Travel and Tourism Sector: Historical, Economic, and Policy Analysis

This report provides a comprehensive overview of the travel and tourism sector, examining its historical evolution from ancient times to the present day, with a specific focus on the industry in London. It details the structure of the sector, including key components like attractions, transportation, and tourism development agencies. The report analyzes the functions of government bodies and international agencies like the WTTC and WTO, and how national economic policies such as health and safety regulations, exchange rates, taxes, and interest rates influence the sector's success. Furthermore, it explores factors affecting tourism demand and supply, and evaluates the positive and negative economic, environmental, and social impacts of tourism, including strategies to mitigate negative effects. The report covers the evolution of tourism in London, its attractiveness and the role of transport services, tour operators, travel agents, and tourism development in the UK. It also discusses the influence of government policies on the sector, including exchange rates, taxes, and interest rates and their impact on the sector's growth and profitability.

Travel and Tourism
sector

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Key historical developments in travel and tourism sector................................................1
1.2 Structure of travel and tourism 380.................................................................................2
TASK 2............................................................................................................................................3
2.1 Analyzing function of government, government-sponsored bodies and international
agencies in travel and tourism 380.........................................................................................3
2.2- Describing how local and national economic policy influences the success of the travel
and tourism sector...................................................................................................................5
2.3 Implications of political change on the travel and tourism sector in different countries. 7
3.1 Explaining factors that affect tourism demand.................................................................7
3.2- Representing how supply has altered to meet the effect of demand..............................9
TASK 4..........................................................................................................................................10
4.1 Positive and negative economic, environmental and social impacts of tourism ...........10
4.2 Strategies that can be used to minimize the negative impacts while maximizing the
positive impacts....................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCE.................................................................................................................................16

INTRODUCTION
In terms of both foreign exchange and revenue generation earnings, the travel and
tourism sector is a largest industry which has a huge market growth. The present report will help
to understand the historical evolution and current structure of tourism sector. It also includes the
concept to understand the influence of local, national governments and international agencies on
the travel and tourism sector. The present report will help to outline the various important aspects
of travel and tourism in London (Swain, and Mishra, 2012). Further it also includes the concepts
of influence of economic policies and impact of political changes on travel and tourism sector.
The present report also focuses on various factors which affects the tourism demand and supply.
It also helps to evaluate both the positive and negative impacts of travel and tourism on the
country.
TASK 1
1.1 Key historical developments in travel and tourism sector
Ancient Times: Travel and tourism started to flourish during Egyptian times. This
happened on account of roads that were developed for trade. This resulted in increased tourism
activities for England. It further made it easier for tourists from Hampton, Enfield and Chelsea to
pay a visit. Growth was further observed in social life as well as culture which led to
development of temples, forts etc. Middle Ages: Then came the time of middle ages which were also referred to as dark
ages. A lot of travelling was seen by merchants for new opportunities as well as leisure
travel. Post-Reformation: This period can be marked during 17th century where a tour was
organized by Queen Elizabeth. The motto was for education. This further gave a boost to
travel and tourism (Scott, Hall and Gössling, 2016).
 Industrial Revolution: after the end of 18th and 19th centuries a huge development of
tourism was seen. This happened on account t of increased car ownership that made
travelling more flexible. People further got a chance to explore new areas. Development
of jet aircraft further encouraged tourists to travel by air. It further led to the development

of concept known as 'package tour. People also started visiting Long-haul destinations
such as USA, India, far east etc (Navickas and Malakauskaite, 2015).
In the present time, travel and tourism holds the leading or prime position in the market
share of London and it is continuously flourishing from such a long history time. London is a
best and leading tourist destination place which attracts almost around 30 million visitors within
a year. The major attractive places such as Ferris wheel, British Museum, Westminster Abbey,
Tower of London and Tower Bridge etc. (Standing, Tang-Taye and Boyer, 201).
1.2 Structure of travel and tourism 380
Structure of travel and tourism sector basically includes few components like places,
transportation and agents etc. The brief discussion of components is described below: Attractive places: It involves the various tourists locations which attract more towards it.
The reason of attraction may be beauty, natural scenes or natural resources like beaches
etc (Getz, 2013). In respect to London, the major destination places are like British
Museum and Tower Bridge etc. Transport services: In the present time, transport facilities are very essential because it
helps to arrive or reach to the various places (Brander, Rehdanz and Beukering, 2012).
The transport services may be subway, ship, cars, taxi or air lines etc. The people of
London generally prefer high standard services of transportation. Tour operators: They produce holidays in the form of a package. A written agreement is
discussed with accommodation and transport suppliers. Purchasing in majority reduces
overhead costs and the vacation is presented as a booklet to the travel agents and then
sold either directly or via the representatives (Kim, Uysal and Sirgy, 2013). Travel agents: Their job is of selling different tourist destinations brochures. The agents
offer a link up between tour operators and the public. They normally provide special
holiday offers with the help of multiple travel agencies all around the UK (Andersson,
and Lundberg, 2013). Autonomous travel agents are very popular and operate with the
help of Call Centres where the customer can book a holiday by phone.
 Tourism development: Tourist boards present in UK helps in providing information
about the region involved to prospective visitors. Clients can refer to tourist information

centre to acquire literature and anything else concerning the area. The tourist information
board focuses on promotion in any form (Song, Dwyer and Cao, 2012). Dramatic
changes have been observed in travel and tourism sector of UK on account of integration
with the tourism board. Integration has both a optimistic and negative effect on the
industry. Vertical group action occurs when an organisation purchases another at a
different level on the buying chain. The tour operator gains much profit but the travel
agent only obtains a low rate of fee leaving most of the profit to the tour operator.
Integration is beneficial if it allows the organisation to control rating system and interact
well with every level of such a chain (Chatziantoniou, Eeckels and Apostolakis, 2013).
TASK 2
2.1 Analyzing function of government, government-sponsored bodies and international agencies
in travel and tourism 380
A very crucial role is played by government, government-sponsored bodies and international
agencies to aid in tourism. The different bodies as well as these functions are explained below;
Department for Cultural, Media and Sport
(DCMS)
This body is responsible to develop tourism at
national level. Its major purpose was to
encourage the tourism demand (Murzyn-
Kupisz, 2013). Later many strategies were
further added followed by increasing roles and
responsibilities.
Visit Britain The aim of this agency is to promote tourism a
global level. It is likely to make Britain as a
world class tourism destination in partnership
with British Hospitality Association (Alegre,
Mateo, and Pou, 2013).
Visit Britain has further aimed to seek out the
issues in tourism sector... It has also organized
many campaigns for promoting Britain

tourism.
Regional development agencies (RDAs) The primary duty of RDAs is to prepare and
implement a 5 to 10-year Regional Economic
Strategy based on tourism (Ritchie, Crotts and
Volsky, 2013). These set out elaborated plans
and ways in which RDA can follow its various
objectives and progress of the UK travel and
tourism.
World Travel and Tourism Council (WTTC) The World Travel & Tourism Council (WTTC)
is an assembly for the travel and tourism
industry. It is a globally recognized forum to
represent the private sector in every part of the
tourism industry worldwide (Spencer and
Nsiah, 2013). Its functions include
investigation on the economic and social
consequences of the industry and its
organization of tourism.
World Tourism Organization The World Tourism Organization (WTO) is
responsible for the promoting sustainable and
worldwide approachable tourism. It is the
major international organization in the field of
tourism, which promotes tourism as an operator
of economical growth, including development
and biological sustainability (Mason and
Beaumont-Kerridge, 2012). It also offers
leadership and assistance in the areas of
tourism policies worldwide. It encourages

execution of the Global ethical motives for
Tourism. It plays an important role in
maximizing the contribution of tourism to
socio-economic improvement.
Pro-Poor Tourism Partnership Pro-poor tourism partnership (PPTP)
participation aim to change the net benefits for
the poor from tourism (Ivanov and Webster,
2013). It ensures a larger ratio of contribution
to reduce poverty through tourism. PPTF
strategies aim to open possibilities for the poor
whether for economical gain or other
sustenance benefits (Scheyvens and Russell,
2012).
Travel and Tourism Research Association
(TTRC)
TTRA and its associates represent an
impressive body of travel industry. Liberal arts
ground-breaking research and crucial studies
are all conducted by collection of information
by TTRA (Aaheim, Amundsen and Wei, 2012).
2.2- Describing how local and national economic policy influences the success of the travel and
tourism sector
Government of United Kingdom gained very less profit due to recession period of 2008
to 2009. But the exiting economy of Britain is very good as comparison of other countries in the
world. In addition to this, some economic national polices leave positive impacts on travel and
tourism sector in United Kingdom (Andersson and Lundberg, 2013). It is represented below the
paragraph. Health and safety policies- These polices also contribute effective role for the success of
travel and tourism sector in United Kingdom. Government of Britain maintain proper

security at tourism sites and it also takes responsibility of tourists regarding safety. For
example, security agencies of United Kingdom also uses CCTV cameras and surveillance
digital equipments to identify suspected person at tourist destinations like British and
natural history museum (Song, Dwyer and Cao, 2012). In addition to this, these things
also provide effective security to visitors. They encourage national and international
visitors to visit tourism places in the nation. They also increase income by taking
appropriate charges from visitors in United Kingdom (Chatziantoniou, Eeckels and
Apostolakis, 2013). It helps in increasing profit of travel and tourism sector in the
country. Exchange rates- Exchange rates polices helps in developing and growing this sector by
earning more income from international consumers in United Kingdom. They are very
high as comparison of other countries like USA, China as well as India. For example,
government of UK also earn effective income from foreign visitors who are come for
visiting many places (Murzyn-Kupisz, 2013). In addition, this profit also helps to develop
and increase growth of travel and tourism sector in United Kingdom. Taxes and duties- Government of UK also charges minimum travel and tourism taxes
and duties from local and foreign visitors. This thing also helps the travel and tourism to
develop appropriate manner by earning effective income from visitors in United
Kingdom. It also created positive impact on the travel and tourism sector of Britain
(Ritchie, Crotts and Volsky, 2013). In addition to this, it contributes effective role for
this industry to increase its contribution in Gross Domestic product (GDP) in United
Kingdom. For example, there are many tourist destination sites like Tower of London
and natural history museum which collect good revenues from tourist in the nation.
 Interest rates- Government of Britain maintain lower interest rates for the proper
development of travel and tourism sector. This policy creates optimistic effect on this
industry (Spencer and Nsiah, 2013). In addition to this, authorities of UK motivate many
small and medium size organisations to develop their business at tourism destinations
which help to provide better services like living facilities as well as proper food services
for visitors. This process aids in enhancing the frequency of tourists at tourism places

which help to earn effective income from them in United Kingdom. For example, there
are many hospitality organisations which are come to establish their business as well as
provide better facilities to visitors in the nation (Mason and Beaumont-Kerridge, 2012).
So these things play important role for travel and tourism sector to achieve better success
by earning better profit in UK.
2.3 Implications of political change on the travel and tourism sector in different countries
Implication of political change on the travel and tourism industry is depend on positive
and negative effect its country.
Political changes in Britain
Political changes are created positive impact on the travel and tourism sector in United
Kingdom. Optimistic political changes play important role for this industry to develop and
enhance the growth tourism sector in Britain. For example, Employment opportunities for local
citizens, appropriate tourism rules and regulations, Government stability as well as reduced
corruption level contribute effective role to improve travel and tourism sector in a systematic
manner in UK (Andersson and Lundberg, 2013). This thing plays important role to increase
visitors rate as comparison of previous years in the nation. In addition to this, political positive
changes help in developing this industry in United Kingdom. Further, importance of political
change is necessary for better improvement of tourism sector in UK.
Political changes in Pakistan
Generally Pakistan is a developing country in the word. Political changes are not
appropriate as comparison of UK. Political changes do not help the travel and tourisms sector for
effective development in the nation. There are many reasons which are created negative impact
on travel and tourism sector in the country (Song, Dwyer and Cao, 2012). For example,
government instability, increasing terrorists attack, higher taxes on travel and tourism as well as
corruption level are played important role to produce negative impact on travel and tourism
sector in Pakistan. These reasons are affecting growth and development of tourism industry.
3.1 Explaining factors that affect tourism demand
Impact of currency rates, demographics and technological affect tourism’s requirement in
travel and tourism industry of Britain. It is stated below the paragraph.

 Technological factors- Technological aspects contain price of hospitality and travel
facilities, network coverage as well as quality create optimistic impact on demand of
tourism in United Kingdom. In addition to this, TUI hotel group also offers effective
facilities to its visitors at tourism locations in UK (Murzyn-Kupisz, 2013). For example,
optimistic internet service of Britain also helps in enhancing demand of travel and
tourism by using effective advertisement of various tourism sites at websites. This thing
contribute effective role for local and foreign visitors to expand their knowledge in travel
and tourism sites within United Kingdom. However, Some legal rules and polices as well
as inappropriate services also create negative effect on demand of tourism due to higher
taxes in popular tourist destinations of UK (Alegre, Mateo and Pou, 2013). They also
create bad impact on the performance of travel and tourisms sector in Britain. Demographics- These factors also affect tourism demand in United Kingdom.
Demographic aspects like education, age, income as well as gender create positive effect
on demand of tourism in travel and tourism industry in Britain. For example, education
level of local citizens are increased as compare to past years in United Kingdom.
Appropriate education give better knowledge to local citizens regarding new and old
tourism sites in the nation (Spencer and Nsiah, 2013). It encourage the people to visit
these places in country. In addition to this, income of UK citizens is also effective as
comparison of countries like china, India as well as Japan. Frequency of Local tourists
are also enhanced as compare to past years. This process also rises the demand of travel
and tourism sector in the United Kingdom. It also increases income of this industry in the
nation. Further, TUI hotel also provide effective contribution to develop this sector by
providing better services to visitors.
 Political Stability- Political stability of UK is effective as compare to other countries. In
addition to this, government of United Kingdom has made proper rules and regulation for
each sector. This thing also provide reliability to travel and tourism sector which help to
increase its demand in the nation. Further, government of UK provides transportation
service and allocation of monetary funds for repair and maintenance of historical sites
and other tourist destinations which motivates many visitors to visit the tourist

destinations (Mason and Beaumont-Kerridge, 2012). It contribute effective role for travel
and tourism sector to increase its demand in the nation.
3.2- Representing how supply has altered to meet the effect of demand
Government of UK provides extra efforts on quality, tour operators as well as
accommodation facilities for visitors to balance the supply in order to meet the effect of demand
of tourism industry. Accommodation facilities- Government of Britain emphasize to start business of new
hotels and resorts according to financial status of visitors at various tourism sites in the
nation. Accommodation services also help to fulfil the demand of visitors to manage
supply in different tourism sites in UK (Alegre, Mateo and Pou, 2013). For example, Star
woods also provides appropriate accommodation services to meet demand of visitors in
United Kingdom. Quality- Authorities of Britain provide better quality services to their visitors at various
historical sites and other tourism destinations. This aspect contribute effective role for
travel and tourisms sector to increase rate of tourists at tourism sites. In addition to this, it
also helps the industry for meeting demand in order to manage effective supply by
providing appropriate quality services to tourists at different tourism destinations of
United Kingdom (Spencer and Nsiah, 2013). For example, TUI hotel group offers better
quality food, gaming as well as internet facilities to visitors to complete demand of them
in the country.
 Tour operators- Government of United Kingdom also focus to increase the tours
operators at different tourist locations. Tour operators contribute effective role to meet
demand visitors in order to handle effective supply by giving proper transportation and
accommodation facilities to the visitors in the nation (Chatziantoniou, Eeckels and
Apostolakis, 2013). In addition to this, authorities of UK provides proper loan on reduce
rates and proper guidance to the local citizens and organisations in order to set up their
business at tourist locations in United Kingdom. This way, tour operator corporations can
fulfil the demands of visitors by managing proper supply at tourist locations in the

country. For example, British tours and Great British Trips provide effective
transportation and living facilities to visitors at tourism destinations in the nation.
TASK 4
4.1 Positive and negative economic, environmental and social impacts of tourism
Types of Impacts Positive Impacts  Negative Impacts
Economic Impacts  Generates international
exchange between
worldwide countries
(Quadri-Felitti and
Fiore, 2012).
 Idea of designing good
infrastructure which
can be utilized by
other tourist
organizations (Swain,
and Mishra, 2012).
 Enhances territorial
development specially
in isolated areas,
 Increases revenue
enhancement allowing
greater government
expenditure, or
decreased taxation on
other activities.
 Outbound tourism
leads to outflow of
expenditure out of the
localized economic
system (Ekanayake
and Long, 2012).
 Tourism leads to
increased inclination
to trade goods
between different
countries by exporting
and importing goods
(Navickas and
Malakauskaite, 2015).
 Tourists activities
leads to higher prices
higher land values
thereby increasing
taxes for local people.
 Seasonal changes
have a negative