Impact of Tourism: Environmental, Economic, and Social Analysis Report

This report provides a comprehensive overview of the travel and tourism sector, examining its historical evolution, structure, and the influence of local, national governments, and international agencies. It analyzes the factors affecting tourism demand and supply, exploring strategies to meet demand changes. The report also evaluates the environmental, economic, and social impacts of tourism, offering strategies to minimize negative impacts while maximizing positive ones. The content includes explanations of historical developments, the structure of the travel and tourism industry, the function of governments and international agencies, the implications of political change, and the effects of supply and demand. Furthermore, it discusses the positive and negative impacts of tourism, and strategies for sustainable tourism practices.

TRAVEL AND TOURISM SECTOR
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Table of Content
TASK 1..........................................................................................................................................................3
LO1: UNDERSTANDING OF THE HISTORY AND STRUCTURE OF THE TRAVEL AND TOURISM SECTOR (M1). 3
1.1. Explanation of the historical developments in the travel and tourism sector......................................3
1.2. Explanation of the structure of the travel and tourism industry..........................................................4
TASK 2..........................................................................................................................................................5
LO2: UNDERSTANDING OF THE INFLUENCE OF LOCAL AND NATIONAL GOVERNMENT AND
INTERNATIONAL AGENCIES ON THE TRAVEL AND TOURISM SECTOR (M2, D1)...........................................5
2.1. Analysis of the function of government, government-sponsored bodies and international agencies in
travel and tourism.......................................................................................................................................5
2.2. Explanation of the influence of local and national economic policy on the success of the travel and
tourism sector.............................................................................................................................................6
2.3. Discussion of the implications of political change on the travel and tourism sector in different
countries......................................................................................................................................................7
TASK 3..........................................................................................................................................................8
L03: UNDERSTANDING OF THE EFFECTS OF SUPPLY AND DEMAND ON THE TRAVEL AND TOURISM
SECTOR (M3, D2).........................................................................................................................................8
3.1 Explanation of factors affecting tourism demand..................................................................................8
3.2 Explanation of the supply changes to meet the effects of Demand......................................................9
TASK 4........................................................................................................................................................10
L04: UNDERSTAND THE IMPACTS OF TOURISM (D3).................................................................................10
4.1 Evaluation of the main positive and negative environmental, economic and social impacts of tourism
.................................................................................................................................................................. 10
4.2 Explanation of the strategies that can be used to minimize the negative impacts while maximizing
the positive impacts..................................................................................................................................11
Reference List:...........................................................................................................................................13
Appendices:...............................................................................................................................................15
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TASK 1
LO1: UNDERSTANDING OF THE HISTORY AND STRUCTURE OF THE TRAVEL
AND TOURISM SECTOR (M1)
1.1. Explanation of the historical developments in the travel and tourism sector
The ancient travel and tourism sector has changed a lot and created a present scenario of travel
and tourism. Today's travel and tourism sector have developed a more to facilitate the traveler
with a large variety of the travel plan. The main cause behind this development is the
development in technology in travel and tourism sector. In nowadays, the traveler has not to
worry about accommodation in the traveling sector. Since the dawn of time, the human beings
are fond of travelling in different global location. In the ancient time, the people mainly traveled
for cultural exploration. Travelling was possible for those people only who are from the
financially advanced background. In those days overseas traveling was something risky for the
traveler. Mainly the Greek and roman inhabitant traveled one place to another mainly for
business purpose (Schegg and Stangl, 2017). Mainly by the traveling, the traveler got a chance
a facility to learn a different language, arts, and culture. Globalization happens. If a particular
tourist destination is taken for analysis the technological development in the tourism sector will
be a bit clear.
In the west part of England there is sector, named as Georgian Spa City of Bath, most popular
for the traveler’s interest. This area is well known since AD 60 and the place was famous for the
holy bath of the Roman people. Similarly there was some most popular historical destination
such as Windsor, Cambridge and Oxford University. If one goes with the tourism survey of UK
government he or she can be aware of that, only for travelling in that place the roman traveller
expense about 400 million dollar in a year, which is 12% more from a decade ago. In UK travel
and tourism industry is one of the fast-growing industries. The people of any geographical; area
are fond of traveling another area, this requirement remains constant from the ancient and it is
the only key concepts behind of growing the industry (Dickinson et al. 2014). From the different
ancient book, the information have received that the tourism industry was started from 13000
BC. At that time the pyramid of Egypt, Acropolis in Athens, and Coliseums in Rome was popular
for the traveller’s interest. It was the known place for the people and for that type of traveler who
wants to visit some new area, travelling for then was something risky. It is an evident that from
the ancient time to now a day, London is the most popular area for tourist and traveller
destination to suck the beauty of sky kissing monument and church.
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In this section some learning style are given for development of personality learning. The
learning strategy can be categorized in four steps, such as Activist, Theorist, Reflector and
Pragmatist. The four topics can be summarized in two dominant trends. For being a real
effective learner, the trends of extroverts are to become activist while those trends are more
likely to be theorist and reflector for the introvert.
Activist:
Open minded and flexible
Expose new situation
Theorist:
Methodical thought
Hardly jump to conclusion
Reflector:
Vertical thinker
Predetermined disciplined approach
Pragmatist:
Straight cut analysis
Resist making any changes
It was in the year 32000-10000 BC when people started to travel and this travel was in
search of food shelter and water. People travelled by foot in different part and it
consume lots of time and they stayed at those places where they get food and water.
Further in 3500 BC wheel was invented which make some easier for people to travel
from one place to another (Yüksel, 2017). While in the 2000 BC paved road was
developed which made easier for people to travel and reach at another place on time.
And in 753 BC a huge network is created and roads are developed where most of the
road direct to Rome. In the 18 centuries a revolution took place for tourism. That time
first restaurant was developed where people can easily get food. Along with this in 1698
a steam engine was invented by Thomas Savery but it was in the year 1769. At last
Holiday camp was made by Billy Butlin in 1936.
The government of UK also introduced some of the laws and policies that are as follows
Holiday pay act: Holiday pay act was enforced in the year 1938. According to this act
workers get paid holiday and it lead to the popularity of holidays camps which are run by
Butlins.
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Hence below are provided some key developments
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Grand tour: Grand tour is known as traditional trip which is mainly undertaken by upper
class people. This custom is started in the 1960 and it is carried out in 1840. Further
Spa tourism help in grabbing the attention of large number of customers from all over
the world.
Olympic games in Greece: It is founded in the 776 B.B and it is considered as one of
the important part of religious festival. However, married women’s are not allowed to
take participate. Hence this game enhances the number of tourist and improve tourism.
1.2. Explanation of the structure of the travel and tourism industry
The tourism and traveling structure has changes a lot from the ancient time as compared to
present day’s tourism sector but the requirements of travel and interest in tourism have grown
up a lot. If one follows the modern trend he or she can see that the people from lower middle
class financial sector are also eligible for tour (Liu and Park, 2015). In nowadays different
tourism corporation has grown up beside to earn money from the tourism industry the
government has also taken some initiative to organize the tourist interest area so that the
industry can expand as per its requirements. In present time some concepts like distribution
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changes, government initiative, helping hand from some private sector has generalize the
tourism sector. A lot of laws and legislation has created by the government so that the tourist
may not be affected by any external influence from the country. If the example of City of Bath is
taken, one can see that comparing with the ancient time the travel and tourism industry in that
area have affected a lot because from the middle of last decade the city is facing too much
industrial development in that area. In the meantime when the tourism industry started to face a
problem, UK and EU government has resisted the enormous industrial grown in the particular
area (Xiang et al. 2015). The government has taken a major step to employ the technological
development in that area in the tourism sector and gradually upgraded the tourist interest in that
area again. Wit6h the help of local inhabitants in that area, the social condition, and the
technological up gradation in the growing sector together employed to grow up the tourism
industry. In recent times the tourism in that particular area has developed a lot and received
award for creating tourist interest. Travel industry structure may be categorized in some sector;
some of them are tour operation, transport, travel agency, attraction and development in tourism
industry. It is important to state that from the ancient time to 18th century no other place was as
popular as City of Bath. The main attraction was the resort and spa of the area. In nowadays
there is a lot of travel agency in the whole world who offers a lot of tour package including City
of Bath (Webster and Ivanov, 2014). The UK government has also taken some initiative to
develop the transport facility in that area. The modern trend of development of tourist’s interest
is earning foreign money.
Structure of travel and tourism sector is as follows
Attraction: At present there are many attractive places in the UK and it lead to increase
number of tourist in the country. Along with this it is also considered as one of the most
important part of the structure of travel and tourism sector. For instance, Tower Bridge,
London Eye etc.
Transportation: It is essential in the development of travel and tourism sector because
tourist need different ways of transport of moving from one destination to another.
Different types of transport facilities which are available are air travel, railway and buses
etc.
Accommodation: In accommodation it includes, hotels, transport facility for travelers so
that they can easily visit to different places. Hence this factor helps in providing huge
profit to the firm.
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Thomas Cook has changed their way of working in order to grab large number of
customers. It is one of the largest holiday company that provide various tour package in
order to enhance customer satisfaction.
Tour operator and distributor: There are various tour operator in UK such as Thomas
Cook, TUI etc. their role is to help traveler in visiting the different place without any
problems. They make different types of tour packages in which accommodation,
transport facility, important spots etc. are involved. Along with this they also provide
large amount of information related to the different destinations (Xiang, Magnini and
Fesenmaier, 2015).
Regulatory bodies: Regulatory bodies are helpful and they develop policies and
procedure for travel and tourism. Along with this all the rules and regulation help them
in monitoring and controlling all the tour activities.
Tour agencies: There is increase in the demand of travel and tourism and there are
many firms who are helping in developing economy of country through providing
attractive tour package to consumer.
TASK 2
LO2: UNDERSTANDING OF THE INFLUENCE OF LOCAL AND NATIONAL
GOVERNMENT AND INTERNATIONAL AGENCIES ON THE TRAVEL AND
TOURISM SECTOR (M2, D1)
2.1. Analysis of the function of government, government-sponsored bodies and
international agencies in travel and tourism
Technological advance is the main cause of rising of tourism industry. In modern days the
tourist are getting facility risk and hazardless overseas traveling. Only the up gradation of
technology is not enough to grow up tourist interest. The government has to implement some
effective laws and legislation that can be implemented on the local inhabitants, so that they
cannot practice any unfair means and can not disturb the tourist. The government can also take
effective steps to lower the population in the specific tourist area so that the tourist can enjoy the
place as their own. In the sector the responsibility of protecting the tourist and foreigner from
goes on government-sponsored bodies. The sector has to take strategic decision to protect the
tourist. The government has to financially help the local inhabitants of the area so that they can
meet the requirement of the tourists. Apart from the government has to lay a significant role to
easier the tourism policy so that people comes to visit the area can suck the enjoyment of
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holiday destination. The government should organize the policy such that the specific area can
be presented to the traveler as a holiday destination. The government has the responsibility to
attract the traveller to visit the place as holiday destination (Yüksel, 2017). The population in the
tourism sector in nothing but tire outcome of government policy and vision. The significant policy
of government is solely responsible for strengthening the fiscal policy of the country. In the
tourist interest place local government has to improvise different culture of the native member of
that area. There are a lot of tourist in the globe who comes to visit the place where is a mixture
of different culture. The tourist is more interested to gain experienced from different culture.
Tourism industry can be flourished by analyzing the competitive tourism market. Intelligent
analysis of competitive upcoming tourism market is an important factor to grab the tourism
market. It is more helpful for the developing country (Sutton, 2014). If the developing country
has some significant tourist interest area local and central government has to take effective
steps to maintain the infrastructure of that area. By the up gradation of tourism industry, the
developing country can earn a lot of foreign exchange which is essential for fiscal level of the
country. Extra and very rich focus has to be allocated for designing and maintaining the tourist
interest place. The government should have to implement some law as per requirement when
the number of tourist grows up a lot to protect them from any external hazard (Hudson, 2015).
Strength:
 Diverse Client Market
 Good service from the skilled employee
 Agenda and advertisement
Weakness:
 Strategic allies are not clear.
 Limited financial base
 New organizational practice is a challenge to the existing employee
 Lack of reputation in between the competitor
There are different types of functions which are performed by national and international
government that are as follows:
National government: The role played by national government in respect to the
development of travelling is very important. Along with this support from them is to get
so that they tourist can get better transportation facility and luxury facility at the
destination. There are different types of policies which are made by the government so
that they can easily preserve different culture, communities and heritage. There are few
countries in which most of the tour activities is controlled by the public sector such as
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India, etc. Along with this role of government is to ensure that resources do not get
wasted and they can work effectively
International organization: There are different international agencies which look after
travel and tour sector. Their role is to promote sustainability and they are also
responsible to ensure that all tour activity carry out in an effective and proper manner.
International air transport association: It is known as international agency that work as a
trade body in the world airline.
United Nation World Tourism Organization:
This is a specialized agency of the UN and it is one of the leading firm in the tourism
filed. It put efforts for making connection with the commercial and non-governmental.
2.2. Explanation of the influence of local and national economic policy on the
success of the travel and tourism sector
Every country has different fiscal policy of their own and it lefts some impact on the tourism
industry. Some policy of the government affects the tourism in the positive way. Some other
effects and resist the growth of travel and tourism industry in that place. It is evident that for
each and every country the government has different of policy in destination marketing. Mainly
the government keeps a separate fund aside for development of the tourism sector. The fund
raised by the government is somewhere compared with the pre-head income from each and
every traveler. If the fund raised by the government is greater less than the earnings from
tourism industry, then with the help of extra fund the tourist interest area is designed. In case of
the fund raised by the government become more as compared to the earning from tourism, than
the tourist interest place faces degradation (Alvarez, 2014). Therefore the main objective of ant
state and central government should be designed such that, the number of traveller will increase
day by day. Sometime the government policy of travellers visa affects the traveller. In that case
the travellers have to well understand the overseas visa policy so that they are not harassed in
the foreign country. The government has the power to implement new price for each and every
item for the foreign traveller but at the same time the government has to lessen the tax on the
traveller currency exchange, so that become hazardless. Mainly the infrastructure development
in the tourist interest area has to the primary goal of the government. Government has to spend
more pennies for better set up of highway, airport and the overall transport system. If possible
the government has to provide accommodation facility to the traveller with exchange of money
and if it is not possible the government has to financially help the nearby hotel manager so that
they can meet the requirement of the traveler (Middleton et al. 2014). Overall it can be set that
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the government have to take effective steps to attract more and more visitors and must have the
potential to maintain and protect the entire traveller.
Opportunity:
 Government encouragement
 Current growth rate of tourism industry
 International trends of tourism
Threat:
 No reliable public transport
 Heavy market competition
 New marketing tactics of the market competitor
2.3. Discussion of the implications of political change on the travel and tourism
sector in different countries
The political situation of different country is different from each other. However the political
situation it affect the tourism sector of the country. The topic will be more emphasized if some
real example is taken. First, the political changes in the Libya are taken into consideration. From
the ancient time Libya has the potential to drag the tourist interest but unfortunately, some
consecutive terrorist attack on the traveler has just stopped the traveler interest in that area.
Apart from being a part of Arabian country, the legislative section has to make some complex
law relating the traveler visa (Clarke, 2013). The main topic is that if the political party in Libya is
changed the laws are also be changed in some aspect by improvising and passing some
contradictory bill through the parliament. In the Arabian country, tourism is treated as a bad and
unrequited practice. The visa of the Arabian people has to be legally certified. Sexual
permissiveness is another bad side of tourism policy in the Arabian country. Apart from Arab
tourism industry in the Asian country is changed as per the different decision made by the ruling
political party. If the ruling party successfully alliance with the neighborhood country, tourism
industry upgraded apart from these if the government fail to maintain the alliance, tourism
industry downgraded. In UK the political party has to help to grow up the tourism sector to
become the most popular country in the whole world (Hultsman, 2015).
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TASK 3
L03: UNDERSTANDING OF THE EFFECTS OF SUPPLY AND DEMAND ON THE
TRAVEL AND TOURISM SECTOR (M3, D2)
3.1 Explanation of factors affecting tourism demand
There prevail a lot of factors that affect the demand for travel and tourism industry of UK. Some
of the factors are growing size of EU, market inflation, and deflation, political changes,
ecological condition, environmental hazards, taxation policy, demographic changes and sudden
natural calamities such as an epidemic, fun, earthquake, and torrential rainfall. Apart from this
educational level rise, market analysis, technological changes, knowledge sharing technology,
attitude towards the visitors, standardization of the product, up gradation in the information
channel system and pricing strategy has also a great influence on tourism demand (Raj and
Griffin, 2015). Mainly the travel and tourism sector is become dynamic due to two main factors.
One is price factor and the other is a nonprime factor.
The price factor is the competitive misbalanced in the pricing system. Mainly the target market
competition leaves an impact on competitive pricing. Different tourism companies have set up
the pricing range in different ways. In recent days the price set for different tour package is
become more critical because of market inflation. The entire traveller has the target to select the
travel agency where their expenditure is used optimally. Price setting also depends upon the
transportation cost of the tourist interest country. If the government increase the transportation
cost, the travel agency has to raise the price for specific tour plan or the visiting place have to
be omitted from the tour plan. It leaves a bad effect on travelers demand (Page, 2014). On the
other side in those circumstances, the travel company had to change its target market to grab
the customer. Mainly the target market is set for those people to whom price increase is not so
significant; obviously, they are from the upper financial background.
The pricing factor directly affects the tourism demand. If the income of a family is low, there
exists no tourism company which can fulfill the tourism demand of family member. If the tour
plan does not support the pocket of the tourist, the tourism sector will obviously fail.
Apart from these if in a tourists interest area, natural calamity occurs repeatedly, the risk factor
increase, as a result the tourism company have to omit that place from the tour package. This
incident affects the demand for those travelers such which people are interested to visit the
place, are became deprived (Medlik,, 2016).
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