Travel and Tourism Sector Report: Historical Analysis and Impact

This report provides a comprehensive overview of the travel and tourism sector, examining its historical development from religious travel to modern tourism, and its evolving structure including hospitality, tour operators, travel agents, and ancillary services. It analyzes the roles of legal authorities, government bodies, and international agencies in supporting the sector's growth, including policy formulation, infrastructure development, and promotion. The report further explores how local and national economic policies influence the industry's success through sponsorship, funding, and economic stability, as well as the implications of political changes on tourism in different countries. Finally, it assesses the factors affecting the demand and supply of tourism products, and evaluates the positive and negative economic, social, and environmental impacts of tourism, along with strategies to minimize negative effects and maximize positive ones.

The Travel and Tourism Sector

Table Of Contents
INTRODUCTION...........................................................................................................................3
Lo1...................................................................................................................................................3
1.1 key historical developments in the travel and tourism sector...........................................3
1.2 Structure of travel and tourism industry..........................................................................4
LO2..................................................................................................................................................6
2.1 Analysing the function of legal authority, government sponsored bodies and international
agencies in travel and tourism................................................................................................6
2.2 Identifying the way local and national economic policy influences the success of the travel
and tourism sector...................................................................................................................7
2.3 The implications of political change on the travel and tourism sector in different countries
................................................................................................................................................8
LO 3.................................................................................................................................................9
3.1 Factors affecting demand of products offered by Travel companies..............................9
3.2 Identifying the way supply has changed to meet the effect of demand..........................10
TASK 4..........................................................................................................................................10
4.1Evaluasting the positive as well negative economic, social and environmental effect of
tourism..................................................................................................................................10
4.2 Strategies used to minimise the negative impacts while maximising the positive impacts:
..............................................................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Tourism is defined as the activity which is conducted by people for variety of purpose
such as education, leisure or business. Travel and tourism industry is recognised as the
commercial enterprise which offers holiday packages as well as other facilities to the people at
specific destination. In addition to this tour and travel operators also provides several other
facilities to customers such as food , transportation and accommodation services with intention to
make tourist comfortable. Tourism activities has been executed by the people during the
traditional times as well. But with the change in time and situation there has been rapid
development has been analysed in the tourism industry. Touristy sector is contribution a lot
towards the economic and social development of nation. Tour and travel companies are
providing variety of quality services at reasonable price which has allowed firm to attracting the
more number of tourists and influence people to support growth of tourism. Tourism sector has
played significant role in promoting the destination and supported society in improving the living
standard.
The purpose of the project is to developing the history and structure of the travel and
tourism sector. It also has emphasizes on analysing the role of government in growth of tourism
sector.
Lo1
1.1 key historical developments in the travel and tourism sector
Earlier tourism activities was only conduct by people in the society mainly for the
religion purpose. The first travel activity has been executed by the Columbus sailed westward
during the 14th century and the second journey was facilitated by the Ascot Da gamma for the
business purpose. The concept of tourism evolved as earlier people travel for the search of food
and shelter. Due to the lack of transportation facilities the people in the society has to walk a
mile for the search of basic facilities. Considering the condition of the people , the government
in The European Union has decided to provide transportation facility to people which has
contributed towards the development of tourism. From that time, there has been continuous

growth in tourism sectors. As the tourism industry has supported the people in improving the
living standards and fulfilling the basic need, the tourism sector is supported by the legal
authority in nation . Earlier , travel and tour operators company only conducts the informal
tours for the visitors. During the traditional times the travel activities were conducted by people
mainly for the religious purpose with the change in social needs , trends , journey has been
executed by people for the objectives of relaxation , leisure , education etc. This factor has lead
to the increase in demand for tourism products which has allowed the firms to increase sales and
generate high profits or revenues. But the development in other things , the travel companies has
able to provide formal tour packages to the visitors. The tour operators organisation with the
support of the other sectors has form partnership with the purpose of delivering quality as well
as addition services to travellers in order to provide them comfortable as well as memorable
experience at destination. Continuous development in the economic condition as well as
technological has helped travel organisation in providing additional facilities such as online and
online booking services etc.
At the time of 16th and early 19th century there has been drastic as well as major
improvement has taken place in travel and tourism sector. In the 1841 grand tour was organised
by British elite class which has also leaded to the rise in demand for goods as well as services
offered by tour operators companies. During the traditional time tour packages were designed by
the travel organisation considering the status as well as income level of people in the society.
Tourism activities has encouraged people to improve their living standards (Jackson,2008).
Change in social trends, need has created demand for development and recreation of travel and
tourism industry. In addition to this emergence as well as development in the transportation
system such as:
Sea transport-This transportation choice was implanted in year 1831.Sea transportation option
intends to provide memorable experience to visitors.
Air transportation – This transportation facility has been provided to allow travellers to migrate
from one destination to other quickly.
With the passage of time there is tremendous improvement in the tour packages provided
by travel companies to travellers.
1.2 Structure of travel and tourism industry

Tour and travel organisation are working in coordination as well as cooperation with each other
order to provide good facilities and memorable experience to customers. Tourism sector is very
big and consists of different segments :
Hospitality- It is recognised that the supporting segment which enables travel companies to
provide basic food as well as accommodation facility to the visitors. Purpose of Hospitality
segment is to provide the optimum level of facilities to travellers .
Tour operators- These are the organisations which arranges the various facilities for the
visitors. Purpose of the Tour operators company is to provide comfort and fulfil the needs as
well as demand of tourist at particular destination. Tour operators offers different services in the
form of complete tour packages which include food , accommodation , transportation etc.
Travel agents- The function of such organisation is to provide transportation facilities for
tourist and advice them about the transport mode which can be used by them for reaching at the
particular destination.
Ancillary services- Such types of service include insurance, financial services, marketing,
guide etc. are provided by the private organisation operating in tourism sector.
Accommodation – There are different types of accommodation facilities such as villas,
cottages , hotels are provided by tour and travel organisation to visitors according to the budget.
Transportation services- Tour companies has able to provides such types of services with the
support of transportation industry. Transportation services are provided by touristy
enterprise fore allowing tourist to migrate from one place to another
(Litvin,Goldsmit and Pan, 2008). There are some transportation modes which can be used
by travellers for moving from one destination to other such as sea , road , air etc.

LO2
2.1 Analysing the function of legal authority, government sponsored bodies and international
agencies in travel and tourism.
The legal authority in the nation plays important role in supporting the travel and tourism
sector in fostering growth and accomplishing success. There are many global agencies like
regional tourism organisation, air transportation intends to support tourism sector in
expansion and achievement of objectives. Objectives of international agencies are to assist
tour operators companies in identifying the ways for minimising the adverse effects of
macro environmental factors on business operations (Heung, Kucukusta and Song, 2011). It
also intends to support business intends to support tourism companies in increasing the
sustainability in the market and gaining the competitive advantage.
International organisations have to perform different function. The important role of
tourism industry is to assist travel companies in promoting products or services, generating brand
awareness. These global agencies also support tour operator’s organisations in development of
policies. The world tourism agencies has implemented different projects for supporting the
travel sector in expanding scope of operations and delivering additional facilities to tourists at
destinations. Purpose of the project executed by the global agencies is to increase the energy
efficiency as well as renewing energy utilisation by travel companies operating on small scale.
Role of international agency is to render information, technology and other resources to Tui

company in order to help firm, in smooth functioning of business. Function of global companies
is to provide training to the employees in TUI , so that they gain the potential for delivering thee
quality and quick services to visitors or customers.
Government in the nation has enforced several policies and formulated some laws in
order to provide high level of security as well as safety to visitors. Legal authority in the country
has significant role to play in the growth of tourism . One of the crucial function is to formulate
as well as implement fiscal as well as monetary policy in order to provide financial benefits to an
enterprise operating in tour and travel industry (Christou, Sigala and Gretzel, 2012). In addition
to this role of government is to help companies in promoting products, services and destination.
Function of legal authority in nation is to provide infrastructure facility and access to the
resources which are required by an organisation in order to facilitate operation in smooth way.
There are some sponsored bodies like World travel and tourism council has aim to
promote the industry. The function of this council is to influence legal authority for supporting
the travel and tourism company. It also intends is to promote the importance of the tourism.
Sponsored bodies are provided funds by legal authority in the nation in order to support the
growth of tourism sector.
Visit Britain is recognised as the British authority..Role of this special agency is to
promote destination and helps travel companies in development of plans or strategies for
attracting visitors. Purpose of Visit Britain is to establish national tourism agency in order
to increase the value of inbound tourism (Mehmetoglu, 2014). The function of this special
council is to help travel organisation in managing their business operations and also tourist
at particular destination.

2.2 Identifying the way local and national economic policy influences the success of the travel
and tourism sector
The Different policies and laws formulated by government in the country has direct as
well as major effect on the tourism business. In UK , the several monetary and non economic
policies have been designed by the legal authority in the nation for supporting tourism sector in
fostering growth and expanding the scope of operations.

An economic or monetary policy created by the government in the country has great as
well as significant impact on the economic system of country. Integration of policies adopted by
the legal authority contributes to the economic growth of the nation which has major influence
on the financial performance and stability of firm. Economic or monetary policies implemented
in the country have helped an industry in improving the performance of travel companies in the
rural tourism. Favourable economic policy in the nation has supported business entity in
increasing its buying power and making the purchases of resources which are required for
smooth running of business (Chan and Chen,2008). It has also enabled an organisation to provide
additional facilities to customers and provided an opportunity to deliver high level of satisfaction
to client. Economic policies have positive effect on the growth of tourism sector.
Sponsorship and Funding -It is recognised as the investment made by the private or public
organisation with the objectives of making the destination more attractive to tourist.

2.3 The implications of political change on the travel and tourism sector in different countries
There are various factors such as internal as well as external constituents which has direct
as well as significant influence on the business operation of tour and travel companies. Macro
environment variables are uncontrollable nature . Some external macro environmental elements
are social , political, legal, economical , technological and environmental constituents have direct
impact on the tourism. Continuous changes in these variables have major influence on the
demand for goods or services offered by travel companies. Among various external factors ,
changes in the political changes have significant effect on the sales and profitability of travel
organisation. Wars , political in disturbances in the country restrict the visitors to visit at
particular destination. Political instability in the nation have great influence on the travellers
choice as well as behaviour towards destination.
The implication of political change on travel and tourism industry in China and UK.
United kingdom- As travel and tourism sector has made significant contribution towards
economic development of nation and generation of employment opportunities for domestic
people. So legal authority as well as political parties in United kingdom in return has made some
favourable fiscal and monetary policy for supporting travel companies in fostering growth and
expanding business operations.
China- In china, legal authority in the nation, has decided to make some norms in order to
maintain stability in the nation and support travel companies in influencing people to visit
at particular destination. Political parties in the nation, has forced government to make visa
process simpler (Middleton and Clarke, 2012). As this will help travel and tourism
companies in expanding business operations. Changes in the political factors have direct as
well as significant effect on the policies of travel and tourism companies. The unethical
political practices in the nation increase the risk or threat to the life of visitors.