Travel and Tourism Sector: Historical Developments and Impact Report

This report provides a comprehensive analysis of the travel and tourism sector, beginning with an introduction to its global growth and economic significance. It delves into the historical development of the sector, tracing its evolution from ancient times to the present, highlighting key milestones and shifts in traveler behavior. The report then examines the structure of the travel and tourism industry, outlining its various components such as travel planning, transportation, accommodation, and entertainment. It further discusses the implications of political changes on the sector, using examples from the UK, India, and China. The report identifies and explains the components that affect travel and tourism demand, including currency exchange rates, political stability, technology, and demographic and geographic factors. Moreover, it explores how supply has adapted to meet changes in demand. The report also addresses the economic, environmental, and social impacts of tourism, both positive and negative, and suggests strategies to mitigate negative consequences. The report concludes with a summary of the key findings and a list of references.

UNIT 1. TRAVEL AND
TOURISM SECTOR

Table of Contents
INTRODUCTION....................................................................................................................... 3
TASK 1....................................................................................................................................... 3
1.1 Explanation about the key historical developments in the travel and tourism sector..........3
1.2 Explanation of the structure of the travel and tourism........................................................5
TASK 2....................................................................................................................................... 6
2.1 & 2.2 convert in PPT......................................................................................................... 6
2.3 Discussion about the implication of political changes on travel and tourism sector in
various countries..................................................................................................................... 6
TASK 3....................................................................................................................................... 7
3.1 Explanation about the components affecting travel and tourism demand ..........................7
3.2 Explanation about how supply has changed to meet the effects of demand .......................8
TASK 4...................................................................................................................................... 10
4.1 Explanation of the main positive and negative economic, environmental and social impact
of travel and tourism.............................................................................................................. 10
4.2 Explanation of the strategies that can be used to minimise the negative impact of
economic, environment and social components.....................................................................12
CONCLUSION.......................................................................................................................... 13
REFERENCES.......................................................................................................................... 14

·INTRODUCTION
In the present era, travel and tourism is one of the sector which is continuously growing
in the world. It is the fastest growing industry in the world which assist in increasing the national
incomes as well as economic development of the country. Tour is an activity of travelling under
which tourism spend their holidays for getting relaxation. Travel and tourism sector has become
changed due to continuous demand in the world of tourist. The following report provides a depth
knowledge and understanding about the historical development and growth of the travel and
tourism sector (Blanke and Chiesa, 2013).
Furthermore, the statistical data of revenue which generated ion the country by this sector or
business has been also discussed on this report. Moreover, various kinds of components which
affect the demand and supply of travel and tourism sector has been also addressed in this report.
The influence of local and national government and international agencies on the travel and
tourism sector has been also studied in this report. This report described various effective
marketing activities and function in the travel and tourism with respect of TUI group (Cazcarro,
Hoekstra and Chóliz, 2014). In addition to this local and economic policies which impact on
entire development and growth of economic nation has been also discussed in this report. The
major objective of this report is to understand the significance of travel and tourism in the world
and how it developed ion the countries.
·TASK 1
·1.1 Explanation about the key historical developments in the travel and tourism sector
Travel and tourism sector is one of the most import industry which assist in generating
the national income of the country. London is one of the greatest famous tourist destination
across the world at which more than 30 million visitors come for visit every year. The major
reason for its high ratio is its spirited culture and amazing monument. In the London, travel and
tourism sector history started with primitive era wherein the concept related with travelling from
one destination to another was not common. Thus, it can be said that in the London, travel and
tourism sector is very west and its destination are very famous for visiting.

Tour is the activity which provide the high level of satisfaction and relaxation to the
visitors. In order to get relaxation from the daily life, individual attract toward the travel and
tourism sector (Choi and Sirakaya, 2006). With assistance of this sector, national income of the
country can also increase and infrastructure of the country can also enhance. As per the research
it has been founded that travel and tourism sector has been grown from many years. It has been
also founded that 18 to 24 and 55+ customer more like to visit at various tourism destination for
spend their holiday. It can be said that travel and tourism has been existed in many countries
even during the pre-historical time though not functioning as an industry itself. In the early time,
visitor was preferred to visit different destination to collect the food and hunt for animals (Hall,
2011). But in the present time travel and tourism completely different from its ancient time and
connected with various services like entertainment, accommodation, restaurant etc. In this time
various components such as cultural, social, economic. Following are some historical
development in the travel and tourism sector -
Time FrameHistorical development1500 BCIn the early time tourism started with nomads who
travelled around the world for searching the food and hunting the animal. The major objective of
this tourism is to gather food and traded around the world14 Century
11 century

17 Century In this time people prefers to visit the places for learning languages, cultural aspect.
In 14 century Christopher Columbus canvas, westerly and vasco da gama travel to state for gain
currency then business travel has been intrinsic part of tourism industry (Hall and Clayton 2009)
In the early time tourism started with nomads who travelled around the world for searching the
food and hunting the animal. The major objective of this tourism is to gather food and traded
around the world
Only young and high standard royal people travel in this century.for personal transport use
horse and oxen. Two wheeler vehicles introduce in paris in this century. Eurapian capital mostly
used human power for short distance. In 1662 first public bus was invent in blaise Pascal. In
1663 the first road turnpike opened.21 centuryIn the final 20 centuries, rail transport, air
transport, ship has changed the picture of travel and tourism sector. In this time, various
transport facilities have been arisen which create a new age revolution and provide traveller to
easily travel around the world (Kilkenny, 2009).
l壱1.2 Explanation of the structure of the travel and tourism
In the structure of travel and tourism there are six components included that is travel
planning, transport, accommodation, local travel, food shopping and tourist sites. Following are
systematic justification of structure of travelling which provides the depth knowledge about
travel and tourism-
·Travel planning- In this component various travel agents, travel structure, tour operators are
included which offer attractive travel and tourism facilities and services to customers. For
example, Thomas cook is the popular tour operator in the UK which provides an overall holiday
package (Lashley, 2007).

·Transport-In the present era, various kind of transportation facilities arises in the world like air
way, bus, rail way etc. Most of the professional and higher income group customer most like to
travel in the air and car.
·Accommodation- In this manner includes lodging, meal, guest house, hostel facilities etc. The
restaurant facility is also included in this field which desires most of the customer along with
travel and tourism services (Lee and Chang, 2008).
·Food and shopping- This is major part of the travel and tourism because everyone want great
experience of food and shopping. Many tour operator plan for food and shopping for their
customer.
·Entertainment- It is another very important part of the travel and tourism sector because every
customer wants entertainment with tour (Manente, 2000). It includes various entertainment
facilities like adventure sports, hours riding, river rafting, diving deep sea fishing, hot air
ballooning, climbing mountain biking, bungee jumping etc.
·TASK 2
·2.1 & 2.2 convert in PPT
l壱2.3 Discussion about the implication of political changes on travel and tourism sector in
various countries
In the travel and tourism sector, there is great importance of political stability.
Government plays a very crucial role to protect and secure the travel and tourism activities in the
country. While any customer chooses the destination place or location of travelling and tourism
then they always consider their political stability. The political instability creates negative impact
on the travellers as they pose the risk of regional unrest and there may high level of confusion
(Mintzberg, Ahlstrand and Lampel, 2005). The impact of political changes on the UK and other
country has been enumerated in the following manner-

·UK- In the UK, government has been developed various policies and regulation related to the
traveller and tourist safety and security which every tour operator company must follow. The
UK government is very strict related to the security in the travel and tourism thus they have
made various effective policies and practices (Page, 2011).·India- Government plays a very crucial role in the travel and tourism sector in the India. Every
tour operator company must follow the rules, regulation and policies of travel and tourism in the
India which has been developed by Indian government. While its government has made any
changes in the policies and rules of transportation and hospitality license then it directly
influences the travel and tourism corporation. In the India, various political parties have
supported the growth and development of tourism and invest large amount to develop new
destinations (Palhares, 2012). With the help and support of the government in India, various new
destination has been developed.
·China- In the china, the political parties are exerting pressure over businesses within travel and
tourism sector to make utilisation sustainable practices. By this sales and profitability of the
entire industry has been decreased.
·TASK 3
·3.1 Explanation about the components affecting travel and tourism demand
To gain the effective success and profitability in the travel and tourism sector, its is very
important for Tour operator TUI group to understand the components which affect the demand
of travel and tourism sector. There are various kinds of components which influence the demand
of travel and tourism in the country and TUI group should consider these factors. These
components are as follows-·Currency exchange rate- Prices is the major important factor in the travel and tourism sector
which highly affect the demand of the same. If company sets high prices of travel and tourism
services then customer may unable to afford these services. For example, great British pound in
2009 resulted in overcoming the demand of travel and tourism within the UK (Stone, 2013).
·Political stability- Legislation, regulation, policies and practices plays a very crucial role in the
travel and tourism. Government has developed various protection and security related policies

for the visitors through which they can securely carry out their travelling. The instability in
government can negatively affect to the demand of travel and tourism sector (Teng, 2011).
Effective protection and security by the government policies can increase the demands of travel
and tourism in the country.
·Technology- Technology is another major factor which can increase the demand of the travel
and tourism. TUI group can enhance the demand of travel and tourism services by increasing the
promotion, advertisement, communication with visitors etc. For example, Thomas cook used
effective technology in developing healthy relationship with customer so as the demand of its
destination is high (Vivanco 2001). TUI group can develop its own websites by which it can
attract the large number of customer toward its travel and tourism services.·Demographic factor- This is one of the major component which affect the demand of travel
and tourism sector. This component is related to the customer culture, region, education level,
life style, occupation, income level etc. While any visitor of customer chooses the destination of
tour then this factor largely affect them. For instance, old age people more like to visitor that
places which is based on historical place and regional place (Xin and Chan, 2014). On the other
and if in the country there are public which is below the line of poverty then they may not afford
to charge the fees of travel and tourism. Thus, lower income group cannot afford the travel and
tourism. Hence, it can be said that demographical factor can largely affect the travel and tourism
demand and its largely depends upon the customer.
·Geographical factor- Geographical location, places and distance is also considered by the
customer while they select the destination of travel and tourism. This is the most important
factor which largely affect the demand of the customer in the travel and tourism (Giaoutzi and
Nijkamp, 2013). TUI group should establish its destination of tour where effective condition of
weather and climate. Customer more like to visits at that destination place where effective
weather and climate.

l壱3.2 Explanation about how supply has changed to meet the effects of demand
As per the above discussion it has been ascertained that there are various kind of
components which can largely affect the demand of travel and tourism sector. By this
component, TUI services can highly affected. There are various kinds of strategies and ways
through which cited firm can improve the supply and demand of travel and tourism services.
Tourism supply refers to the process by which services can deliver to visitor and meet the
demand of tourism. Following are some ways through which TUI group can improve the
demand and supply of travel and tourism services-·Accommodation- This is the major point and want through which supply and demand can
increase in the industry. In this manner includes lodging, meal, guest house, hostel facilities etc.
The restaurant facility is also included in this field which desires most of the customer along
with travel and tourism services. Company should improve the accommodation services through
which it can attract the large number of customers. TUI group should understand the demand
and desire of customer and deliver accommodation services accordingly (Tour Operators, 2014).
Travelling around world in leisure or in recreational manner with free accommodation is the best
thing for customer. Tourists who are belonged from high income group are likely to take
accommodation within luxury as well as five start hotels.
·Transportation- Transportation is other major concern in the travel and tourism sector. While
any visitor chooses the travel and tourism then transportation facility is major issue for them. In
the present era, various kind of transportation facilities arises in the world like air way, bus, rail
way etc. Most of the professional and higher income group customer most like to travel in the air
and car. Therefore, TUI group should understand the needs and demand of the customer in the
travelling services and provides various travelling facilities like air, bus, rail, ship etc. (Hall,
2011). Thus, various customer from various location can easily come and enjoy the travel and
tourism services of the TUI group. In addition to this, to reaching the destination, company can
also provide car rental facility so that they can travel in the market and purchase something for
their family. Moreover, company can also provide proper guide for local site seeing so as visitor
can not face any kind of difficulties related to destination.

·Recreational activity- It is an activity under which visitor can engage under their free time. In
this includes games, dance, reading, riding etc. In order to improve the supply of travel and
tourism services, TUI group should provide this recreational activity to visitors so as they can
enjoy their trip. In this manner, company can provide land based and water based activities like
horse riding, river rafting, diving deep sea fishing, hot air ballooning, climbing mountain biking,
bungee jumping etc (Kilkenny, 2009). By these activities, company can attract the large visitors
toward the travel and tourism sector.
·Ancillary- This is kind of additional facilities in the travel and tourism sector which can also
attract the large amount of customer and enhance the demand. It includes other ancillary
facilities like car hire, currency exchange, EMI facilities for ticketing, parking at airport etc. The
major aim of these services is to enhance the number of visitors and sustain them within form for
long time.
·TASK 4
·4.1 Explanation of the main positive and negative economic, environmental and social impact
of travel and tourism
As per the discussion it has been ascertained that travel and tourism sector is continuously
developed in the nation due to its high demand in the market. This sector is largely influenced by
the economic, environmental and social factor of the country. Some positive and negative
economic, environmental and social impact on the travel and tourism sector are as follows-·Economic- In every country, there are different economic condition from other nation. Every
country has its own economic policies, practices which affect travel and tourism sector in the
large manner. The TUI group is largely influenced by the economic factor under which country's
economic condition are included. In the context of positive manner, TUI group is largely
beneficial by government revenue, foreign exchange earnings, employment generation and
increment in infrastructure investment (Korstanje and George, 2012). If travel and tourism
business expand and grown then employment in the country can also increase. The local people
and citizen can beneficial by this travel and tourism business in the country. In addition to this,
due to increase the travel and tourism, country have another opportunity to increase its

infrastructure and beauty. In addition to this, increase the scope of travel and tourism also assist
in increasing the national income of the country. In the context of negative manner, In the
country, if foreign exchange rate is increased then TUI group is directly negatively influenced
because it must spend lots of money over the travel and tourism sector. By increase the foreign
exchange rate the opportunity cost will also decreased. in the business enterprise. In addition to
this, the employment scope for local citizen is limited in this sector because it depends upon the
season.
·Social culture- Social culture refers to the belief, value interaction, living standard etc. In the
travel and tourism, TUI group consider the value and cultural belief of the society. In this
manner, old arts, craft and historical places can be considered by the company to improve the
social and cultural value of the country. Travel and tourism sector also affect the social and
culture of the country (Lashley, 2007). By increasing the level of travel and tourism, country's
infrastructure can also increase. The major advantage of the social and cultural factor on the
travel and tourism is that corporation have opportunity to expand its business by increasing the
cultural and regional value in the country. For example, most of the visitors like to visit the old
and historical place. Thus, TUI group can gain the benefit by this social and cultural concept. On
the other hand, country's beauty can also increase by increase the infrastructure of the country
(Lee and Chang, 2008). On the other hand, in the negative manner, while social value and
culture of people change then travel and tourism company have also changed the infrastructure
of the destination places. One major negative impact is that by this component, country have loss
of amenity as well as increase in crime. This is term that it leads to destruction of attractiveness
of region of the local people.
·Environmental impact- Travel and tourism largely affect the environment of the country
because while TUI group increase the infrastructure and beauty of the tourism destination then it
will also increase the overall nation picture and beauty. In addition to this, it provides an
opportunity of employment to the local citizens (Kilkenny, 2009). In the UK by travel and

tourism development, various new infrastructure has been developed like increase in the
transportation facilities like airway, railway, bus, golf course, clean sea etc.
Negative Impact of Tourism
Impact can be characterize through direct or indirect factors.whether that is
economical,social,environmental,political. Some tourism can harm environment like increase
pollution,nature,animals .eg. Scuba diving,sky diving, they feed the animals which is not
suitable for them and they take pictures with them.they catch walking on corals whole playing in
the water. Tourist paid poorly money which is doesnot profitable for professions or community.
some tourism's behaviour also impact . For example they drugs,alcohol, prostitution. These are
negative factors.
l壱s4.2 Explanation of the strategies that can be used to minimise the negative impact of
economic, environment and social components
From the above discussion, it has been ascertained that countries environmental,
economical and social and cultural environment is largely affected by the travel and tourism and
it has various kinds of negative and positive impact by travel and tourism in the country. In the
context of TUI group, country has positively and negatively influenced by the travel and
tourism. Cited firm should adopt some effective strategies and action through which negative
impact of travel and tourism can reduce from the society. By adopt effective and appropriate
strategies, TUI group can decrease environmental, social, cultural and economic impact. These
effective strategies are as follows-
·To overcome the employment related problem, Government should provide the job opportunity
to local citizens so ads they cannot largely depend upon the seasonal job by travel and tourism
sector. This strategy assist in decreasing the impact of travel and tourism in the context of
economic (Palhares, 2012). This strategy also assist in increasing the national income of the
country because various small and large business enterprise can have developed in the country.