Tourism Sector Analysis: Executive Summary, Impact and Recommendations

This report provides an executive summary of the UK travel and tourism sector, highlighting its growth and importance as a significant source of foreign currency. It examines historical developments, particularly in the UK and Scotland, with Edinburgh as a key tourist destination. The report explores the impact of political changes, especially Brexit, on the tourism business and offers recommendations for mitigating negative impacts and maximizing positive ones. It details the structure of travel and tourism in Scotland, the roles of local, regional, and international bodies in promoting tourism, and the factors affecting tourist demand. The report also assesses the environmental, social, and economic impacts of tourism, providing strategies for sustainable business practices and long-term improvements.

TRAVEL AND TOURISM
SECTOR

EXECUTIVE SUMMERY
Tourism has shown growth and rapid development in tourism practices in all over the
world. This business is dealing is earning in direct foreign currency business. UK and Scotland
are important heritage sites that are protected by world heritage sites the that is having hisdtorical
development over the years. Edinburgh is important city of tourist attraction and exploration,
majority of their revenue comes from tourism activities. Government of Scotland focus on
investing in future plans VisionScotland for development of business. This assessment also
shows that how political changes, most importantly Brexit will affect tourism business and what
measures must be taken to take it . There are many positive and negative of environmental, social
and economic impact that must be measured and for getting fruitful outcomes.
Recommendations are also given that will improve business activities for longer run.

EXECUTIVE SUMMERY..........................................................................................................................2
INTRODUCTION.......................................................................................................................................4
TASK 1.......................................................................................................................................................4
P1 Historical development in travel and tourism sector in UK................................................................4
P2 Structure of travel and tourism in Scotland........................................................................................5
TASK 2.......................................................................................................................................................6
P3 Role of local, regional and international bodies in promoting tourism...............................................6
P4 Local and national economic policies in travel and tourism...............................................................7
P5 Implication of political change in travel and tourism.........................................................................8
TASK 3.......................................................................................................................................................8
P6 Factors affecting tourist demand in Edinburgh..................................................................................8
P7 Change in supply in maintaining tourist demand................................................................................9
TASK 4.....................................................................................................................................................10
P8 Impact of social, emvironmental, economic factor...........................................................................10
P9 Strategies for minimizing negative effect and increasing positive effect..........................................11
RECOMMANDATIONS..........................................................................................................................11
CONCLUSION.........................................................................................................................................12
REFRENCES............................................................................................................................................13

INTRODUCTION
Tourism is being regarded as an important part of UK. It is 8th on the list of biggest tourist
destination in all over the world with an estimated annual income of US$22.072 and 36.115
million people visiting country in 2015. These data are ever increasing with growth and ease of
doing business in all over the country. The main reason that country has become a tourist t hub is
due to increasing long heritage culture and monument and facilities and hospitality provided to
them in by travelling and accommodating agencies (Murphy P.E, 2013). Due to this growth
many stakeholders, investors are focused on investing tin these sectors to earn more profit from
this sector. As UK comprised of four countries so every country have their own share e.g. by the
report of 2017 5.46 million visitors have travelled to Scotland in one year. Edinburgh is also
another tourist destination from where government has collected fair share of profit. This
assessment will discuss tourist business in UK and outline that factor that will growth and
regulation of this business e.g. Impact of Brexit after its implementation
TASK 1
P1 Historical development in travel and tourism sector in UK
Tourism has always been a fact growing business in UK . Being a developed and located
at the heart of Europe and having vast historical culture it has become eye catching industry over
the years. Initially tourism industry was considered not so important in UK people used to travel
with purposes but after the Second World War government has focused on increasing investment
in tourism industry. In 2004 there were 760m international arrivals, of which 55% were recorded
in Europe. Although Europe continues to maintain a dominant position in the sector, other parts
of the world have seen more rapid growth in recent years. It is important that international
tourism is developed so that more revenue can be generated. It is required that promotion of
travelling activities is done as the international travel provide the following advantage:
 It puts life in perspective
 Friends can be made across the globe
 It gives a good impression on the resume
 You’ll experience places you never imagined existed

 New language can be learned
Historical development over the years
1950 – Implementation of reservation and booking system in tourism industry, inclusion
of technology in travel and tourism industry has given more opportunity for people to plan their
travelling practices. In post war era explorers and researchers wish to travel to UK for their
studies and thesis. This has also generated interest in people to travel and explore new
destination in UK. Places like Windsor Castle, Edinburgh castle has become some of the major
tourist destination in that time (Munar,2014).
1954- Boeing has started first commercial jet for passengers for travelling longer
distances this has made travelling experiences easier for people who wish to travel to UK
(Kim,2012).
1969 – It has become essential for government organization to monitor and control fast
paced developing business, for doing so they have enacted certain law and guidance’s that will
provide better functioning of this industry in a smoother way e.g. development of tourist act
1968, Countryside and right way back 2000 (Lee,2013).
1970 – Package holidays are organized by different travel agencies from initial phase of
tourist programming to accommodation, many travelling have efficiently planned these holidays
packages for gaining larger revenuer from the market (Kim,2013).
1985- Transport act was formed where nationalized coaches and buses are deregulated
and asked private organization to compete and grow in business market. This has encouraged
much small and large scale organization to put their setup and start transportation activities in
national and international tourism market (Guttentag,2014).
1996- In 1996 UK government has initiated Air pressure duty reduction process for
people working in airlines (Mak,2012).
2007- Government has initiated superchip and use water ways for travelling across
different countries of EU. This has reduced travelling time between UK and different countries
(Nunkoo,2012).

Since 2010 it has become fast growing business in UK. Britain has estimated that this
business will be £257 billion business by 2025. This sector is providing 9.6 percent jobs in UK
only in 2013 that are expected to grow in future run . It is predicted that for every 1% increase in
expenditure employment will increase .89% and the way this sector is growing it is expected
that it will grow at an annual rate of 3.8 percent over the years.
P2 Structure of travel and tourism in Scotland
Scotland is developed tourist destination that people wish to explore in their travel and
tourism programmer. This is an important service sector industry providing job opportunities to
more than 200000 people across the country. The main prospect of tourism activities that have
flourished in Scotland is clean and beautiful scenery and ;long-term history. They comprised
thousands of historical places across the country where remains of stone ager, Bronze Age and
iron ages can be seen and some of the activities from that age can be seen in reflection of
Scottish culture. Scotland was lovable destination of tourist of different countries some of them
are USA , Germany, France, Poland, Australia, Italy , Netherland, Ireland and Switzerland.
People of these countries are so fond of culture of Scotland that they tend to come back to
Scotland to refresh their travelling memories this has allowed hotel business in Scotland to
prosper that they are able to retain customers and make profit through effective business
strategies
Scotland is one of those countries having number of UNESCO heritage sites that can be
seen in area like Edinburgh , Glasgow. There are some another tourist destination that has
flourished in countries are Sterling, Aberdeen, St. Andrews, Dundee etc.
The structure of tourist activity in Scotland is formed and maintained by VisitScotland.
It is a national level tourist organization that has defined aim to contribute and enhance tourism
practices in Scotland. They have divided their business structure into 4 broader sections for
better functioning of their business activities. Structure of tourism is given below:
Transport – this is the most important factor in the tourism industry. It is due to the fact
that in order to move from one place to another convince is required so that person can reach to
distinct places on time.

Accommodation – This is another crucial aspect as when a person visits a new place
where he does not have his own accommodation he demands commercial place to live at.
Therefore, this way it is required that appropriate arrangements for lodging is made.
Information and coordination – In order to ensure safety and good understanding of the
travelers it is required that the right level of data is shared among the potential users so that they
can accordingly take their decisions. Apart from this coordination further helps in delivering
good experience to the travel makers.
Government – Though the legal body is not a direct user of this industry, influence of
change in political policies has great impact on tourism. Laws and regulations need to be
followed which limits the capacity of tourism to grow.
Travel agents – They are the one who again play a great role in the tourism industry. It
acts as a link between the users of tourism activities and providers of same.
Focus – They have focused in creating comprehensive plan for tourism practices, they
want to increase stakeholders for investing more in their tourism activities.
Information and management structure - They have used digital technology to good
effect for promoting, marketing and main training their business policies and objectives. By
proper using of analytical tool for their business activities they are able to have proper quantitive
and qualitative analysis of their business
Legal- They strictly follow rules and regulation that has being enacted by government
of Scotland like Development of tourism act 1969 , Tourist board Act 2006 , Local government
act 1973, National Heritage act 1985
Centers – they are operating from different centers across Scotland so that they are able
to give proper assistance to travellers anytime.
Through enacting all these factors they are able to separate and increase their services in
 Travelling services
 Accommodation services
 Passenger transportation system

 Collaboration of public and private sector
 Tourism and event
 Conference and event
TASK 2
P3 Role of local, regional and international bodies in promoting tourism
Travel and tourism services have given opportunities to many new startups to start their
business. Government has put relaxation on many laws and activities so that small scale
organization can get equal right to earn revenue from business structure. For maintaining the
business activities government at different level have to take initiative for for easy flowing of
activities of this sector. As a consultant of VisitScotland have to understand roles and
functioning of governing body at different level for better regulation and functioning of tourism
sector.
Local bodies- There are several laws are maid are used to maintain integrity, values and
ethics of that area. As the country visit many travellers they bring their own trend and culture so
local bodies make sure that that they do not affect prestigious culture of tourist place of UK and
Scotland. For doing so they can put restrictions on some activities of travellers that are not
justifies in that area (Veal, 2017). For example Scotland and UK maintain clean environment in
their country and throwing garages is strictly restricted. There are many local NGO who
continuously work in enriching experience of tourism practices in counties. Most of the legal
bodies of different nations has separate ministry for the tourism activities. It ensures that
everything which is related to the tourism is well maintained by keeping in mind development of
tourism within two nations.
National bodies – National bodies have same role that same as local bodies but in a
broader view. There are several practices that are enacted by national bodies are as follows
 Formation of economic policies for maintaining positive attitudes with travellers.
 Observing and minimizing several changes that is putting negative effect on tourism
business
 Policies must be made for fetching more number of immigrants from all round the world.

 Collaborating with other governing bodies running in country and make necessary
changes that are needed.
 Bossiness policies must be economical that wave more opportunities to small and large
organizations to flourish in tourism sector.
International bodies – For boosting tourism practice in UK certain measure must be
taken in business activities in internation market. Tourism industry is the easiest way of
earning foreign currency from round the world. There are many international agencies that
are working in enhancing business activities in UK are EU, WTO, UNESCO, World tourist
council, international air association . These are some of the important bodies that help in
boosting tourist business in the entire world and these policies will help both the countries in
business activities.
P4 Local and national economic policies in travel and tourism
The present local and economic policy tend to have its great influence on not only on
tourism but also on various other business sections. The legal body at center ensures that it
provide safety to different individuals how wish to invest in domestic country as it promotes the
economic condition of nation. VisitScotland has made many local and national economic policies
that have helped country to increase tourism practices in their countries. Some of them are as
follows
 Vision 2020- VisitScotland has developed a national framework programmer under
which they have made national tourist strategy for maintaining better structure of their
business activities for longer run. In their vision plan they have planned tom increase
more visitor in their business by developing infrastructure and sustainable growth and
development. In this they have also planned to enrich customer experience by providing
better services in improvement of journey of customers and deliver authentic experience
to them
 Tourism is providing approximately 211200 jobs to people that includes 9% of jobs
across UK. There are 13480 registered tourist enterprise that are running successfully in
Scotland under proper guidance and maintaining policies of national and government

organization in the country. Currently they have 4.4 billion pound business and expected
to expand it to 5.5 billion pounds by 2020
 It is seen that people of UK carry pride for their business activities in their country so
that must be respected by different immigrants those come to UK and Scotland. In return
people must follow economical practices and provide better hospitality to travellers.
P5 Implication of political change in travel and tourism
Political change can have positive and negative impact on tourism practices in different.
It depends upon approaches and views of government toward development of that factor in
business activities in business organizations. Impact of political changed on different countries
are given below
Political change in UK- The biggest political change that is an area of concern of UK
government in implementation of Brexit. The referendum has passed and it is about to
implement in June 2019. This will result in government and their policies. Many of the legal
laws in UK are made by EU that will be dissolved and new laws will be implemented.
Government has planned to invest in small scale business organizations and activities. It also
affects tourism industry in broader way. This industry will have to implement digital technology
in business activities to increase their reach in different geographical boundaries. So overall it is
being concluded that changing of political scenario will not have that much impact on business
activities in UK.
Political change Myanmar – Myanmar is a south Asian country having traditional
culture. Many tourists used to travel to Vietnam for observation of natural beauty, scenery and
broad organized culture. But due to Issues of Rohingya people and lots of political stability the
number of tourist have misnamed in that country.
Political change in Middle East – In current changes that have been observed in Middle
East has hammered trading practices . Egypt is having better relation with USA an UK has been
badly affected by politician change and business practices in that region.
In case of UK travel and tourism industry is expected to grow as government has sensed
that it is that one area that can give better revenuer without much effort . The only concern is
maintaining heritage and culture of that region with effective planning and enacting legal laws

that will benefit this industry positively. When the political condition is favorable tourist tend to
travel more often to such places, because they are assured of their own security and safety. When
a good political party takes the governance in its hands, and focuses on building travel
infrastructure, increasing airline routes, improving road safety, introducing variety of modes of
travel like monorails, metro rail, freeways, etc.
TASK 3
P6 Factors affecting tourist demand in Edinburgh
Edinburgh is a part of Scotland . It is among the oldest city of Scotland and Sitting of
Scottish government . Being the center of UK government it is among the most populated city in
UK . The city is in the list of protected sites of UNESCO as it is having different heritage sites
that includes ST. Kilda, Edinburgh old town and new town, the heart of Neolithic Ore key are
some of the important sites that are being protected . There are several factors that are affecting
tourism practices in Edinburgh are
 Heritage sites – There are lots of heritage sites in Edinburgh it is a major source of
attraction for travellers
 Technology - VisitScotland has implemented technology in their business policy so that
they can connect and assist their employees in better way (Horner, 2012). This can help
in better planning of marketing and promotion in different market.
 Vision 2020 – The city is also in action plan of vision 2020 of Scotland to increase more
revenue from heritage sites in there country
 Accommodation – Accommodation service in the city is very good as there are ranges
of hotels that are accommodating people at a reasonable price.
 Edinburgh tourist action plan- This action plan has made several guidance’s and
policies for further approach in business policies. Some of their approaches are to
increase number of visitor to 3% by 2020, generation 485 pounds extra for financial year
. Increasing in no of travellers to 50% in peak season between October and March .
There are also negative aspects that effect tourist demand in country is

 Pollution – Increase in pollution due to immigrants
 Overcrowding- It is the capital of Scotland and tourist hub also so sometimes
overcrowding is also a problem ( Murphy, 2012).
 Season employment – It is a hilly station most tourist will come in autumn and winter
so the job demand increase in this season. It proves to be unstable industry in giving jobs
to employees.
P7 Change in supply in maintaining tourist demand
Supply change in tourist industry plays a major role in determining growth and
sustainability in organizational structure. tourism involves number of activities that have to be
analyzed while observing activities where as demand of tourists can be described through
availability of product in that region.
For understanding demand of tourists they have to be classified in distant ways
Tourist demand - It can be calculated through understanding type of people their
attitudes and habits and purposes. This will give quantitative view for analyzing demand of
people.
Elements for determining tourist demands
Effective and annual demand – These demand are strong desires and wishes of clients
Suppressed demand- These are demands of those people who are unable to traded door
to uncertain circumstances (Smith V, 2012). It sometimes arises to uncertain or non-
delivery of products on time Factors for determining tourist demand
 Cost of living – Different immigrant have different cost of living so their remand will be
according to their abilities so the organization must make certain measures for providing
equal benefits
 Mobility and education- Education gives values and enthusiasm for exploration of new
entities. Many archaeologist and researchers tend to explore more for their studies so
they will have different demand in their travel limb plan
 Demographic – It is termed as classification of demand based on ages and likings.