Analysis of the Travel and Tourism Sector: University Report

This report provides a comprehensive analysis of the travel and tourism sector. It begins with an overview of the industry's historical developments and structure, including key elements such as tourist attractions, travel services, accommodation, and infrastructure. The report then examines the influence of local and national governments, as well as international agencies, on the sector, including how economic policies affect its success. It also explores the effects of supply and demand dynamics on the tourism industry. Furthermore, the report evaluates the economic, environmental, and social impacts of tourism, both positive and negative, and discusses strategies for minimizing adverse effects while maximizing positive outcomes. The report concludes with a summary of the key findings and recommendations for sustainable development within the travel and tourism sector.

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THE TRAVEL AND TOURISM SECTOR
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THE TRAVEL AND TOURISM SECTOR
Table of Contents
Introduction.................................................................................................................................................3
LO1 Understand the history and structure of the travel and tourism sector.................................................4
1.1 Explain key historical developments in the travel and tourism sector..........................................4
1.2 Explain the structure of the travel and tourism sector..................................................................5
LO2 Understand the influence of local and national governments and international agencies on the travel
and tourism sector.......................................................................................................................................7
2.1 Analyze the function of government, government-sponsored bodies and international agencies in
travel and tourism....................................................................................................................................7
2.2 Explain how local and national economic policy influences the success of the travel and tourism
sector.......................................................................................................................................................9
2.3 Discuss the implications of political change for the travel and tourism sector in different countries
...............................................................................................................................................................10
LO3 Understand the effects of supply and demand on the travel and tourism sector.................................11
3.1 Explain factors affecting tourism demand.......................................................................................11
3.2 Explain how supply has changed to meet the effects of demand.....................................................13
LO4 Understand the impacts of tourism....................................................................................................14
4.1 Evaluate the main positive and negative economic, environmental and social impacts of tourism..14
4.2 Explain strategies that can be used to minimize adverse impacts while maximizing the positive
impacts..................................................................................................................................................16
Conclusion.................................................................................................................................................18
References.................................................................................................................................................19
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Introduction
In some nations, tourism is still an underdeveloped industry but in places such as Thailand,
Indonesia, India, UK and US tourism industry has developed a lot. The tourism industry includes
small industries like travel agencies and tour operators. Today, destination tourism has emerged
in the tourism market and it has led to serious competition among the tourism organizations. The
report tells about the history and structure of tourism industry along with the influence of local
and national governments and international agencies on the travel and tourism sector. The report
also consists of the effects of supply and demand on the travel and tourism sector.
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LO1 Understand the history and structure of the travel and tourism sector
1.1 Explain key historical developments in the travel and tourism sector
Structure and historical developments of Tourism and Travel Industry
Tourism is one of the major industries of the world. The development of tourism was started
from the year 1945. Compared to other industries, the tourism sector became one of the largest
industries in the world. Today, the tourism industry is measured as a principal of economic
drivers in the international market. From 1950 onwards, factors such as an increase in free time
availability, improvement in package tours, increase in paid holidays, and growth in air transport
are all combined for offering a wider possible holiday taking the market (Robinson, Luck and
Smith, 2013). By the middle ages, Buddhism, Christianity had traditions of pilgrimage that
motivated even the lower classes for undertaking distant journeys for spiritual and health
improvements. On the other hand, modern tourism can be known as the Grand Tour. Grand Tour
was a fabulous trip around Europe, and this grand tour was undertaken by the upper-class
European young men. The tradition was protracted to include more of the middle class after
steamship and rail travel which made the journey easier and Thomas Cook made the Cook's Tour
an epitome. Moreover, during 1980’s to 2016, the tourism industry has made its impact on
individual countries such as United Kingdom, United States, Philippines, Thailand, India,
Malaysia and other European countries. Air travel facilities are improved a lot. The business of
tourism is expected to make a significant contribution to global development in economic field
during the twenty-first century (Robinson, Luck and Smith, 2013). Besides that, contributing to
the development and renovation of local communities and economies, development of tourism is
playing a significant role in both enhancing education and refining the position of the travel
business. Tourism business is aimed at nurturing the next generation of those ready to take on the
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travel business. The understanding and cultural trade are brought about through tourism, and it is
causing a more polite and internationalized worldwide society.
The structure of tourism and travel industry can be well understood with the help of Leiper’s
model. According to Leiper’s model, there are five major elements of travel system such as
traveler generating region, departing passengers, returning travelers, tourist destination region
and transit route region. The tourism system is also based on some environmental factors such as
economic, technological, physical, socio-cultural, legal and political. There are a lot of job offers
in travel and tourism industry which is very beneficial for the economic drivers (Page and
Connell, 2010). The tourism sector has some contemporary influences such as changing patterns
of tourist flows, a force for sustainable expansion in tourism and changing actions and
motivation of markets. On the other hand, the tourism sector has other contemporary impacts like
requirements for planned development in tourism and concerns for economic, cultural and social
impacts of tourism.
1.2 Explain the structure of the travel and tourism sector
The structure of tourism and travel industry can be well understood by factors such as tourist
attraction, tourism services, travel, and accommodation service as well as infrastructure.
Tourist attraction: A place of interest where the visitor comes and visit for experiencing the
natural and cultural value, offering leisure, historical significance, amusement, and adventure is
known as a tourist attraction. Moreover, tourist attraction can be determined by many types of
places such as beaches, tropical islands, hiking and camping in mountains and forest, resorts with
coral reefs and so on. Tourist also differs according to their preferences. For example, a cultural
tourist will visit historical places, ancient temples, museums, art galleries, historic structures and
buildings, botanical gardens and monuments (Page and Connell, 2010). A popular tourist
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attraction destination is Eifel Tower located in Paris, France. Each year, almost seven million
people come here to enjoy the beauty of Eifel tower. Moreover, a tourist attraction can contribute
to the government revenues generated by the tax on incomes from the tourism business and
tourism employment. Tourist attraction also provides jobs and stimulate the infrastructure
investment. It also contributes to local economies and provides foreign exchange earnings.
Travel and Accommodation Service: Accommodation plays a significant role to any tourist
who wants to travel to another destination. TUI group must provide the traveler with all types of
facilities demanded by the tourist. Today, the world stops without the internet. Therefore, TUI
group must provide the customers or visitor with free Wi-Fi services. As a result, the
organization can gain customer satisfaction and loyalty, and it will help them to accomplish
competitive advantage. Travel services include facilities of trains, airports, local buses, public
taxi, and coaches must be provided by that country. Besides that, a tourist wants a leisure holiday
and necessary facilities and it should be provided by each and every tourism organizations.
Travel service: The tourism services support the development of the tourism industry. It also
delivers the experiences of the guest, and some of these are missing from the classification of
NAICS. The full form of NAICS is North American Industry Classification System. The tourism
services consist of functions and businesses that aids with reserving components and planning of
the experiences of visitors. The travel services are concerned with the financial services
(Donnellan, 2005). The members of the financial services are accredited to provide some
financial services. Moreover, tourism service includes the provision of continental foods to the
visitors. Therefore, TUI group needs a restaurant by which they can provide full service of food
to their customers and visitors.
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Tourism Infrastructure: A component of local tourist product is known as tourism
infrastructure. The tourism infrastructure is comprised of buildings, service institution, primary
devices whose existence is necessary to the proper operating of society and economy. The
tourism infrastructure can be divided into the technical and social field. The tourism
infrastructure of TUI group in the region is comprised of four elements such as accommodation
facilities, gastronomy facilities, services in the range of active leisure, transport of the destination
and retail network. These infrastructures are necessary to retain and attract potential tourist to a
specified destination (Donnellan, 2005).
LO2 Understand the influence of local and national governments and international agencies on
the travel and tourism sector
Based on this learning outcome, distinctive components of the governmental bodies,
governments and moreover global organizations related to the travel and tourism industry is
delineated here. Also, these organizations accept a large part in the tourism range, and it impacts
virtually on the tourism organizations (Tourism, 2000). The particular errand is stressed with the
effect of national and adjacent money related approach for ensuring the accomplishment of
tourism and travel industry. Finally, the present work would take a gander at the piece of changes
in the political circumstance of the country on travel and tourism division.
2.1 Analyze the function of government, government-sponsored bodies and international
agencies in travel and tourism
There have been a few changes found in tourism and travel industry generally with the chart of
direct tariff presentations. The controls also help tourism industry with finishing their noteworthy
target of convincing hostile consequences for nature. The nation's close-by government are in
charge of giving primary system and relationship to the visitors. There are changes in the general
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condition too wherein tourism as an industry has the method for a hypothesis to lessen the
negative impact of tourism on the earth. The regulatory attempts should be to execute, organize
and structure which can propel the natural effects and develop the work and outside exchange.
Government reinforced bodies, adjacent governments and moreover inclusive workplaces are
accountable for travel and tourism as they are the bit of general travel and tourism industry and
impact the accomplishment choose with their working. The European Union has thought about
some course of action destinations (Tourism, 2000). The objectives are discussed underneath:
 The European Union is stressed with the advancement of the change of careful, high bore
and serviceable tourism.
 The second target is to strengthen the force of the European tourism range.
 The third target is to relate the photo of Europe as a get-together of the high bore and
viable destination.
 Their last objective is to grow the ability of the EU economic courses of action for the
progression of tourism.
There are a few limits which should be taken care by the area government, for outline, waste
relationship to the central arranging recalling an authoritative focus to ensure sensible tourism in
the country and this cutoff would influence the travel and tourism industry unequivocally. These
governmental workplaces give structure and support to make working conditions to the private
range which would develop the establishment got to by vacationers. Along these lines, the
government looked after bodies, and overall government organizations are joined remembering
the honest to goodness objective to make procedures and techniques when all is said in done
setting identifying with the travel and tourism industry (Dhaliwal, 2006). The governing body
bolstered bodies may reinforce a few endeavors which may not check productive for the
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distinctive division yet rather has primary centrality for the vacationers and country considering
all things. Besides that, general governments would plot the technique and methodology for
progress of visitors from one country to other and these procedures if faultless to the travel and
tourism industry would ensure accomplishment of the business
2.2 Explain how local and national economic policy influences the success of the travel and
tourism sector
In tourism and travel industry, the TUI group can make social and economic focal points with
the arrangement of business, spreading care in nature and making foreign exchange holds. There
is an abnormal state of centrality for the tourism and travel portion of the budgetary assistance of
a particular nation. There is the new essential effect of the money related strategies developed the
national and close-by establishment wherein safe districts are declining brisk in light of an
inadequate measure of preferred standpoint in these secured ranges. Also, by far most of the
countries are not prepared to finish the capacity of the journey, and it can be obvious with the
help of lower level of need doled out to the activities of tourism. Beside it, a weak money related
course of action of a country is concerned with the gathering living close-by to the traveler's
spots. The overall public of these area conferences would be precluded from claiming from the
central financial purposes of the tourism practices industrialized in the nearby places (Dhaliwal,
2006). There are also other economic methodologies realized by the organization which impacts
the travel and tourism industry earnestly.
The TUI group use economic strategy and set aside their benefits so as to lift some visitors and
furthermore per singular utilization of the travelers. Diverse methodologies, for instance,
movement strategy and visa procedure influence basically on tourism and travel industry. Other
than that, these benefits are profitable for the tourism organizations to develop the destination
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spots for the tourists. Right when a country needs to set up a visa office generally, then these
structures help them to do in that capacity. These strategies are made by the TUI Group which
allows the outside money related experts of tourism and travel industry to contribute locally. A
good old fashioned neighborhood and national monetary strategy should investigate money
related joining of the next assembling as these individuals are economically subjected to the
natural assets in their condition. The budgetary game-plan should be with an ultimate target that
the close-by social event gets the share of a good position for tourism progress in their joining
area (Bellamy, 2011). TUI group must help a beneficial budgetary settlement should consider the
perspectives of adjacent individuals recall an ultimate goal to pick the level of tourism in their
fusing region. Furthermore, these points of view would invigorate the principal fixings in the
financial arrangement of the close-by or national level to make them persuading and result in
coordinated travel and tourism industry.
2.3 Discuss the implications of political change for the travel and tourism sector in different
countries
The political issues vary according to different countries. Inside a particular country, politics
changes and these variations in government impacts largely on travel and tourism industry of that
particular country. In this learning outcome, various countries are considered. The implications
of political change on tourism and travel sector have been defined. At first, Kenya is considered
as the principal example. The relationship between the politics and travel in developing countries
can be well understood when tourism will play a significant role in the economy. The political
study in tourism does not only concerns elections, political parties, and group interest, but it is
also concerned with the study of power in all forms of society. According to Hall, the political
system whether it is direct or indirect impacts tourism and travel organizations (Bellamy, 2011).
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The impact is made using policies established by the governments with a purpose to develop the
nation. Besides that, Edgell stated that the highest objective of a tourism policy is integrating the
cultural, political, economic as well as intellectual benefits of travel and tourists with people,
countries, and destination for improving the global quality of life. Edge also stated that the
objective is to provide a foundation for prosperity and peace.
Initially, Spain is considered as the first example. In late 1990, Spain in tourism was prejudiced
by the interventions of the government. It provides and regulates the activity of tourism.
Moreover, the most significant aspect of state involvement was the search for the development of
tourist activities and the switch over the prices of accommodation. Secondly, Asia tourism is
seen by the leaders of the government as a political bridge between the nations. It widens the
scope of supportive alliances with other countries. Aside from, other significant players involved
in both tourism and politics are multinational as well as international organizations. At third,
Libya is taken as an example where politics play a major role in tourism industry (Holloway and
Humphreys, 2016). The selected nation is going through a political turbulence. Libya is
arranged at such a topological territory.
LO3 Understand the effects of supply and demand on the travel and tourism sector
3.1 Explain factors affecting tourism demand
The market of tourism is affected by some factors such as economic factors, political factors,
social factors, technological factors as well as factors based on taxation. Moreover, economic
factors range from losing jobs to exchanges rates. Apart from economic factors, other factors are
concerned with the growth in EU size. These factors impact the demand for tourism. On the
other hand, factors like crisis, terrorism & threats include natural disasters and war which affects
the market of tourism. Suppose taking an example of a natural disaster country, Thailand, which
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is an earthquake prone area. Meanwhile, Thailand is one of the most popular tourism destination
in the world. People likes to visit these places without concerning about the natural disaster of
that destination because these sites have its natural and cultural beauty. Therefore, it can be
concluded that these areas are influenced by factors like cultural and natural beauty. Aside from,
communication, technology as well as transportation also impact the demand of tourist attraction
(Holloway and Humphreys, 2016). Thailand is comprised of the well-developed transport
network and people from all over the world visit Thailand due to a transport facility. Moreover,
Thailand is also a good place to make destination weddings and honeymoon. Additionally, an
individual can arrange the tour plan if that person has a strong financial backup. So, it can be said
that financial backup is the major factor which impacts the tourism industry.
Apart from the factors mentioned above customer service play a significant role in attracting the
tourist. Apart from customer services, population, the price of hotel & resorts also impact the
demand of tourist. For example, some tourists once to visit a peaceful place while some tourist
once to visit the crowded area. Besides that price orientation has become a leading future in the
tourism industry. The new generation people are more inclined in drinking and smoking. Such
organization like TUI group must provide their customers with drinking facilities so as to gain
their satisfaction, trust, and loyalty (Shipside, 2002). The background of tourist also affects the
supply and demand of the tourism and travel sector. People who like adventurous trip spent more
money in equipment and gadgets for their trip satisfaction. On the other hand, individuals who
make trips for business purposes spend money in luxurious hotels and resorts. Some people have
jobs which are based on a migration system. For example, reporter, they have to travel from one
nation to another to cover news. They also need hotels and resorts to stay. In the meanwhile,
these writers enjoy their evenings by hanging around with these office colleagues.
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