Travel and Tourism Sector Report: Impacts and Strategies

This report provides a comprehensive overview of the travel and tourism sector. It begins with an examination of the historical development of the industry, specifically focusing on London's evolution as a major tourist destination. The report then analyzes the structure of the sector, including the roles of various organizations such as tour operators, travel agents, and government bodies. Furthermore, it explores the factors that influence tourism demand and how the supply side has adapted to meet these changes. The report also delves into the economic, environmental, and social impacts of tourism, both positive and negative, and discusses strategies to mitigate the negative consequences while maximizing the benefits. The report considers the influence of government policies and international agencies on the sector, and offers insights into the future of travel and tourism.

Travel and Tourism
Sector
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Historical development in the travel and tourism sector ......................................................3
1.2 Structure of the travel and tourism sector..............................................................................5
TASK 2............................................................................................................................................7
2.1 The functions of government, government sponsored bodies and international agencies in
travel and tourism sector..............................................................................................................7
2.2 Influence of local and national economic policies over travel and tourism sector................8
2.3 Implications of travel and tourism sector in different countries............................................8
TASK 3............................................................................................................................................9
3.1 Factors that affect the demand of tourism..............................................................................9
3.2 Ways in which supply has changed to meet the effects of demand.....................................10
TASK 4..........................................................................................................................................11
4.1 Positive and negative economic, environmental and social impacts of tourism..................11
4.2 Strategies that can be used to minimize the negative impacts while maximizing the
positive impacts.........................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCE.................................................................................................................................14
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INTRODUCTION
Travel and tourism is identified as one of the fastest growing service industries in all over
the world. Government of each country considers this industry as an important source of revenue
generation along with foreign exchange that plays an important role in the overall growth and
development of economy. This sector plays an important role in the development of new
employment opportunities within country (Colling and York, 2009). In the present era, there is
significant changes identified in the purpose of tourism related activities which are not only
considered in recreation and leisure activities but also education, business interests, health and
fitness purposes, sports, entertainment and adventure have also been played important role in the
growth of tourism business. This report examines different aspects of travel and tourism in which
detail evaluation of different terms is carried out that is related to historical development of
traveling industry in UK. This report also determines the structure in which tourism industry
operates that includes several bodies and agencies along with the impacts of different external
and internal factors.
TASK 1
1.1 Historical development in the travel and tourism sector
The importance of Travel and tourism sector has been increased globally because it plays
an important role in the economic development within country in terms of gross revenue and
foreign exchange earnings. London is identified as one the most popular tourist destinations in
the world and tourism business has played important role in the overall growth and economic
development of nation (Hawkins and Middleton, 2009). The key milestones are explained below
which have been addressed in the historical development of travel and tourism sector of London.
As per the different studies, it has been addressed several Grand Tour that were
scheduled by the British elite class or upper class during the period of late 16th and early 19th
centuries that have played important role in the growth and development of new horizons of
tourism. In the period of Industrial Revolution, there is significant increment identified in the
demand for tourism as a result of introduction of package tours services in 1841. In this regard,
paid vacations have provided significant benefit to the middle class in order to assess high end
services (Zhou, 2007). The growing urge and interest to explore the remote lands and people
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along with destinations have played important role in the growth and development of travel and
tourism sector in all over the world.
In the modern area, London tourism is considered as the most important and leading
component of world trade or world tourism. In this process, an important merger has been taken
place between English Tourism Council and British Tourist Authority in from of Visit Britain.
These programmes have played important role for preserving, maintaining and promoting
eminent historic castles (Bowie and Buttle, 2009). It plays an important role to enhance
popularity of different palaces and monuments such as Buckingham Palace, the Victoria and
Albert Museums, Tower of London, British Library and etc. These places are being addressed as
the most popular destinations of London.
In the contemporary travel and tourism business, technology plays an important role in
travel and tourism sector. In this context, London has made an extensive use of new technologies
and science for this industry (Bharwani and Mathews, 2010). In the near future, technology plays
an important role in managing growing competition that will influence the development and
application of new technologies associated with internet and sophisticated database management
in order to attract external visitors.
Some important factors that are affecting the growth of travel and tourism business are explained
below: Alteration in socio-economic scenario: Due to alteration in lifestyle and economic
condition of London, there is significant changes addressed that are related to social
behaviour along with the demographic trends that have played as an important impact on
the future development and living longer and reduction in percentage of young
population (Pender and Sharpley, 2005). In addition to that, increasing car ownership
along with higher income levels of people will greatly influenced demand of wide range
of travel and tourism products. Development in technologies: Significant growth in research and development in the
field of science and technology plays an important role for the development of new
technologies in terms of tourist products that would create positive impact on tourism
business in UK. The evolution of jet aircraft, computer programming and 3-D have
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created significant impact on travel and tourism business as well as development of new
opportunities to attract external visitors (Dale, 2005).
 Infrastructural development and innovation: There has been significant investment
addressed for the infrastructural development to promote tourism by the London
government (Hall, Holder and Jayawardena, 2002). In this process, public authorities
develop various strategies for the facilitation of better road, rail and water connectivity so
that visitors will be able explore several destination in London.
1.2 Structure of the travel and tourism sector
Travel and tourism sector is functioned with the integration of various other businesses.
In this process, several other sectors are worked together for the facilitation of best services to
the visitors. In order to manage tourism services, various other sectors are structured business
operations with each other.
Hospitality
Hospitality is identified as a core and most important area of travel and tourism sector
that plays an important role for rendering accommodation services to the visitors from all over
the world. It includes below mentioned individuals: Tour operators: Tour operators are playing the most important role tourism business that
support visitors by considering several element of traveling such as transport facilities,
financial services, accommodation and other ancillary services as per the requirement of
visitors (Huntley and Reid, 2010). These organizations facilitate consumers with the help
of different zones. Travel agents: To ease the work of customer, these individuals or organizations provide
complete information about several available options in the form of tourist destinations
and set costing as per the needs of consumers. Ancillary services: It plays a supportive role in travel and tourism sector. It includes
certain services related to financial services, insurances, marketing companies, guide
services, media services along with private training services (Bell and Parker, 2009).
Apart from these mentioned private bodies, there are also some public sector
organizations that include Department for culture, media and sport which provide
significant support in order to promote tourism and culture. Some other bodies which are
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working in this industry are Visa/ passport office as well as education and training
establishments. Accommodation: In this segment, there are different forms of accommodation facilities
available for visitors in the form of hoteliers, villas, resorts, cottages and apartments as
per the distinct needs of consumers.
Transportation
Transport is considered as the most important part of tourism that connects people for
rendering best tourism facilitates as per the distinct needs of consumers (Cook and Marqua,
2014). It is identified as the most important and crucial element in the travel and tourism sector
that enables visitors to visit different countries. In London, government authorities offer several
medium of transportation that is explained below: Air travel: Airlines play vital role in this sector in the establishment of connectivity with
various domestic and international tourist destinations as per the distinct needs of
consumers. Road transport: Basically, for the domestic tourism, road transport has been the
adventurous option for the travelers (Dickinson, Lumsdon and Robbins, 2011). Cruise travel: In the recent times, it is considered as a major section of attraction for
tourists as through cruise travel; operators intend to provide memorable experience to the
patrons.
Attractions Natural attractions: It is identified as a fundamental and most important component that
initiates the travel and tours. There are several natural resources available in the country
which attracts people from all around the Globe (Falk and et.al, 2012). These destinations
include beautiful beaches, mountains, eye capturing places and spectacular river coasts
along with different forests.
 Manmade attractions: Along with the natural attractions, several kinds of manmade
attractions such as palaces, forts, museums, monuments and many others are also playing
important role to attract visitors.
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TASK 2
2.1 The functions of government, government sponsored bodies and international agencies in
travel and tourism sector
The UK government has considered tourism activities as an essential part element of
country's growth. In this context, the development of Tourism Act 1969 has played important
role to increase coordination among different organizations which are working in respect of UK's
tourism. In addition to that financial assistance is also provided by public authorities to different
organizations associated with different businesses of travel and tourism sector. In addition to that
the Package Tours Regulations 1992 also determines various norms and standard for tour
operators while offering different tour packages. In addition to that several guidelines are
provided associated with the application of different techniques and improvements while
handling different tasks related to tour management (Tourism & Political Change, 2014.). It
includes the usage of the internet, formation of call centres and new outlets along with various
other practices as per the requirements of different visitors. In addition to that several standards
are developed by public authority to ensue safer, faster, affordable and comfortable travelling
through different mode of transpiration such as air, rail and road can be established.
In UK, tourism industry is mainly controlled by The Department for Culture, Media and
Sport. It manages different functions at three levels: National, regional and local. It also controls
four tourist boards that include Visit Britain, Visit Wales, Visit Scotland as well as Northern
Ireland Tourist Board (Kapiki, 2012). These boards are playing important role in order to
promote several destinations. It also develops various strategies in order to establish direct
coordination with private sector tourism businesses to attract external visitors. Public authority
has established different Tourist Information Centres in several towns which are led by the
supervision of the local council. These information centres cover some specific areas of working
like for example promotional brochures, websites, accommodation booking services, sports and
leisure centres, theatres, museums and art and craft gallerias. It plays important role in promotion
of local art and culture of particular town (Maggioni, Marcoz and Mauri, 2014).
In the context of tourism business, the UNWTO agency is also responsible for economic
growth and promotion of tourism sector. It controls the operations of wide range of educational
institutions associated with tourism sector, tourism associations, different tourism authority and
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other organizations in all over the world (Colling and York, 2009). UK also is an important
member of it. World Travel and Tourism Council is also termed as an important authority that
controls different operations associated with the travel and tourism business because it deals with
the top business executives of travel industry.
2.2 Influence of local and national economic policies over travel and tourism sector
The United Kingdom is termed as a fifth largest tourism industry in the world. In UK, the
success and growth of travel and tourism industry is greatly influenced by the economic policies
framed by government of UK. Therefore, public authorities formulate various policies and
procedures that increase the growth rate of travel and tourism business. For example, if the local
authorities of UK reduce buildings rates for tourism businesses, the tourist industry will surely be
benefited (Hawkins and Middleton, 2009). This is an example at a regional or local level but if it
is considered at national level then overall economy will get benefit from it because tour
operators are able to attract visitor visitors with low cost tour packages.
The HM Treasury is identified as important government department which is responsible
for developing wide range policies for the British government's such s public finance policy and
economic policy. These policies have several direct and indirect impacts on the mentioned sector
of economy (Zhou, 2007). The relaxation in the tariffs and taxes on the travelling activities
provides new opportunities to different businesses associated with the travel and tourism sector.
A boom in the number of travellers and tourists are able to make great advantages such as
increase in the GDP of the economy. In addition to that the monetary policies are also having
indirect impact on the tourism related operations. It also supports business entity for handling
exchange so as several strategies can be developed for facilitation of significant benefits to
tourist.
2.3 Implications of travel and tourism sector in different countries
The political stability and instability of a country creates great impact on the several
activities associated with the travel and tourism sector. If a country's politically unstable and
unsafe then it develops the feeling of distrust among visitors. On the other hand, if there is
stability in the political context then tourists from all over the world are attracted towards
particular nation (Bowie and Buttle, 2009). Therefore, Dubai is identified as a first choice for
tourists in all over the world. This is because the positive attitude of the government bodies and
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political parties has been addressed towards different aspects of tourism related to planning,
organizing, framing and implementing polices. All these policies ensure safety and security of
tourists with better quality of tourism services. In this regard, different economic reforms that are
framed by government bodies in the field of travel and tourism are playing important in order to
attract external visitors from all over the world (Bharwani and Mathews, 2010). In similar way,
political stability UK has resulted growth and development of various tourist spots.
In the contrary, the political instability or unfavourable political environment of the
country creates uncertainties in the minds of travellers about the particular country. For example:
In Jordan and Syria, overseas tourists avoid these countries because whole economy is threatened
by several terrorist attacks, political instability and violence. These factors are playing important
role in selection of tourist because it creates fear among visitors (Pender and Sharpley, 2005). It
also creates negative impact on the growth and development of tourism in these countries. In the
contrary, developing countries like India and Nepal with a stable political system support tourists
through financial relaxation. These countries are also developing various strategies and policies
in order to attract external visitors from all over the world.
TASK 3
3.1 Factors that affect the demand of tourism
The evolution of travel and tourism sector has increased the requirement of various the
organizers. Therefore, tour operator carries out detail evaluation of different aspects of travel and
tourism business along with the current trends. The intimate and in-depth knowledge about the
changing trend helps different companies who are managing business in tourism sector in
development of various services as per the distinct needs of consumers (Dale, 2005). TUI group
is considered as one of the top four operators that develop various strategies and policies in order
to provide unique experience to visitors. In this context, some important factors are evaluated
below that influence demand of tourism services:
Political: The public authorities have increased its role in development and growth of travel and
tourism business by realizing the importance of the travel and tourism sector in GDP of a
country. In national policy framework, these sectors play a crucial role so as government
develops various separate policies in order to grow travelling sector (Hall, Holder and
Jayawardena, 2002). Involvement of political representatives in attracting tourism in country has
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led positive impact on tourism industry. This is because public authorities develop various trade
and agreements with other countries to remove the barriers in tourism operations.
Economic: Economic situation of a country is considered as most important factor that plays
important for boosting and encouraging tourism activities within country. Economic advanced
country has maintained larger share in travelling activities because per-capita income and
disposable income in these countries is very high that results high demand of tour packages
(Huntley and Reid, 2010). It also provides significant support in various business decision
associated with infrastructure development.
Social factor: Social factors determine the preferences and choices of people about tours and
trips. In the context of present era, lifestyle, culture and interest of people plays important in
demand of tourism services. These days’ operators and agents manage coordination with others
through vertical and horizontal integration in order to attain meet requirement of visitors. This
approach is having significant impact on the demand tourism services.
3.2 Ways in which supply has changed to meet the effects of demand
There is the significant variation identified in the services offered by different agents of
travel and tourism industry. For rendering best services to target consumers, tours operators
consider address each element in a very structured way (Cook and Marqua, 2014). It is also
influenced change in supply and demand. Domain of supply has changed in the following three
aspects by the TUI group.
Management of Travel and transport: As per the distinct needs of consumers, TUI group offers
a wide range of transportation medium to customers such as air travel, road transport and cruise
journey. In addition to that TUI group also offers carrier cart and electronic traditional cars for
visiting of historical places in order to provide unique experience (Dickinson, Lumsdon and
Robbins, 2011). Apart from those services for recreational purposes, operators provide facilities
of travel and transport for the travellers who are visiting particular destination for business
interest along with various other objectives such as sport events, educational tours as well as
medical reason. In this context, tour operator schedule arrangement for transport facilities related
to buses, cabs and etc.
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Arrangement of Recreational activities: The primary objective of the Travel and tourism is to
filling the entertainment and recreational needs of visitors from all over the world. Organizers
provide services associated with the recreational activities such as organizing different sports
such as Golf, amusements at casinos, music and dance parities and several others as per the
special requirements and interest of consumers (Falk and et.al, 2012). In addition to that tour
operators also organizing various services to adventure lover consumers that include scuba
diving, mountain climbing, hiking, skydiving, forest safari, etc. All these services are playing
important in order to attract visitors.
Accommodation: The most important section of tour is the accommodation as well as food
services. To fulfil the needs of customers, companies associated with tour operation are offering
wide stream of choices with reference to their requirement and budget. At hotels facility of
multi-cuisines is available to give the experience of food culture of different corners of world
(Kapiki, 2012). In this context, TUI group offers several packages and options related in hotels,
inns, villas, cottage houses, guest accommodation, lounges and food services as per the need of
guests.
TASK 4
4.1 Positive and negative economic, environmental and social impacts of tourism
Growth and development of the travel and tourism sector lead several consequences and
implications on the economy. It contributes to the country in a very positive manner by
increasing the revenue generation and enhancing various employment opportunities.
 In the context of economic impact, Travel and tourism sector is termed as one of the
fastest growing industry that plays important role in world economy and developing
several employment opportunities to wide range of people around the globe. It has the
direct impact on economy of a country by increasing GDP of country and inflow of
foreign currency (Maggioni, Marcoz and Mauri, 2014). It makes the value of currency
existing in a country by the incoming of foreign exchange in country.
 Major attraction of the visitors in the country is the favourable environmental conditions
which is existing in particular nation. In this context, private organization and
government formulates various strategies in order to assess the interest of large number
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of people around the Globe. In this process, business entity develops various strategies
and policies to ensure safety and security of environment. Social factor plays important role to influence tourism. When people travel in domestic
and international level for tourism purpose, it increases the personal interactions between
people among different culture (Colling and York, 2009). This interaction increases the
awareness among people about the importance of culture and heritage of host nation that
plays important role in order to prevent it from damage and embrace the resources of
country.
Negative impacts
 Economic: Tourism among overseas nations increases the foreign exchange earnings and
revenue generation but it also leads some negative impacts on economy. This is because
when international tour operators manage different operation in particular country then it
could increase the chances of outflow of currency. In addition to that when the number of
outbound visitors is more than inbound visitors then reduction in foreign exchange
reserve is addressed (Hawkins and Middleton, 2009).
 In addition to that, increase in tourism activities in forest and natural areas leads the
damage of nation's assets. It also increases threats related to safety and security of wild
life.
 Tourism also several negative impact Society of host country. This is because increased
number of outsiders from the other countries and culture could hamper the domestic
culture and traditions of host country (Bowie and Buttle, 2009). It leads to the
commercialization and actual heritage of country is distorted.
4.2 Strategies that can be used to minimize the negative impacts while maximizing the positive
impacts
In order to the negative impacts while maximizing the positive of tourism, some
important strategies are discussed below: Economic impact: Positive economic impact can be assessed by promoting the nations
assets with a lucrative manner. In addition to that adoption of wide range of marketing
strategies based on different platforms creates significant impact in number of visitors in
London (Bharwani and Mathews, 2010). In addition to that government bodies are also
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