Analysis of the Travel and Tourism Sector: Key Aspects

This report provides a comprehensive overview of the travel and tourism sector. It begins with an exploration of the sector's historical developments, tracing its evolution from ancient times to the present day, and explains its current structure, including key components like tourist attractions, transportation, accommodation, and tour operators. The report then analyzes the influence of local and national governments, along with international agencies, on the industry, examining how economic policies and political changes impact its success. It delves into the effects of supply and demand, identifying the factors that shape tourism demand and how the industry adapts to meet these needs. Finally, the report evaluates the positive and negative economic, environmental, and social impacts of tourism, offering strategies to minimize adverse effects and maximize benefits. The report concludes by summarizing the key findings and insights into the multifaceted nature of the travel and tourism sector.

THE TRAVEL AND TOURISM SECTOR
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Table of Contents
Introduction................................................................................................................................5
LO1: Understanding the history and structure of the travel and tourism sector........................5
1.1 Explanation of the key historical developments in the travel and tourism sector................5
1.2 Explanation of the structure of the travel and tourism sector..............................................6
LO2: Understanding the influence of local and national governments and international
agencies in travel and tourism....................................................................................................6
2.1 Analysis of the function of government, government-sponsored bodies and international
agencies in travel and tourism....................................................................................................6
.2.2 Explanation of how local and national economic policy influences the success of the
travel and tourism sector............................................................................................................7
2.3 Discussion of the implications of the political change on the travel and tourism sector in
different countries......................................................................................................................8
LO3: Understanding the effects of supply and demand on the travel and tourism sector.........9
3.1 Explanation of the factors affecting tourism demand..........................................................9
3.2 Explanation of how supply has changed to meet the effect of demand...............................9
LO4: Understanding the impacts of tourism............................................................................10
4.1 Evaluation of the main positive and negative economic, environmental and social impacts
of tourism.................................................................................................................................10
4.2 Explanation strategies that can be used to minimise the negative impacts while
maximising the positive impacts..............................................................................................11
Conclusion................................................................................................................................11
Reference List:.........................................................................................................................13
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Introduction
Travel and tourism sector are vast industry that provides services to the travellers in the
different parts of the world. The industry has gained immense popularity among people
because out of every ten people of the world, one person will be a traveller and thus travel
and tourism sector is of great importance to people. Travel and tourism sector comprise of
various operations such as transportation services, lodging services and food services.
Travelling has been considered as a hobby of people in the recent years and people travel to
every part of the world for various reasons like business purpose or recreation purpose. Thus,
it is seen that this industry is emerging as a vital source of income for the huge section of
people in the society
LO1: Understanding the history and structure of the travel and tourism
sector
1.1 Explanation of the key historical developments in the travel and
tourism sector
The history of travel and tourism started from the time before civilisation came among
people. According to Wu et al. (2016, p.170), the nomadic people used to travel from one to
another for the sake of food and for protecting themselves from danger. Earlier people used to
travel on foot and their travel was limited to the small geographical area. As time passed
away, people became civilised and travelling became a prerequisite for the people. During the
end of empire era, people travelled in large numbers for various purposes like governmental,
commercial, educational and religious purpose (Mahrous and Hassan, 2016, p.475). As a
result, development came in various cities due to the movement of people and travel industry
started to grow.
The business regarding travel and tourism sector flourished continuously as number of people
started to travel to various parts of the world. Moreover, the people started travelling to cross
the boundaries of their own country and settled in another geographical area thus bringing
development in every part of the world. The cities that were present near the waterways
stimulated the travel of people by water. At that time, government find the necessity of
expanding the travel industry or else people are facing many difficulties in their movement
from one place to another (Riasi and Pourmiri, 2016, p.70). The government supported the
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growth of hospitality centres in the major routes so that the travellers can be accommodated
safely. People started to travel for pleasure and recreation from those times only. Roads were
also improved so that travelling of the people becomes smoother and people finds pleasure in
their travel. In this way, travel and tourism sector was developed from past to present day and
development is continuously being increased day-by-day (Xiang et al. 2015, p.248).
1.2 Explanation of the structure of the travel and tourism sector
The structure of travel and tourism sector encompasses tourist attraction places,
transportation, accommodation, tour operators, travel agent and finally tourism development
(Badade and Jadhav, 2015, p.5250). Tourist attraction places can be prepared artificially or
the places can be present naturally. Natural places are more attractive for the people and those
places always remain under the observation of the tourist operators. Transportation facility is
an important part of travelling and transportation is done via train, aeroplane, and bus and
even by cars. Thus, the tourism sector always is ready to fulfil the wishes of the travellers
regarding the transportation facilities and provide them with the necessary mode of
transportation.
Tour operators are the pillars of the tourism industry because they prepare various attractive
packages for the travellers and present those to them. It is the duty of the tour operators to
attract number of people by preparing packages, which are cost effective for every traveller
(Van Horn and Isola, 2014, p.371). Travel agents are performing the task of delivering the
leaflets of various packages to the people regarding the travel. A travel agent also advertises
with the help of various social media sites, newspaper and television. Tourism development
finally supervises the duties of every person, who are providing the service to the tourists.
They are also concerned with earning more profit with less investment. That is why; they
maintain a cordial relation with every section of travel and tourism industry
LO2: Understanding the influence of local and national governments and
international agencies in travel and tourism
2.1 Analysis of the function of government, government-sponsored bodies
and international agencies in travel and tourism
The government and non-governmental organisations play an important role in the tourism
and travel industry because it involves numerous policies of government along with political
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philosophies (Barnett, 2015, p.8). Interference of government in the trade practice is very
common and the travel and tourism sector are bound to maintain the policies of the
government. International agencies attain power in case of travel and tourism when
government assigns them with that power. International agencies act as an advisory body for
this industry and thus the industry follows the rules that are incorporated into them.
Governmental agencies observe whether the health and safety issues of people are taken into
consideration by the travel industry or not. Moreover, the government also performs the
responsibility of protecting the unique cultural heritage and informs the tourists to not to
damage those properties (Gursoy et al. 2015, p.360).
Due to the expansion of the tourism industry, the government found it difficult to manage the
tourism sector alone. That is why; international and non-governmental agencies are given the
power of guiding the tourism sector. These bodies minutely examine every part of the
tourism industry and reports to the government if they find any ill doing in the industry. Yi et
al. (2016, p.55) mentioned that it is the duty of the tourism industry to maintain a liaison with
these agencies so that they can flourish more under their guidance. These bodies try to create
artificial places of the tourist attraction so that people can visit more and thus increasing the
economic growth of the country. These agencies provide various incentives to the tourism
industry if they perform well and bring more revenue for the country. They also facilitate the
sharing of the ideas between tourism sector and these agencies so that this industry can
emerge as a successful industry in the further run of the business (Mihalache and Mihalache,
2016, p.143
.2.2 Explanation of how local and national economic policy influences the
success of the travel and tourism sector
Local and national economic policy plays vital role for the successful growth of travel and
tourism sector. Hay and Hay (2016, p.125) mentioned that that economy policy of the
government helps to develop the local and national travel and tourism. It is clearly seen that
UK tourism sector provide huge amount of profit e115 billion per year to the government and
provide approx 2.6 million job to the fresher’s as well the experience. Several governments
funding as well as the private sector funding is also enhance the travel and tourism sector.
The national government for the attracting the tourist and enhancing its economical growth
funded Commonwealth Games, The London 2012 Olympic and Paralympic Games. Especial
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attention was given in displaying its culture, tradition, cuisine, music, dance and ethnicity to
its tourist. National tourism agency receives fund approx e24 from DCMS in 2013 and 2014.
These funding by the national government gave them good economical growth, build its
reputation across the world and the tourism industry become more successfully and gain
economical growth. Hall (2016, p.350) stated that the government is abolishing excessive
norms and regulation regarding tour and travel for its swift and successful flow. Local
government is also plays active role in promoting tour and tourism, several initiatives are
taken such as regional funding from the employees of private and public sector to enhance
the regional tourism. UK residents holidays marketing and promotion is done, many events
are also organised to promote the local tourism sector among the tourist. Transport
communication has developed for the tourist; it provided many jobs vacancy and contributed
to the economical growth. The direct industry influence is in the contribution of GDP, which
enhance the business for providing the tourism related service and products. The tourism
economy of effect indirectly on the activities of the tourism chain business its main benefit
providing employment to the sector directly and indirectly.
2.3 Discussion of the implications of the political change on the travel and
tourism sector in different countries
Political changes in the government work also influences in the growth of travel and tourism
sector, it is very important for the government to maintain the value of the currency. Scott et
al. (2016, P.1) commented that the tourist comes from different countries and they have to
exchange its currency therefore, the rate of exchange of currency is very important for the
tourist as well for the government. Tourists have they own budget, if the currency rate of the
country is not stable travel and tourism business are affected, it has seen the low value of
currency or the falling rate of the currency prohibit the tourist to travel. On the other hand if
the value of the currency is high and stables it encourages the tourist to travel different
countries and enjoy the vacation. Hence, the rate of currency exchange is very important for
the travel and tourism business it effects its growth and economical success.
Currency exchange rate varies from time to time; it is influenced by the political decision of
the government. Inflation is one the major reason affecting the rate of the currency, if the
inflation rate is low the value of currency, inflation rate is influenced by the political decision
change. Interest rate also affect the value of the currency, speculation, exchanging of
currency to the weaker currency, recession, government innovation and debt are some of the
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reasons affecting the exchange rate of the currency. All these factors occur due to political
change in the society and affect the function and growth of the travel and tourism sector.
LO3: Understanding the effects of supply and demand on the travel and
tourism sector
3.1 Explanation of the factors affecting tourism demand
They are several factors affecting the tourism demand such as economy, technology,
terrorism, diseases treat and pollution. According to Hunt (2016, p.163), economy factor
plays vital role for the growth of tourism sector, exchange rate of the currency influence the
tourist for travelling to another countries, low value of the currency rate, recession in the state
adversely affect the business. The demography of the country must be favourable to the
tourist to encourage the business climate and wheatre plays important role for the tourism
sector, demand of infrastructure development is also affecting the tourism business. Strong
transport communication system is essential it must be connected to the remote areas as well
as to urban area, transport system must be easily available to the tourist is reasonable price.
Roadways, airways, railways and waterways transport communication system must be well-
developed and easily available, availability of the transport and on right time is essential.
The treat of diseases and infection while travelling to other part of the world, scope of being
infected and disease transmission is huge to the tourist. Terrorism plays major drawback to
the travel sector, people are scared to travel to different places and enjoy the holidays, sudden
attack, bombarding, killing of people is seen. Terrorism attack recently seen in many places,
in the beginning of the year 2016, terrorist attack is seen in Jakarta, Manhattan and
Bangladesh. Tourists are more sacred to travel freely and happily, discrimination behaviour is
noticed towards the tourist based on religion, culture, tradition and creed. Rising pollution
also affects the tourist to choose they destination, therefore, these are the some of the factors
affecting the tourism sector and curbing its successful growth of the business.
3.2 Explanation of how supply has changed to meet the effect of demand
Supply chain of the tourism sector has helped to business to flourish efficiently, it operates
through business –business interrelationship, tourism operators function is essential in this
process. According to Schliephack and Dickinson (2017, p.182), plays important role in the
process of helping the tourist to find they destination, facilities they are provided rate of
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hotels, food and many more. Accommodation is one of the criteria of the tourist, demand of
the accommodation varies according to tourist, therefore, accommodation facilities are
available is wide verities to fulfil the demand of the customers. Good service is provided by
the tourism sector to satisfies and happy their customers, globalisation is increasing day by
day thus, tourism sector planning is also changing due to globalisation. Tourism sector are
creating the environment which are friendly and giving the feeling of home to the tourist
through its architecture, food and interior, tourism sector treating its customer with respect,
dignity and equality. Transport facilities and tourist guide are also provided to the tourist by
the tourism sector, it is the main aim to provide all the facilities to its customer and see that
they holidays are joyful and safe and they select same tourism agency when they travel again
(Su et al. 2017, p.109). Facilities like booking of hotels and payment of restaurant bill done
by credit card and debit card also, even the cash back option is also provided if they cancel
the tour and hotel booking. Hence, supply chain of the tourism sector manages to meet the
demand of the customers.
LO4: Understanding the impacts of tourism
4.1 Evaluation of the main positive and negative economic, environmental
and social impacts of tourism
The positive impact of the tourism on the society and environment are as follows, due to
growth of tourism industry the employment rate is increased it provide good career
opportunity for the fresher’s. It has provided approx a million job facilities to the candidate
directly and indirectly. Tourist safety and security criteria are fulfilled by the travel agency as
well as the government, tourist are treated with dignity, respect and in friendly manner (Kim
et al. 2015, p.21). Local people are cooperative and helpful to the tourist several plans and
initiative are taken to make tourist happy and satisfy in the journey. Tourists are also aware
about the safety, security and emergency contact number also. Mahadevan et al. (2016, p.78)
commented that exchange of culture, tradition, ethnicity is seen in the society in a positive
way. Even the government also take active role for the promotion of the tourism, pollution
control measures act and the government for promoting the tourism also infuses tourist
insurance policy and growth of revenue is also seen. It is also announced in 2012, that £12
million is spent on tourism for enhancement in the Great camping. Therefore, these are the
few positive impact of the tourism in the society.
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The negative impact of the tourism on society and environment are as follows, tourist does
not respect or know the values, culture and tradition in the country or place they are travelling
therefore, they are subject of discrimination especially in the religious place due to the
clothes and religion they are not allow to enter the holy place. Native people several time loot
the belongings, rape, murder and cheat the tourist badly which has created bad impression on
society and spoilt the name of the country. It is also noticed the crime rate against the tourist
has risen massively, discrimination behaviour is also seen based on ethnicity, religion and
colour (Kaján et al. 2015, p.311).
4.2 Explanation strategies that can be used to minimise the negative
impacts while maximising the positive impacts
Government as well the travel agency and international agency like World Tourism
Organisation, World Travel and Tourism Council are looking after the growth, drawback of
the travel and tour sector and building the strategies for successful uplifement of the tourism
and decease the problems faced by the tourist in the journey (Medina-Muñoz et al. 2016,
p.270). These agencies perform they work globally and keeps keen interest on the control of
pollution and environment uplifement. Steps are also taken by the local government to reduce
the negative and bad impression about tourism, the government maintains tourist right, strict
action is taken against the people who provided harm to the tourist, and even they are
subjected to imprisonment and penalties. Therefore, government as well as the travel
agencies are trying them best to reduce the negative impact of the tour and travel and enhance
them business (Sinclair-Maragh and Gursoy , 2015, p.143).
Travel and tourism sector is one of the fastest and growing businesses around the world; UK
government has taking many initiatives to encourage this industry more and more efficiently.
According to León and Araña (2016, p.283), tourism ministers meeting regarding host
tourism its regional visit to promote tourism, its main aim is to make better policy for the
travel and tour sector to grow more fluently. Transport facilities, infrastructure growth. A
pollution control measure has been furnished to create increase positive on society, equality
act is promoted, strict punishment is also given to who provide harm to the tourist, and they
are subject to imprisonment and heavy penalties.
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Conclusion
The travel and tourism organisation is one of the fastest growing industry, tourism sector is
promoted world widely, the international agencies of United Nation like World Tourism
Organisation, promote tourism business globally. Positive impact of the tourism sector is also
seen it has enhanced the economic growth of the tourism sector and country growth in
employment rate is clearly noticed. Government the travel agency and private sector taking
many initiatives to promote the business, strong supply chain of the tourism. It also managed
to fulfil the demand of its customer and minimised the negative impact of travel and tourism
sector.
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