UKCBC Travel and Tourism Sector Analysis: HND Module Report

This report provides a comprehensive analysis of the travel and tourism sector, covering its historical evolution, current structure, and key developments. It delves into the factors influencing tourism demand and examines how the industry adapts to meet these demands. The report also explores the positive and negative environmental, economic, and social impacts of tourism, offering strategies to maximize positive effects while mitigating negative ones. Furthermore, it investigates the implications of political changes on the sector and analyzes various government policies and their effects. The report is structured into tasks that explore the structure of the travel and tourism sector, political changes, factors affecting demand, and the impact of tourism, making it a valuable resource for understanding the complexities of the industry.

Travel and Tourism
Sector

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1Key developments in travel and tourism industry..................................................................3
1.2 Structure of travel and tourism sector...................................................................................5
TASK 2............................................................................................................................................6
TASK 3............................................................................................................................................8
3.1 Factors affecting tourism demand.........................................................................................8
3.2 Way in which supply has changed to meet the effects of demand........................................9
TASK 4..........................................................................................................................................10
4.1 Positive and negative environmental, economic and social impacts of tourism.................10
4.2 Strategies helpful in maximizing the positive impact while reducing the negative impact
...................................................................................................................................................11
CONCLUSION ............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Travel and tourism industry is one of the old and picking the popularity vary fast. many
people are travelling and going for holidays and they select the travel other countries and places.
TUI company is is multinational travel and tourism company. TUI is the largest tourism group in
UK. The source of the company is transportation company and industrial. TUI company provide
their customers best and effective services. Company introduce new services to attract customer
towards their services. TUI company gives opportunities to their customers, employees and
stakeholders. According to a perception this industry is divided into some format according to
the eras of developments. This era get started from the before 1945. because of this the travel
and tourism industry improve their services for attract the customers. This industry helps the
country to develop the economy and increase the contribution towards development of the
countries (Moutin, 2011).
TASK 1
1.1Key developments in travel and tourism industry
Travel and tourism sector is one of the most growing industry than any other sectors. This
sector get improved day after day in a significant manner. This sector produce more than any
other in a country economy. This is one of the vast growing and the main industry sector which
generate more and more economy of a country by providing more and more job opportunities to
the unemployed group of society. Government of any country also introduce some new laws for
attracting large range of tourist and formulate such policies which are in the favor of tourist. So
such developments from the last few decades are as follow:
According to a perception this industry is divided into some format according to the eras of
developments. This era get started from the before 1945. Hence, it can be measure out that this
industry start changing itself from last 72 years (Navickas, 2015). The history of travel and
tourism are as follow:
1. During the year 1945 only the elite class people could enjoy the time of leisure with their
families. The service class people did not be able to go somewhere to spend some quality
with their families.

2. During the time of 1950, tourism was the industry which was inconsistent. In which
hotels, tour operators and all such respective organization which are the essential part of
this industry work individually.
3. In this era, none of the industry was able to take part in any kind of integration activity.
In the mid of 1950’s this industry change their working pattern. They start adopting integrated
activity in which they start supporting each other (Perch, 2010). For example tour operators
provide accommodation facility to their guest by offering five start hotel coupons.
4. And from the 1950, this service sector industry got changed totally in which the craze for
tourism get measure in many customers.
5. By the time of 1980 it is identify that many airlines services provide complete package to
their clients in which they offer different type of facility.
6. According to the present time after 2007 scenario it is identify that this sector growing
more rapidly. According to this statement it is identify that all the organization start
helping each other by the process of integration.
7. In near future this tourism industry will going to be expand more and more due to the
introduction of many new technologies.
Apart from all such things the some other changes also take place in which the legislation
hold an important position. Many new laws get formulate in the favor of tourists. So that
their interest do not get spoil. Some of the important legislation are as follow:
1. Development of tourism act, 1969
2. Air passenger duty act, 1996
3. Package holiday act, 1949
These are some of the acts which are introduced by the UK governing council which really
want to expand their tourism industry and leads to promote in their economy in a year. These
steps are the essential elements which helps in promoting such activities which are in favor
of tourist. So that their interest and faith can gain easily.

1.2 Structure of travel and tourism sector
Structure represents a proper format in which all the work get done. This enabling in
better understanding about each and tourism industry in which aspect. Hence, same procedure is
followed in the travel and a proper structure is maintain (Blanke and Chiesa, 2011). The travel
and tourism industry consist of six industry components:
1. Tourist attraction: Attraction in the tourism sense refer to as the place where large
number of visitors visit to see that. These places aid in fascinating group of people to
come over a habitation which satisfy them in a proper manner. Some examples of the
tourist attraction are blackpoll beach and Alton tower. Different countries people come to
see these kinds of places. These provide a sense of relief to them.

2. Transport: After the tourist attraction the second major thing is transport which is very
necessary to reach to such places. Transport provide a facility through which an
individual reach to its destination. It can be in the form of anything like public transport
or any other own thing.
3. Accommodation: This process refer to as the facility which is utilize by the tourist.
These are in the form of hotel rooms. Visitors visit to a place where they stay for a week,
or for a day. For this concern they need a place where they can relax for some time.
Hence, accommodation facility enable them in this procedure.
4. Tour operators: They provide certain number of facility through which tourist visit
become possible. They combine all factors which are according to the customers’ needs
and requirements. After proceeding all such things they transfer it to the travel agent.
Travel agents: These provide the facility to combine a relation between tour operator
and public by providing brochures to them (Dickinson and Lumsdon, 2010). They have their
own agencies through which they manage their working.
Tourism and development: It refer to as the activity through which promotion activity
get done. The main working of this sector is to provide strength in working of tourism industry.
The main work is to develop this sector by introducing different range of acts. All such have to
be work in a proper manner so that wide range of visitors could visit.
Accommodation food services in travel and tourism industry: Accommodation food
services are very important in travel and tourism industry. The accommodation food services
provide the support to the industry. Food service also attract the tourists towards the tourist
places. Accommodation is important for any tourist who wan to travel to another destination or
country. The a person going for tour then need a place to stay such hotels, guest house and many
more. Accommodation divided in two parts serviced and non-serviced which are totally
different from each other.
Food services too attract the tourists towards the different tourist places. Every person
who want to travel to another place and destination need the food services. Food is the basic need
of any person. When there is tourism industry then it is important for the industry that they
provide the tourists the good and effective service.

TASK 2

2.3 The implications of political change on the travel and tourism sector in different countries
To XYZ,
Date: 22/05/17
There are both negative and positive impact of government policies and political
changes which affect the travel and tourism industry both negatively and positively. In every
country there are different political situations which develop the different situations of
denomination. Government develop different rules and regulations for travel and tourism
industry. These rules and regulations supports and also affect the travel and tourism industry. It
is important for the industry to follow these rules and regulations of government.
Positive impact of political changes
When government chance then tax rates can be change. There is chance of tax rate low. Low
tax rate attract the travel and tourism industry
Changes in government attract give benefits to industry. Because there are chances that the
new government policies in their favour.
Changes in government provide the tax benefits to travel and tourism industry
Negative impact of political changes
When government change then there are chances of tax rates might be high it affect the
strategies of travel and tourism industry.
Change in government develop the situation of inflation. Because of the changes in
government there is chances of inflation arises.
When government change there are chances of changes in polices it affect the travel and
tourism industry. Political changes in travel and tourism sector
Political changes are normal in the tourism sector. Relationship between politicos and tourism
are relatively sub decided. The political changes affect the different strategies, procedures,
planning, direction, and the pattern of the tourism sector. To relate the tourism sector and the
political changes there are different guidelines to support them. These guidelines provide an
effective base to the tourism sectors. Political changes are defined as the influence on the
tourism industry. The political changes determine the interrelation between the different
activities of the tourism industry.
In Egypt and Morocco, it get analyse that their political situation are in favour of them. Thus it

leads in attracting vast range of tourist. Also it help them in maintain their tourist in a positive
manner. Government stability provide benefit in which they can ensure their tourist that their
rights and interest do not get void and they are secure in their country. Hence political stability
promote the sustainability in travel and tourism sector.
Tourism chief point to the opening the new holes, such as the five star Great Scotland Yard
Hotel and the huge budget hotel at the Trocadero on the Piccadilly Circus as well as events
making the 125 anniversary of the publication of the first Sherlock Holmes story and the Pink
Floyd “Bloch buster” exhibition at the V&A as reasons to hope that London will retain its
status as the world's most visited city by oversees travellers in 2017.
TASK 3
3.1 Factors affecting tourism demand
Government bodies affecting tourism industry:
The travel and tourism industry affected by the different government bodies. Changes in
government polices affect the different systems, strategies, plans and the procedures of the travel
and tourism industry. Economics polices of the government affect the travel and tourism
industry. The economics polices directly affect this industry.
Economic policies of the government: when the government change then the economics
polices also change. These polices may give the benefit to the industry or may affect. The
economics polices directly affect the travel and tourism industry.
Monetary policies: the monetary policies of the government are mostly not affect the
travel and tourism industry. But these monetary policies of government grounds and fluctuation
in the exchange rate of the currency. If the currency change or fails then the tourism will be
increase because the rates of the tourism places also may decrease.
There are some important factors which affect the travel and tourism industry these are as
follows:
Cultural barrier
People from different culture have their different needs and wants and thus, travel
industry needs to be take care about the customer’s need and wants as people behave accordingly
(Surugiu, and Surugiu, 2013).
Seasonal Employment

During peak period, there is a lot of options and jobs available. But in off session there is
no opportunities for the employees who are associated with this industry (Ghimire, 2013).
Environment depletion
Globalization affects imbalance in the ecological system. When people go for tour places
then they visitors of greenery throw their garbage round everywhere. It causes sickness to
encourage more visitors areas of greenery cleared.
3.2 Way in which supply has changed to meet the effects of demand
Current demands in travel and tourism industry
In travel and tourism industry there are the demands of the customers have been change.
In present time, customers want improved and effective services. Now the tourist prefer the
improved and developed services. The tourist thinks that if they pay amount then they utilise the
services effectively. The TUI travel and tourism company implement new service for attract the
new customers and satisfy the old customers’ demands.
Changes in customers’ demands
Now, the customers’ demands and their needs change. The customers want the improved
and effective service. The customers prefers those tourist places which are suitable for them. The
TUI travel and tourism industry implement the new changes which helps them to meet the
customers satisfaction.
Improved services
The customers now seek to improved and effective services. They select those place
which are convenient for them and fulfil their needs and wants. The TUI travel and tourism
company develop the new services which help them to satisfy the customers need and wants.
Supply and demand
Travel and tourism industry provide many and different service attract the customers
towards their services. When there is a demand of travel and tourism services then the industry
develop new service for full fill the demand of their customers. The travel and tourism industry
implement new services to full fill customer demands.
It is important for the industry that they proved services according to demand of the
demand of the customer so there is a balance between demand and supply. It is important for
travel and tourism industry that they supply their services according to demand. If they supply
more than demand of services than it affect the industry.

Change in demand and supply may affect in wastage in resources. Industry have to face
the situation of wastage of their resources. For avid the wastage of resource it is important for the
industry that they effectively and efficiently use their available resources in a correct manner and
supply their services according to demand. So it help in avoid the imbalance in supply and
demand.
Natural resources and environment:
The natural resources and environmental factors are one of the vital and important factors
of travel and tourism industry.
Operating sector:
The operation consisting three elements transportation service, accommodation, food
service and attractions the operational activates are related with the health and effectives of the
tourist
Built environment
The built environment can described as the material thing which exists on the tourist
places. The infrastructure is divided in to infrastructure and super infrastructure form. Water
supply system, sewage disposal system, gas lines, electrical lines, drainage system,
communication network these are the elements of infrastructure
TASK 4
4.1 Positive and negative environmental, economic and social impacts of tourism
In travel and tourism industry there is positive and negative impact of political,
environmental, economic and social changes. Every aspect of Travel and tourism have some
negative and the positive impacts from which the business get affected. In this concern different
aspects are going to take place which. These elements or factors are helpful and made a positive
and negative impacts on Travel and tourism industry (Zapata, 2012). In this concern different
elements which can affect the business of travel and tourism sector are as follow:
1. Economic impact: It is associated with such factors which are related in the monetary
terms. If the conditions of any country is not in the favourable position then it affects the
business completely. In any country if there is inflation and depression take place then it
affects the business of travel and tourism sector.

For example: at the time of inflation all the thing rate got high like as the sky then none
of the person thinks ever to visit to such country. The value of goods get increase because of the
low supply of items. The tickets rate went high and tour operators get failed in arrange
appropriate package for them. But the positive impact of the economic factor is that tourism
create job to the large unemployed sector (Garín-Muñoz, 2011). This helps in improve the
standard of living of many people because their income level got boost up.
Also, the tax revenue get increase and this help in investing many other things which are
for the local residents of a country.
2. Social impact: It leads in increase the business of many local communities. Their
creativity get expand through which they can earn appropriate wages to proceed their
daily routine life. Helps ion understanding the local culture to the international guest so
that a traditional culture get introduce at the higher level.
The negative factor includes some unnecessary activities which are not acceptable any
more. In this certain things are included such like different country people introduce some new
type of drugs which affect the health of local people. This is one of the major social cause which
spoil the society.
3. Environmental impact: According to this factor government and many touring
organizations use different number of technique through which they save the herbs and
Serbs and the species so that many visitors could attract over there to watch them. But the
negative impact is about that some tourist harms the environmental species and harm the
natural beauty so that environment get spoiled. This is the major harm by the increment
of tourism in any country.
Positive and negative impact of tourism on Egypt :
Environmental impact: Travel and tourism has impacted environment of Egypt greatly in
terms of income. Tourism industry in these countries has many negative impact on tourism like
degradation of water and natural resources of place. Tourism activities degrades the environment
due to pollution which is caused by transportation.
Socio-cultural impact: Socio cultural impact of tourism in Egypt is developed in many
ways. Tourist often get attracted by arts and crafts of the country. Socio cultural impact is
generally explained in terms of behaviours and interaction of tourist with local people of the

place. Due to tourism activities crime rate is increased in these countries. People of other
countries affect the local area population by doing criminal activities.
Economic impact: Tourism industry brings lot of income in Egypt. Positive impact of
tourism on the economy of Egypt and Greece can be seen as it provide employment and jobs to
local area people. It helps in increasing GDP of the country. Negative economic impact of
tourism is that government of particular country has to invest lot of money in construction and
maintaining the tourist destinations regularly. These investment impacts economic condition of
countries.
TUI business get affected due to these social, cultural, economic and environmental impact
of tourism. Socio economic factors plays an important role in growth of travel and tourism
industry. Economic changes in Greece and Egypt has impact TUI because a lot number of
traveller has reduced. If crime rate increases by travel and tourism in country a lot number of
travellers reduces. Probability of TUI also decreases due to environmental degradation of place.
These degraded place are less visited by travellers which adversely impact business of travel
industry.
Positive an negative impact of tourism on Greece:
Environmental impact: The positive impact of tourism in Greece is that helps in increasing
economy of the the country .negative impact of tourism is that it causes harm to natural
resources of the place as regular tourism activities consume the resources like water resources
and land resources get adversely affected by this.
Socio-cultural impacts: Positive impact of socio-cultural of Greece is that people get more
employment through tourism so they are spending more in their education and getting better
social life. Due to regualr tourism crime activities are increasing in Greece.
Economic impact: Tourism activity are helping Greece in increasing its GDP growth .
Regular tourism is affecting government t in terms of investment on constructing and
maintaining places visited by tourist.

4.2 Strategies helpful in m maximizing the positive impact while reducing the negative impact
There are some strategies which have to be taken into account so that negative impacts
should get minimize and positive effects can maximize. This helps in making the environment
healthy and keep aware all the society people to maintain distance from such type of things.
These strategies have to be prepare by the government so that they can create awareness. Along
with this touring companies also have to work in this field (Garín-Muñoz and Pérez-Amaral,
2011). The strategies which are helpful for them are as follow:
1. Sign a contract with their clients to not get engage in any illegal activity. This aid them in
making the environment healthy. And if they break an agreement tour operators are not
responsible for that.
2. Also government should have to punish such visitors who engage in such type of criminal
offensive activities.
3. Also they have to utilize such type of materials which can be easily recycle. This helps in
reduce such components which affect the environment.
4. Use less carbon and make aware about this thing. B y conducting this act it become
beneficial as per the society purpose.
5. Provide full time job to unemployed person this help in making their job secure.
All these are the strategies which are helpful as per maintain an eco-friendly
environment. These strategies help in improve the tourism activities. So that all the things will go
in the right direct. These are the most essential strategies for conserving the environment and
society otherwise all things will go spoil in the near future course of time which is not
appropriate (Hjalager, 2010).
Strategies that can be used to minimise the negative impacts while maximising the
positive impacts :
Social impact: To reduce negative social impact of tourism it is must that TUI should
implement strategies that can aware local people. Government can make some strict rules and
regulations for protection of social and cultural value of the place. TUI should make a contract
with tourist to not get engage in illegal activities that affects the value of the people. Welfare
programs and social benefits should be introduced by local authorities to help people.

Environmental impact: To reduce negative environmental impact of tourism TUI can
make use of carbon footprint. This will reduce usage of fuel by tourist in effective manner.
Policies should be made by authorities which includes fine and charges on any tourist who harms
environment. TUI group should contribute towards managing environment and it should ensure
that its tourism activities will not affect the environment in any way.
Economic impacts: To diminish negative economic impact caused by tourism TUI can
design tourist packages ta lower prices which will attract more customer. Tour and travel
industry should make more investments in tourism service innovation which is according to the
expectations of travellers. Government can also provide relaxation in visa policies of country in
order to minimize the economic impact.
CONCLUSION
From the above report, it has been concluded that the travel and tourism industry in one
of the greatest and fastest growing sectors. In travel and tourism industry, there is the
involvement of government that develops many new rules and regulations for the development
of this sector. Firms operating in travel and tourism industry follow these rules and regulations
which help them in effective and successful working. Government uses the economic policies for
the effectiveness of travel and tourism industry. Many factors affect this sector and thus, it is
important for companies to consider different rules and regulations of government which help in
avoiding such risk in travel and tourism industry. This sector gets improved day after day in a
significant manner. It produces more than any other sector in a country.

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Online
Travel & Tourism Degree Guide. 2015. [Online]. Available through:
<https://www.whatuni.com/advice/subject-guides/travel-and-tourism-degree-guide/
49106>. [Accessed on 12th May 2017].