Travel and Tourism Sector: Historical Developments and Analysis

This report provides a comprehensive analysis of the travel and tourism sector, starting with an introduction to the industry and its various components. Task 1 delves into the key historical developments and the structure of the sector, illustrating how it has evolved over time. Task 2 examines the influence of governmental bodies and policies, including the impact of political changes like Brexit and shifts in leadership, on the sector's operations. Task 3 focuses on supply and demand dynamics, identifying elements that impact demand and outlining changes in supply to meet these demands. Finally, Task 4 discusses the positive and negative impacts of tourism, along with strategies to mitigate negative effects and enhance positive outcomes. The report uses examples from the UK, China, and other regions, providing a global perspective on the travel and tourism landscape.

Travel and Tourism Sector

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Key historical developments in travel and tourism industry.................................................3
1.2 Structure of travel and tourism sector....................................................................................4
TASK 2............................................................................................................................................6
2.1 and 2.2 in ppt.........................................................................................................................6
2.3 Influences of political changes............................................................................................11
TASK 3..........................................................................................................................................12
3.1 Elements impacting on demand...........................................................................................12
3.2 Changes in supply for accomplishing demands...................................................................13
TASK 4..........................................................................................................................................14
4.1 Positive and negative impacts..............................................................................................14
4.2 Strategies..............................................................................................................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Travel and tourism is the category of business which consists of various other categories
of businesses which involves in fulfilling needs and requirements of tourists. Different factors
like transportation, industrialisation and greater awareness of individuals about various ethnic
destinations are developed from the beginning of era (Telfer and Sharpley, 2015). Peoples are
more inclined towards creating tours and visiting destinations as it was demanded to explore
foreign cultures and people. Thomas Cook and TUI Group business organisation have gained
market share and diversified these opportunities and provided facilitation to tourists in the form
of pre-planned tours, affordable pricing, easy accommodation etc.
In this report, detailed structure of the concerned industry and the major historic
developments in travel and tourism sector are described. In this report role of various groups and
functioning bodies like government and non-government or private sector companies are
elaborated. In order to provide information regarding respective changes in the travel and
tourism sector, impact of local and national economic policies with political and social
environment will be described in this assessment. Two prominent factors which are getting
affected due to several factors are supply and demand. In order to create better understanding
these aspects are considered in this report. Furthermore, several strategies are used to increase
positive impact and reduce negative factors and on travel and tourism industry.
TASK 1
1.1 Key historical developments in travel and tourism industry
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1.2 Structure of travel and tourism sector
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TASK 2
2.1 and 2.2 in ppt
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The government is one of the influential body which is having a huge impact on the travel and
tourism sector
Travel and tourism sector is affected directly and indirectly by the government policy, rules and
regulation
Infrastructure- Local government is responsible for the work of providing basic infrastructure and
services to the tourist and help travel and tourism industry in developing and growing.
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Government have responsibility to provide opportunity to the travel and tourism agency so that they can
easily attract the tourists towards their country and make some profit out of it.
Development of tourism resources:
Development of the tourism resources and product by aligning with the overall government policy is one
of the important function performed by the government.
 World tourism organization
 International hotel association
 Universal federation of travel agents association
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China has come up with the outbound policy with the outline of national tourism of China and
also another policy established by Chinese government is Red tourism policy.
United Kingdom come up with the policy of Visit Britain and Visit England also ask for the funding from
various sources
The reforms by Chinese government improved the standard of living of people and
simultaneously provide prudence to economy of china
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The development of rich middle class and decline in the restriction on the movement by the Chinese
officials strengthen the travel industry
AS per the WTO till 2020, China will be emerging as the largest tourist country and the 4th largest for the
overseas travel
2.3 Influences of political changes
Due to economic changes and the instability in governmental decisions, political
conditions in the business environment keep on changing. Severe implications in the travel and
tourism sector are seen due to these fluctuations. UK and US have been taken to overcome these
situations. In European Union of UK, the UK government has taken all the political rights and
certain powers with the process of Brexit (Colbert, 2017). All this situation has caused changes
in business atmosphere. Due to highly influential decision of exiting the European Union, the
travel and tourism industry has changed a lot. Because of the EU laws, the employees had to go
back to their home country who have a residential right to other member states. This in turn
results in the loss of talented and skilled manpower from the country.
On the other hand, the scenario of political environment completely changed as US faced
the biggest presidential elections. Donald Trump is elected as the new president of the country.
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Donald trump has controversial view and thoughts which creates the chances of severe war like
conditions. Lack of proper facilitation for individuals affects travel and tourism industries from
different countries (Kazeminia, Del Chiappa and Jafari, 2015). The main factor which has caused
severe impact over the travel and tourism sector is visa restrictions and strictness in the
movement of people other than the country. The business environment of this sector is
negatively affected by this policy.
UK has faced a positive impact due to Brexit because it has relieved the country from the
restrictions of EU and caused lack of unjust restrictions over the trading organisations. The
economy of the country is directly affected as the travel and tourism organisations are free from
irrelevant taxes.
Political factors directly affect the travel and tourism industries. Due to regular change in
political parties and government policies the tourism industries have to change their
management. Further, tax policies of the government also affects the tourists as they have to
increase the prices of tickets and other accommodation facilities. All this brings instability and
reduces tourism in the country.
TASK 3
3.1 Elements impacting on demand
Demand is considered to be a situation in which the customer initiates a request to be fulfilled in
exchange of money by the respective production or service generation company. In travel and
tourism sector, this kind of demand can be about accommodation, transportation, food,
beverages, entertainment or any other leisure and pleasure activity. But there are certain factors
which affect the demand of tourism in the concerned industry (Ingram, Tabari and
Watthanakhomprathip, 2013). These have been listed below: Demographic: Demographic factors include the classification of travelling frequency of
individuals, distribution of gender, size of population, spending capacity, etc. All this
factor assists in understanding the numerical shape of demands which may be increasing
or decreasing in the travel and tourism industry. The facts of this element are responsible
for the dependency of all other components.
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