The Role of Government and Economic Policy in Travel & Tourism Sector

This report examines the critical role of government bodies, international agencies, and economic policies in shaping the travel and tourism sector. It highlights how planned strategies by these entities can ensure social and economic growth, emphasizing the importance of mobilizing the tourism sector as a driver for infrastructural, social, cultural, and industrial development. The report further explores the impact of local and national economic policies, noting that weak policies can deprive local communities of economic benefits. Political changes and instability are identified as significant hurdles to tourism development, with examples from the UK and Iran illustrating how political stability or instability can dramatically affect tourism growth. The report concludes that tourist safety is paramount and that government attention to political factors is crucial for improving tourism businesses. References to various academic sources support the analysis throughout the document.

TRAVEL AND TOURISM
SECTOR

Introduction
• Being an important part of travel and tourism industry, local government,
government sponsored bodies and international agencies are responsible of overall
travel and thus, the success of an industry highly depends on the functioning of
them.
• Planned steps and fruitful strategies ensures social and economic growth.
• The government must mobilize the tourism sector as a critical driver of-
infrastructural, social, economical, cultural and industrial sector.

2.1 Functions of government, government sponsored bodies and international agencies
in travel and tourism
• Local Government
• Government Sponsored bodies
• International Agency

2.2 Impact of local and national economic policy on the success of travel and tourism
sector
• Economy of a country also depends on the travel and tourism sector. Travel and tourism
companies creates benefits through employment, environmental awareness, foreign exchange
funds.(Sharples, L. and Marcon-Clarke, G.) Weak national economic policies will make the
local community of the country deprived of the economic benefits of the tourism.
• The economic policy should be such that, it generates share of benefit for local community
too. Further, an effective economic policy is the one which involves the view of local people
to decide the level of tourism in that area. Planned and strong economic policies are needed
for a successful travel and tourism industry.

2.3 Impacts of political change on the travel and tourism sector
• The success of tourism industry has been dependent over the political environments
and the factors within it. Unstable political condition is a hurdle between the way of
tourism development.(Verhey, B., Baum, T. and Hai, N. T. T).
• There are many countries which are facing low tourism growth because of political
variations. These changes in political condition of any country creates challenges
for an organization to sustain. Decision making strategy of different political
parties also affects the tourism industry heavily.

Cont...
How political change in any country effects the travel and tourism sector is demonstrated with the
help of its effect on two countries-
UK-
UK is a country with high political stability and this stability helps UK in increasing tourism
activities. The stable political situation is the major reason behind the success off UK in matter
of tourism. Also, fewer activities of terrorism are helping UK in building large business.
Visitors consider UK to be a safe place to visit.
Iran-
Because of diverse attraction, beautiful landscapes of Iran there are significant number of visitors
before the accession of the theocracy, but the year 1980 recorded a rapid fall in number of
tourists due to Iran-Iraq war, which later revived. Also, due to difference in political strategies'
tourism industry in Iran faced serious limitations in infrastructure, communications,
regulatory norms, etc. Variation in political plans affected the advertising, regional conditions
which leads to a poor public image in some parts of world.

Conclusion
• From the presentation it can be concluded that The major issue rises with the
political instability is tourist safety.
• Any country can increase or decrease its attractiveness by the political changes.So
nations governmen needs to pay attention on this and should work to improve
tourism business in the country.

References
Castro, G., Ramírez, F., and et.al.,2016. Servi Travel Ltda., a management proposal to
improve its competitiveness and sustainability in the tourism sector.Turismo y
Sociedad.19.pp.193-212.
CAUTHE 2016: The Changing Landscape of Tourism and Hospitality: The Impact of
Emerging Markets and Emerging Destinations.p.681.
Eugenio-Martin, J. L. and Inchausti-Sintes, F., 2016. Low-cost travel and tourism
expenditures.Annals of Tourism Research.57.pp.140-159.