Travel and Tourism Sector Report: London's Economic Impact Analysis

This report provides a detailed analysis of the travel and tourism sector, with a specific focus on London. It begins with an introduction highlighting the sector's importance and objectives, followed by an examination of key historical developments and the structure of the industry. Task 1 covers the historical evolution of travel and tourism in London, from ancient times to the present day, and outlines the sector's components, including attractions, transport, tour operators, travel agents, and accommodation. Task 2 delves into the roles of government bodies and international agencies, such as the World Travel and Tourism Council and the World Tourism Organization, in shaping the sector. It also assesses how local and national economic policies influence the sector's success and the implications of political changes on tourism in different countries, using Iran as an example. Task 3 explores factors affecting tourism demand and how supply has adapted to meet these demands in the UK. Finally, Task 4 evaluates the economic, environmental, and social impacts of tourism, offering strategies to mitigate negative effects and maximize positive impacts, ultimately providing a comprehensive overview of the travel and tourism sector, particularly within the context of London.

Travel and Tourism Sector
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Table of Contents
INTRODUCTION ...............................................................................................................................3
TASK 1.................................................................................................................................................3
1.1 Key historical developments in the travel and tourism sector ..................................................3
1.2 Structure of the travel and tourism sector..................................................................................4
TASK 2.................................................................................................................................................5
2.1 Analysis of the functions of government, government sponsored bodies and international
agencies in travel and tourism.........................................................................................................5
2.2 Local and national economic policy influenced the success of the travel and tourism sector. .6
2.3 Implications of political changes on the travel and tourism sector in different countries .......6
TASK 3 ................................................................................................................................................7
3.1 Factors affecting tourism demand..............................................................................................7
3.2 Supply has changed to meet the effects of demand in UK........................................................8
TASK 4.................................................................................................................................................9
4.1 Evaluation of positive and negative economic, environmental and social impacts of tourism 9
4.2 Strategies that can be used to minimize the negative impacts while maximising the positive
impact.............................................................................................................................................10
CONCLUSION ..................................................................................................................................11
References..........................................................................................................................................12
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INTRODUCTION
Travel and tourism is a biggest service industry which has provided the huge revenue and
support the economic development of the community. It is the largest employment generate sector
in the world. The factors that drive this industry are social, religious, knowledge, entertainment,
education, business interest etc (Buckley, 2002). It is one of the fastest growing sector in many of
the nations and potentially support the other industries. The present research has based on travel and
tourism sector and to understand its contribution in the development of the country and community,
London (UK) has taken into the consideration. The objectives will cover under the following
research are structure and history of travel and tourism sector, role of national and local government
and international agencies in travel and tourism sector, impact of demand and supply on the tourism
sector (Chi and Gursoy, 2009).
TASK 1
1.1 Key historical developments in the travel and tourism sector
Many nations have their own travel and tourism business from the pre-histoic times when it
was not working as an industry itself. In the past time, the intention of the people was for collecting
the foods by hunting the animals etc. But in the present time, the meaning of tourism has different.
The new purpose of travelling are trade, education, learn new culture, adventures, accommodation
etc (London's Tourism Industry. 2015). The key historical development in the travel and tourism
sector of London are as follows.
Ancient time: In this time, the Romans roads were developed with the intention of wars and
business. This development was creating the favourable conditions for England and other areas of
UK. It was promoting the travelling in the different areas of London such as Hampton, Enfield and
Chelsea. In 9th century, London was again starting to grow because of Roman culture. The major
historical development in this duration were development of public buildings such as Basilica North
of the Alps, temples, bath houses, large fort of the city and an amphitheatre. Along with this a
defensive London Wall around the landward side of London was build by Romans (London's
Tourism Industry. 2015).
Middle ages: This was defining as a Dark Ages in which travelling became more dangerous, hard
and less attractive. During this period, the travellers was experience pain and require more efforts to
travel. But many of the people were visiting the new places for the adventure and avail new
opportunities purpose. On the other hand, the word HOLIDAY was originate which means that
people were not working on the occasions.
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Post reformation: In the early of 17th century, the new meaning and face of tourism was developed.
Under this period, a grand tours was organizing for young people to motivate them to visit another
continents for complete their education. Such types of tours was also for giving the inspiration to
the other people. Therefore, the major purpose of the visiting the other countries was to getting
education and understand the culture of that place (London's Tourism Industry. 2015).
Industrial revolution: In 18th and 19th century, the structure of the society and their living pattern
was starting to change. The urbanization in London and other areas of UK was spreading very fast
speed. Due to the industrial revolution, the steam power concept was taking place which was used
in operating the large machines and it made the production of the goods easy. On the other hand, the
leisure activities were also starting in which people were visiting the new places during the breaks
for relax and hectic schedule.
Current duration: Now, London is a most attractive and famous destination for the visitors. The
new destinations for the visitors are such as museums, botanical gardens, artificial islands, zoos,
theme parks etc (London's Tourism Industry. 2015).
1.2 Structure of the travel and tourism sector
The structure of the travel and tourism sector of London has most developed and it has a
combination of the various elements which are as follows.
Attraction: This element has motivated the travellers to visit London because there are two types
of attraction point: man made and natural attractions. Along with this, some recreation points are
also the main attraction points in London for the visitors such as parks and open spaces, walking
areas and sports regions (The travel tourism industry. 2015).
Transport: It is one of the major element of travel and tourism sector structure of London. The
transport facilities for the travellers are air, rail, buses and trams, cable car, cycling, ports and river
boats and roads. With the help of these transportation connectivity, the visitors have easily reached
to London from any place of the world. The travellers have the large availability of the transport
option and these facilities has connected the different areas of London to each other.
Tour operators: There are four types of tour operators working in London whom aim is to provide
the best experience to the customers during their travelling. Mass market, specialist, domestic and
international tour operators are providing the guides to the travellers for the better understand the
history and culture of UK (The travel tourism industry. 2015).
Travel agents: These are private retailer and provides travel and tourism related services to the
community on behalf of different suppliers such as car, airlines, hotels, rails and package tours. The
travel agents in UK are dependent, implants, miniples and business travel agents. Beside this, many
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of the travel agents have their own websites and call centres where the travellers can get the various
information about different packages of tour.
Accommodation: The major accommodation services in London are hotels, campus, guest
accommodations, parks and campsites, self catering, youth hostels etc. It has played an important
role travel and tourism industry. The different and additional facilities have also provided by the
hotels and resorts to the traveller. The pricing of the accommodation services have varied with the
characteristics of services (The travel tourism industry. 2015).
TASK 2
2.1 Analysis of the functions of government, government sponsored bodies and international
agencies in travel and tourism
In the present time, the awareness towards the economical, social and financial advantages
of travel and tourism development has rapidly increased with the time. Therefore, to achieve the
advantages in the right manner, it is require to give some efforts to expend travel and tourism in
systematic way (Government Tourism Policy. 2011). The London government has developed the
different kinds of policies and rules for the travel and tourism. The local government has the many
responsibilities and functions towards the develop the travel and tourism in London. Waste
management in the travel and tourism sector is an essential function because many of the operations
of tourism businesses have made the negative impact on the environment. Along with this, the local
government has also developed the plan for developing the society, increase the transport facilities
etc. The similar kinds of roles also have played by national government but they have performed at
greater level (Government Five Point Plan for Tourism. 2015). The new hotels ans restaurants have
developed with the time by the national government of London which helped the local governments
to know their responsibilities towards their own areas.
Another side, there are some international agencies which also giving their own contribution
in developing travel and tourism sector in London. These are working at the global level and
government of the various nations has supported them. World Travel and Tourism Council (WTTC)
and World Tourism Organization (WTO) are international agencies organizations in travel and
tourism sector. Both are working with the government of London as well as community for increase
the awareness about the travel and tourism sector in the people (The role of government in tourism:
the critical “how”. 2014). Their major functions in travel and tourism industry are conduct the
research on the economic and social impact of following industry on UK. Along with this, these
international agencies have determined the issues and the development areas of travel and tourism
sector.
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2.2 Local and national economic policy influenced the success of the travel and tourism sector
The stable political environment has supported the travel and tourism in effective manner. In
this regards, to achieve the good support of the government, the national and local government
organizations contribution has more important. The major responsibilities of government is to
provide the complete health and safety facilities to the visitors, construct the new infrastructures
with the aim of promoting the travel and tourism of London, increase the connectivity of the place
from the different areas of world, develop new transportation facilities and connectivity, preserve
the various resources etc (Kuellmer, 2007). In this context, the local and national economic policy
has supported all these things and it has influenced the success of travel and tourism sector.
The impact of economic policy on the success of travel and tourism sector of London may
be direct or indirect. When the London government has developed some economic policy in the
favour of travel and tourism industry then the probability of the success has increased. For example,
government has started to given subsidises on the developing and maintaining the new
infrastructures with the purpose of London tourism then it would be beneficial for the travel and
tourism industry (Kuellmer, 2007). But if London government has developed some economic policy
in the against of travel and tourism industry then the probability of the success has decreased. For
instance, if the monetary policy of the government has directly affect the exchange rate of currency
which has made the impact on profit of the travel and tourism businesses in London.
Another example is if the local and national economy policy of government for the travel
and tourism has developed according to the demand or some special occasion then it will help in
move in the direction of sustainable tourism development in London. It will support the economic
and social development of the nation and promote travel and tourism of London across the world
(Kuellmer, 2007).
2.3 Implications of political changes on the travel and tourism sector in different countries
The changes in the political environment has directly affect the development of the nation
because the unstable government has always push the growth of the nation in the wrong direction.
The result of this is such type of countries have counted in the underdeveloped nations. Therefore,
the political changes has increase or decrease the growth opportunities. From the study of the
various articles and other information, it has been found that the changes in political has made the
impact on travel and tourism sector. There are many nations which are still not operate on the
growth line and the reason of this is their travel and tourism sector is not properly developed. The
unstable government has hold back the development and growth of the travel and tourism of the
country (The role of government in tourism: the critical “how”. 2014). The implications of political
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changes on travel and tourism sector in different countries are as follows.
Iran:
Before 1980, the travel and tourism in Iran was at the highest peak. In the previous time,
Iran was famous for its diversified attractions and because ,of this, many of the people were came
here to visit the different places of Iran in every year. But after the war between the Iraq and Iran in
1980, it has changes the face of travel and tourism completely (Mehmetoglu and Norman, 2013).
After war, an Iranian revolution has happened which tried to brought the development in travel and
tourism of Iran. By seen all these things, the existing government has started to took some
initiatives with the intention of raised the number of visitors in Iran and promote the travel and
tourism. But, due to some conflicts between the political parties, undeveloped infrastructure, lack of
personnel training, in effective advertisement methods has build the poor image of Iran across the
world. It has directly affected the travel and tourism industry of Iran (Mehmetoglu and Norman,
2013).
China:
After 1960, China government was starting a campaigning with the aim of to bring together
the industries of the country. The intention of this initiative was to remove the free market system
from the state. The result of this was, it was bring the improvements in the living standard of the
people and increase the competition level in the market place. This thing has made China most
speedy industrialisation nation at the international level. Now, in the present time, China has
developed himself as a most visited outbound tourist destination because the government of that
country has promoted their tourism in more effective manner (Ransley and Ingram, 2004).
TASK 3
3.1 Factors affecting tourism demand
According to the given case study, it has been identified that the many kinds of factors have
affected the demand of tourism in TUI Group of UK. These components are as follows.
Demographic: With the revolution in the industry, it has completely change the demographic of
UK. The major trends which are responsible for demographic changes are structure of family,
increase population, increase life expectation of the people, urbanization etc. These all
modifications has created the many kinds of challenges for TUI Group of UK. The impact of the
demographic changes have made on the travellers in terms of selection of travelling destination,
transportation facilities, type of accommodation etc. It has increase the demand of TUI Group of
UK because due to this, the expectations of the people has changed with the time (Riege and Perry,
2000) .
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Technology: The rapid and dynamic changes in the technology has affect the TUI Group of UK in
the positive manner. For example, in the present time, the travellers are booking their tickets of the
destination place via internet. Along with this, with the map application in the smart phones, the
visitors are easily explore the new place and easily reach to that area with help of guidance. These
all changes have influenced travel and tourism sector to use the advance technologies to maintain
the demand of tourism in the market place of TUI Group UK. Along with this, by using many types
of applications, the travellers have compared the prices of the various tour operators and made the
negotiation (Technology in tourism. 2011).
Exchange rate of currency: The changes in exchange rate of currency has affect the demand of
travel and tourism business of TUI Group of UK. The travellers have liked to visit those nations
where the exchange rate of currency has strong as compare to the other countries. The decrease
exchange rate of currency has demotivate the visitors to travel in poor economic nations (The
impact of volatile currencies on tourism. 2015).
Political stability: The political environment for TUI Group of UK has stable and most supportive
towards the development and promoting the travel and tourism businesses across the world. There
are many projects running by the government which help the TUI Group of UK in future to take the
growth opportunities and develop a good image around the world. Along with this, the stable
political stability has increased the living standard of people of UK and that increase the spending
power of citizenry (Sikdar and Vel, P., 2010).
3.2 Supply has changed to meet the effects of demand in UK
The demand of TUI Group of UK has increased with the time and it has directly made the
impact of supply. To meet the increase demand, the supply of the services has required to increase.
To understand the concept of supply has changed to meet the effects of demand in TUI Group, an
example can be taken. The increase demand in travel and tourism in UK in the holidays has
increased the number of leisure tourists in UK (Sivesan, 2012). The effect of the following demand
is it has essential to developed the new infrastructures such as hotels, resorts etc to meet the
generated demand. Therefore, the supply of the different services has changed to meet the effects of
demand in UK.
On the other hand, in the case of winter season, the demand of TUI Group of UK areas has
automatically decreased. The effect of this situation is the travellers have less interested to visit UK
in winters. In this respect, the supply of the various travel and tourism services has decreased as per
the present demand. The relationship between supply and effects of demand can be understood by
London Olympics (Assaker,Vinzi and O'Connor, 2011). The Olympic games has attracted many of
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the people to take a part and enjoy the Olympic games. Due to this, the demand of visiting London
during this period has increased. The effect of this peak demand is the number of travellers in
London has increased. As per the demand, the supply of the services such as restaurants,
accommodations, food and beverages services, transportation facilities has developed to meet the
effects of demand in UK (Buckley, 2002).
TASK 4
4.1 Evaluation of positive and negative economic, environmental and social impacts of tourism
Travel and tourism has made both positive and negative impacts on economic, environment
and social factors of UK. The benefits of travel and tourism has beneficial for developing countries
where the tourism is at the rising stage. But the large amount of tourism at a particular place has
made the negative impact on host nations. Therefore, it is essential to manage the negative effects of
travel and tourism on a particular area. The evaluation of positive and negative economic,
environmental and social impacts of tourism are as follows.
Impacts of tourism Positive Negative
Economic Travel and tourism sector has created
the large opportunities of employment
for the community. It has also support
the other industries. For example, the
increase spending power of the
travellers on buying the services of
travel and tourism then it will create
the multiplier effect in the result of
creating the number of jobs for the
people. It will give the opportunities to
the supportive industries to grow at the
international and national level (Simm,
2015). Along with this, it will create a
new source of revenue for the
government in the form of tax which
will further used in community
development.
To achieve the sustainable tourism
development, the government has
started to developed the
infrastructure, increase the
connectivity with the various areas
by building roads, rail etc. The
result of this, it has increase the
extra burden over the government.
Beside this, the seasonal tourism has
increased the prices of local
products and services and it has not
good for local community.
Environmental The purpose of increase tourism in UK The increase travel and tourism in
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has to preserve the wild life and other
natural resources for the long time. In
this context, the entry charges of parks
and national forest has increased so
that the extra money will used in
maintenance of place and care the wild
life animals.
UK has made the negative impact
on nation. The reason is for the
development of new infrastructures,
the use of natural resources have
increased. It has also affected the
environment in terms of increase
pollution of various harmful and
greenhouse gases. These all; things
have given the born of many kinds
of diseases as well as effect the
health of human being (Simm,
2015).
Social The increased trends of travel and
tourism in UK has provided the
benefits to the social aspect of nation.
With the help of this, it becomes easy
to secure the old traditions and cultural
values of the people for the long time.
It has also supported the exchange of
values and beliefs of the travellers and
host country in more effective manner.
Along with this, visitors have become
more aware towards the national and
international issues related to society
(Simm, 2015).
The negative impact of increase
travel and tourism on the society of
UK has affected the quality of life
of people in the form of increase the
unethical activities at the public
places such as taking drugs, alcohol,
harm the historical places etc. The
increase number of visitors in UK
has increased the erosion of
community values, tradition and
culture (Simm, 2015).
4.2 Strategies that can be used to minimize the negative impacts while maximising the positive
impact
The UK government has to developed some strategies which can be used in minimizing the
negative impacts during maximising the positive impacts of travel and tourism. In this context,
some strategies are as follows.
Diversification of range of services: By developing the new and diversified services in the area of
travel and tourism in UK, the negative impact of travel and tourism can easily reduced. In this
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context, by effective and efficient distribution of the various travellers activities in across the
country may have helped in decreased the environment impacts of travel and tourism (Mehmetoglu
and Norman, 2013).
Decrease the number of visitors at some places: For minimizing the negative impacts of travel
and tourism, the governance should set some limitations over the numbers of visitors on a particular
place. Beside this, the entry charges of those areas where the people are mostly visited should be
double. With this help of this, the negative impacts travel and tourism can be reduced (Ransley and
Ingram, 2004).
Encourage ecotourism and green tourism: By adopting the ecotourism as well as green tourism,
the wild animals and environment may be secured for the long duration. It will help in minimizing
the various conflicts between the different national, local and international agencies which are
working in the area of save environment and promoting GO GREEN concept. Along with this, the
UK governance has also take some initiatives to reduce the negative impact of travel and tourism
(Riege and Perry, 2000).
Execution of laws: The UK government should develop some laws in the favour of minimizing the
negative things of increase travel and tourism. They should enforcedly apply the laws and
regulations in travel and tourism sector. This will definitely minimize the negative aspects of
tourism on the community and country in most effective manner (Sikdar and Vel, P., 2010).
CONCLUSION
From the above research, it has been concluded that London is a most attractive place of
UK where the travellers have came from across the world. There have various key historical
development take place in travel and tourism sector of London. The structure of the following
industry has completely different from the other nations. The economic policy has provided the
benefits and disadvantages to travel and tourism sector. There have many factors which affect the
demand and supply of the tourism services in UK. For minimizing the negative impacts of travel
and tourism while maximising the positivity of the following sector, the different strategies have
required to formulate.
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REFERENCES
Books and Journals
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Buckley, P., 2002. International Business versus International Marketing. International Marketing
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Chi, G. C. and Gursoy, D., 2009. How to help your graduates secure better jobs? An industry
perspective. International Journal of Contemporary Hospitality Management. 21(3). pp.308
– 322.
Mehmetoglu, M, and Norman, O., 2013. The link between travel motives and activities in nature-
based tourism. Tourism Review. 68(2).pp. 3-13.
Ransley, J. and Ingram, H., 2004. Developing Hospitality Properties and Facilities Hospitality
management. Butterworth-Heinemann.
Riege, A. M. and Perry, C., 2000. National marketing strategies in international travel and tourism.
European Journal of Marketing. 34(11/12).pp. 1290-1305.
Sikdar, A, and Vel, P., 2010. Getting the customer interested in your innovation: role of distribution
and promotion strategies. Business Strategy Series.11 (3).pp. 158-168.
Sivesan, S., 2012. An empirical study on the promotional mix and brand equity: mobile service
providers. Herald Journal of Marketing and Business Management. 2(1). pp. 47-50.
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