Economic, Environmental, and Social Impacts of Tourism Sector

This report provides a comprehensive analysis of the travel and tourism sector, examining its historical development, structure, and the roles of government and international agencies. It explores the influence of economic policies and political changes on the industry, using examples like Cuba and Thailand. The report also delves into the factors affecting the demand for travel and tourism, including cost, climate, and security, and discusses how changes in supply, such as improvements in natural resources and hospitality, can impact demand. Furthermore, it evaluates the positive and negative economic, environmental, and social impacts of tourism, with a specific focus on the TUI Group, and suggests strategies to minimize negative impacts while maximizing positive ones. The report concludes that better services, including destination appeal, cost-effectiveness, and safety, are crucial for the success of the travel and tourism industry.

Travel and Tourism Sector

Table of Contents
Introduction....................................................................................................................................4
Task 1..............................................................................................................................................5
1.1 The historical development in the travel and tourism sector..........................................5
1.2 The structure of travel and Tourism Sector......................................................................6
TRAVEL AND TOURISM.......................................................................................................6
Task 2..............................................................................................................................................8
2.1 Analyse the function of government, government-sponsored bodies and international
agencies in travel and tourism................................................................................................10
2.2 Explain how local and national economic policy influences the success of the travel
and tourism industry...............................................................................................................11
2.3 Discuss the implications of political change on the travel and tourism sector in
different countries....................................................................................................................12
Task 3............................................................................................................................................15
Executive summary.....................................................................................................................15
Introduction..................................................................................................................................15
3.1 Factors affecting the demand for travel and Tourism Department..............................16
3.2 Change in supply which affects the demand for travel and tourism............................17
Conclusion....................................................................................................................................18
Task 4............................................................................................................................................19

4.1 Evaluate the main positive and negative economic, environmental and social impacts
of tourism with reference to TUI Group of businesses........................................................19
4.2 Strategies that can be used to minimize the negative impacts while maximizing the
positive impacts........................................................................................................................20
Conclusion....................................................................................................................................22

Introduction
There has been seen a continuous change in the travel and tourism industry in the recent time.
There has been evaluated development in the historical places and monuments by the passage of
time. The whole assignment shows changes in the different sectors of the economy. It shows that
the industry has a lot of positive aspects as this serves for many purposes just like whether it is
related to recreation, education or for creating the memorable moments of life by visiting the
historical places all over the world. But the industry is not confined to these aspects only, it
serves the economy in various other aspects, for example, it contributes to the national income of
the economy. Along with the positive impacts the industry also has a lot of negative impacts
which are discussed in the below report.

Task 1
1.1 The historical development in the travel and tourism sector
This poster deals with the trends and changes that took place in the travel and tourism sector. It
shows the historical developments that took place in the travel and tourism industry. It also has a
brief description about the benefits of this industry to the economy of a particular country along
with the market analysis that how this industry responds to the changes and meets out the need
and requirements of the tourists coming from all around the world.
It is also analyzed that the tourism industry has gained much prosperity and growth in the recent
years by serving better hospitality and services to the visitors. The tourism industry has also
served a lot of people with jobs and contributed a lot in solving the major issue of unemployment
in the economy.

1.2 The structure of travel and Tourism Sector.
TRAVEL AND TOURISM Events and Meetings: The tourism
industry often conducts meetings
and events in the tourism industry
all over the world. Conducting
these events also contributes to a
huge amount of cost while staging
these types of events (Csapó,
2012).
Accommodation: It is also an
important aspect of the travel and
tourism sector. It is well-known
fact that tourists coming from
different countries would surely
require a place where they could
stay for the time they enjoy the tour
and the place should be well-
maintained and comfortable for the
tourists. There are a lot of travel
and tour agencies which provide
with these types of best services to
the tourists.
Travel and tourism industry
has a lot of experienced tour
guides and agents who sell out
the tourists services.
Conclusion: The above report
gives a complete description of
the structure of this travel and
tourism sector in the economy.
It contributes to the growth and
development of the economy.
There is also the description of
the influence of the various
segments of this sector on the
economy. The effect of
demand and supply to the
travel and tourism industry is
also described in the above
study of this sector.
Introduction
Travel and tourism sector is said
to be one of the fastest growing
and most earning sectors of an
economy. This leaflet is the
complete description of one of the
leading brand in the sector of
tourism and tour operating known
to be the TUI organization.
Structure of Travel and
Tourism Industry
Transportation: The facility of
proper means of transportation is
must for a successful and enjoying
trip. Without the proper means of
transportation, one can’t reach a
particular place at a time. It can be
said to be the most essential
element of a trip or tour especially
for the people coming from
outside the boundaries of the
country. (Amaro, 2013)

Travel Agents: It is a quite known
fact that we always search for a
travel agent when we go to a new
place or country in order to gain
better knowledge about the
particular place. For this, the

Task 2
Slide 1: Title

Slide 2: Table of Contents
Slide 3: This slide tells about the travel and tourism sector which plays an important role in the
growing the economy and to developing it.

2.1 Analyse the function of government, government-sponsored bodies and international
agencies in travel and tourism.
Slide 4: This slide has a complete description of the functions of national and international
authorities. There are a lot of functions being played by the international agencies, governmental
sponsor bodies, and various government agencies. (Csapó, 2012)

2.2 Explain how local and national economic policy influences the success of the travel and
tourism industry.
Slide 5: This slide describes the policies and their influence on the travel and tourism industry
like that of providing funds, Visa immigration, and implementation of taxes, infrastructural
development and a many more.

2.3 Discuss the implications of political change on the travel and tourism sector in different
countries.
Slide 6: This slide gives the complete description of the political changes that occurred or caused
by the travel and tourism industry. To analyze the political impact there has been taken the
example of the two countries which suffered from such type of impacts like that of Cuba and
Thailand. (Pedrana 2013)

Slide 7: This slide gives the conclusion of the report. It is concluded that there should be a
modification in the national and international functions means these should be made cheap.
There should be flexibility in the policies in all the aspects whether it is economic, social or at
international level. There has been also seen a huge necessity of making the taxation policy
cheaper.

Slide 8: References

Task 3
Executive summary
The demand for the travel and tourism depends on the services that provided by the companies of
travel and tourism. But some good changes in the supplies of services increase the demand for
the travel and tourism department.
Introduction
The demand of the Travel and tourism department depends on the services. The main part which
plays an important role is a cost factor because everyone wants a better travel in limited amount
with better services. Some more things affect the demand for travel such as climate conditions of
destination, the reputation of locality and security of the customers.

3.1 Factors affecting the demand for travel and Tourism Department
There are many factors which are affecting the demand for tourism. One priority basis factor is
cost. The cost effect is must in the travel and tourism department because people deal with it
when they are on board of travel which includes the cost of getting to the destination, because
higher travel cost may decrease the demand of tourism. The cost includes the accommodation,
food, stay, entertainment and the local expenses. It clearly shows that if the cost will be high than
the demand will be low in travel. (Afthanorhan, et. al., 2017)
There are some non-price factors which also affect the demand of the tourism and travel, for
example, climate conditions of the destinations, the reputation of the location. The corruption in
the department of the travel and tourism also matters because of the fear of fraud made by some
travel and tourism companies people think twice to do trust on the travel and tourism companies
it also drops the demand of the travel and tourism department. Sometimes the customer wants
something else and the company provides something else that consumers will not be happy to go
again with the help of travel and tourism companies (Sezgin, et. al., 2012).
There are some economic factors which affect the demand for the travel and tourism are as
follows:-
 The consumer’s income. If a customer feels to stay home except to go on a travel because
of prices high than the demand for travel drops.
 Tastes also matter according to the customers. If the vacation for a consumer is going out
of style.
 The cost of complementary goods. If the fares of airlines include in the complimentary
goods than the increase in the fare of the airline's fares the demand drops out.

3.2 Change in supply which affects the demand for travel and tourism.
Supply in travel department is the solution of productive activity which involves those goods and
services which is required to meet the demand of the tourism department. It is the combination of
natural amenities, recreational sites (Sezgin, et. al., 2012).
TUI group is the biggest German-based tourism company which provides the best in class
services in the travel and tourism department. The group owns six European airlines – the largest
fleet in the European countries. The changes in services in the TUI Group to increase the demand
for the travel and tourism are as follows-
 Natural resources and environment: One of the vital role players in the travel and tourism
department, Which takes the attention of the tourists such as climate, air, natural beauty,
drinking supply, sanitation and bodies of water.
 Built Environment: The things in the form of materials which attracts the customer, can
be described as the built environment.
 Operating Sector: Consisting such elements such as – transportation, accommodation,
food services, attraction, without these elements enriched tourism company may fall into
the great loss and destroy its image in front of its customers.
 Spirit of Hospitality and cultural resources: Social foundations related to the destination
language, customs, and religions. The behaviors of the local resident also play an
important role when a tourist comes from another country. (Afthanorhan, et.al., 2017)

Conclusion
The things which increase the demand for the travel are the best services. The things which
really matters in a better tour & travel are as follows – destination, cost, climate conditions,
better accommodations, some complimentary services, and safety these are the main factors
which play a very important role in the travel and tourism industry.

Task 4
4.1 Evaluate the main positive and negative economic, environmental and social impacts of
tourism with reference to TUI Group of businesses.
The tourism industry is among the fastest growing sectors of the economy in the sector. Along
with this, the industry faces a lot of challenges. There are analyzed a lot of positive and negative
impacts on the economic, environmental and social sectors of the economy. The description is
given below:
Economic Impact: If it is talked about the positive impact of the travel and tourism industry, it
greatly contributes to the foreign exchange and national income of the country. It also
contributes to increasing the revenues of the government. Coming to the negative sides, it has the
negative impact due to the implementation of the high tax rates. Also causes the situation of
inflation in the economy which is too harmful to an economy. The tourism industry is also
affected by the implementation of huge rates in the form of accommodation charges and many
more. (ENotes, 2018)
Environmental Impact: The growth of travel and tourism industry is also being affected by
various environmental factors. The positive impact is that it has maximum utilization of
resources in the economy. It also conserves the historical places and even the history of the
economy. The negative side is that it has a huge impact on the economy in the sense that it leads
to globalization. It also causes a huge damage to the forests and wildlife., (Pedrana 2013)
Social Impact: The travel and tourism industry helps in exploring the culture and heritage of a
particular country all around the world by rehabilitation, conservation and various other means
and methods. If it is talked about the negative impact, it may increase the crimes among the local
habitats. The country may also lose the value of its culture and social amenity.

4.2 Strategies that can be used to minimize the negative impacts while maximizing the
positive impacts.
To increase the demand for travel and tourism department strategies are must be maintained by
the companies like TUI group in some aspects of economic, environmental and social impacts.
(Amaro, 2013)
The strategies which should be must maximize the positive impact while minimizing the
negative impacts of travel and tourism are as follows:-
 Economic strategy – It is very important to make the travel cheap in cost because if the
cost of travel is high than the no. of the customer decreases and the demand of the travel
and tourism company drops. It includes many expenses like – Airlines fares, Hotel Fares,
local traveling charges and food which is very important in the maintaining the traveling
cost. ( Palatkova, 2012)
 Environmental Strategies – Environment during the travel plays an important role
because bad environment starts decreasing the quality of the company of the travel and
tourism. It involves many things such as behavior of the travel guides of the particular
company, Climate of the destination, and the airlines timings and boarding should be
suitable to the customers like TUI group they have their own six airlines and they provide
the complete details to the customers and give the maximum facilities to their passengers
during travelling. (Palatkova, 2012)
 Social Strategies – To maintain the positive impacts on the client's social performance is
very essential in different ways like-
1. Promotion on the social media to increase the consumers.
2. To provide the boarding passes and ticket on the social platforms with visa’s on arrival.
3. To reduce the waiting time for the passengers and provide the complete details on their
emails.
4. To make the different portals for the senior citizens.

5. To provide the details of complete travel details as an itinerary to the passengers.
6. To prove the safety measures during the complete travel.
7. To optimize the complete technology for better tourism.
8. To maintain the feedback of the customers and take care of them with their needs.

Conclusion
The demand of the travel and tourism department depends on the services provided by the
companies of the travel industry. If the supply is not sufficient then the enriched company starts
getting a drop down in the market and demand for travel and tourism reduce. Some impacts
seriously matter in the growth and the attraction toward the traveling. Economic, social and
environmental impacts matter a lot in the terms of the strategies. To make the positive attraction
towards the traveling the services and safety are must provide at limited costs. To become the
best company in travel and tourism sector than the strategies should be must to maintain and
applied.

Reference
 Afthanorhan, A., Awang, Z., &, Fazella, S., 2017. Perception of Tourism Impact and
Support Tourism Development in Terengganu, Malaysia. Soc. Sci., pp. 3-8
 Amaro, S., & Duarte, P., 2013. Online travel purchasing: A literature review. Journal of
Travel & Tourism Marketing, pp. 755-759
 Course Hero, 2018. How supply has changed to meet the effects. [Online] Course Hero.
Available: https://www.coursehero.com/file/plekel/32-Explain-how-supply-has-changed-
to-meet-the-effects-of-demand-Tourism-supply/ [Accessed: 14 May 2018]
 Csapó, J., 2012. The Role and Importance of Cultural Tourism in Modern Tourism
Industry. Strategies for Tourism Industry – Micro and Macro Perspectives, pp. 208-210
 ENotes, 2018. The main factors affecting tourism demand. [Online] ENotes. Available
at: https://www.enotes.com/homework-help/describe-main-factors-affecting-tourism-
demand-and-237957 [Accessed: 14 May 2018]
 Palatkova, M., 2012. Travel and Tourism Marketing-Review. CZECH JOURNAL OF
TOURISM, pp. 32-35
 Pedrana, M., 2013. Local Economic Development Policies And Tourism. Regional
Science Enquiry Journal, Vol. V, (1),

 Sezgin, E., &, Yolal , M., 2012. Golden Age of Mass Tourism: Its History and
Development. Visions for Global Tourism Industry – Creating and Sustaining
Competitive Strategies, pp. 79-86