Travel and Tourism Sector Report: Political and Economic Effects

This report delves into the travel and tourism sector, analyzing the functions of government, sponsored bodies, and international agencies like the UNWTO. It examines the influence of local and national economic policies, providing examples of direct and indirect impacts on the industry. Furthermore, the report includes an article for publication in a travel and tourism magazine, highlighting the implications of political changes in various countries, such as Egypt and Turkey, and their effects on tourism revenue and employment. The report emphasizes the importance of political stability and government strategies like public-private partnerships in fostering the growth of the sector, referencing key research and studies to support its findings. The report underscores the multifaceted nature of the tourism industry and the crucial role of political and economic factors in shaping its success.

Travel and tourism
sector
Task 2

Travel and tourism

2.1 Function of government, sponsored bodies and
international agencies on the sector of travel and tourism
Development of new destinations for the tourists or
people and their future:
 International Organizations
 Local Government
 UNWTO (United Nations World Tourism
Organization)

CONTINUED...
The role played by the government in the industry of
travel and tourism is of vital importance.
 Social and economic development is assured by the
strategies planned by the governments and decisions
taken.
 The mobilisation of the industry dealing with
tourism drives the aspects such as economic factors,
cultural factors, social factors, industrial and
infrastructural aspects.

CONTINUED...
Local government: In the early days local government
only was responsible for the development of tourism
industry. Tourism sectors boosted its popularity in the
early days of emergence of railways. The
functionality of local government was similar to that
of the national government. The sector is involved in
the private industry and huge number of hotels and
resorts are responsible for the growth and
development of local tourism administration for
taking the host destination responsibility.

CONTINUED...
International Organisation: The international bodies
have increased in number over the years. It involves
governmental and government sponsored bodies. The
government parties deals with the interests of national
government. The priority of tourism sector is
comparatively lower in the industrialized countries.
The coordination and the cooperation at the national
level is weaker. There exist huge number of
institutions carrying concern and responsibilities
because number of tourism activities. The
management of collective tourism approach is tough.

CONTINUED...
UNWTO (United Nations World Tourism
Organization): UNWTO is the leading international
brand in the world and a specialized agency in the
United Nations. It is a well known organization in the
field of travel and tourism. For the issues related to
the policies of tourism, this organization serves
global forums. To increase the strength of link with
non government and commercial partners through the
membership affiliation system, WTO is making
various efforts.

2.2 Effect of national and local economic policy on the
success of tourism and travel sector
Travel and tourism sector is influenced by the
economic policy in two ways:
 Directly
 Indirectly

CONTINUED...
Direct: Let's take an example, building of a hotel or
resort in a particular town is subsidised by the local
government, this advantage benefits the travel and
tourism industry. This is the ways in which economic
policies of government directly influence on the
travel and tourism industry and this impact occurs
when explicitly aimed policies are build by
government by aiming the tourism sector.

CONTINUED...
Indirect: There are many economic policies of government
which influence the tourism indirectly. Monetary policies
are designed by the government without considering the
tourism in mind, because of these monetary policies
fluctuation in the currency's exchange rate. if the currency
decreases, tourism will gradually increase due to the
holidays in the country becomes less expensive for
citizens of other countries. And if the currency rate
increases, then the number of tourists decreases in a
particular country.

2.3 Article for publication in Travel and tourism
magazine which includes implication of political change
on the travel and tourism sector in different countries
The influence and power in decision making process
and the society of public policy. The most important
factor which effects the travel and tourism industry is
the political factor . The attraction of travel and
tourism sector is determined by the government and
its administration. To flourish this sector, the stability
should be manage in administration. There are
various negative situations which creates negative
impacts like political movement, political unrest
which further destroys the tourism.

CONTINUED...
The positive side of the growth in the travel and tourism
industry is the restructuring of the policies which
directly or indirectly effects this sector. The
government is adopting various effective ways under
political areas such as public private partnership . The
government of different countries like New Zealand,
Australia and Canada focuses mainly on the corporate
structure of the tourism and travel sector in form of
joint promotions to attract more and more customers
across the globe and by collaborative marketing.