Impacts on Tourism: Supply, Demand, Government, and TUI Analysis

This report provides a comprehensive analysis of the travel and tourism sector, focusing on its historical development, structure, and the influence of local and national governments and international agencies. It examines the role of government policies and political changes in shaping the industry, using examples from the UK and China. The report also delves into the effects of supply and demand, particularly within the context of TUI Group, a leading tourism operator. Furthermore, it evaluates the economic, environmental, and social impacts of tourism, suggesting strategies to minimize negative effects and maximize positive outcomes for businesses like TUI Group. The analysis covers factors affecting tourism demand, such as demographics, economy, and technology, and explores how TUI Group has adapted its supply to meet evolving demands, including accommodation, tour operations, and service quality.

THE TRAVEL AND TOURISM SECTOR

THE TRAVEL AND TOURISM SECTOR
Table of Contents
Introduction................................................................................................................................3
LO1. Understand the history and structure of the travel and tourism sector..............................4
1.1 Explain key historical developments in the travel and tourism sector.................................4
1.2 Explain the structure of the travel and tourism sector..........................................................4
LO 2. Understand the influence of local and national governments and international agencies
on the travel and tourism sector.................................................................................................5
2.1 Analyse the function of government, government sponsored bodies and international
agencies in travel and tourism. Please use specific and relevant examples...............................5
2.2 Explain how local and national economic policy influences the success of the travel and
tourism sector. Please provide examples of specific local and national economic policies......6
2.3 Discuss the implications of political change on the travel and tourism sector in different
countries. You need to include at least two countries................................................................6
LO 3. Understand the effects of supply and demand on the travel and tourism sector..............7
3.2 Explain how supply has changed at TUI Group to meet the effects of demand..................8
LO 4. Understand the impacts of tourism..................................................................................8
4.1 Evaluate the main positive and negative economic, environmental and social impacts of
tourism with reference to TUI Group businesses.......................................................................8
4.2 Explain strategies that can be used to minimise the negative impacts while maximising
the positive impacts for example on TUI Group businesses......................................................9
Conclusion................................................................................................................................11
References................................................................................................................................12
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THE TRAVEL AND TOURISM SECTOR
Introduction
Travel and Tourism is a type of industry which is growing since very old days and has a lot
of time to reach a saturation level. This industry is very large as it comprises of travel and
tour operators, transportation, accommodation facilities like hotels, restaurants, tourist spots
and maintain those heritage sites and lastly providing services and safety to the customers or
the visitors. This report will focus on the TUI group, which is considered as one of the largest
tourism operators in the current market which 1600 tour agencies under them and 150
aircrafts to the 5 operator airlines. This report will also cover the details of the development
and structure of travel tourism along with the political impact on travel and tourism industry.
Finally this report will also cover the social, environmental and economic factors on the
travel and tourism industry along with the government and private policies that affects the
travel and tourism industry.
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THE TRAVEL AND TOURISM SECTOR
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LEAFTET
TASK 1
LO1: History and structure of the travel and tourism sector
Q 1.1 Explain key historical developments in the travel and tourism sector
Travel and tourism is one
such industry which seems to
be growing without any kind
of saturation. People at very
early ages used to travel for
business purpose. But
coming on to the later days,
one can notice that people
travel most of the time out of
passion, to know a place and
to know the culture of the
place. The tourism seemed to
grow more as the
transportation industry
expanded their growth.
At early stages one used to
travel by walking and slowly
due to technological
advancement aeroplanes
came, due to which one can
travel from one part of the
world to another with some
hours (Luo and Zhong, 2015).
This time saving
transportation development
have attracted many tourists
to travel even more. Along
with this the government of
many countries has also come
up with many new policies to
attract tourists. The history of
TUI group in travel and
tourism was something
related to coal and mining
business in the year of 1923.
Basically it is served as a
logistics company and in the
year of 1997 it served as a
leisure and services industry.
At that time 30% of the
interest was shown to the
travel and tourism
conglomerate and in the year
of 1999, the TUI group fully
transformed themselves in
travel and tourism sector. In
1997 it acquired 25% of the
Thomson cook’s shares
which doubled in the
following year.

THE TRAVEL AND TOURISM SECTOR
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LEAFTET
TASK 1
LO1: History and structure of the travel and tourism sector
Q 1.2 Explain the structure of the travel and tourism sector
Travel planning- They are
generally done by the tour
operators and the travel
agencies. As because they
arrange all types of travelling
tickets, they have the idea of
which way to choose of
travelling by which the
customers will be benefitted
the most. People gives
responsibility to these travel
operators to arrange
transportation,
accommodation and
respective tickets to get
arranged.
Tourism sites- It is basically
the places where the tourists
are attracted to go. It might be
artificial or natural heritage,
as for example parks, forests
or some cultural sites. The
tourism sites are maintained
most of the times, to have a
good brand image and to pull
masses of customers.
Transportation- The
development of the
transportation has helped
customers to reach different
part of glob within a short
period of time. And later
prices of the airplanes were
made lesser just to make the
customers pull towards
tourism (Mason, 2015).
Accommodation- Most of
the time the travelling and
tourism purpose stays for
some number of days, and to
stay at a particular place for
a particular period of time,
accommodation is very
much necessary, like hotels
and inns. Accommodation
with food and meals are also
considered to be a huge
advantage because the
traveller will be in search of
food and will access the
food much more easily if
they get the facility from the
accommodation where they
are staying.

THE TRAVEL AND TOURISM SECTOR
LO 2. Understand the influence of local and national governments and international
agencies on the travel and tourism sector
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THE TRAVEL AND TOURISM SECTOR
2.1 Analyse the function of government, government sponsored bodies and international
agencies in travel and tourism. Please use specific and relevant examples
This slide contains the description of the functions performed by the government and the
international bodies in the travel and tourism sectors. These bodies help in managing the
heritage sites.
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THE TRAVEL AND TOURISM SECTOR
In this slide there is an discussion about the sponsored bodies which deals with the
promotional events and the activities. These also includes the promotion and the integration
of tourism business.
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THE TRAVEL AND TOURISM SECTOR
2.2 Explain how local and national economic policy influences the success of the travel
and tourism sector. Please provide examples of specific local and national economic
policies
The local and the national economic policies affect the various economies. The functions
performed helps in the development and investment of the travel industries.
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THE TRAVEL AND TOURISM SECTOR
These local and the national policies helps in enhancing the taxes and the tourists
expenditures and the results.
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THE TRAVEL AND TOURISM SECTOR
2.3 Discuss the implications of political change on the travel and tourism sector in
different countries. You need to include at least two countries
The political change has an impact on the travel and tourism sector of both the UK and
China. These develop the various situations which need to be managed.
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THE TRAVEL AND TOURISM SECTOR
The factors such as the terrorist activities which are involved in the UK are less wherein
when taken the case of China it is large.
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