Travel and Tourism Sector: Impacts and Strategies for London

This report provides a comprehensive analysis of the travel and tourism sector, focusing on its historical developments, structure in the United Kingdom, and the roles of government and international agencies. It explores the factors influencing tourism demand in London, changes in supply to meet d...Read More

Travel and tourism sector

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Historical developments in the travel and tourism sector.....................................................1
1.2 Structure of travel and tourism sector in United Kingdom and general...............................2
TASK 2............................................................................................................................................4
2.1 Function of national government, international agencies and government sponsored bodies
in promoting travel and tourism..................................................................................................4
2.2 National economic policy and local influences the success of travel and tourism sector.....5
2.3 Implications of political change on travel and tourism sector..............................................6
TASK 3............................................................................................................................................7
3.1 Factors affecting tourism demand in London.......................................................................7
3.2 Supply has changed to meet effects of demand for tourism related services and products. .7
TASK 4............................................................................................................................................8
4.1 Negative and positive economic, environmental and social impacts of tourism on London8
4.2 Strategies can be used to reduce negative tourism impacts while maximising positive
tourism impact.............................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
.......................................................................................................................................................12

1

INTRODUCTION
Travel and tourism is the biggest service industry all over the world. It renders the
business, cultural, sports, medical and also heritage tourism. Its main aim is to promote and also
develop the tourism and destinations for the economic growth. Tourism and travel industry is
rapidly growing sector and it provides the luxurious and comfortable services and goods to
visitors which come from different cities and countries (AlSayyad, 2013). In this given report, it
mentions regarding the key historical developments in the travel and tourism sector. The travel
sector gives its contribution in the GDP (Gross Domestic Product) of United Kingdom. Under
this report, it describes about the functions of government sponsored bodies, national
government and also an international agency for promoting the travel and tourism sector.
Furthermore, the negative and positive environmental along with economic impacts of tourism
on London will be discussed under the given report.
TASK 1
1.1 Historical developments in the travel and tourism sector
The travel and tourism sector changes rapidly. The tourism industry changes through the
bounds, leaps and also giving a convenient and usable services and products to the visitors.
Variations are done in case of changes in technologies, amenities, accommodation services and
many other things. In this present time period, government spend money for development of the
tourism destinations properly. The historical developments in the travel sector are given below:
Before 1945
In ancient times, people lived in agricultural societies which started move from the local
to rural area. In that time period, tourism and travel industry was inconsistent.
For an example- In those days, there were not any technologies for providing facilities to
the local people or visitors (Chen, 2011). Therefore, this sector has faced many issues in
providing transportation and some many other facilities. But at last, in the year 1841, Thomas
Cook Group introduced the first tour package.
1945-1979

From this time period, growth and productivity of the travel and tourism sector took
place. This sector began to build hotels and also gave the transportation facilities to the visitors.
The travel and tourism industry can made some of the basis explanation which was related to the
changes. The tour operators of United Kingdom country has been began to some changes for the
purpose of satisfying the needs and wants of people (Erkuş-Öztürk and Eraydın, 2010). But the
main motive of this sector is to earning more profit. The government of United Kingdom
invested money for develop the tourism sector. In context to this, Airlines organisation offered
accommodations along with the insurance booking for visitors. The travel companies were also
started to offering the attractive packages to which involve all the relevant factors concerned
with the packages of holidays.
1980 to current time period
In 1980, many airlines industries were offering travelling services; for instance:
medical services, holidays, hiring cars etc. From 1990, development of the tourism industry
started in United Kingdom which impacted the growth and productivity of some other
organisations. In order to increase the GDP rate, tourism sector rapidly changes.
In this present time period, travelling companies uses the new and latest technologies for
making their business successful. They provide better services to the visitors and fulfil their
needs and wants in an effective manner. There are many tourism companies in United Kingdom
which provide various kinds of products along with the services for the purpose of attracting
large number of customer.
Economic Development agency is very helpful in supporting along with developing the
economic growth with a particular region or city through giving the assistance as well as
required resources.
1.2 Structure of travel and tourism sector in United Kingdom and general
From the past to till now, a structure of the travel and tourism sector had changed. In the
travel and tourism structure, there are many new and different concepts involved in it. These
concepts can be related to the transportation, travel agents, tourism destinations, organisations,
tour operators (Goeldner and Ritchie, 2012). Those organisation which are indirectly and directly
concerned to the travel industry, this sector gives them help in a proper manner.
United Kingdom government has developed many policies and rules which are helpful
for the travel industry in giving convenient and good services to the visitors.
2

The components of travel and tourism structure is given as below:
Transportation- It is the most necessary element. Travelling agencies and hotels should
take care about the transportation facilities which are to be provided to the visitors. It is
necessary that company should provide the transportation facilities to its visitors. In
transportation, firm can offer a cab, van or bus facilities (Huang and et. al., 2013). With it,
visitors can travel from one destination to another properly.
Travel planning- The travelling companies make available effective and beneficial
services to the tourists through travel agents and agencies. With the help of these, people can
develop a plan in an easy manner as before going to travel any destination places, they can
discuss the things with them.
Illustration 1: Structure of Travel and Tourism
(Source: Travel and tourism sector, 2016)
Travel agents- Travel agents work as a link among the public and tour operators. The
main work of the travel agents is to sell out the goods of tour operators to people. They are
connecting to people and also trying to influence them to visit different destination places.
Accommodation- It is the responsibility of the travelling companies to provide
accommodation facilities to people which involves apartments, hotel and many others. Along
with this, tour operator is also responsible to give good quality of services to visitors which can
3

satisfy their needs and demands in a proper manner. This part of the tourism structure is very
necessary.
Tourist Destinations- The destination places can be man-made and natural. In the man-
made attraction, it includes London tower, theme eye etc. On the other hand, natural attraction
comprises beaches, seas etc. In context to this, it is necessary for tour operator to provide
destinations to the visitors on the basis of their interests.
TASK 2
2.1 Function of national government, international agencies and government sponsored bodies in
promoting travel and tourism
Travel and tourism industry is one of the leading sector in this present time period. In this
industry, the position of government is very necessary (Kimbu and Ngoasong, 2013). The
government of United Kingdom develops many effective policies and also strategies for the
tourism sector. The government sponsored bodies and also government plays an important role.
The main aim of this sector is to give the basic and also main facilities to the tourists so that
come rapidly for travelling the destination places. Some of the functions of the government,
international agencies and also some of the sponsored bodies are given below as above;
Government- In tourism and travel industry, there are many industries which provides
the best and also effective travelling services to the visitors. The income of profit generated
from the tourism sector, government uses that income in developing of the visitors attraction
places. The tourism sector pays almost 14% its income in paying the tax to the government of
United Kingdom country (Leung and et. al., 2013). The government develops the strategic
decisions in order to enhance the popularity to destination places and also embrace travel sector
of specific region. It will helps in increasing the economic as well as social development of the
country. The government of United Kingdom country prepares some of the effective policies
which are helpful in making the tourists to visit countries easily. The government also motivate
people from various locations to visit its country and also enjoy the destination places. In
growing the tourism industry, government helps this industry.
International bodies- In context to enhancing the travel and tourism sector, the main
focus of government of United Kingdom to its business on international level. There are large
number of the international bodies which give their contribution in developing tourism sector.
4

The main aim of the international agencies to increase economic development in all over the
world through situating the single agencies such as UNWTO (United National World Tourism
Organization). There are some of the other international agencies and those are International
Tourism Organisation, World tourism council, International Air Transport Association etc.
There are some roles of international agencies given below as above:
 Enhancing FDI (Foreign Direct Investment)
 Promoting upliftment and also economic growth for the development of an
economy of country.
2.2 National economic policy and local influences the success of travel and tourism sector
An economic as well as local policies plays an important role ion success of tourism and
travel sector in United Kingdom country (Moutinho, 2013). There are many different kinds of
the economic policies formulated by the government which can be impact on the tourism sector
positively. The central government of United Kingdom also develops the effective policies of
tourism sector.
Economic Policies- Under the economic policies, government made some rules and
regulations which is related to the local people in order to enhance the job related opportunities
in the tourism and travel industry. In economic policies consists that government keep maintain
some funds to enhance the various numbers to tourists and expenditure of travellers. These types
of funds are helpful in developing the tourists destinations. There are many effective and
different regulations and also policies which are decided through government which will impact
in the economic.
On the basis of case study, in travel and tourism the government of United Kingdom
identified the economic significance in context to the developing employment, contribution
towards BOP (Balance of Payments) and also economic growth. The government regularly tries
to increase finance from forgings so it can use in developing UK economy (Mowforth and Munt,
2015). This collected funds are very helpful in attracting more consumers in order to meet with
expenses. For making improvement in the travel industry, there are some regulations which are
developed through government. There are some policies related to provide training and also
development facilities to staff members so that they can satisfy the needs and also wants of
customers in an effective and also proper manner. In context to pay the taxes, government charge
more amount from tourists so from this they can generate more revenue.
5

Local policy- This policy impacts on the travelling industries in context to fulfil needs
and also wants of people. It is the duty of tour operator to render its services on the basis of
visitors demand because visitors are belong top the various places and their taste or preferences
are also different from each other. It is necessary for the company to provide training to staff
members so from this they can serve better to customers which belongs to different places.
Along with this, local government also spend money on making the infrastructure facilities better
for tourists (Saha and Yap, 2014). It is necessary for the tourism organisations to make proper
coordination with government in order to achieve its decided objectives.
2.3 Implications of political change on travel and tourism sector
In different countries, there are various political situations and these kinds of conditions
develop an impact on the travel and tourism sector. There are some of the factors which are
concerned with the political changes. An impact of the political change can be negative as well
as positive. The positive affects will be helpful in raising economic growth of United Kingdom
country. An implication related to the political change on the tourism industry in the various
countries are given.
For an example- IN the United Kingdom country, government makes various rules and
also some of the effective policies in addition to attracting the large number of consumers from
all over the world.
It is necessary that tour operators should follow all the regulations and also policies in
that manner by which they can give some of the legal services to consumers. The political
changes can provide the positive and negative affects on country (Standing, Tang-Taye and
Boyer, 2014). If there is no stability of government in United Kingdom, then it will develop the
negative impact on tourism industry along with the country. Its impact also be on the currency
of country. It will be difficult for the tourism organisations to follow all the regulations and also
policies of new government because from changes the government their policies will also be
changes. It is necessary for the government to make those policies and rules which company can
follow easily and also apply at the workplace. So that from this the travelling companies can
easily achieve its decided goals and objectives in an easy manner. The positive affect of the
political change if in case from changing the government and new government comes up with
the new ideas for the purpose of growth of tourism industry. On the basis of this, it is essential
6

for organisation to give proper training to staff which will be helpful in give some benefits to
consumers.
On the basis of case study, in an economic environment, Britain faced many problems
and also challenges and aloes decide to leave EU (Telfer and Sharpley, 2015). So from this,
various European visitors stated travelling to United Kingdom country.
The another country is China, it is one of the fastest developing country in tourism sector.
In order to attract people, China government formulate some of the effective policies. But the
government of China regularly reviewing its plan. To the economy of UK, annually China
visitors makes their contribution around £500 million. On the minimum amount, China tourists
getting some effective facilities. In order to attract the the tourists of China, UK offers some of
effective hospitality services.
TASK 3
3.1 Factors affecting tourism demand in London
There are some factors which impacts on the demand of tourism in London given below
as above:
 Political factors- This factor mostly impact the demand of tourist. It is necessary
to stability in the government which will helpful in attracting the more customers.
 Economic factors- Under this consists deflation and inflation rates which exist in
London. Other than these interest rates, taxes which are charged through tourist
include in this.
 Social factors- It impacts wants and needs of different visitors.
 Technological factors- If firm will not use the effective and new technology in its
business then employees will not fulfil demand of customers and from this they
will be dissatisfied from the services (Thakran and Verma, 2013).
 Quality of goods- The quality of the services given through the different firms
impact on traffic of tourists.
 Crises and Threats
3.2 Supply has changed to meet effects of demand for tourism related services and products
For satisfying various wants, it is necessary to be a proper supply. The supply will be
impacted through different factors such as transportation, promotion, services and also
7

information. Attraction is one of the most important factor which impacts ore tourism sector. It is
necessary for the travelling company to maintain the demand of the attraction places and it will
be developed by providing effective services to people. It is necessary for the firm to make some
equilibrium of supply and demand (Webster and Ivanov, 2014). If the supply will not be proper
and the cost will be increased. It is necessary for the tourism company to maintain demand level
and also supply. Seasonality is one of the main and important factor which impacts on demand.
At the peak season, tourism enterprises earn more income and vice versa. It is necessary that
company should provide the effective and also attractive services to its customers so that they be
retain and be the loyal customer of company. So, in context to it tourism industry should make
the balance among demand and supply of services.
TASK 4
4.1 Negative and positive economic, environmental and social impacts of tourism on London
London is one main tourism and travel destination for international as well as national
visitor. The negative and also positive impacts of economic, social and economical affects on
London tourism given below as above:
Social factor
Positive affects
 Tourism industry develops employment opportunities and also enhancing wealth
of London.
 Helpful in enhancing youth exchange.
 Developing basic infrastructure of London and also provide effective facilities to
the people of London who visit attraction places (Xiang, Magnini and
Fesenmaier, 2015).
Negative impacts
 Many problems will arise such as crimes, thefts, murders etc.
 Enhancing number of people which harm infrastructure of nation.
Economic factor
If number of tourists will be arise then it impact economically. In case visitor's
traffic enhance in London and also produce some employment opportunities for people of local
community.
8

Positive impacts
 Enhance living standard of local people.
 Helpful in developing the basic services of hotel and some other things.
Negative impacts
 Money invest in different facilities.
 Seasonality
Environmental factors- The positive impact of this factor is that it will use the effective
resources and not reach harm, to the environment (Huang and et. al., 2013. On the other hand its
negative factor is that tourist uses plastic materials from this environment affect badly.
4.2 Strategies can be used to reduce negative tourism impacts while maximising positive tourism
impact
Some of the effective strategies are given below as above:
 It is necessary that people of society should interact for promoting cultural values
for attracting tourists.
 Political stability is necessary to enhance visitors.
 Minimising the negative affect of the national economic and local policies and
make some effective policies (Erkuş-Öztürk and Eraydın, 2010).
 Government should work on maintain destination places and work on develop
new attraction places.
 Reduce unethical practices.
CONCLUSION
It has been concluded from the above given report that travel and tourism sector gives its
contribution in making the economy of country better. The government of UK formulated many
different policies for providing the good quality of services to customers. In this given report
studied about the historical developments and structure of the travel and tourism sector. There is
also studied about the national economic and local policy on influencing the success of tourism
industry in United Kingdom. The environmental, economical and social factors develop the
negative as well as positive impacts on the tourism on London.
9

REFERENCES
Books & Journals
AlSayyad, N., 2013. Consuming tradition, manufacturing heritage: global norms and urban
forms in the age of tourism. Routledge.
Chen, M.H., 2011. The response of hotel performance to international tourism development and
crisis events. International Journal of Hospitality Management. 30(1). pp.200-212.
Erkuş-Öztürk, H. and Eraydın, A., 2010. Environmental governance for sustainable tourism
development: Collaborative networks and organisation building in the Antalya tourism
region. Tourism management.31(1). pp.113-124.
Goeldner, C.R. and Ritchie, J.B., 2012. Tourism: principles, practices, philosophies (No. Ed.
12). John Wiley and Sons, Inc.
Huang, Y.C. And et. al., 2013. Exploring user acceptance of 3D virtual worlds in travel and
tourism marketing. Tourism Management.36. pp.490-501.
Kimbu, A.N. and Ngoasong, M.Z., 2013. Centralised decentralisation of tourism development: a
network perspective. Annals of Tourism Research. 40. pp.235-259.
Leung, D. and et. al., 2013. Social media in tourism and hospitality: A literature review. Journal
of Travel & Tourism Marketing.30(1-2). pp.3-22.
Moutinho, L. ed., 2011. Strategic management in tourism. Cabi.
Mowforth, M and Munt, I., 2015. Tourism and sustainability: Development, globalisation and
new tourism in the third world. Routledge.
Saha, S and Yap, G., 2014. The moderation effects of political instability and terrorism on
tourism development: a cross-country panel analysis. Journal of Travel Research. 53(4).
pp.509-521.
Standing, C., Tang-Taye, J.P. and Boyer, M., 2014. The impact of the Internet in travel and
tourism: A research review 2001–2010.Journal of Travel & Tourism Marketing.31(1).
pp.82-113.
Telfer, D.J and Sharpley, R., 2015. Tourism and development in the developing world.
Routledge.
Thakran, K. and Verma, R., 2013. The emergence of hybrid online distribution channels in
travel, tourism and hospitality.Cornell Hospitality Quarterly.54(3). pp.240-247.
10

Webster, C and Ivanov, S., 2014. Transforming competitiveness into economic benefits: Does
tourism stimulate economic growth in more competitive destinations?. Tourism
Management. 40. pp.137-140
Xiang, Z., Magnini, V.P. and Fesenmaier, D.R., 2015. Information technology and consumer
behavior in travel and tourism: Insights from travel planning using the internet. Journal
of Retailing and Consumer Services.22. pp.244-249.
Online
Structure of the travel and tourism industry. 2016. [Online]. Available through:
<http://www.marketwidth.com/Economic_Value_of_Travel_and_Tourism_Industry.ht
m>.
11