Travel and Tourism Sector in UK: Key Developments and Analysis

This report provides a comprehensive analysis of the travel and tourism sector in the United Kingdom. It begins with an introduction to the industry's significance and its impact on the UK economy. The report then delves into the historical developments of the sector, highlighting key milestones since the 19th century, including the post-1945 boom and the evolution of services. The structure of the sector, encompassing accommodation, travel agents, information services, tour operators, transportation, and government roles, is thoroughly examined. The report further explores the functions of national governments, government-sponsored bodies, and international agencies in promoting tourism, as well as the influence of local and national economic policies. It also assesses the impact of political changes on tourism in various countries, including China and India, and analyzes factors affecting tourism demand in London, such as economic conditions, political environments, and technological advancements. Finally, the report addresses the positive and negative economic, environmental, and social impacts of tourism on London and proposes strategies to maximize benefits and minimize negative effects. The report concludes with a summary of the key findings and recommendations for the future of the UK's travel and tourism industry.

TRAVEL AND TOURISM
MANAGEMENT TRAVEL
SECTOR

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1- Key historical developments in the travel and tourism sector of United Kingdom. ...........1
1.2- Structure of the travel and tourism sector in the United Kingdom......................................2
TASK 2............................................................................................................................................3
2.1- Functions of the national government, government sponsored bodies and international
agencies in promoting travel and tourism in the country. ..........................................................3
2.2- Influences of local and national economic policy on the success of travel and tourism
sector in the United Kingdom. ...................................................................................................3
2.3- Impact of political change in the travel and tourism of different countries. .......................4
TASK 3............................................................................................................................................5
3.1- Factors affecting tourism demand in London......................................................................5
3.2- Changes in the supply to meet the effects of demand for tourism related product and
services in London. ....................................................................................................................6
TASK 4............................................................................................................................................6
4.1- Positive and negative economic, environmental and social impacts of tourism on London
and the surrounding areas. ..........................................................................................................6
4.2- Strategies that can be used to minimise the negative tourism impacts while maximising
the positive tourism impacts on London and the surrounding areas. .........................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Travel and tourism sector is one of the main industry working in the world. It has very
deep impact on generation of revenue in UK. This sector creates many types of employment
opportunities for individuals in the country. It has been increased very much from the past. This
report includes about the historical developments of this industry in United Kingdom. There is
particular structure of the travel and tourism sector (Dredge, Schott and Munar, 2015).
Government plays the major role in these types of businesses. That's why political environment
has very deep impact on the working of this industry. There are many factors which affects the
tourism demand. However, there are some social, economic and environmental factors which
have positive and negative impact on the tourism.
TASK 1
1.1- Key historical developments in the travel and tourism sector of United Kingdom.
In accordance with the history it is shown that travel and tourism sector was not that
much popular. Its popularity has been increased in the recent times. UK has always been the
centre point of tourism. There are many places which attracted tourist to travel and visit them.
This sector got evolved since the 19th century.
1945
Prior to 1945, travel and tourism sector was not popular. Only few ranges of tourist were
interested in travelling the world. All the businesses which works in this industry were only for
the name sake. It was the time of industrial revolution. That's why the number of holidays
decreased at that time.
1945-1949
To be exact the development of travel and tourism sector was started in 1945. In these
past years this industry became more integrated. Tour operators started providing quality
services. It was found at that time there were many elements which worked together for the
development of tourism (Kapiki, 2012). Number of holidays increased, employees were also
paid for the leaves etc.
1980 to present situations
By the year of 1980 travel and tourism industry got very much developed. Different types
of innovative services got included. By the 1990s, many big companies got established in UK,

which further contributed in the development. In 2016 it was seen that around 19.1 million
tourists visited London. It generated $11.9bn. 53% of the visitors had visited the place.
Future
In the future, it has been expected that travel and tourism sector may face can some
challenges due to the impact of Brexit in UK.
1.2- Structure of the travel and tourism sector in the United Kingdom.
Structure of the cited industry is very much developed in the UK. It is very huge. There
are various elements which are included in the structure of the travel and tourism sector. Those
elements are as follows: Accommodation- This element is very much important fort this industry. The tourist who
are travelling needs some place where they can stay. There are many hotels, lodges and
resorts in UK, which are established to provide accommodation to tourist (Page, 2014).
There are many services which are provided by them to the visitors. Travel agents- They are one to whom the visitors communicate to when they plan to
travel at some place in the world. Travel agencies in the cited country provides many
types of services like, advices, tickets, information about various places etc. Information-
It is necessary to have some information about the place and many factors when the
individual plans to travel. There are many businesses who are working in the direction to
provide information to the tourists. In United Kingdom there are some businesses related
to publications of travel guide, travel guide etc. To these types of services. Tour operators- They are the people who provides bulk services. Packaged tours which
includes many types of elements like transportation, accommodation, attractions etc. have
been provided by them. In UK there is Thomas Cook who provides who provide these
types of services. Transportation- This is one of the most important element within the structure of travel
and tourism sector. There are many types of transportation services which are established
in UK. Those are airlines, taxis, railways etc.
 Government- They are not termed as the element within the structure but has very high
influence on the industry of tourism (Structure of the travel and tourism industry, 2017).
In United Kingdom it plays a major role in planning, regulating, promoting etc. within
travel and tourism sector.

TASK 2
2.1- Functions of the national government, government sponsored bodies and international
agencies in promoting travel and tourism in the country.
Government plays major role in identifying the significance of travel and tourist sectors
on economic conditions of UK. They analyse the situation and find the contribution of this
industry in the creation of employment, sustainable economy etc. Plan of promoting the tourism
is made by them only (Séraphin and Butler, 2013).
National government
They make policies which are to be followed by the businesses in this sector. National
government makes sure that organisation follows all the rules which are made in consideration
with the standards of health and safety. They work by keeping infrastructure of transport in
mind. It is their duty to find that what is the main concern of population in accordance with the
travel and tourism industry.
Government sponsored bodies
There are many specific bodies which are made or sponsored by the government in this
tourism industry. There are state tourism agencies, department of tourism board etc. in United
Kingdom, who are established to handle the work of travel and tourism sector. Their work is to
analyse or make the plan to understand the market conditions.
International agencies
These are the agencies which work on the international level in travel and tourism
industry. They work in the direction of promoting this sector worldwide. Agencies like World
Tourism Council, World Trade Organisation etc. are the international bodies of this industry.
They try to solve the issue of tourism sectors which get raised at the local level.
2.2- Influences of local and national economic policy on the success of travel and tourism sector
in the United Kingdom.
Travel and tourism sector's success can be influenced by the economic policy.
Government is making the policies which are specified for this industry has major impact on the
businesses (Ekanayake and Long, 2012). Travel and tourism sectors are influenced when the
local or national policy directly aim to this industry. However, there are some policies which do
not have the direct aim but lead to affect the working of this sector Just, like the monetary

policies. These policies are not made by the government for the tourism sector, but it has some
effects on it. Exchange rates gets changed because of the monetary policies. It will lead to
increase in the number of tourist because they will get the lower rates for travelling in other
countries. Policies of United Kingdom allows making resorts on beaches. It works as an
attraction point for the visitors. It will lead to the success of travel and tourism sector. The local
and national policies which are made by the government in economy will include all the factors
which are directly or indirectly affected. All the elements are needed to be kept in the proper
manner for further success of this industry.
2.3- Impact of political change in the travel and tourism of different countries.
Growth of travel and tourism industry has been escalated in the United Kingdom.
Political environment never remains same, it changes when some new policies or laws are made
by the government (Aldebert, Dang and Longhi, 2011). Various countries have different impact
of change on the travel and tourism sector.
China
Economy of this country is one of the fastest growing in the world. Tourism in China has
been increased very much from the past. Middle class people of the country has become
somewhat rich to afford the cost of their travel. Free market system is made in the political
environment, which had resulted in the unexpected change in the travel and tourism sector. This
country is termed to be on the fourth number in this industry. It is expected that people of China
will also love to travel foreign countries because of the emerging markets and increase in the rich
middle-class people. Infrastructure of the country will be impacted by the political change.
Quality services are provided by them in context to this industry.
India
Indian economy is also growing. There are many people who are termed as the rich
middle class. There are many tourists who visit the country. There are many changes which are
done in the political environment by the government. It has lead the country towards the increase
in the travel and tourism activities. There are agencies which are made by the government to
look after this industry (Spenceley, 2012). These businesses work in the direction making the
country more attractive to gain the attention of many tourists. There are rich middle-class people
who will love to travel abroad. This will eventually increase the travel and tourism in the United
Kingdom.

TASK 3
3.1- Factors affecting tourism demand in London.
There are many factors which affects the demand in the travel and tourism. Those factors
influencing the travel and tourism sector in London are as follows: Economy- Currently, economy of the country is growing as whole. Economy affects the
exchange rates which can increase the demand or decrease it. If the rates are high, then
demand will be decreased and if they are low, there will be enhancement in the demand..
It is found that there is risk of losing job in London. Political environment- Changes in the political environment effects on demand of
tourism in the country. Demand will be affected because of Brexit. Changes in the tax
rates are also included in this type of change. Crisis and threats- Many countries have the threat of terrorism. It is the factor which
mostly affects demand of tourism. In London, there is no such threat. So, it does not have
much impact on the demand. Demographic- It is a factor which affects the demand within the tourism in London. This
is on the basis of elements like infrastructure, tourist spots etc. There is very good
infrastructure in the country (Becker, 2016). It increases the demand very much and
develops the travel and tourism industry.
 Technology- This aspect is based on various facilities of transport, information etc.
however, transportation and information services in London are very good. There are
many techniques which are used in the transportation. Many agencies are working to
provide information. But there is one bad thing about the transportation which is traffic.
These all are the elements which affects the demand of tourism in the country.
Other than these, there are many factors that also affects the demand. They can be
travelling abilities, behaviour of the consumer etc. People who do not have finances to travel
cannot visit the place.
3.2- Changes in the supply to meet the effects of demand for tourism related product and services
in London.
Effective supply of the resources and materials are needed to meet the demand of tourism
in the efficient manner. The resources which are required can be natural or made by the human.

Accommodations, transportation, communications etc. are included in the supply services. These
all services are needed to be provided to the visitors to meet the demand in the effective manner.
Other than these there are many more services which are needed in the tourism industry like, tour
operators, travel agencies etc. There are many businesses in London who are working as the
suppliers to meet the demand of travel and tourism sector. There are many elements which are
included in the supply (Prebežac and et.al., 2016). They can be Natural elements which are
provided by the nature. These are used to make this industry give sustainable business
performance. On the other hand, there are resources which are made by the human like supply
system of water, roads etc. Other than this, one more supply service is provided in London which
is termed as the hospitality. All these supply elements work hand in hand to meet all the demands
of travel and tourism sector.
TASK 4
4.1- Positive and negative economic, environmental and social impacts of tourism on London
and the surrounding areas.
There are many positive impacts which come with the travel and tourism industry but
there are negative impacts too. They are on the economic, social and environmental factors.
Economic impacts Positive impacts- Travel and tourism sectors create employment opportunities for the
individuals of London and the surrounding areas. It makes the economy grow. Many
benefits are obtained by the businesses working in this industry (Franzoni, 2015). The
income which is generated from these sectors is given and used in the schools, hospitals
etc. Negative impacts- The jobs which are given in London by the travel and tourism sector
are on seasonal basis. However, wages which are given to workers are also at very low
level. The businesses which are working for providing the tourism services do not always
get the benefits.
Social impacts Positive effects- Customs and cultures are effectively followed by the industry of
tourism. Otherwise, it gets hidden in most of the countries. The culture of the country is
shown to the tourists when they visit the place. (Baker, 2014). Social effects make the

country aware about the various responsibilities which are to be followed by them on the
basis of human rights, health and safety etc. The individuals who visit will be able to
understand the culture of London. Negative effects- Some tourist's behaviour makes the negative or bad impact on the
society of the country. Traffic and crowd gets increased in London. Some visitors have
the bad habit of smoking or taking drugs, which makes environment of the country
polluted. Due to establishing the accommodation services which are required in the travel
and tourism sectors, snatches the rights of people who are living at that place.
Environmental impacts Positive effects- Travel and tourism industry makes the country to protect those elements
which can be attraction point for the visitors (Page, 2014). Those points can be securing
the wildlife, beauty of the nature, and other natural factors. Large amount of money is
invested by London in preventing the parks or wildlife.
 Negative impacts- Many a time, environment get harmed by the tourists. Natural
resources of the country get wasted or polluted. Visitors left wastes behind them in
London and the surrounding areas.
4.2- Strategies that can be used to minimise the negative tourism impacts while maximising the
positive tourism impacts on London and the surrounding areas.
There are many innovative techniques which can be used to minimise the negative
impacts and increase the positive one. The visitors who visits London should be provided with
accommodation in the areas where local people are living (Dredge and et.al., 2015). It will save
the people from giving their place to establish the hotels or resorts. It will also make the tourists
to understand the culture of the country in the better way and the local people will be able the
know different culture of the visitors.
The tourists who are visiting London should be informed about the measures which can
be followed by them to maintain the proper environment of the place. On the other hand, people
who are local should also understand that keeping the environment safe and clean is very much
important for the travel and tourism sector.
In this way, numbers of the visitors can be handled in an effective manner to control the
traffic and crowd in London. It will protect the country and surrounding areas from any type of
harm done on the environmental and social factors.

Laws and legislations should be formed to control the tourists from doing any type of
activity which will harm the environment of the country. These laws made should be strictly
followed by each one, if not then action must be taken against the individuals who had caused
the harm.
Other than these, there are many other strategies by which negative impacts can be
minimised. Those can be environmental planning and development, educating individuals about
the environmental conditions etc.
CONCLUSION
This report concludes that travel and tourism sector is growing very rapidly in UK. There
are many people who are leading towards travelling the world. This industry contributes in
giving employment opportunities. Economic growth is ensured by effective working of this
industry. Moreover, the report states many factors or strategies that can be used to minimise the
negative impact of environmental, social or economic factors.

REFERENCES
Books and Journals:
Aldebert, B., Dang, R.J. and Longhi, C., 2011. Innovation in the tourism industry: The case of
Tourism@. Tourism Management. 32(5). pp.1204-1213.
Baker, D. M. A., 2014. The effects of terrorism on the travel and tourism industry. International
Journal of Religious Tourism and Pilgrimage, 2(1), p.9.
Becker, E., 2016. Overbooked: the exploding business of travel and tourism. Simon and
Schuster.
Dredge and et.al., 2015. The tourism education futures initiative. Anatolia, 26(2), pp.340-346.
Dredge, D., Schott, C. and Munar, A. M., 2015. The tourism education futures initiative.
Anatolia. 26(2). pp.340-346.
Ekanayake, E. M. and Long, A. E., 2012. Tourism development and economic growth in
developing countries. The International Journal of Business and Finance Research. 6(1).
pp.61-63
Franzoni, S., 2015. Measuring the sustainability performance of the tourism sector. Tourism
Management Perspectives, 16, pp.22-27.
Kapiki, S. T., 2012. The impact of economic crisis on tourism and hospitality: Results from a
study in Greece. Central European Review of Economics and Finance. 2(1). pp.19-30.
Page, S. J., 2014. Tourism management. Routledge.
Prebežac and et.al., 2016. The tourism education futures initiative: Activating change in tourism
education. Routledge.
Séraphin, H. and Butler, C., 2013. Impacts of the slave trade on the service industry in Kenya and
Haiti: The case of the Tourism and Hospitality sector. Journal of Hospitality and
Tourism. 11(1). pp.71-89.
Spenceley, A., 2012. Responsible tourism: Critical issues for conservation and development.
Routledge.
Online:
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