the population of Chelsea, Hampton and Enfield is high so people started visiting to
other countries. With the development in culture and social environment, UK developed many
heritages like forts, temples, amphitheatres, etc. which grabbed attention of people around the
world.

Middle age: This age was also known as Dark Age (Surugiu and Surugiu, 2013). It was
very dangerous to travel to other countries. Merchants used to travel in search of opportunities so
as to earn money. The main reason for travel was business or for religious purpose.
Post-Reformation: It was in the 17th century when tourism was developed in UK. Queen
Elizabeth 1 organised a grant tour for people and it was done for the purpose of study. She
wanted that people should get to learn new things and open up their mind.
Industrial Revolution: It was in 18th and 19th century when leaving standards of people in
UK had changed. People started to travel to urban areas within UK (Evans, Stonehouse and
Campbell, 2012). This provided people to get employed, enhance growth and development, gain
education etc.
1.2 Structure of the travel and tourism sector in UK
In order to have an effective tourism, it is important to have proper structure. In this
context, following are the components of structure used in travel and tourism sector of UK:
Tour distributors and operators: These are the organizations which aim at developing
different types of packages with the help of which people visit to different countries
(Gooroochurn and Sugiyarto, 2005). Further, they provide information related to tourism to
people who are willing to make use of their packages.
Regulatory bodies: These bodies are very helpful to develop policies and procedures.
There are many different types of norms which are made by the government related to travel and
tourism. In this context, these organizations are very cooperative to develop proper means of
working (Jacob, et.al., 2003). In addition to this, they also generate rules and regulations to
monitor and control the business activities.
Public sector organizations: In order to develop the industry, it is essential to have
effective government bodies which have high positive impact over the sector. For example,
department of culture, sports and media, development of transportation, etc. (Law, Leung and
Wong, 2004).
Tour agencies: There are many private sector organizations which help the country to
increase demand for travel and tourism industry. For countries, they aim at developing prospects.
Further, they are also helpful to improve and promote the local regions of UK (Middleton, et.al.,
2009). This way people around the world can get to know about the countries and this increases
demand of travellers.
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Accommodation: It is very important for travellers to have proper accommodation so that
they will be able to enjoy their visit to other countries (Scott, Amelung and et.al., 2008). It
includes hotels, villas, apartments, etc. These are very helpful to raise the number of visitors and
contribute effectively towards development of the country.
TASK 2
2.1 Functions of national government, government sponsored bodies and international agencies
in promoting travel and tourism in UK
In travel and tourism, there are many intermediaries involved which support in promoting
the tourism development in UK (Scott, et.al., 2010). They have different roles which have to be
played to provide better services to the travellers. Roles of these intermediaries are as follows:
National government: In country, there are many heritages, culture, museums, etc. which
have to be looked after. Therefore, it is important for the government to make sure that they
protect tourism attractions and make necessary steps with the help of which people around the
world are attracted (Ritchie, et.al., 2010). Further, they also provide financial and technical
support to the nation so that travel and tourism businesses will be able to make developments.
With this respect, individuals can help the country by paying taxes on time.
Government sponsored bodies: Government sponsored bodies include regional or local
tour boards. These bodies are responsible to identify and resolve the issues which are faced in
travel and tourism. Accordingly, they enforce rules and regulations with the help of which
personal interest is protected (Perch-Nielsen, et.al., 2010). In addition to this, they also make use
of money which are provided by government to make development in the country. Moreover,
they understand the needs and requirements of travel and tourism and fulfil them.
International agencies: Government agencies consist of World Tourism Organization
(WTO), Visit Britain and World Travel and Tourism Council. These are helpful to promote
universally accessible and sustainable tourism around the world. UN develops global code of
ethics related to tourism which enables to reduce negative impact and maximize social economic
development (Papatheodorou, et.al., 2010). In addition to this, agency that is International civil
Aviation helps other bodies by providing information regarding the country's development and
accordingly, setting fare charges.
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2.2 Local and national economic policies which includes the success of travel and tourism sector
in UK
Through local and national contribution, effective development and growth of the sector
is very helpful. In order to create regulatory impact, working system of a country is very helpful.
There are various economic policies which enable to manage the growth of economy (Gössling,
et.al., 2010). For creating effective impact, growth and sustainability is essential. Below given
are the impact of policies in success of travel and tourism sector:
Economic growth: In order to have proper integration of policies and procedures, it is
important to have economic development. For over all development of the economy, it is
important to have policies related to local development. It supports the country to have proper
development and to attract people around the world (Evans, et.al., 2012). In order to make
improvement in the economy of country, it is essential that developments should related to
transportation as it increase tourism. Most of the people do not visit to countries as they do not
have proper transportation facility.
Sponsorship and funding: In order to make any type of development, it is important to
have financial support for the government. In this context, it is also essential that people of the
country understand the importance of paying their taxes as it helps the country to grow
(Gössling, et.al., 2010). This provides better opportunity within the market and will also provide
better growth in tourism sector.
Service interaction: With the help of national and local policies, individual focus in
essential for development of these region. Development of local policies, services should be
focused and national policies should be laid so as to develop image of country (Narayan, et.al.,
2010). This will be helpful in creating positive integration system within the economy.
2.3 Implications of political change on the travel and tourism in different countries
The growth of travel and tourism is affected because of changes which takes place in
policies. Government of different have their own rules and regulations. Some of the countries do
not have proper strategies in order to increase tourism. However, in countries like US and UK
understand the importance of tourism and accordingly they develop strategies so as to attract
people around the world (Ritchie, Molinar and Frechtling, 2010). There are different impact over
travel and tourism sector because of political change.
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UK: In order to develop tourism, there are different types of campaigns developed and
these are effective enough to provide better services to travelers. This has highly supported the
country to raise the travel and tourism. Further, UK is able to develop it standards in perspective
of travel and tourism (Surugiu and Surugiu, 2013). In addition to this, they are also making use
of marketing strategies which are helping the nation to provide proper information to people
around the world.
United States: The US government understands the importance of travel and tourism.
Accordingly, they have favorable policies and law which are helping the country to increase their
rate of visitors per year. US make use of internet as a major tool of marketing with the help of
which they improve their tourism (Evans, Stonehouse and Campbell, 2012). Culture which is
followed in this country is very favorable and proper around the world visit and enjoy the
heritage and culture.
Sri Lanka: Economy of the country is highly benefited through travel and tourism. The
country has faced by issues like terrorism but they have managed to reduce its impact. With the
help of tourism, it has enabled to create employment opportunity to people.
TASK 3
3.1 Factors affecting the demand of tourism in London
There are many factors because of which tourism in London is highly affected. In this
context, following are few of the factors which affects London's tourism:
Technology: When the improvement in technology people in London get high facilities.
Further, it can be stated that technology increase the travel and tourism sector (Gooroochurn and
Sugiyarto, 2005). There are many cases people fail to visit all the place because the advancement
in technology is not effective enough. The rate of internet users are increasing drastically and it
has enabled the county to make people updated regarding the developments which takes place in
London. In addition to this, use of ERP is also helpful in making the work effective and easy to
manage.
Climatic changes: People tent to travel to those countries in which they will be able to
visit and view different areas. However, the tourism is highly affected because of climatic
changes which takes place. During rainy and spring people love to visit places and it also
increases the beauty of places (Jacob, Tintoré and et.al., 2003). However, issues arises when the
climatic condition is not favorable in London, then it will negatively affect tourism. In case, the
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climatic condition is in negative, then issues arises as travelers do not prefer to visit at this
temptation as it affects health if traveler is not comfortable.
Price: Price of the packages which are provided by the travel and tourism organization
play vital role. The packages which are developed should be affordable so that people will be
able to make use the services which are provided in packages. Changes in price leads to increase
or decrease in demand of travel and tourism. In this context, decrease in demand of customers
will lead to loss to organization and nation.
Information: People visit to those countries for which they have proper information.
When people get to know the details about countries, then it develops curiosity among customers
mind and they aim to visit such places (Law, Leung and Wong, 2004). In this context, it can be
stated that London should promote themselves to that more and more people visit.
3.2 Change in supply for meeting the effects of demand
There are certain occasions because of which demand of service are affected. In this
context, following are the ways with the help of which supply has changed to meet the affect of
demand:
Special occasions: The rate of tourism increases when there are any kinds of holidays.
With this respect, occasion like Christmas, New year, summer holiday, etc. increases the flow of
tourism (Tourism demand and supply, 2015). All the organizations which get benefited with
travellers, they know the requirement. As people visit more, then accordingly, organizations hire
more employees so that demand can be met.
Tour operators: There are many organizations which develop different type of tour
packages which people to plan their visit to other countries. These firms provide their customers
with adequate information so that they will be able to make their plan effectively. In this context,
the packages includes travel, food, accommodation, destinations, etc. However, when tour
operators raise the price of the packages, then it highly affects the demand of customers.
Well equipped services: When services are provided to customers, then it is important
that they make sure to provided quick reply to customers, providing proper information, online
booking, etc. (Middleton, Fyall and et.al., 2009). Further, with the improvement in technology
has helped travel and tourism sector to develop. Moreover, also help in providing adequate
information to service users.
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High quality services: All the services which are provided by different organization aim
at delivering them at high quality. Through this, the demand of customers increases. Moreover,
highly skilled employees can be hired who will enable to provide better services to customers.
When high quality services are provided, then people tent to visit again and again. When
employees are trained, then they will be able to understand their customers and improved
services can be provided.
TASK 4
4.1 Positive and negative economic, environmental and social impact of tourism
In tourism, there are many negative and positive impact towards economy. In this
context, following are few of the impact:
Economic: In contributing foreign currencies into country, travel and tourism is very
helpful. When people visit form other countries, then it helps to contribute foreign currency.
Further, it also increases employment opportunity which help the economy to grow and also
increases the standard of living (Scott et.al., 2008). One of the main negative impact is over the
local businesses like hotels, international agencies and tour packages. As there are many
organizations which provide similar services, so it becomes difficult for them to operate
effectively.
Social: For local community there are many positive impact if there is people
improvement in infrastructure, basic amenities, etc. In a country are many local heritage, art,
craft, culture, etc. because of which people get attracted and visit to such countries. In this
context, it is important that they understand the importance and make necessary improvements in
it so that they will be able to increase tourism. One of the negative impact over the country will
be consumption of illegal activities (Scott, et.al., 2010). With this respect, it includes drugs,
tobacco products, etc. This may negatively affect the intention of travelers.
Environment: Natural resources, rain-forest, wild life, etc. are conserved when number
of tourist increases. It is essential that the environment is being preserved so that they number of
visitors can be raised. The main negative impact to environment is pollution, which are made due
to vehicles or any other thing. In addition to this, when travelers visit, then they pollute the
environment by throwing plastics.
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4.2 Strategies that can be used in minimising the negative impacts while maximising the positive
impacts
There are different set of strategies which can be adopted in order to reduce the negative
and raise the positive impact over tourism:
Implementation of law: It is very important for the government of London to make sure
that they implement law so that the illegal activities can be reduced (Ritchie, Molinar and
Frechtling, 2010). If the illegal activities are high, then people from other countries will not
prefer to visit as they develop a negative perception regarding the country.
Equal opportunity: There are many organizations in London which provided similar
services. But there are cases in which big organization get higher benefit. In this context, equal
opportunities should be provided so that even small scale organization get benefited.
Proper monitoring: Government should make proper steps so that they will be able to
monitor the crime rate. Skills people should be hired so that they will be able to reduce illegal
activities. Moreover, individuals should have proper knowledge regarding culture and heritage of
country so that information can be provided to visitors.
Awareness: People do not understand the importance of travel and tourism within the
country (Perch-Nielsen, et.al., 2010). Government of London should make sure that they provide
proper information to so that people understand the importance of tourism.
CONCLUSION
From this report, it can be articulated that it is important that the government understand
the importance of tourism and accordingly they make improvement in the country. In order to
raise tourism it is essential that they maintain and make development in heritage. Further,
internet should be used so that the country can be promoted and proper information to people
around the world can be provided. Moreover, there are cases in which the demand of visitor
increases and this because of holidays or any other reasons. In this context, it is important that
the organization make proper arraignment and meet the demand. Further, there are many
organizations which provide different type of tour packages. They should develop it in such a
way that all people will be able to make use of it. This way organisation will be able to increase
visitor every year.
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REFERENCES
Books and Journals
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and
tourism. Taylor & Francis.
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and
tourism. Taylor & Francis.
Gooroochurn, N. and Sugiyarto, G., 2005. Competitiveness indicators in the travel and tourism
industry. Tourism Economics. 11(1). pp.25-43.
Gössling, S., Peeters, P. and Scott, D., 2010. The future of tourism: Can tourism growth and
climate policy be reconciled? A mitigation perspective. Tourism Recreation Research.
35(2). pp.119-130.
Gössling, S., Peeters, P. and Scott, D., 2010. The future of tourism: Can tourism growth and
climate policy be reconciled? A mitigation perspective. Tourism Recreation Research.
35(2). pp.119-130.
Jacob, M., Tintoré, J. and et.al., 2003. Innovation in the tourism sector: results from a pilot study
in the Balearic Islands. Tourism Economics. 9(3). pp.279-295.
Law, R., Leung, K. and Wong, R., 2004. The impact of the Internet on travel agencies.
International Journal of Contemporary Hospitality Management. 16(2). pp.100-107.
Middleton, V. T., Fyall, A. and et.al., 2009. Marketing in travel and tourism. Routledge.
Narayan, P.K., Narayan, S. and Prasad, B.C., 2010. Tourism and economic growth: a panel data
analysis for Pacific Island countries. Tourism economics. 16(1). pp.169-183.
Papatheodorou, A., Rosselló, J. and Xiao, H., 2010. Global economic crisis and tourism:
Consequences and perspectives. Journal of Travel Research. 49(1). pp.39-45.
Perch-Nielsen, S., Sesartic, A. and Stucki, M., 2010. The greenhouse gas intensity of the tourism
sector: The case of Switzerland. Environmental Science & Policy. 13(2). pp.131-140.
Ritchie, J.B., Molinar, C.M.A. and Frechtling, D.C., 2010. Impacts of the world recession and
economic crisis on tourism: North America. Journal of Travel Research. 49(1). pp.5-15.
Ritchie, J.B., Molinar, C.M.A. and Frechtling, D.C., 2010. Impacts of the world recession and
economic crisis on tourism: North America. Journal of Travel Research. 49(1). pp.5-15.
Scott, D., Amelung, B. and et.al., 2008. Climate change and tourism: Responding to global
challenges. World Tourism Organization, Madrid. 230.
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Scott, D., Peeters, P. and Gössling, S., 2010. Can tourism deliver its “aspirational” greenhouse
gas emission reduction targets?. Journal of Sustainable Tourism. 18(3). pp.393-408.
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.
Online
Tourism demand and supply. 2015. [PDF]. Available Through:
<https://www.oxbridgenotes.co.uk/revision_notes/management-university-of-exeter-
tourism-management-and-development/samples/tourism-tourism-demand>. [Accessed on
1st June 2016]
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