Travel and Tourism: Demand, Impacts, and Mitigation Strategies

This report provides a comprehensive overview of the travel and tourism industry, examining its historical developments, structure, and economic significance. It delves into the functions of government, government-sponsored bodies, and international agencies in promoting tourism, along with the influence of local and national economic policies on the sector's success. The report further analyzes the implications of political changes on tourism in different countries, exploring factors affecting tourism demand and supply. It also addresses the impacts of tourism on social, environmental, and economic aspects, offering strategies to minimize negative impacts and maximize positive outcomes. The report concludes with a discussion of the industry's future and the importance of sustainable tourism practices.

TRAVEL AND TOURISM

Table of Contents
TRAVEL AND TOURISM.......................................................................................................1
INTRODUCTION....................................................................................................................3
TASK 1......................................................................................................................................3
1.1 Explain key historical developments in the travel and tourism sector.............................3
1.2 The structure of the travel and tourism sector..................................................................3
TASK 2......................................................................................................................................4
2.1 Analyse the function of government, government-sponsored bodies and international
agencies in travel and tourism................................................................................................4
2.2 Explain how local and national economic policy influences the success of the travel
and tourism sector..................................................................................................................5
2.3 The implications of political change on the travel and tourism sector in different
countries.................................................................................................................................6
TASK 3......................................................................................................................................6
3.1 Various factors affecting the demand of tourism.............................................................6
3.2 Change of supply in meeting the affects of demands......................................................7
TASK 4......................................................................................................................................8
4.1 Impacts of tourism on social, environmental and economic aspects...............................8
4.2 Strategies for minimising the negative impact and maximising the positive impact of
tourism....................................................................................................................................9
CONCLUSION.......................................................................................................................10
REFERENCES.......................................................................................................................11

INTRODUCTION
The travel and tourism industry is the most emerging sector today, and it is surely at
its boom. In this industry, the people from all over the world travel to different locations far
from their homes, therefore these industry exchanges tourists and help them to travel places
by fulfilling their needs. This industry takes care of the person’s safety when he goes outside
of the country by leaving his own place. This is one of the widest sectors and it includes ‘n’
number of tourists spots, facilities for the residence of the tourists like guest house, motels,
and various attractive destinations and immigration. Now the tourists have all the three travel
modes with better functionality and better accessibility i.e. air, water and road. However the
person wants to travel, wherever he wants to travel, whenever he wants to travel he can travel
because of the advancements of the technology (AlSayyad2013). In the present report, various
aspects related to travel and tourism are discussed in detail like the whole history and
structure of tourism, the attributes it possess, its connection with the political factors, the
effect of demand and supply. The role of governments is also been discussed in the given
report.
TASK 1
1.1 Explain key historical developments in the travel and tourism sector
We can consider the tourism industry one of the biggest economic drivers in the present age
as if we compare the growth rate of this industry then it is much higher than as compared to
the manufacturing, retail and communication. The amount of job supported by this industry
around the globe is much higher than any other sector (BlankeAndChiesa2010). It is noticed
that every 1 out of 11 jobs would be provided by the tourism industry worldwide. The
tourism industry contributed majorly in the development of the country as it generates
enormous amounts of foreign currency funds and becoming source of national and
international employment. For tourists, London has been the most popular and happening
place and because of the attraction like tower of London, Buckingham palace and St. Paul’s
cathedral church it has become the worlds’ leading tourism destinations. Nowadays tourists
visit these places for the perspective of historical insight.
The first period is 1830-1840: queen’s bazaar in Oxford Street was famous in this period,
Regent’s zoological park was another attraction point.
The second period is 1870-1880: people were attracted towards ice-skating, archery, rifle
shooting, croquet etc. during the peak season of winters.
The third period is 1880-1910: people wanted to explore the world of arts, new cultures and
lots of exhibitions were held during this time. Now tourists were allowed to view a large
variety of products decorated at various stalls.
The fourth period is 1920-40: in this time period tourists started to visit was the dog’s park in
Hyde, barrister’s wig shop and temple (Cliftand Page2015). At this time period there was this
sheep at the green park which used to give the glimpse of country side.
The fifth period is 1950-70: now, at this time, the choices of travelling of tourists were
changed and they started finding out the alternatives tourists spots for the high cost places.

Now they want some reasonable places for hang out purpose. And for this they started
hangout at clubs, pubs, restaurants, etc.
1.2 The structure of the travel and tourism sector.
The tourism sector is a huge industry; it can be broken up into different sectors. It can be
categorised as follows:
Transportation: It can be considered as the most important and essential factor of the tourism
industry as it means the reaching of tourists’ destination. People use different means of
transportation for reaching their destinations like airlines, cruise, railways, taxis, private
transport, etc.
Accommodation: It is another important aspect of the travel and tourism sector. People who
need some place to stay when they are away from home while they are travelling. This sector
consists of different other organisations which provide some extra services like food &
beverages and entertainment services to the visitors with accommodation.
Information and coordination: while visiting some new place tourists require some
information about that place and there are many subsectors in the tourism industry where the
tourists can get important support services like: Tourists information centres, tourism
authorities, tour guides, travel guide publications, etc.
Tour operations and wholesalers: in the form of packages the tour operators provide bulk
services to the tourists therefore they hold a large place in travel and tourism sector, for
example Thomas Cook provide services which includes flight expenses, accommodations,
tours, attractions, tickets in a combined travel package. These tour operators provide Local
travel packages as well as overseas destinations packages.
Government: Government, although is not classed as a sector of tourism industry but it has a
major influence on this industry. It plays a significant role tourism planning, advising,
promotion and regulating the industry.
Attractions: the primary attraction for the tourists to travel from one place to another is the
attraction of the destination. Some of the attractions are sold as standalone tours whereas
other tours are combination of different attractions into a packaged tour of tourists. We can
classify the attractions into different categories. Some of them are free of cost and while some
of them require the tourists to pay.
1. Natural for e.g. parks and zoo
2. Historical e.g. palaces
3. Cultural e.g. Art galleries, theatres
4. Entertainment e.g. cinemas, amusement parks
Meeting and events: Large scale corporate enterprises generally conduct meetings and
conferences. Due to the size and cost involved in staging the contribution by these types of
events is significantly high.
Travel Agents: travel agent act as an intermediary to the customers by selling tourism
services provided by other businesses so we approach a travel agent when we plan to visit a

new place or country. Services like travel advice, ticket sales, visa information and insurance
needs by targeting different consumers like general public or corporate markets are provided
by travel agencies.
TASK 2
2.1 Analyse the function of government, government-sponsored bodies and international
agencies in travel and tourism
As local governments, government sponsored bodies and international agencies play an
important role to promote the travel & tourism industry. They are the one who makes the
conditions easier for the tourists to visit and enjoy the whole journey without any problem.
The success rate of the travel & tourism industry is directly proportional to the functioning of
local governments, government sponsored bodies and international agencies (Dickinsonand
Lumsdon2010). With their efforts everything stays under control. Basic infrastructure like
proper roads, good availability of transport, proper information for the new visitors about the
respective place and services like good communication facilities, security for the visitors, etc.
All these factors are very important from the tourism point of view. When a tourist visits
some new place and they share their experience to others. Their experience is the main reason
that makes other people to think about to go to that place. Foe making the travelling smooth
and hassle free the concerning authorities needs to do some proper planning and makes some
important policies for the beneficial of travel & tourism industry. These policies and planning
are going to help not only to the visitors but also to locals. As due to this, the opportunity of
employments can be increase for the locals. Also, the foreign currency that they will get by
the tourists is going to help them to improve their infrastructure and facilities not only for the
visitors but also for the local visitors. The local government can also improve the
infrastructure by allowing the private to take part and invests in their region. By doing this,
they can give permission to private sector to take the responsibility. Both, the local
government and private sector, will be beneficial by these steps, as the local government can
take some percentage from the income of private sector government (EvansStonehouseand
Campbell2012). But there exists some projects which are non profitable for the private sector,
therefore they are sponsored by the government bodies as they are important from the tourists
point of view and sometimes reflects image of country. The government can increase the
number of tourists in their region by doing the bilateral trades contracts. By the bilateral trade
contracts between two countries the various taxes like service tax, value added tax and
transportation tax, etc. can be removed which will enhance the tourism industry. Local
government can also contribute by marketing of their developed sites in other countries
2.2 Explain how local and national economic policy influences the success of the travel and
tourism sector
The importance of travel and tourism industry is very high from the economic point of view
of any country in the world. As travel and tourism industry generates foreign currency funds
when tourists from other countries visit, it increases the employment for the local people and
also increases the environmental awareness. Therefore it creates economic as well as social
benefits. Some countries behave as tourism is their highest priority while some of them are
not able to explore the full potential of tourism which results in low revenue. By inviting the
investors to make investments the government can increase its inward income. For that they

have to attract investors by giving them a feeling of security (Garínand Pére2011). The
economic policy should be made by taking care of the people of local community as they are
completely dependent on the available natural resources present in their surrounding region
for the income. The local people should get some benefits in those policies. They are the one
who take care of tourist’s places and they are the identity of those places. As their culture is
the main attraction for some of the tourists. Their advice must be taken at the time of
designing the policy for the tourism as they are main element in this whole scenario.
Decisions like the level of tourism, facilities to the tourists, interference level of the private
sector are the main. The economic policies should be flexible so that it enables the visitors to
spend their money in the local market which will increase the revenue of the government. By
changing the tax policy, the effects on specially the hotels can either be in favour or it can be
against (Goeldnerand Ritchie2012). As by slashing the tax fir the hotels by the government,
more number of people will do the stays in the hotels as they have to pay less than earlier.
But at the same time the revenue of the hotels are going to get affected by those slashing if
they are not able to increase the number of arrivals. As a result, it may be possible that hotels
would make some changes in their structure including the reduction of employees
(Gretzeland Fesenmaier2012). But as the same time this will going to help the budget hotels
as now people will prefer those more than the pricy one.
2.3 The implications of political change on the travel and tourism sector in different countries
The travel and tourism industry is directly affected by the any political change happening in
the country. Any political change is going to affect the growth of this sector in a good or bad
way depending upon the type of change happened. It can be say that it is the largest industry
in the world and it is growing very rapidly as compared to any other industry. According to
the reports, it was around 922 million in 2008 that too worldwide and it has been forecasted
that it will reach around 1.6 billion by 2020 (Hall, Timothyand Duval,2012). Both politics
and tourism is directly proportional to each other. The tourists want to travel in a politically
stable environment where they don’t have to face any problem while travelling regarding any
instability happening in that place. We can use tourism as a tool for the stability and
advantage of political means. Its implication on two countries is:
IRAN
Iran has a great history behind it. And due to that there are so many places for
the tourists to visit. Tourism in Iran was very well flourished and various tourists came to
visit because of the various attractions, their splendorous and rich culture and very beautiful
and amazing landscape. They can perform variety of activities on them. This was drastically
affected in the war of 1980. The officials at that time do not bifurcate between the people of
the host country and the travellers. Apart from all the tensions going on in Iran the
government there continue to increase the number of tourists and earn revenue. They are
expanding their accommodation for the visitors and are making hotels.
CHINA
Tourism in china is very vast and they are emerging tourism spot and they have been
liberalised by the government. The travel industry is at boom there. China has become the

fourth largest inbound country for tourism in the world. WTO has claimed that in 2020 it will
become the largest of all.
TASK 3
3.1 Various factors affecting the demand of tourism
The entire travel and tourism industry is totally dependent on the people who want to
roam around far and distant places. The people driven with curiosity of seeing new places are
the reason behind success of this sector. There is a requirement of demand in the market for
every business to flourish. The major factor behind the generation of the demand and the
tourist considers their safety and with that they also look upon the political stability while
they are engaged in travelling and when they are planning to travel is the demographics of the
tourist mix. The basic need is money for travelling (HuangBackmanand Moore2013). Travel
is in people’s budget and they are willing to spend that on travelling if they have money. For
the demand of travel and tourism industry it is considered as important factor. Although there
are various other factors that affect the demand of tourism sector, these are:
Demographic: the demand of tourism is affected by the versatile demographic factors of
consumers affect, some people have higher spending power and some has less. They all have
various choices that how many times they are going to travel or when they are going to go.
The increase in the frequency of people who are going to travel is rise by this factor and the
demand is been increased with the increased frequency of travelling.
Technological: people’s life has been making much easier due to the advancement in
technology. Previously they have to stand in long lines to get the tickets if they want to travel.
People generally avoid travelling as it was very tiring. But it’s been very easy to book tickets
nowadays. It’s very easy to book tickets as online tickets are now available (Hudsonand
Thal2013). If they want to track their means of transportations they can do so by their cell
phones for example where is their have reached right now. Also they can get information
about other things too.
Currency rate fluctuations: when the prices of the currency have declined in which the
person wants to travel, increase its demand as it will attract more number of people. Say for
instance then the customers would more likely to go to that country if the rate of pounds goes
down in comparison to dollars.
Economy: where there is crisis it affects the demand of the tourists in a country. As compared
to sustainable economic conditioned country the demand will be low.
Stable political conditions: as it attracts tourists, political stability is a must for every
country. People will come if there is peace in your country (Kayarand Kozak2010). The
condition in UK is very stable so it’s an attractive hub for tourists.
Globalisation: because of globalisation people are free to move wherever they want, as it has
increased a lot. . The travel and tourism sector has been benefitted a lot from this.

3.2 Change of supply in meeting the affects of demands
There has to be a balance between demand and supply of every product. For the
smooth operations of the industry It is necessary. Government and stakeholders of the
tourism industry are responsible for the balance between the demand and supply. In respect
of demand the stakeholders are trying to manage the supply. They are fulfilling the
requirements of the tourists. They are looking for the facilities to provide to the tourists that
they need like residing facilities, providing them quality technological deployment etc. As the
demand is increasing the accommodation has to be up to date. So accommodation has to be
increased. To match up the demand of the tourists the operators of travel and tourism has to
grow at an increasing rate. The quality of these services cannot be compromised as the rate of
increase in services is getting high. With the peak seasons the demand had to be managed in
off seasons as well. The profit of peak season can be hinder off season loss. By raising the
prices in the peak season and by cutting off the prices in off seasons this is managed and
balanced by the stakeholders (Molz2012). With the help of technology they are able to make
the demands of their services in both seasons. With that, they can provide information to
them when they need and whenever they want. They can access the information of the other
country by staying in their home country. Due to the efforts of government of that country
like ad campaigns in which the attractive places and tourist spots are shown and they invite
you to visit the supply is changing (Moutinho2011). Lots of discounts are offered by various
tours and travel packages. By giving one side travel fare free they attract the customer, or a
by doing all the stuff by themselves from booking tickets to planning their days to hotels,
activities they are going to do etc.
TASK 4
4.1 Impacts of tourism on social, environmental and economic
aspects.
Tourism has both positive and negative effects. Many benefit in respect of social and
economical are occurred because of tourism. it should be taken care of very carefully for
sustainable tourism, the demand and supply has to be managed , if they are not balance it will
impact the aspects negatively.
Economic affects
Positive: people get employment both directly and indirectly by the help of tourism.
Indirectly to hotels, transportations, retails etc and directly to people who are in the tourism
industry. When the tourists spend money at the time of visiting these destinations it gives rise
to a multiplier effect which creates more jobs (PapatheodorouRossellóand Xiao2010). The
opportunities are provided to rural communities by tourism sector by encouraging small scale
enterprises. . These are charged at hotels, airports and further they are used for maintain and
building schools, roads, hospitals etc.
Negative: developed roads, hotels, well maintained tourist spots etc are the main reason
behind the success of tourism as it depends entirely on infrastructure. They do it by the
amount of money that they collected in tax as the burden of maintaining these all falls on the
government (Sigala2011). The jobs that are created by tourism does not give enough benefit

to the local community as the amount of money generated by them are distributed in starting
in the big hoteliers as they are seasonal. These tourist spots become the target of terrorists
therefore they are always at risk and their security is the main concern of the government.
The whole economy of that industry goes down as if there occurs a natural disaster.
Social effects
Positive: because of the development of infrastructure for the tourists The local
community residing in that place gets the benefit. For attracting tourist the old handicrafts,
customs and monuments are preserved and they are cherished. So this helps in creating the
civic pride.
Negative: by the behaviour of visitors The life of the people of the host country can be
negatively affected and it can affect their quality of life. As it could increase the drug
problem, crime scenes, prostitution, overcrowding, congestions etc. it can have a very bad
influence on the local community (StandingTangand Boyer2014). The home of existing
people’s home has been demolished and they are removed from their house as the need of
hotels and accommodation is well known. . This is all done because to accommodate tourists.
Environmental effects
Positive: as we all know that the tourism encourages wildlife and thus resulting in
prevention of the wildlife of the host country, the natural waterfalls and natural resources are
considered as the assets of tourism (Thakranand Verma2013). Tourism helps in reducing the
problems of excess fishing, and cutting of trees.
Negative: There is a threat to our natural resources, as they can harm our natural and
cultural resources inspite of the various positive reasons, as they are not theirs they will not
take care of them properly, and maybe they can damage those resources by the overuse and
misuse of them.
4.2 Strategies for minimising the negative impact and maximising the positive impact of
tourism
As to preserve the negative impact of the sources the formation of effective strategies
is must. To remove the negative effects of tourism the strategies designed for them have to be
implemented properly. By managing the local standards of life of the people of host country
so that they are not disturbed by the other people the negative effect that is happening on the
economic activities can be reduced (Thakran, K. and Verma, R., 2013). The standard of
living has to be maintained and should not be compromised much so that the people do not
get disturbed. As the local people know the trends of rising prices and they could handle the
prices therefore they should also be a part of framing the policies. Strategies must be
designed in such a way that the people should not get totally dependent on the tourism sector
for the source of income, and should be distributed on all the sectors (Wang, D. and Xiang,
Z., 2012.). This will to help in saving the economy in the case when one or more sectors are
not working properly. The government should make the strict policy to get the complete
control on the adverse effects of environment.

.
CONCLUSION
As per the above report it has been concluded that tourism is an important sector for any
country and it needs to be handled very well as it contributes most in the generated revenue
of most of the countries. It does have some positive and negative aspects which needed to be
managed very carefully as to maintain the perfect balance between the demand and supply of
the tourism industry. This report has covered all the government roles in this sector and how
this industry effects socially, economically and environmentally.

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