Travel & Tourism Sector: Government Influence and TUI Group Impacts

This report provides a comprehensive analysis of the travel and tourism sector, focusing on key historical developments, the structure of the industry, and the influence of local, national governments, and international agencies. It examines how government policies impact the success of the sector and discusses the implications of political change on tourism in different countries. The report also explores the effects of supply and demand, with a specific focus on factors affecting tourism demand and how TUI Group has adapted to these changes. Furthermore, it evaluates the economic, environmental, and social impacts of tourism, using TUI Group as a case study, and suggests strategies to minimize negative impacts while maximizing positive outcomes. The report concludes by summarizing the key findings and their implications for the travel and tourism industry.

TRAVEL AND TOURISM SECTOR
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Table of Contents
Introduction......................................................................................................................................4
Task 1 (LO1, AC1.1, 1.2, M1, M2, M3, D1, D2, D3).....................................................................5
LO1. Understand the history and structure of the travel and tourism sector...................................5
1.1 – Explain key historical developments in the travel and tourism sector...........................5
1.2 – Explain the structure of the travel and tourism sector...................................................5
Task 2 (LO2, AC2.1, 2.2, 2.3, M1, M2, M3, D1, D2, D3)..............................................................6
LO2 Understand the influence of local and national governments and international agencies on
the travel and tourism sector........................................................................................................6
2.1. Analyze the function of government, government sponsored bodies and international
agencies in travel and tourism.....................................................................................................6
2.2. Explain how local and national economic policy influences the success of the travel and
tourism sector...............................................................................................................................7
2.3. Discuss the implications of political change on the travel and tourism sector in different
countries.......................................................................................................................................7
Task 3 (LO3, AC3.1, 3.2, 3.3, M1, M2, M3, D1, D2, D3)..............................................................8
LO 3 Understand the effects of supply and demand on the travel and tourism sector....................8
3.1- Explain factors affecting tourism demand............................................................................8
3.2- Explain how supply has changed at TUI Group to meet the effects of demand..................9
Task 4 (LO1, AC4.1, 4.2, M1, M2, M3, D1, D2, D3)...................................................................10
LO4. Understand the impacts of tourism.......................................................................................10
4.1 – Evaluate the main positive and negative economic, environmental and social impacts of
tourism with reference to TUI Group businesses......................................................................10

4.2 - Explain strategies that can be used to minimise the negative impacts while maximising
the positive impacts for example on TUI Group businesses.....................................................11
Conclusion.....................................................................................................................................13
Reference List................................................................................................................................14

Introduction
Travel is a no separable part of human life. It cannot be differentiate from one’s own life.
Everybody wants to travel locally, nationally or internationally. Though people like to travel for
that reason the tourism industry now get high rate of benefit from this business, so they make
travel a profitable business and for that reason, they try to provide their full effort within that
industry for the up gradation and development of this industry. This project is about travel and
tourism sector. That means by this project one can get clear idea about what is travel and
relationship of travel with tourism and concept of travel and tourism industry.

Task 1 (LO1, AC1.1, 1.2, M1, M2, M3, D1, D2, D3)
LO1. Understand the history and structure of the travel and tourism sector
1.1 – Explain key historical developments in the travel and tourism sector
Every people like to travel throughout the world. They like it only because of they want to get
relief from day to day stress of life. From the time of mid of the last century, these industries try
to put a landmark in the business and industrial sector. For that purpose, they put their effort for
getting the best result from it. The changing behavior of human support and encourage this kind
of industry for own purpose. Now tourism not only for providing the travel and accommodation,
but also support the client and give them proper service and explore new world in front of the
tourists. Previously in tourism there was only provision for transportation of goods and service.
Now this tourism industry faces a serious kind of hurdle and only by implementing strategies of
that sector (Moutinho et al., 2018). Different kinds of factor are also responsible for the interest
lacking of this industry in the competitive market. Present scenario of this industry is wide range
of prospect. Depending on this industry, other kinds of industry also develop their field. In the
field of marketing sector, this industry done well and by the improvement of this industry the
problem of unemployment has been solved. Top-level managerial performance drives this
industry more smoothly. Administration sector have been working for solving the problem
relating to this industry. Keeping these factors important one cannot forget about the
governmental or legal importance in this industry. This is very crucial point because the total
business depends upon the government policy, rules and regulations of a country (Elbaz et al.,
2018).
1.2 – Explain the structure of the travel and tourism sector.
There are various kinds of ancillary business relating to the travel and tourism industry, and all
of them have same importance for developing the sector of tourism. First, it should discuss about
the transportation and traveling sector. Transportation is the essential factor of this industry.
Without this factor, the total importance of this industry will be zero. Then traveling sector,
which includes traveling from one place to another place with comfort and food and lodging.
Other sector is also involved in this sector and provides their goods and service as a part of this

industry (Elbaz and Haddoud, 2017). By issuing passport, visa and in many cases by notification
government done a good job for the structural development of this industry. Unless the
implementation of these national and international principles by the government tourism never
gets this, flourish nature.
Task 2 (LO2, AC2.1, 2.2, 2.3, M1, M2, M3, D1, D2, D3)
LO2 Understand the influence of local and national governments and international
agencies on the travel and tourism sector
2.1. Analyze the function of government, government sponsored bodies and international
agencies in travel and tourism.
The advancement of modern technology and different kind of administrative technique the travel
and tourism industry develop day by day. But one thing in this context must be considered that
local and national governmental influences get the path of this industry more smooth. Unless
their immense support to this industry it would not be possible for the travel and tourism
industry. The local and national governmental by implementing new policies relating to this
industry try to flourish this industry. For the development of this industry, the government makes
the transportation system easier for the benefit of the tourists (Nurse et al., 2017).
Their policy implementation regarding the travel and tourism sector attracts tourists and they
encourage local authorities to do proper developmental work with national government for the
development of the nation. This kind of development brings the economic and statistical stability
of the nation. The national economic stability gets the local persons of the tourist place extra
benefit and encourage them to serve more service that is efficient to the tourists. Governmental
policy relating to the travel and tourism is not only for the purpose of the development of this
industry but for the purpose of the development of the nation thoroughly and keep that
developmental work continuous in nature government take necessary steps (Borg, 2017).
Implementation of governmental policies in the sector of travel and tourism the national and
local government display their natural treasure in front of the national as well as international
tourists. Development of this industry put an impact on the social and cultural lifestyle of the
nation. This is happen because by the up gradation of this industry, people go from one place to

another place and side by side, they interact with the local publics, which help them of
interchanging the concept and idea of one and another. Social and cultural lifestyle interchanging
make diversity within the nation. People of one part of the nation know about people of another
part very well by the help of the travel and tourism industry. This is not only happening within
the nation however also throughout the world (Khan et al., 2017). Governmental recognition and
with the help of the foreign travel and tourism agencies people from one country go to another
country.
2.2. Explain how local and national economic policy influences the success of the travel and
tourism sector.
The economic policy of local and national government has a great impact over the travel and
tourism sector. Unless the proper policy of government no industry could survive. For that
reason, governmental policies relating to this sector not only help this sector for raising their
fund but also get the nation an economic stability. Government implements this economic policy
for the up gradation of the local people and for the development of the nation, which indirectly
help the industry of travel and tourism. Policy relating to the economic structure of the nation by
the government is not only the implementation of policy but their many others issue considered
by the government for the benefit of this industry (Sharples and Marcon-Clarke, 2017). These are
like immigration related policy. At the time of implementing this kind of policy government,
consider various criteria relating to the person who want to travel from one country to another
country. The one policy is that taxation policy. This is the most important for a government to
raise the fund for the development of the nation as well as other sectors of the nation like
agriculture; industry etc. without levying proper taxation the government cannot improve the
structure of this industry. To carry out this industry in sound condition government must
implement proper policy for the collection of tax. This will help the government for the
development of the local people who have been ignored before the development of this industry
(Hsu, 2017). If government implements proper policy relating to the economy, statistics and
management then the government will get proper fund for the development of the nation.

2.3. Discuss the implications of political change on the travel and tourism sector in different
countries.
Political status of a state is always differing from one state to another state. Political aspect of a
state influences the industry of travel and tourism. Political scenario most of the case
determining factor of the governmental nature of a state. For that, reason the legal background of
the state is totally depends upon the political change. If the political aspect of a state is very
much considerable for the industry of travel and tourism then it would not be difficult for that
state to grow their tourism industry. However, if any of the state is very much orthodox in nature
then it would amount a great loss for the state in the travel and tourism industry (Tse and
Prideaux, 2017). For example, the effect of political structure of Libya they do not get the benefit
of this tourism industry. Tourist for this state must have their passport and visa with Arabic
consent. In addition, for this purpose those who can manage this visa with Arabic recognition
can travel to Libya. Otherwise it never possible for them. This political impact is nothing else but
to show the power of the political impact of that state. States like USA have their political impact
over their displaying of power but they never implement it on the industry of travel and tourism.
In most of the case the government of that state do not disclose the political impact in front of the
outsiders but sometimes they cannot control over it and then it would get hamper the profit of
tourism business. Political agenda of a state must be in nature that it would never hamper the life
of the citizen of the nation as well as the outsides that is the tourists. If the tourists do not get
satisfied from the experience of travel then there will be get a negative impact over the industry
of travel and tourism (Armenski et al., 2018).
Task 3 (LO3, AC3.1, 3.2, 3.3, M1, M2, M3, D1, D2, D3)
LO 3 Understand the effects of supply and demand on the travel and tourism sector
3.1- Explain factors affecting tourism demand
A demand in the field of tourism industry has a great impact over the development of the travel
and tourism industry. Day to day stressful life of a person wants to get relief from the stress. He
then wants to go anywhere in the world. Travel and tourism industry is based on this principal to
give the distress person relief from the distresses. This is one of the most important factors which

regulating the high demand of the travel and tourism industry. The travel and tourism industry
must give them proper service for the benefit of the industry. If any tourist gets proper service
then it would be a great fortune for the travel and tourism industry. In most of the case the main
factor that motivated a person for travel are like enjoyment with near and dear one or a solo trip
(Veal, 2017). To communicate and get together with friends and relatives is also a part of travel
and tourism. Professional and business purpose many people travel from one place to another.
Travel and tourism is also for the purpose of physical and mental peace of person. Therefore, for
the development of physical or for the purpose of physical treatment one can travel from one
place to another. Mental health may be disturbed in many times. Travel is one of the best
medicines for that illness. Travel to a new place can heal all kind of mental trauma. Educational
purpose is one of the major parts of tourism. In most of the time, tourism can help to spread the
social, cultural and moral values throughout the nations and worldwide. By the path of tourism
the hidden educational treasure, disclose in front of the world. Education is the purpose for
which travel to anywhere may be unrestricted. An educational value of every state has been
shared by the way of travel and tourism industry. For that, reason globetrotters from different
state travel one state to another state. Religious purpose is one of the integral factors. Pilgrimage
is a part of travel (Sheehan et al., 2018). By the way of pilgrimage moral values of a person
developed. Pilgrims share their experience about their spiritual belief and thoughts. This helps
one nation to develop their people within a spiritual field. Moreover, this would help to get rid of
from the different kinds of mental sickness.
3.2- Explain how supply has changed at TUI Group to meet the effects of demand
The help of the local and national government have developed tourism supply. Until and unless
the government take initiatives for the development of the supply for the industry of travel and
tourism it would never get possible for the industry of travel and tourism to flourish properly.
Government must take initiative for the fulfillment of the supply in the tourism sector. There are
many states, which based their economy on the business of travel and tourism. Proper
maintenance, administration and management of this sector in that state get the state a proper
beneficial structure. Government must promote the business of travel and tourism (Moutinho et
al., 2018).

The resources of this travel and tourism industry start from nature to manmade and finish at
technology-based infrastructure. Natural resources are those, which get in nature and proper
maintenance of these resources the travel, and tourism industry can get benefit from it. Manmade
resources are those, which cherish by the local people of that tourist place. Tourist can get
information from the local people for the natural resources as well as manmade resources
(Sharples and Marcon-Clarke, 2017). Man made resources is considered the most important part
to get financial support for the local people. Whatever they made by their own resources they try
to convince the tourist to buy their product as a souvenir from that tourist place. In most of the
time tourist, buy those products not as a memory but to felicitate the local public for their best
service.
Modern technology in the field of resources of travel and tourism are new concept within this
ambit. Social networking is now very much strong to share one’s own comment. If the travel and
tourism industry properly utilized these resources then it would be not only beneficial but open a
new path for that sector. In modern time, everyone wants to share his own view by social
networking system. Utilizing this field the travel and tourism industry get reached to the home of
every person who wants to lake travel from one place to another place. It is a best way for
advertise their main theme of their travel and tourism service. Through the technology-based
program tourist can get information about the service of the travel and tourism industry, and they
can easily assess the quality of the service of the industry (Giaoutzi, 2017).
Task 4 (LO1, AC4.1, 4.2, M1, M2, M3, D1, D2, D3)
LO4. Understand the impacts of tourism
4.1 – Evaluate the main positive and negative economic, environmental and social impacts
of tourism with reference to TUI Group businesses
The impact of economic, environmental and social criteria over the main theme of tourism can
be classified broadly. All the factors are differing from one place to another. Due to the different
status of the different tourist places these criteria also changing their characteristic features.
Economic impact of travel and tourism industry cannot be defined properly only because of the
impact of economic aspect of travel and tourism industry over the development of the nation and

the total growth of the financial structure of the nation in a large volume. The travel and tourism
industry solve many of the major problems of the nation. Problems related to unemployment
have been solved by the proper development of the travel and tourism industry. There are other
major issue relating to revenue gain of the state for the development of the nation has been
solved the implementation of governmental policy regarding collection of revenue and tax (Page
et al., 2017). Environmental impact of travel and tourism industry has been defined by the
conservation and maintains the natural resources in proper systematic way. Natural resources
have a large impact over the travel and tourism industry. Most of the time tourists attract by the
natural beauty of the tourist place. For that purpose the travel and tourism industry as well as
government must maintain that natural resources. The level of the lifestyle of the people of that
tourist place develops by the environmental impact of travel and tourism sector. State
government must ensure the proper protection and maintenance of those environmental resources
(Vanhove, 2017). Social impact of the travel and tourism sector cannot define without the
cultural impact of the travel and tourism industry. Therefore, the social and cultural impact of the
travel and tourism sector has developed the relationship among the people. The impact of social
and cultural factor increases the moral and equitable value within the society. Tourist from one
place to another place travel along with their moral values. By interacting with the local people
of that place, he shares his lifetime experience and moral esthetics (Cater, 2017). Getting
knowledge from that person’s the people of other place may try to implement in their social life
for the up gradation of their lifestyle and moral values.
4.2 - Explain strategies that can be used to minimise the negative impacts while maximising
the positive impacts for example on TUI Group businesses.
Strategy for minimizing the negative impact automatically increases the positive impact of the
travel and tourism sector. Governmental initiative must be needed for that purpose. Proper policy
implementation can be minimizing the negative impact of travel and tourism industry. Utilization
of resources, proper administration of that resources oriented program and maintenance of those
resources with proper systematic way may be minimize the impact of negative approaches.
Waste management program by the government is one of those initiatives (Raza et al., 2017).
Monitoring system must be work properly and government must be maintaining that monitoring
system regularly. Strategy oriented program always have positive impact over the industrial
development of a nation. The effective resources should fill up the deficiency, which may occur

in many times. Not only the government but also the travel and tourism industry itself has to
maintain proper management for the development of this sector, which indirectly minimize the
negative impact and maximize the positive impact of that industry. In most of the cases if there is
any kind of deficiency then the industry can get help from any other industry or agency who
wants to help them for their development (Wilkinson, 2017). One thing must be mentioned
without this total impact of this project will worthless that is everyone must work together.