Analysis of Economic Policies in the Travel and Tourism Sector

This report analyzes the travel and tourism sector, focusing on the role of governments, international agencies, and economic policies. It examines the functions of government and international bodies, including the World Tourism Organization, in regulating and promoting tourism. The report also explores the economic impact of tourism, the concept of comparative advantage, and the influence of foreign exchange rates. It highlights the significance of tourism for national economies and discusses the role of various organizations in the sector. The report covers the importance of tourism in the context of economic development and its relationship with governmental and international policies. It also examines how the tourism sector is influenced by comparative advantage and exchange rates. The report provides a comprehensive overview of the sector and its economic aspects.

Travel and Tourism Sector
TASK 2

2.1 Functions of Government and International
Agencies in Travel and Tourism
 Role of tourism sector
 Policies and political philosophies.
 Factors and powers.
 Norms and regulations.

Local and Regional Tourist Organizations
 Uplifting of tourism sector
 To protect the local historic places
 Cox and kings are into the business of providing
packages
 These organizations have played a significant role in
growth of railway network.

International Organizations
 Govern the rights of travellers
 Proper environment
 Coordination at the national level is weak.

World Tourism Organizations
 World tourism organization is an inter-
governmental body
 Recognized by the UN
 established to strengthen its links with non-
governmental partners
 WTO has been catering the needs of tourism
sector.

2.2 Economic Policy Influences on Travel and
Tourism Sector
 Governments role is important
 Openness for the people who are going to introduce the
policies.
 Tourism is one of the top five categories
 30% of all tourism expenditures are made during the trips
in the U.S. and Europe.

Concept of Comparative Advantage
 Comparative advantage - features that are
attractive for the travellers.
 Labour force
 More places to visit and contains famous
places.

Multiplier Concept
 Economic impact of the tourism industry
 Economic independence of the country
 What goes around comes around
 Most common measures of economic
impact of tourism.

Tourism and Foreign Exchange Rates
 Relative exchange rate
 Power of single currency can impact the
tourism currency.
 Wherever you are going you need to have a
knowledge of that countries currency.