Analysis of the Travel and Tourism Sector in London

This report delves into the travel and tourism sector, focusing on London's development. It begins with an introduction to the industry's growth and structure, highlighting the role of technology and economic changes. Task 1 explores key historical developments and the sector's structure, including components like travel services, events, and visitor attractions. Task 2 analyzes the functions of government, government-sponsored bodies, and international agencies in the tourism sector. It also discusses the influence of local and national economic policies, as well as the implications of political changes. Task 3 examines factors affecting tourism demand and how the supply has changed. Finally, Task 4 assesses the positive and negative economic, environmental, and social impacts of tourism, offering strategies for maximizing positive outcomes. The report concludes with a summary of findings and provides references.

Travel and
tourism sector

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Key historical developments in travel and tourism sector ....................................................3
1.2 Structure of travel and tourism sector ...................................................................................4
TASK 2............................................................................................................................................5
2.1 Function of government, government sponsored bodies and international agencies ...........5
2.2 Influence of local and national economic policy ..................................................................7
2.3 Implication of political changes on the travel and tourism sector in different countries ......7
TASK 3............................................................................................................................................8
3.1 Factors affecting tourism demand .........................................................................................8
3.2 Supply has changed for meeting the demand .......................................................................9
TASK 4 .........................................................................................................................................10
4.1 Positive and negative economic, environmental and social impact of tourism ..................10
4.2 Strategies that could be used for maximizing the positive impact.......................................11
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................14
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INTRODUCTION
Travel and tourism industry of London is growing at a faster pace and it is offering huge
success and growth opportunities for people that comes for visiting the nation (Buckley, 2012).
Present report mentions about historical development of travel industry in London and structure
of the travel industry has also been explained in the report. In addition to that analysis of
functions of government. Government sponsored bodies and international agencies has also been
described in the report. Moreover, significance of local and national economic policy and
success of the travel and tourism sector has also been explained. Furthermore, implication of
political changes on the travel and tourism sector also have been mentioned.
TASK 1
1.1 Key historical developments in travel and tourism sector
London is one of the most visited tourism destination of the world which is visited by
millions of consumers every year. It has also become prominent business destination where
leading companies organize business meetings, conferences and seminars. London has been
tourism destination for many centuries and tourism industry of the nation is playing a key role in
economic development of the nation (Carrier and Macleod, 2012). Modern tourism started
developing since 1940 where technology played an important role in attracting visitors for
visiting the nation. Growth of air travel services played a key role in attracting visitors from the
globe.
In addition to that internet, electronic devices and smart phones have becomes a common
trend in the tourism industry that supports for enhancing tourism activities in the nation. Initially
people belonging from higher income groups were capable for availing and enjoying the tourism
services (chon, 2013). With the advent of technology and economic development it has become
easier for middle and lower income groups for exploring new travel destination sites for tourism
purpose. Industrial revolution and post world bar period has brought major changes in travel and
tourism industry and government and other agencies also played a important role in ensuring
growth and development of this sector (Crouch, 2012). Major travel destination sites in the
London includes Washington, Canterbury, Walsingham, Broholm and Lindisfarne. Other than
this some other popular travel sites includes St Paul's Cathedral and Tower of London. London
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eye is also one of the most visited travel destination site of the world. Economic developments of
the nation has also been ensured through the travel and tourism activities that are performed in
the nation (Swarbrooke and Horner, 2012).
1.2 Structure of travel and tourism sector
There are different elements and components that combine together for making structure
of travel and tourism sector. It is vital that better amenities and facilities should be provided to
travellers that comes for visiting London. Tourism has become business which offers huge
success and growth opportunities for organization that are involved in rendering services in this
sector (Theobald, 2013). Different companies that provides services in this sector includes Cox
and kings, Thomas cook and online sites such as Hotels.com. Wide range of services are offered
by these companies and it helps for gaining satisfaction level of visitors. Structure of tourism
sector involves following components (Ryan Ninov and Aziz, 2012).
Travel and tourism sector:
Travel services :- Different types of travel services are offered by organizations that are working
in this sector and it includes hospitality services, accommodation services, food and
transportation services. All the facilities that are been provided to people helps for enhancing the
level of tourism in the industry.
Conferences and events :- It has become a trend among business groups for organizing their
seminars and conferences in leading hotel groups and travel sites (Dupeyras and MacCallum,
2013). It provides opportunity to corporate people for exploring new destinations and meeting
their business objectives at the same time. London has emerged as a major business destinations
over the years and it has helped in growth and development of the nation.
Visitor attractions :- Many initiatives are taken by private service provider groups and
government agencies makes efforts for attracting visitors for exploring the tourism sites of the
nation.
Accommodation services :- Hospitality industry works for offering better accommodation
services to people and it aids for gaining satisfaction level of travellers by meeting their needs
(Evans and et.al., 2012). Many leading hotel groups are offering their services in the nation and it
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is helping to the visitors. In addition to that food and cuisines are also provided at these hotel
groups and it provides opportunity for travelers to visit the nation.
Passenger transport :- transportation facilities helps the people to visit the places from one
location to another location. There are many service provider companies including Cox and
Kings and Thomas cook that offers these types of facilities to the people (Getz, 2013).
Private, public and voluntary sectors :- Private and public sector companies provide services to
people and it aids in enhancing the travel services in the nation. Many voluntary organizations
also works for providing services to people that comes for visiting London.
TASK 2
2.1 Function of government, government sponsored bodies and international agencies
Government, government sponsored bodies and international agencies play a prominent
role in travel and tourism sector. Role played by all these agencies is as mentioned :-
Government :- Direct and indirect influence is given by government in carrying out and
executing the operational activities of the tourism sector. Major operations and functions of
travel and tourism sector are regulated by government and it aids for rendering better amenities
to travellers that comes for visiting the nation (Ghimire, 2013). Policies and norms related to
travel and tourism sector are formed by state and it is vital that all the individuals in the nation
should comply with the guidelines that are given by state.
Sustainable development of the tourism sector is also ensured by the government and it
aids for growth and success of the tourism industry. Financial investments are also done by the
government and it aids for making development of the tourism industry (Hall, 2013). There are
many negative legal implication of travel and tourism sector and government play a vital role in
reducing those negative influence. Legal framework are developed by the government and it
helps for regulating the functions of the tourism sector in strategic manner (Mok, Sparks and
Kadampully, 2013). It is made essential be the government to follow all the legal and regulatory
guideline that are being provided by the state.
Government sponsored agencies :- There are many government bodies that gives impact on the
working of the travel industry and functioning of the sector gets affected through it. It is vital that
all the government sponsored agencies should properly complete their assigned work and
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responsibility in better and effective manner (Morrison, 2013). Different government sponsored
bodies are as described :-
1 National tourist board :- these board have been set by the government for enhancing and
promoting the tourism activities in the nation. These board includes people that are appointed by
government and funding for carrying out the activities is also given by the state. Major objective
with which these boards work for is to improve infrastructure of the nation. Initially particulars
agendas are being established by executives under these boards and all the functional activities
are performed for meeting the objectives (Mowforth and Munt,Carrier and Macleod, 2012). They
make plans for making infrastructure developments of the travel and tourism sites and it aids in
making modifications in the existing travel and tourism sites of the nation.
2 Visit Scotland :- It is also a government sponsored agency and it works for developing travel
activities in Scotland. Planning and policies are made for making development of travel sites so
that more number of travellers can be invited for exploring the destination sites of the nation.
These bodies also works for improving the existing situations of travel and tourism destination
sites (Chon, 2013). Major objective of these bodies is to increase number of tourists so that
profitability and revenues can be increased.
3 Visit Wales :- It is also an agency that has been established by the government for promoting
and enhancing travel activities in the nation. Policies and regulatory frameworks are formed by
the government so that developments can be made on the travel and tourism destination sites.
This board works for developing the tourism sites so that growth and development of these sites
can be ensured.
International agencies :- many government agencies have been established by the government
and they work towards development of tourism activities in the nation. In addition to that there
are many boards that works for promoting the travel activities in the nation (Navickas and
Malakauskaite, 2015). For example World tourism organization is working with the objectives to
promote tourism activities all across the globe. Presently there are more than 400 affiliated
members of the organization and guidelines have been given to the member countries for
regulating and controlling the tourism activities in the nation. This organization works with the
objective to promote the travel and tourism activities in the nation. In addition to that there are
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some other agencies such as Civil aviation organization, World travel and tourism council and
International air transport association. All these agencies works for promoting travel and tourism
in the country so that more number of tourists can be invited for ensuring tourism growth of the
nation.
2.2 Influence of local and national economic policy
Local and national economic policies gives impact on the overall functioning of the travel
and tourism sector. Tourism sector of London also gets affected by the policies formed by the
state. National tourism policies includes Tourism action plan that has been made by the
government in the year 2016. According to this plan initiatives have been taken for making
development and improvement of the tourism industry (Page, 2014). Plans and norms have been
made so that existing infrastructure of the tourism sector should be improved. This industry has
played a pivot role in ensuring development and growth of the tourism sector.
National and regional tourism boards that have been made by the government have been
restructured. In addition to that amendments have been done for setting agencies so that major
modifications can be done for improving the situations of the tourism sector. Initiatives have
been taken for boosting the travel activities at regional, state and national level. Encouragement
is given for enhancing the number of visitors that comes for visiting the nation and it helps for
ensuring economic growth of the country (Carrier and Macleod, 2012). Other than this many
governments sponsored bodies are working at regional and local for promoting the tourism in
their respective geographical areas. Local tourism policy govern the tourism activities at local
and state level. Country councils and city councils have been formed for making policies and
guidelines for managing the tourism functions and activities at local level. There are some
specific areas for which policies and rules are made and it includes theatre, museums, gardens
and historical travel destination sites.
2.3 Implication of political changes on the travel and tourism sector in different countries
Political changes that are happening in the nation at regional and national level gives
impact on the overall functioning of the tourism industry. Millions of people from all across the
globe comes for visiting London. Travel and tourism activities that are performed in the country
are regulated by rules and norms are being formed by the state. In addition to that flexibility in
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the visa norms enhances the probability for increasing the number of tourists in the country.
More number of people from the globe will be giving preferences for visiting the country and it
will help for economic development of the nation. Rules and norms that have been made by the
government are essential to be followed by the people that are living in the near by community
areas. Favourable regulatory mechanism that has been made by the government supports for
developing the infrastructure of the nation (Chon, 2013). Similarly, political changes also gives
negative impacts on the travel activities that are performed in the nation. Other than this if
positive support will not be taken by state than due to it difficulties will be faced in rendering
better services to visitors that comes for visiting the nation. Moreover, there are many types of
changes that are observed in the travel industry of the country when political situations are
changed. Visa policies play a pivot role in attracting number of foreign tourist in the country and
it also helps for enhancing the financial revenues that is being earned by the state. Stability in the
political situations of the nation gives impact on the existing performance of the travel and
tourism industry (Travels and tourism industry, 2016). Favourable political conditions helps for
ensuring long term survival and growth of the travel and tourism industry.
TASK 3
3.1 Factors affecting tourism demand
There are diverse range of factors that gives impact on the tourism demand in the nation.
It is vital that implication of all these elements should be considered so that demand occurring in
the tourism industry should be met. Large number of service provider organizations are working
in UK for providing services to travellers that comes for visiting the nation. Needs and
preferences of visitors changes from time to time and due to that it becomes essential that they
should be provided with better services and amenities that are required by them for meeting the
demand of visitors (TUI. 2016). Demographic factors gives implication on the demand of
tourism in the industry and due to that impact is observed on overall functioning of the travel
sector. Infrastructural development of the nation also affects the demand of tourism in London.
Moreover, location of the tourism destination sites also play a pivot role in determining the
demand of tourism in the nation. Technological factors are one more significant elements that
gives impact on the tourism demand in the industry (Buckley, 2012). Changes in technical
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elements affects the overall performance of the industry. Advancements are happening in the
technological sector and it is giving impact on the overall performance of the London tourism
industry. In addition to that political stability is also a factor that influence the demand in the
travel sector. If political situations of the nation changes frequently than due to that negative
impact is being observed on the overall demand in the travel sector (Carrier and Macleod, 2012).
Where as favourable political demands in the nation also gives impact on the overall
performance of the country. Rules and guidelines that are being formed by state are mandatory to
be followed by all the organizations that are working in the sector. There are many organizations
that are working in this sector and Changing work force patterns and work force gives impact on
the demand in the tourism industry. It is assertive that travellers should be provided with the
superior class amenities and workers play a key role in accomplishing this objective. When there
will be changes in the workforce patterns than due to that demand in the tourism industry will be
affected (Chon, 2013).
Globalisation has opened the door for enhancing the profitability by inviting and
attracting more number of tourists for visiting the nation. It has become easier for people to
travel in different countries and explore and identify new places (Swarbrooke and Horner,
2012). Economic factors also gives influence on the different economic elements and it includes
currency exchange rates and interest rates due to which impact is observed on overall
performance of the travel sector. Interest rates, inflation level and level of disposable income also
gives influences on the overall demand in the travel industry.
3.2 Supply has changed for meeting the demand
It is assertive that demand in the travel and tourism sector should be properly met so that
growth of this industry can be ensured and achieved. Tour operator firms that are working In UK
needs to provide with the required amenities and facilities as demanded by tourists. In addition to
that they need to make required modifications in the existing services provided by them so that
demand should be met with the supply (Theobald, 2013). Provisions such as hospitality services,
accommodation and food services needs to be amended so that supply should be adequately met
with the demand of products. Technological is playing a key role in making consumers aware
about the services that are provided by the organizations. Tourism industry also observes
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seasonality and it is required that demand arising as per the specific season should be met.
Nowadays smart phones and internet devices are used for booking online services. Technology
can also be used for improving the services in travel industry. Technology intermediaries can
also play a pivot role in meeting the demands that arises in the travel sector.
TASK 4
4.1 Positive and negative economic, environmental and social impact of tourism
Travel and tourism industry of UK observes some economic, environmental and social
impact. Positive and negative both the types of impacts are observed due to the travel activities
that are performed in the nation. Impacts that are observed in the travel and tourism sector also
affects the overall performance of the tourism industry. The positive impacts observed are as
described :-
Economic impacts :- There are many impacts that are observed in the travel and tourism industry
due to the tourism activities that are performed in the nation. Direct and indirect employment is
provided by travel industry to the people in London and it aids in rendering a means of living to
the people (Ryan, Ninov and Aziz, 2012). Other effect of tourism are also observed and multiple
effects are observed due to it. Tourism sector contributes towards the gross national development
product. GDP growth rate also increases and economic development of the travel sector is also
ensured through it. Influences are also observed on the growth of other sectors and it includes
generation of foreign exchange reserves and government revenues that are used for making
economic development of nation.
Environmental impacts :- tourism activities also gives environmental impacts and due to that
number of tourists visiting the nation have been increasing. Conservation and enhancement of
natural resources and historic and cultural sites aids in improving the beauty of these tourism
sites (Dupeyras and MacCallum, 2013). Infrastructural development and increasing
environmental impacts affects the awareness among the tourists about the tourism places.
Social impacts :- Different social impacts are also observed due to the tourism activities and due
to it overall tourism activities gets affected. Government, voluntary agencies and other
government regulated bodies also gives impact on the functioning of the travel and tourism
sector. Heritage of cultural and historical sites is also done through travel and tourism activities
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that are performed in the nation. Cross culture heritage and exchanges of education and culture
takes place through travel activities that are performed in the enterprise (Evans and et.al., 2012).
On the other hand there are some negative impact of tourism and it includes :-
Economic :- Inflation and fluctuation occurs in the economic market and due to that impact is
observed on the travel activities that are performed in the entity. Over dependency of
government increase on the revenues that are earned through the tourism activities that are
performed in the nation (Getz, 2013). Growth of the nation is inhibited if the travel activities are
not performed as per the given guidelines and directions.
Environmental :- negative environmental impacts of tourism are also observed and due to that
beauty of travel sites gets hampered. Damages occur to the natural and built environment and it
gives impact on the number of visitors that comes for visiting the nation. Wildlife comes in
danger when more number of tourists visits wildlife sanctuary (Ghimire, 2013). In addition to
that waste disposal at travel sites also affects the beauty of these sites and satisfaction level of
people decreases due to it. Water reuse and water disposal also gets affected and ultimately it
leads towards making changes in the natural travel and tourism destination sites.
Social :- There are some negative impacts that are observed due to the social impacts of tourism
sector and due to that tourism activities in the nation gets affected. Overcrowding population
explosion are some negative impact of the tourism activities that are performed in London. In
addition to that commercialisation of culture and reinforcement of stereotypes also takes place
due to the tourism activities that are performed in the country (Hall, 2013). Rise in crime and
illegal activities also takes place and due to that image of the country also gets affected and
influenced. It has been observed that tourism activities affects the overall performance of the
travel sector and it lead towards creating negative image of London in the minds of visitors.
It is assertive that measures should be taken for enhancing the positive impact of travel activities
and reducing the negative impact (Mok, Sparks and Kadampully, 2013). It will aid for inviting
more number of tourists for exploring the travel destination sites and revenues and economic
profitability will increases.
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4.2 Strategies that could be used for maximizing the positive impact
It is vital that positive impact of tourism should be enhanced so that better revenues and
profitability can be achieved. Moreover, there are diverse range of factors that could be
considered for enhancing the revenues that is being earned through the travel and tourism
activities that are performed in the nation. It requires a strategic approach for managing the travel
activities that are performed in the entity.
Social, environmental and economic impact of tourism is observed and due to that overall
functioning of the tourism industry gets affected. Economic impact of tourism can be enhanced
by increasing flexibility in visa norms and it will support for inviting more number of visitors for
coming and visiting the nation (Morrison, 2013). In addition to that tour operating firms can also
design attractive discount packages so that consumers can be invited for exploring the attractive
travel destination sites of London.
Environmental impact of tourism can be reduced by making strict pollution control
regulations so that waste disposal can be reduced and pollution level can be reduced. More
government sponsored bodies and board can be established in which people can be appointed for
working towards restructuring the travel and tourism sector (Chon, 2013). People coming for
visiting the nation should be requested to not to harm the travel destination sites and avoid
disposal of wastes. It will help for conserving and protecting the natural environment around the
travel destination sites. Economic impact of travel industry can be enhanced by developing the
existing travel sites and initiatives can be taken for redeveloping the sites. It will support for
inviting more number of tourists for visiting the nation and it will help for enhancing the
financial revenues that are earned by this sector. It will help for making development of this
industry and GDP growth rate of the nation can also be enhanced. Punishments can be decided
for the people who violates the rules and norms that have been formed by the state. It will
provide an effective medium for enhancing the positive impacts of the travel and tourism
activities that are performed in the nation.
CONCLUSION
Summing up the present report it can be concluded that tourism industry of London offers
huge success and growth opportunities. It is vital that negative impact of travel activities should
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be reduced and positive impact should be enhanced. Historical developments have taken place in
the tourism industry of UK and it has supported for growth and economic development of the
nation. Moreover there are some issues that have been faced in tourism industry and it is required
that steps should be taken for mitigating the negative impact of risk that occurs while operating
the functional activities of travel sector. Government can take significant steps for making rules
and regulations for regulating the functioning of this sector and it will also aid for enhancing the
probability about growth and success of this sector.
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Chon, K. S., 2013. Tourism in Southeast Asia: A new direction. Routledge.
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Getz, D., 2013. Event tourism: concepts, international case studies, and research. Cognizant
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Ghimire, K.B., 2013. The native tourist: Mass tourism within developing countries. Routledge.
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Morrison, A.M., 2013. Marketing and managing tourism destinations. Routledge.
Mowforth, M. and Munt,Carrier, G. J. and Macleod, L. V. D., 2012. Tourism, Power and
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