The Role of Government and Economics in Tourism Sector Growth

This report examines the significant influence of government policies and economic factors on the tourism sector. It begins by outlining the functions of government, government-sponsored bodies, and international agencies like the UNWTO, highlighting their roles in shaping the sector's development and providing essential information. The report then delves into how both direct and indirect economic policies impact the tourism industry, providing examples such as government subsidies and monetary policies affecting exchange rates. The analysis emphasizes the importance of these factors in fostering a stable and prosperous environment for both businesses and tourists. The report references several academic sources to support its findings and provides a comprehensive overview of the complex relationship between government, economics, and the tourism sector's growth and sustainability.

Task 2
Travel and Tourism
Sector

2.1 Function of government, government-sponsored bodies and international agen
cies
 Function of government: It include the implication of the economic policies, law and sec
urity of the country. Besides that, the main functions of government is to raise foreign r
evenues, promoting the sector, and to create an environment for the stability of business
and leisure of the sector. It is also responsible for building a secure and reliable environ
ment for both local people and tourists.
 Function of government-sponsored bodies: These bodies include regional tourist board,
national tourist board and so on, their main function is to measure the development of t
ourism through various different factors to be able to develop and promote the tourism
sector. They are also responsible for providing exact and accurate information related t
o attractions and destinations of a country.
 Function of international agencies: UNWTO (United Nation's World Tourism Organisa
tion) was established in 1974, it is the main international organisation which is responsi
ble for the collection of statistical information on international travel and tourism. Thes
e information is very important in analysing the latest trends and development in travel
and tourism world wide.

2.2 Local and National economic policy influence the success of the Travel and Tou
rism sector
 There are many ways in which economic policies influence the success of the sector. Firstly, th
e policies which have direct influence on the sector are made by the government just for touri
sm sector. For instance, subsidy provided by the government to build a resort in a town, the t
ourism sector in that town will be benefited.
 Secondly, the economic policies which have indirect influence on the success of the sector are,
monitory policies developed by the government which cause it's exchange rate to fall then it w
ill benefit the tourism sector.

REFERENCES
Scott, D., Hall, C. M. and Gössling, S., 2016. A review of the IPCC Fifth Assessment and implications for
tourism sector climate resilience and decarbonization. Journal of Sustainable Tourism.24(1). pp.8-30.
Brandon-Jones, A. and et.al., 2016. Examining the characteristics and managerial challenges of professional
services: An empirical study of management consultancy in the travel, tourism, and hospitality sector. Journal
of Operations Management. 42. pp.9-24.
Nasiri Hendeh Khaleh, E. and et.al., 2016. Identification of the Relationship between Tourism Industry
Development and Economic Growth of Zanjan Province. Journal of Urban Economics and
Management.4(15). pp.75-94.
Novelli, M. and et.al., 2016. Travel philanthropy and sustainable development: the case of the Plymouth–
Banjul Challenge. Journal of Sustainable Tourism.24(6). pp.824-845.
Cró, S. and Martins, A. M., 2017. Structural breaks in international tourism demand: Are they caused by crises
or disasters?. Tourism Management.63. pp.3-9.

Thank You