Analysis: Government & Agencies Role in Travel & Tourism Sector

This essay provides an analysis of the impact of local and national governments, as well as international agencies, on the travel and tourism sector. It discusses how government functions, government-sponsored bodies, and international organizations contribute to creating a sustainable tourism industry. The essay examines the impact of local and national economic policies, such as monetary supply, project initiatives, economic liberalization, and employment policies, on the success of the travel and tourism sector. Furthermore, it explores the implications of political changes, including social conditions, legal changes, trust in political parties, and tax obligations, and their effects on traveler security, industry laws, and the overall cost of traveling. The essay references works by Goodall, Ashworth, Hejna, Law, Buhalis, Cobanoglu, Mok, Sparks, and Kadampully to support its analysis.

LO2: Analysis of the impact
on travel and tourism sector
of the local and national
governments and
international agencies

Introduction
• In the modern age travel and tourism industry is an important
sector for any country to earn foreign currencies and improve the
status of the foreign currency reserve in the country.
Government can represent their country on the global stage
through the tourism sector.
• Government also takes different initiatives to make their country
more suitable place for the tourists and travelers. Government
also get different advantages from the travel and tourism
industry such as due to increase in the numbers of the travelers
and tourists government can increase their foreign currency
reserve that help the government to increase the strength of
economy in the country. The increment in the numbers of the
hotels and restaurants due to the increment in the number of
tourists and travelers increase the employment in the country.

Function of the government,
government sponsored bodies and
international agencies
• Functions of
Government
• Functions of the
Government
sponsored bodies
• International bodies

Functions of Government
• Government has to discharge some
responsibilities to create a sustainable
travel and tourism industry in the country.
• Government also encourages the tour
operators to promote their countries
globally by creating some suitable and
cheap holiday plans for the travelers .

Functions of the Government sponsored
bodies
• The government sponsored bodies such
as municipalities, police stations; hospitals
also discharge some responsibilities
towards the travel and tourism industry.

International bodies
• Some international bodies such as united
nation’s world tourism organisation also
provide some uniform law for the travel and
tourism industry.
• Destinations and tourism business provide
some positive contribution to the economy,
culture and society and try to reduce the
negative impact of the travel and tourism
industry in the society and environment.

Impact of local and national economic policies
on the success of the travel and tourism sector
Some local and national
economic policies also help
to develop the travel and
tourism industry in the
country. Government and
other local authorities take
different decisions about
the economic policies to
encourage more people to
travel in their countries.

The major economic policies are as follows:
• A) The decision of supplying more money
in the tourism and travel industry
• B) The initiative of the different projects by
the government to increase the
attractiveness of the destination region

Cont….
• C) The adoption of economic liberalization
policies by the government influence the
foreign companies
• D) The economic policies of the
government to make the local market a
more perfect place

Cont…
• Change in the employment policies of the
country that push the employer of the
countries to provide some holiday
packages and paid holiday to the
employees as a refreshment of the
employees.

Implication of the political changes on
the travel and tourism sector
The travel and tourism industry of a country has a
direct relationship with the political condition of
the country. The changes in the political
condition have a greater impact on the travel
industry.

The major influences of the political
changes are as follows:
• I) The political changes in the country can change the social
condition of the country therefore; the security of the travelers
will be reduced. For this reason, the traveler feels insecurity to
travel in the country. That can damage the travel and tourism
industry of the country.
• II) The changes in the political conditions also change the
laws associated with the travel and tourism industry. The
changes in the laws also influence the insecurity of the
travelers with the law of the country. Such laws can reduce
the facilities and comfort ability of the countries. The
increments in the travelling tax also decrease the numbers of
the travelers in that country (Mowforth and Munt, 2015, p. 56).

Cont….
• III) The trust of the travelers on the political party also
influences the travel and tourism industry. If the travelers are
cannot trust on the political party of the country that discourage
the travelers to visit the country. Again, if the traveler has
enough trust on the ruling political party that encourage the
travelers to visit the country without any insecurity.
• IV) Political changes also increase the tax obligations on the
hotels and restaurants therefore; the owners of the hotels can
increase the rent of the rooms and increase the prices of the
foods of the hotels. The increment in the room rent and prices
of the food can increase the cost of traveling for the travelers
(Buhalis and Crotts, 2013, p. 236).

Reference list
• Goodall, B. and Ashworth, G. eds., 2013. Marketing in the
Tourism Industry (RLE Tourism): The Promotion of
Destination Regions. Routledge.
• Hejna, Z., (2014). Benefits of multi day dog sledding trip for
inexperienced participants (Master's thesis).
• Law, R., Buhalis, D. and Cobanoglu, C., 2014. Progress on
information and communication technologies in hospitality
and tourism. International Journal of Contemporary
Hospitality Management, 26(5), pp.727-750.
• Mok, C., Sparks, B. and Kadampully, J., 2013. Service
quality management in hospitality, tourism, and leisure.
Routledge.