Travel and Tourism Sector: Demand, Supply and Economic Impact

This report provides a comprehensive analysis of the travel and tourism sector, focusing on key factors influencing its dynamics. It examines the implications of political changes on tourism, analyzing how political stability and leadership impact tourist inflows and infrastructure development. The report further explores the factors that influence demand in the travel and tourism industry, such as price, quality, climate, and transportation facilities, and discusses how supply-side factors, including infrastructure, service quality, and product variety, affect the industry's ability to meet demand. The report also evaluates the economic, social, and environmental impacts of tourism activities, both positive and negative, with a specific focus on TUI's operations in Greece and Turkey, and provides insights into how TUI can mitigate negative impacts and enhance positive contributions to these destinations. Desklib provides more solved assignments and study resources for students.

Travel and Tourism Sector

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................3
TASK 3............................................................................................................................................3
3.1................................................................................................................................................3
3.2................................................................................................................................................4
TASK 4............................................................................................................................................5
4.1................................................................................................................................................5
4.2................................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Travel and tourism is one of the famous and popular activity among the people. It is with
the evaluation of time only that many travel activities have been carried in a country. As these
activities have been prevailing in the country more development have been carried. It is very
important for the country to generate travel activity as it incurred economy in the country. It is
very important for a country to generate economy by external methods of which travel is the
most suitable one. Many foreign traveller visit country to see the beauty of that place which shall
generate all the tourism activity.(Becker, 2016.) In order to secure such tourism activity
government has implemented certain regulation which shall protect the interest of tourist. The
following project has aim for reflecting all the various aspects of tourism, its evolution and
norms related to travel and tourism. The project shall also show the current structure of travel
and tourism structure and all external and internal factors which shall effect the activity carried
out in tourism.
TASK 1
Covered in poster
TASK 2
2.1 and 2.2 covered in PPT
2.3
Implication of Political change in travel and tourism.
Political change can either increase or decrease the attractiveness for tourism in country. In a
different country there are different political situation which affects tourism accordingly. There
are political leaders who promote their individual ideas and they can bring changes in tourism
industry by introducing the new reforms such as regulatory changes in sourcing of raw material
in within the country and complete abandoning of tax exemptions. For example in Thailand
when political unrest enhanced than there is fall in number of visitors from different country
because no one like to visit in such country where there is no security. Likewise, when the
political condition is calm and smooth the large number of tourist like to visit their because they
are sure of their safety in another country. Moreover, when good political leader take governance

in their hand then they focus on building travel infrastructure and making good road safety etc.
so that more tourist can be attracted in their country.
Government plays a very important role for any kind of ruling or running of the activity
as several policies and and regulations have been established in context to that activity that is
why a political system is very important for running of any activity. While talking about
activities carried out by travel and tourism sector, political change has played a very important
role. When a prevailing government change by another, it is a probability that several changes
has been made in the policies also by which either advantages or disadvantages can incurred.
Political changes increase and decrease attractiveness of country for tourist it is depend
on what the changes occur. Political is important factor in any market because political decision
by power covers the affect the tourism industry of counttry. For example in Spain tourism boom
and also influences by a government intervention which make strict rule and regulation for
tourism industry. In intervention the most important aspect is that control over price of
accommodation. There are many rules and regulation made by government influence the tourism
activity. On the other hand in Asia tourism it is noticed that government become a political
bridge
TASK 3
3.1
An activity of a particular industry shall only be raised and conducted when there is a
increase in the demand.(Evans, Stonehouse, Campbell, 2012.) Talking in context of travel and
tourism industries it is very important to increase the demand because when a travel and tourism
activity shall not be conducted by the country then economy shall not be generated by which
financial factors remain unstable New manager of TUI group while working on travel and
tourism, shall consider few factor for the increase in demand of travel and tourism. Those are-
Price- it is very important for travel and tourism industry to determine the price of the particular
service they have been providing. Price shall be in such a nature that it became an easy
affordable matter for the tourist. All the facilities which have been provided by the travelling
agencies like food, accommodation facility, transport facility will be in affordable price. Even

the packages which have been introduced by agencies should fit I the pocket of tourist. If tourist
will be able to afford the services, the demand of tourism shall increase.
Quality- quality is a very important factor which will lead towards the raise of demand in any
service. (Xiang, Magnini, Fesenmaier, 2015.)If a quality service have been provided to the
tourist in terms of travel then a point of satisfaction shall be attained by customer by which they
will avail the services again and again. If there will be no quality in food accommodation or
transport then interest shall be shifted for tourism and demand will decrease.
Changes in weather or climate- there are some of the places all over the world which is well
known for visiting in a particular season or Climate. (Sirgy, Uysal, 2016)For an example there
are some of the places in India which can be visited in winters only. That is a particular climate
of weather can increase in the demand of tourist activity as every tourist wants to see the beauty
of a particular place and there are various places like in Europe who are favourable to visit in
particular seasonal
Transportation Facilities- a demand of tourism will increase when all the facilities have been
provided by the agencies or the travel and tourism industry of which transportation in one of the
most important facility. (Thakran, Verma, 2013.)For travelling from one place to another a
transportation is much needed factor and when proper transportation has been provided to
traveller it became easy to approach places. Transportation facility is the much needed facility by
which demand off tourism will increase.
3.2
The major factor which can effect demand of a particular activity is the supply of service.
If the supply has not increase or given in proper manner then it shall effect the demand too. for
an example if the services of food, accommodation, transportation has not been provided
adequately then demand of such tourism shall decrease so there are certain factors which is to be
included while in the supply in order to met the effect of demand or simply demand. The relation
between the goods or services which have been provided to consumer with price known as
supply relation so it is very important if a industry wants to met the effect of demand then it
should focus on the supply of services and its price in the market. Various changes which have
been brought by TUI group in order to meet effect of demand are:-
Infrastructure- a proper managed infrastructure has been built for the tourist for an example there
have been new roads built so that travelling from one place to another by road will be a simple

job for tourist.(Wang, D.Xiang, 2012.) Attractive hotels have been made with ample of
amenities so that consumer shall be satisfied from the services supplied.
Supply in channelised form- supply of each and every services have been provided in a
channelised form by which every person shall get or avail all the services which have been
provided by travel and tourism industry.
Quality- in raise to the demand of the travel sector, it is very important that such sector shall
improve the quality so that demand will increase.
Types of product- it has been seen that if variety of product is provided by the travel and the
sector then the demand will increase
Service- to raise the demand of the sector, it is very important that service shall be provided in a
better manner and which will give consumer satisfaction.
Accommodation- proper and suitable accommodation shall be provided of which consumer
demands. TUI group has made this consideration on their part that all those tourists who have
been visiting UK or any other country shall get proper amenities thy have desired for. If a
consumer is satisfied from the services then demand of any product or service shall get increase.
Equilibrium is the point where a supply meets demand that is when supply and demand has been
raised in equal ratio, a point formed called equilibrium in which supply as well as ratio are found
in same ratio. Which means there is no surplus of goods and no shortage of any kind of services.
When all the facilities related to travel and tourism shall be provided in such a manner that there
shall be no surplus or shortage then supply can meet demand for TUI group.(Buhalis, Foerste,
2013.)
TASK 4
4.1
There are several factors who are responsible for the impact on travel and tourism activity
in context to the concentrated activities of TUI in two of its leading places named Greek and
Turkey. But such impact by various factors could be either positive or negative. The factors
which shall impact upon the travel and tourism activities are economic, environmental, and
social (Lo, Mak, Chen, 2014. )
Positive impact of economic factor- the major economic impact of travel and tourism is that
every activity of travel and tourism whether it has been conducted nationally or internationally, it

will generate economy to the country. If economy has been generated in a country then various
other financial factors be get stabled. National and international tourism shall also helps in
increasing GDPI of a country. As a result to which TUI with their impelling practices will
largely contribute in enhancing the economic stipulation of Greece and Turkey.
Positive impact in social factor- by the business of travel and tourism in within various countries,
a socialisation shall be increased. People who belong to another country, when visit any other
country they will get to know the culture and environment by which there shall be an exchange
of culture within the country. Such will help a country as well its people to understand what a
culture has been prevailed by a particular country (Wilks, Stephen, Moore, 2013). TUI is
therefore encouraging such eminent factors in both locations of Turkey and Greek where both
their localities and visitors are herein supposed to respect one other's distinct set of cultures.
Positive impact of environment factor- by the regulation of travel and tourism activity
environment shall get effected. A blissful environment shall be prevailed by different tourism
activity. There shall be preservation of historical monuments so that tourist can visit and seem
them. The environment shall sustain in clean air. TUI with a similar reference to which is hereby
required to adopt some friendly means of transportation that will support low pollution schemes
and hence frame a considerable surrounding in Greek and Turkey.
Negative Impact of Economic factor- not everyone can afford tourism. Its is not possible for
every class of person to afford an international tourism by which some countries who are wholly
dependent upon international tourism shall not be able to attain economic growth. Another
negative impact of international tourism is that economy shall be generated to other country not
in residence by which there shall be non economic growth from residence (Boley, Magnini,
Tuten, 2013). Turkey is greatly known for its affordable services with a slight distinct conception
of Greek that has high priced services. In context to which, TUI can hereby refer to frame
distinct tour packages to support both parties who may or may not afford expensive packages of
touring.
Negative Impact of Social factor- In some of the countries, tourism shall not be accepted
socially. People shall feel insecure while visiting to another country because there are no such
norms for security of tourists. It has been seen in North Korea that females or the general public
is not allowed to talk to any unknown person and if a tourist wants to seek help, nothing can be
done. Some of the tourist are of such behaviour that pollute the environment (Law, Xiang, 2013).

It is where all people are not supposed to encourage one other's distinct set of views that is
mainly due to a divergent religion of individuals where they adopt different practices.
Negative impact of environmental factor- trash has been generated by tourist which can bee seen
on roads. There are some tourists who disturb the natural beauty by which environment get
disturbed. Both elected tour destinations Greek and Turkey are hereby with strict norms to
maintain the decorum state of their surroundings. TUI with an analogous reference to it should
hereby outlook a well considerable plan to obviate any possible occurrence of pollution in the
environment.
4.2
When a strategies has been applied to travel and tourism activity for attaining advantage,
then it shall automatically maximize the positive aspect and minimise the negative aspect of
travel and tourism activity. The various strategies which shall be adopted by TUI group in order
to maximize it positive aspect and minimize its negative aspect are as follows:-
Laws can be made- activity which have been carried out in context of travel and tourism is a very
important kind of activity as it will generate economy for the government and the country. It is
very important to apply certain rules and regulation for travel and tourism in order to protect the
rights and interest of a tourists.(Stone, Duffy, 2015.) A strategies have to be followed by the
travel and tourism industry for the application of various norms in their activity. This implication
shall maximise the positive impact of tourism and decrease the negative impact. This is basically
in correspondence to refer to the well defined laws of tourism in Greek and Turkey where TUI
should make a primary analysis of it and include its clear mentioning in their brochures.
Strategies with regard to quality- company shall use such strategies which will increase quality in
the service of travel and tourism. If a quality has been served to customer then satisfaction level
shall be attained by them by which tourism activity shall be promoted. It is very important for all
the group and TUI to inculcate quality service in travel and tourism activity. This will increase
the positive impact of tourism in both referred destinations of Greek and Turkey (Rakic, 2016).
Strategies of national and national tourism- TUI group should introduced certain strategies which
will promote national as well as international tourism in its elected destinations of Greek and
Turkey. When a national and international tourism has been prevailed in the country, it shall
generate economy by which a financial stability can be brought within the country. Besides that

culture exchange shall also be seen by national and international trade. Exchange of culture shall
enable a social environment in the country.
Hence, it can be concluded that there are many strategies present in the market which shall
impact and maximise positivity of travel and tourism and when a positive impact have been
maximize it is a very well known fact that negativity of that particular activity shall be minimize
automatically.(Lee, Brahmasrene, 2013.)
CONCLUSION
It can be concluded from the above project that travel and tourism has been one of the
important activity for every country. By the regulation of travel and tourism, a country shall be
able to generate its economy. The project report has been started from the historical development
of travel and tourism which will include that what were were the initial; stage of tourism and
how the development and changes started taking place in travel and tourism industry. Besides
that, project also describe several factors which are responsible for the increase in the demand of
travel and tourism activity. Report had highlighted a major part of industry that is structure of
travel and tourism activity. It is very important to understand that in what structure a travel and
tourism sector works. The project also explains several factors and reason by which supply can
meet effect of demand.

REFERENCES
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