Global Tourism Destination: A Report on TUI Travel PLC

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TRAVEL AND TOURISM GLOBAL TOURSIM DESTINATION

Table of Contents
Introduction....................................................................................................................................3
Learning Outcome 1: Examine the scale and nature of global tourism.........................................4
Learning Outcome 2: Assess the growth and characteristics of key emerging markets and
destination regions.........................................................................................................................8
Learning Outcome 3: Explore the roles of key organisations in the development of global
tourism.........................................................................................................................................12
Learning Outcome 4: Appraise threats, issues and challenges to the future development of
global tourism..............................................................................................................................15
Conclusion...................................................................................................................................19
Reference list...............................................................................................................................20
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Introduction
Individuals looking for better relaxation opportunities are in a need of travelling because it gives
proper kind of opportunities to the people who are thriving for a quality time. It is a major factor
in order to keep a proper balance in the thinking process and performing in the professional life.
Travelling is not only a recent concern but it is seen that from ancient times there have been
many events where the people of different places have migrated to other geographical
segments. That was the beginning of tourism and now it has taken the form of a business.
The company that has been taken into consideration is the TUI Travel PLC. It is one of the
proficient names in the business segment and it is seen that the issues associated with the
business management process have been nullified with proper kind of settlement. Headquarter
is situated in Crawley, England, UK (Tuigroup.com, 2019). In the year of 2014, the company
merged with TUI AG.
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Learning Outcome 1: Examine the scale and nature of global tourism
P1 Interpret statistics to accurately present an overview of the nature and trends of
tourism on a global scale
TUI Travel Plc in the year 2014 has submitted a manifesto in front of UK government that
allows the UK to increase their economic factor and tourism opportunity in recent society. This
manifesto guides the enterprise to create long-term vision in their tourism business and it
increases employment opportunity in the community. According to Moutinho and Vargas-
Sanchez (2018), this TUI Travel Plc prepares European Trading Scheme so that they can
manage their potential business barriers. This tourism sector has improved job opportunity
about 3.12 million in the recent years and henceforth, it raises GDP rate up to 9% ( Ortiz et al.,
2018). As per the World Tourism Organisation report, international tourists’ growth has
increased up to 4.4% in the year 2011. It has been noticed in UK, tourism sector has shown
outstanding growth, and henceforth, it increases GDP rate of the country. Below image shows
current scenario of tourism sector in UK.
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Figure 1: Tourism scenario of UK
(Source: Ortiz et al., 2018)
In US, tourism sector contributes about 8.6% GDP rate of the country that is far greater than
other businesses GDP rate. Ireland has welcomed about 2.2 million visitors in the year 2018
and therefore, it guides them to earn prime revenue from international tourists (Su.lt, 2019). In
case of China, tourism sector has contributed 9.2% GDP rate and provides ample of job
opportunities that changes lifestyle of Chinese people. Moreover, in India also tourism sector
plays a promising role in increasing GDP rate as it contributes approximately 6.4% of total
financial factor (Su.lt, 2019). From the data, it can be easily analysed that global tourism creates
a positive impact on economic condition of different countries and it is one of the promising
industry in modern world. Countries such as Japan, Sweden, India, China and UK welcomes
huge number of international tourists due to their outstanding historical value and natural
resources preservation rate (Tourism.gov.ph, 2019).
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Figure 2: International visitors’ arrival rate
(Source: Tourism.gov.ph, 2019)
Foreign visitors’ arrival rates are increasing day by day and it has been observed in the year
2014, total foreign visitors was 461,383 and in the year 2018, foreign visitors travel rate has
increased up to 732,506 (Media.unwto.org, 2019). Therefore, it can be easily analysed that this
tourism sector has enhanced scope of diversifications, job opportunities’ and creates positive
effect on community’s economic condition. As per the international Tourism result, in the year
2030, tourist arrival rate will be increased up to 1.8 billion and in the year 2017, international
visitors’ rate is 1.2 billion (Stats.oecd.org, 2019).
P2 Investigate the characteristics of key tourist-generating and receiving areas of the
world
Thailand is one of the prominent global tourism spot due to presence of outstanding tourism
infrastructure and scenic beauty. It has been found that in Thailand, Tourism sector has
increased 20.2% GDP rate of the country (Media.unwto.org, 2019). Furthermore, major tourist
generating areas are France, Spain, China, UK, USA, Russia, and Thailand. Sandy beaches,
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rich natural and wildlife resources, Tropical Island with perfect recreational facilities attracts
more tourists in Thailand and US. Moreover, to develop Spain tourism sector, government has
developed 13 cities with perfect recreational facilities such as bustling nightlife, national parks
and so on. As per the recent report of international tourism, UK has become 7th most visited
nations and it generates revenue about $17.2 billion pound from the tourism sector. London
Tower attracts most of visitors’ from the international society. China also grab about 60.7 million
visitors in the year 2014, however, more improvement is required in tourism sector so that it can
attract more customers from global market.
Key characteristics’ for generating and receiving ample number of tourists are as follows:
Good transportation:
Right transportation facilities allow current visitors to visit the tourist spot without any hindrance
and it increases satisfaction level of tourist (Tourism.gov.ph, 2019). For example, transportation
facilities in UK are outstanding due to which tourist can travel different tourist spot such as
British museum, Roman Baths, Chester Zoo, and London Tower and so on.
Perfect tourism infrastructure:
Systematic tourism infrastructure includes right accommodation facilities, accompanying
facilities, food, and beverages facilities and so on allowed modern tourist to enjoy their leisure
times accurately. For example, government of Spain is spending huge number of money in their
tourism industry so that they can attract more customers from international community. In this
case, Spain government is improving artificial beauty of places such as building national parks,
museums and so on in order to increase visitors’ attraction about the place. Moutinho and
Vargas-Sanchez (2018) mentioned that right pricing strategy in the tourism spot guides
international tourism sector to attract more visitors. Cost effective places grab visitors’ attraction
more due to which Asian countries are developing its tourism services innovatively.
Attracting destinations:
Historical places also attract visitors due to which countries like China, Spain, and England are
improving its GDP rate due to tourism sector. In case of China, Great Wall of China garbs
visitors’ attention. Scenic beauty is another important criterion that guides the country to
increase number of visitors (Ortiz-Ospina et al., 2018). For instance, in Australia, different
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places such as Bondo beach, Fraser Island, Blue Mountains, Great Barrier Reef and Daintree
Rainforest attracts more visitors from global society.
Critical evaluation of global tourism
As per viewpoint of Moutinho et al. (2018), government are spending huge number of money in
their tourism sector in order to improve their financial condition. Moreover, every visitor wants to
spend his or her leisure time in well-decorated place and with cheap price. Therefore, TUI
Travel Plc has prepared an action plan in order to decrease overall cost of the UK tourist sector.
On the other hand, Ortiz-Ospina et al. (2018) argue that in order to attract more tourists from
global community, economic stability of place is important so that it can provide right service to
tourists with right cost. For instance, in case of China, there is presence of high-speed train that
allows tourist to visit all-important visiting place of China within short time and with low price.
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Learning Outcome 2: Assess the growth and characteristics of key emerging markets
and destination regions
P3 Determine specific reasons for the growth of key global tourism generating and
receiving areas of the world
The main reasons for the generation of the growth of global tourism areas are presented below:
Figure 3: Reason for generation for global tourism
(Source: Medlik, 2016)
Destination management: Tourism organization that are involved in the development of the
tourism spot are found to generate high revenue by bringing more number of tourists. For
example, tourism organization like TUI Group is responsible for providing the tourists effective
tours in places such as Canterbury Cathedral, Chester Zoo and others. This helps in generating
huge revenue as well as popularity in the tourism business.
Effective climatic condition: Climate is another factor that helps in attracting the tourists. The
main tourist places, which are having suitable weather condition such as elegant sunshine,
attract the tourists to visit those places. It is found that tourists living in the extreme summer
areas are found to visit in the colder region. For them, countries such as Sweden and
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GlobaltourismgenerationDestinationmanagementEconomicstabilityGoodclimaticconditionHistoricalandculturalfactorsReligiousfactors

Switzerland are perfect to travel. On the contrary, tourists that are living in areas of colder region
are prone to visit in places such as Australia and Malaysia.
Economic stability: Shone et al. (2016) commented that economic stability is the main reason
for enhancing the consumer choice. It has been observed that if the people are able to earn
suitable income, they decide to visit new places. Hence, it can be said that economic stability
helps in bringing the tourists in major tourist spots. The preferences of the tourists are
understood by analysing the income of the people. In this case, the countries that are having
cheap transportation facilities such as Japan, India and other Asian countries are having more
number of tourists.
Religion factors: Countries such as Egypt and Indonesia are found to have more tourists as
these places are having religious values. For instance, Indonesia is covered with religious
monuments like Ubud temple and Borobudur Temple. On the contrary, Egypt is having more
tourists due to developed number of sacred places such as Cairo, and Citadel. Besides this,
other places, which are having significance of religion, are Japan and Saudi Arabia where
people visit mostly and generative of revenue occurs.
Cultural and historical factors: As mentioned by Lenzen et al. (2018), people are visiting the
tourism places to visit the churches and historical monuments. Different examples of these
places where every day thousands of tourists visit are pyramids in country Egypt, Stonehenge in
country England and Nazca lines in country Peru.
Other factors: In the era of digitalisation, the facilities such as e-booking of hotels as well as
airlines have helped in increasing the growth of tourisms. Hence, it can be depicted that use of
digital technology is a factor that has helped the tourists in getting effective accommodation
facilities. For instance, developing 5 star or 7 star hotels helps the consumers to plan their trip in
a chosen destination. Mostly, the visitors plan their trip in the destinations with good lodging
facilities, effective transportation, free from corruption and cost-effective area.
P4 Compare and contrast the differences between a range of emerging global tourism
destinations in relation to stages of the destination life cycle, factors driving growth, and
strategies employed
In the international travel and tourism, many destinations have been developing itself to boost
the travel and tourism sector in the local and national economic segment. However, some of the
international destinations include Spain and the Caribbean.
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Hence, through the segment of destination life cycle, the two destinations could be compared as
hence.
Figure 4: Destination life cycle
(Source: Ozturk and Niekerk, 2014)
Thought the entire life cycle, Spain would be in the Consolidation segment of the life cycle. This
would be due to two reasons. First, Spain is one of the highest tourist attraction nations with
81.8 million individuals visiting it in 2017 (Dowset, 2019). Second, Spanish tourism provides
complementary exposure to multitude of cuisines and integrated cuisines and the unique
alternative of winter tourism due to the extensive presence of mountains and snow for ski sports
during winters.
Caribbean on the other hand would lie in the exploring phase due to the potential impact of
hurricanes in the group of Islands. However, more and more tourist has been lining the nation
as evident from the 25 million annual tourists it received last year (Barzey, 2018). The main
attraction of the area includes the maritime tropical type of climate that provided scenic beauties
and extensive leisure activities for an individual or a family.
The comparative factors driving tourism growth in the two nations include the following:
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Spain Caribbean
Superior quality of tourism: In this segment,
Spain has been able to provide high quality
tourism due to the healthy competition
among the local providers as well as the
international organization.
However, Caribbean essentially has low degree
of competition as no major organization provides
travel and tourism services in the nature. The
sole reason for this would be the extensive
presence of beaches and cheap rides available
across the group of Islands (Lorde et al., 2016).
High Degree of security- Unlike other
destinations, Spain offers a high degree of
security to the international tourist as well as
its citizens. As a result, individuals than risk-
oriented travels prefer safe travel (Almeida-
García et al., 2016).
Similarly, the crime rate in the Caribbean is
essentially low. Additionally the destination offers
the option of a light travel as extensive use of
heavy clothes and accessories are not generally
required.
Extensive scenic beauty during the winters
with active connectively through multiple
modes of communication like air, rail and
even ship
Extensive presence of multiple landforms that
provides exotic experience to the visitors
coupled with the light and numerous sea food
dishes
Table 1: factors driving tourism growth in Spain and Caribbean
In the segment of the strategies employed, Spain maintains a healthy Travel and Tourism
Competitive Index that enables it to attract a great quantum of tourist during the summer
months. Additionally, Spain incorporates multiple summer cottages and resorts and is the
founder of such a concept. Contrary to the Spanish model of tourism, the Caribbean
incorporates heavy reliance on the natural resource and habitats to promote its tourism like
scuba diving and deep water diving through coral reefs.
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