Travel and Tourism Sector: Economic, Social, and Political Influences

This report provides a comprehensive overview of the travel and tourism sector, beginning with its historical development and evolution. It examines the sector's structure, including key components like travel planning, transport, accommodation, and local services. The report explores the roles of governments, government-sponsored bodies, and international agencies such as the UNWTO and OECD, in shaping the sector. It analyzes the influence of local and national economic policies, as well as the implications of political changes on tourism in different countries. The report further investigates factors affecting tourism demand and strategies for adjusting supply. It concludes by assessing the positive and negative economic, environmental, and social impacts of tourism, and proposes strategies to mitigate negative effects while maximizing benefits. The analysis includes the role of companies like TUI in the sector.

TRAVEL AND TOURISM
SECTOR

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................4
1.1 Key historical development in the travel and tourism sector................................................4
1.2 The structure of the travel and the tourism sector. ...............................................................5
TASK2.............................................................................................................................................6
2.1 Functions of the government, government-sponsored bodies and internation agencies in
the travel and the tourism............................................................................................................6
2.2 Local and national economic policy influences the success of the travel and the tourism
sector...........................................................................................................................................8
2.3 The implications of the political changes on the travel and the tourism sector in the
different countries.......................................................................................................................8
TASK3.............................................................................................................................................9
3.1 Factors affecting the tourism demand...................................................................................9
3.2 how can be the supply changed to meet the demand..........................................................10
TASK4 .........................................................................................................................................12
4.1 The main positive and negative economic, environmental and social impact of tourism.. 12
4.2 Strategies that can be used to minimise the negative impact while maximising the positive
impact........................................................................................................................................13
CONCLUTION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Travel and Tourism is one of the main industries of the world and this is the sector which
is contributing the 10 to 20% in the economy. This can be an example of that how much is the
travel and tourism is important in the world, all of the people likes to travel some travel for
business some for fun but all they are dependent on the travel and the tourism. Travel and
tourisms is an important part of their life of the people(Dickinson and Lumsdon., 2010). TUI
group (Touristik union international) is an multinational travel and tourism company this an
company which is spread all over the place it provides good facilities to the people so that they
can be able to be comfortable and they can be able to enjoy there tour. There are having the good
quality empire and they are having the best vehicles. In this topic the information about the TUI
is been given and the other more advantage and the other things are been defined in it.
TASK1
1.1 Key historical development in the travel and tourism sector.
In the travel and tourism history the people of ancient Rome they used to give out there
summer time in making tour of the countrysides and the coasts, so that was the time when the
travel and tourism come in the excess, in the medieval age the high interest in the pilgrimages
made the fast growth of the travel and tourism sector, as people like to see all such things.
 Visitors started to plan the tours and travels and along with that they made more facilities
with it like the staying and the eating facilities. And as all the facilities are been provided
by the owner made the travel and tourism sector more developed as the people is get
more facilities together at one place so they were started liking it.
 After many years in the 18th century the travel and tourism owners added the two more
facilities among that it was the culture and the health that encouraged the people to use
there services(Garín-Muñoz and Pérez-AmaraT., 2011). Afterwards the people those can
afford started to go the seaside and the spa, etc. places, and this made the benefit for the
British as it has the water springs and the fresh air.
 The things started growing the peoples started to go for the study tour to learn about the
sculptures and all and some of the people took interest in visiting the historical places so
like this the travel and tourism started growing more. After the more time in the
nineteenth century this is going little good but has it is been used by the limited people

only as because it is expensive for them, after that in the same era the commercial aircraft
had been start to take the passenger from any of the places and in the reasonable ticket
rates so this has been made the very much of the changes in the travel and tourism the
people are getting more attracted to that.
 The mass growth is been increased the numbers of the visitors, the extra growth of the
visors made the places popular, the main source which is behind this was the money. The
most popular destination was f ranch and the British. And there were earning very much
so by there earning figures it motivated the other countries to focus on there tourist sector
they were trying to make it good so that many of the people can come to there countries
also to visit. These all things are continuing like this and day by day as the population is
growing and the places are begin developing the people are taking more interest in the
travel and tourism places(Ghimire., 2013).
1.2 The structure of the travel and the tourism sector.
TUI is an travel and tourism company and it been spread all over the place of the country
and it has the very big role in there countries economy, the business of the other people is been
directly or indirectly is depended on the tourism company, so the tourism company is very
important for each and every business and for the people.

 Travel planning:- It is an package which is been made for the people by the organisation
so that they can be able to know about the company and about there plans which are
providing to the people. In the this the Agencies, travel agents and the tour operators are
been included.
 Transport:- Transport is the main source which provide the customers the services to go
from one place to the other. So that the customers can be able to visit the other places of
the country and can be able to enjoy and they can do the work for which they came there.
Airlines, shipping, rail, roads are the types of the transportation(Gössling., Hall.,
Peetersand Scot., 2010).
 Accommodation:- It is an service which is provided to the customers so that they can be
able to stay and can have there food, these things are been included in that packages. In
the accommodation the hotel, lodge, foods are been included.
 Local travels:- This is the facilities which are been provided for the customers so that if
they want to go to the places in the local area then they can be able to go. The local
travels are Buses, taxis, car.
 Food and shopping:- These are the facilities and the structure of the organisation in which
they provides the facilities of the shopping and the have the food which they want the
company already is having the contact with some the places they all then together work
as the one of these places are like shopping malls, food centres, etc.
 Tourists sits:- In this the local areas of the place which are been made for the tourist are
been included like the local tourist areas and many more.
TASK2
2.1 Functions of the government, government-sponsored bodies and internation agencies in the
travel and the tourism.
There are some points are there which can define this sentence.
 Role of governments- Government play a crucial role in tourism sector because every
government is represent there country's tourism they well know there environment and
culture. They try that every tourist feel happy and safe . so they provide security and safe
environment and try to save there money also (Guttentag., 2015). Because every
government know that tourist want cost effective trip so government provide good

accommodation in lower price but it is for limited time. They take decision regarding
taxes import on tourist visa facility et c because tourist are come from different different
countries so they are aware about visa facility provided to tourist. The government try
there best to make there place happening and glossary. So they order manciple
communities for cleaning and decoration. Manciple communities are working for
government.
 International agencies in travel and tourism- There are some agencies are there who
are sponsored by the government.
1- World tourism organisation (UNWTO)- It is most trustable and reliable organisation
every government and country support it for increase travel and tourism because organisation
have
common goal and mission to increase tourism. It make international ethics for tourism every
country follow it very well. The organisation working on common sustainable goals to reduce
poorness with the help of promote tourism in poor countries. It provide information and
guideline towards new development in tourism(Heung., Kucukustaand Song., 2010).
2- organisation for economic co-operation and development- It provide the policies for
improve the economic and social sector in all country. It provide a common stage for every
country to work together and try to solve the common problem regarding travel and tourism .
This organisation provide future data for tourism in every country. And what area of working
should need it for improvement.
3- Asia-pacific economic cooperation- It helping in administration of travel and tourism
it provide knowledge to every country regarding administration. The aim of this organisation is
that to develop the economy through tourism and try to improve the quality of tourism for
promoting it.
4- world travel and tourism council- It provide an common venture for head of tour
and travel organisation. They discuss with each other try to solve the major problem produce in
tourism sector all travelling organisation are leading and growing organisation of whole world.

2.2 Local and national economic policy influences the success of the travel and the tourism
sector.
Some time before the countries had been suffered from downturn and the GDP of the
country had been going down so the people are suffering from the problems reacted to the
decreasing of the economy, and the number of the tourist also decreased.
 When the change of the local policies had been done the UK government had controlled
the decreasing of the tourists, and it is done by the one of the key factor is the exchange
rate of the pounds. This was the strong rate of the money so that the foreign travellers
can be able to spend more money according to the other(Hudson and Thal., 2013).
 One of the other major issues which need to be discussed is that of the seasons . There
are some of the seasons when the there is the most busiest days for the travel and
tourisms. This is the sector which plays the important role in the increasing the economy
and the importance of the country so this sector is making many things better for the
government of the country, so that the government also plays the important role in
making the sector success because they know that this sector is doing very well for the
country and to the government.
 The travel and tourism sector use to work with the number of the government
departments so that they can be able to fulfil there requirements and can do the economy
better. So the TUI should be able to follow the policies and many things so that they can
be able to make there company grow fast and can provide the customers the good and
quality services, and they should be able to make the governments task fulfil.
 The government are also trying best to make the travel and tourism of there country so
that they can able to make there country better from the other and so that many peoples
and the tourist can be get attracted to the place so they are trying to make there country
look good and doing the efforts to make the tourists place better and more beautiful, so
the tourist can have many places to see in the place and can attract.
2.3 The implications of the political changes on the travel and the tourism sector in the different
countries.
Political change are very problematical for the each and every business, so like the others
the political changes also effect the TUI travel and the tourism sector it can make the huge effect
on the company, and the changes of like the fundamental changes in the politics can make the

cause of the fear in the societies or the country and that can effect the tourists they will also then
try to avoid the place for travelling(Leeand Brahmasrene., 2013). If there will be any political
changes come in the country of the tourist then it can also effect the tourist to visit the other
places, and that can effect the tourism industry and it can effect in there growth.
 Some of the issues can tell that what will be the the result it will fully depend on the
effect that customer is facing if it is high then there number will become less and if it is
low then there number will not decrease that much. The tourist likes to be free and they
would prefer to go the places where there is not much of safety or many of the formalities
are been done because they visits the places for the enjoyment and they do not want to
waste there time for doing any other things in completing the formalities. If the country
will decrease the formalities so that they will like to come at that place when ever they
want(Lejárragaand Walkenhors., 2010).
 The tourist like to go to the places where there are less legal boundaries and less
formalities to do and they can get proper security, there is the another major issue which
can come in that if the country is making the visa of the people in the tougher policies
then it can cause many problems for the people and they would not like to come at the
place. So these things can effect TUI in doing there business, they have to look after to all
these things so they should make many changes according to it and can provide the
customers the good opportunity and many more things.
TASK3
3.1 Factors affecting the tourism demand
There are many of the factors which can be able to effect the tourism company which
can make them to face the problems. Some of the factors which affects the demand of TUI
tourism as follow:
 Individual factor- Sometime people are not aware about the tourism place where it is
situated and is it nearby there homes and town. Sometimes people get influenced by there
friend and relatives they give advice because they already visited that place and people
who influenced are decide to visit the place(Lipmanand et,al., 2010). Income and
employment is also affect the tourism demand when people have money to spent on
tourism trip then they decide to visit the place if some people are unemployed and don't

have money to spent then they refuse the planing to visit the tourist place. Government
employees and multi national company employee are paid for visit the tourist place so
most of government and multi national company employee are decide to make a plan for
vocation and visiting tourist place.
 Economic factor- Sometime charges of travelling and vehicle are so expansive so people
get demotivated to visit the tourist place not even travelling charge but charges of hotel
rooms and products. When people visit hill area they see that the pricing of product are
very high because in that term the transportation cost is also include. So most of lower
middle class family refuse the planing of visit an tourist place(Mairand Jago., 2010).
 Climatic factor- We can also call it geographical factor because climate are come under
geographical factor. The climate of hill area and dry area are influence the tourist for visit
or not to visit. In month of July and august the hill areas are become rainy areas because
in that time the monsoon season is start and continue raining stop to tourist for visiting in
hill area.And also in month of may and June dry places are so warm and hot so tourist
refuse the plan for visit in dry tourist place.
 Destination factor- It is an very important factor demand of tourist will affect through it
attraction of tourist place . Promotion of tourist place the town area where it is situated is it safe
and secure for tourist and there family(.Moutinho. ed., 2011). what type of event and programs
are going over there . So these some activities are attract the tourist and every tourist like to visit
that place where they feel free and secure. and less formalities of travelling is also attract the
tourist because they want to feel free.
3.2 how can be the supply changed to meet the demand
There should be an supply chain which can help in doing TUI tourism there work
properly. The example of the supply of tourism, industry should be according to like as given
below.

 Hospitality- Every tourist like a good hospitality if the people of tourist place are
friendly and frank then tourist are decide to visit it any more and other hand people of
that place are not friendly and have bad behaviour then tourist are not visit that place in
next time it is also a loss of tourist industry hospitality must good for increase the demand
of tourism industry.
 The hospitality of hotels and resorts are also affect on tourism demand. If the staff of
hotel is good and courtier and the service of hotel is also well vice versa. Then tourist feel
happy and want to visit again and again most of government organisation built hotels and
resort for tourist(Narayan and et,al., 2010).
 Tour guides- tour guides play a main role in tourism supply they are responsible to give
every information of tourist place and monuments situated in tourist place tourist guides
are give advice for booking the hotels and travelling an driver is always work with guide
for travelling around the place. Driver are come from tour and travel firm who also
contacted with guide driver also have good knowledge of place. Because he always
travelling around any time. So here guide play a big role in supply.
 Tour operator- he is responsible for planning and conducting a travelling trip for tourist.
He is responsible for deciding to choose a hotel,venue etc. and he decide to check in and

check out time for tourist he have a plan to visit many-many places and
destination(Papatheodorou., Rosselló and Xiao., 2010). So all trip are depend upon tour
operator in today scenario most of the tour and travel company are working professionally
they all are digital and make presence in e commerce line . They work very well and most
of the tourist get satisfaction and with the help of them the tourist decide to revisit .
 Transportation- It also play a big role in tourism supply people want to travel safe and
secure and travel agency has to decide what type of transportation are provide to tourist it is
also depend upon the income and buying power of tourist an AC buses and cabs are more
costly as compare as normal transportation vehicle so it depend upon tourist what he select.
TASK4
4.1 The main positive and negative economic, environmental and social impact of tourism.
In the TUI tourism there are many positive, negative economic, environmental, and the
social which matters in the tourism company, they have to see the things and follow some the
instructions and the plans so that they can overcome the problems(Perch-Nielsen., Sesarticand
Stucki., 2010). Some of the impacts which are faced by the TUI travels and tourism are:-
Social and the cultural impacts on the tourism:
Positive Impacts-
 The benefits for the people of the local community is that they can get to know and meet
new peoples and can get to know about the different types of background and the
different types of lifestyles and it can help the other to practise or to manage the and
improve there lifestyle.
 By improvement and increasing of the infrastructure it can help the local people to get
educations and the employment, etc. so this can help the people who are living there.
 It gives the conversations of the local culture and t he heritage of the place and that can
make the help for the people to learn more things about there country.
 Tourism gives the best opportunity to the people who are residing there to show the
exhibition, events related to there culture(Ramayah., Lee and In, J.B.C., 2011).
 The tourism can help to increase the youth exchange.
Negative Impact-

 The infrastructure of the country may have to suffer or has to face some of the problems
due to the increasing of the number of the people and many more things are getting
increased by the increase of the peoples.
 The people who are residing in the country may have to deal with the tourists who may
interfere in the local peoples lifestyles.
 There is more issues like increasing of number of the tourist can also become problematic
like the theft and crimes can be increased has mainly because the local people thinks the
tourist as the rich people.
 The tourism make the gap between the locals and the tourists as because there language
are different and they can have the communication issues(Ritchie., Amaya Molinarand
Frechtling., 2010).
Economic impact:
Positive impact- It is beneficial for the country to become popular as the tourist place as because
it may help in the country and the people and it can increase the income of the country and that
will be more beneficial for the country to make the more development in there place and can
increase and develop the tourist places.
 They can make use of that income in many things and in betterment of there lifestyles. As
there are many different tourist comes from the different places so the tourism company
will get the currencies which will help them to make use in the future and in increasing
the economy(Scott., Peetersand Gössling, 2010). The tourism company helps in
increasing the cultural places, hotels, banks, and much more things, they provides the
many opportunity for the locals to earn.
Negative impact- the employment of the youth can be disturbed in it due to the seasonal,
because the work which is related to the tourism is may be for temporary because it will run
when more tourist will visit the place and the tourists does not come in very time they do have
the time to visit so that can make effect on the work of the locals they will be unemployed in the
non seasonal time.
4.2 Strategies that can be used to minimise the negative impact while maximising the positive
impact.
There are many strategies to use in minimising the negative impact of the TUI tourism,
some the strategies are as follows: