Report on the Travel and Tourism Sector and Visit Scotland

This report provides a comprehensive analysis of the travel and tourism sector, with a particular focus on the role of Visit Scotland. It begins with an introduction that highlights the sector's importance and the impact of globalization. The report then delves into the key historical developments, the structure of the sector, and the functions of government and its bodies in the industry. It examines the influence of local and national economic policies, as well as the implications of political changes on tourism. The report further explores factors affecting tourism demand and supply, and discusses both the positive and negative impacts of various factors. Finally, it outlines strategies for mitigating negative effects and enhancing positive outcomes within the travel and tourism sector. The report covers various aspects like historical development, government policies, economic impacts, and political changes, providing a well-rounded overview of the industry.

The Travel and tourism sector

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Key historical development in travel and tourism sector......................................................1
1.2 Structure of the travel and tourism sector.............................................................................2
TASK 2............................................................................................................................................3
2.1 Functioning of government and its bodies in tour and travelling industry...........................3
2.2 Influence of local and national economic policy on success of travel and tourism..............3
2.3 Discussing implication of political change on travel and tourism sector..............................4
TASK 3............................................................................................................................................5
3.1 Factors affecting tourism demand.........................................................................................5
3.2 Supply factor by organisation to meet effect of demand.....................................................6
TASK 4............................................................................................................................................7
4.1 Positive and negative impacts of different factors................................................................7
4.2 Strategies for decreasing negative and increasing positive effects of tourism......................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Travel and tourism sector is wide in nature and contributing huge in developing of
economy. In the early time people are not aware about destinations which is popular in abroad so
they travel at local places near to them. After globalisation people get knowledge about
destination places and they start travelling around they world. Globalisation play important role
in development of travel and tourism sector (Evans, Stonehouse and Campbell, 2012). This is an
essential and effective step which assist in development of economy. The assignment is based on
Visit Scotland company which is organisation of travel and tourism. This project assist in
understanding topic related to historical development as well impact of government of the same
industry is also covered. Apart from this economic policies related to local and national and its
effect on demand and supply is also discussed.
TASK 1
1.1 Key historical development in travel and tourism sector
In 1945, employment is generated mainly with the help of agriculture for every individual
person. But in this period, mainly elite people use the optimised travelling luxury for moving one
place to another. industrialisation is giving major negative impact on this segment they are using
holiday packages more. Because at that time tour operators, travel agents and hotels are working
separately. At that time many of the organisations are facing problems because of world war
because of that no one is delivering attention to the economical situation of company.
Between 1945-1979, several significant changes occur in travel and tourism industry is
that it gain maximum growth in specific period of time. Hotels are focusing on needs and
demands of customers and start providing several exotics and existing plan for different income
group travellers. Operators are those who is offering travelling services related to bus, railways,
airlines along with this provide travelling insurance facility also (Ghimire, 2013).
Before 1980, peoples are spending their free time as well hard earned more in travelling by using
holiday packages offering by several travel and tourism company. After technological
development in this industry, it reach up to its new height. Latest technology make work more
easy and also reduce cost of operations. Travel and tourism activities help in development of
economy and also in raising standard of population of United Kingdom.
1

In the recent era, this sector is playing important role in nations economic development
by providing employment opportunities to the people who are more included in such activities
like travelling agent, business guide etc. organisation like Visit Scotland is offering entire
services related to travel and tourism such as transportation, accommodation, food and several
other. Now a days youth are founding their career in tourism sector thus there are several people
who are visiting more then one destination in a year (Zapata and Hall, 2012).
1.2 Structure of the travel and tourism sector
Travel and tourism sector structure is complicated in according to the diverse
geographical region. The structure varies as per the location, region, state and country. This is
completely dependent on the travel arrangement of the specific country or nations to the other
nations. Many countries attracts the tourists with some natural tourist places and artificial places
attractions, artificial attractions are the man made attraction which are basically a constructed
with the aim to fetch the tourist attention. There are various factors which needed to improve as
possible cause until that factors will not improved the structure of travel and a tourism cannot be
developed very well. Scotland is a beautiful country where people fly to get the pleasant
experience but there may be some factors which do not satisfy the travellers wishes.
Transportation is one of the major aspect of the travel and tourism cause people who are paying
for the eminent facilities then they really wanted to retain the services according to the payments.
The tourists would like to pay for the extraordinary services if there is certain location where the
transportation is not available that place would be less captured by the tourists (Garín-Muñoz and
Pérez Amaral, 2011). The 'Visit Scotland' is a Scotland's National Tourism Organization that aid
to arrange the trip to the Scotland it is capturing tourist from the various countries that is USA,
Germany, France, and Canada. These countries are well developed and now it is looking for the
opportunities to develop travel industry for China and India cause the developed nations are the
major source of its economy and now it wanted to increase its profit from China and India also.
The
Scotland is a nice country but there are some factors which can grab more opportunities
for the enhancing travel and tourism. The firm can offer specific packages according to the
budget of the people so that they can select appropriate package that can be beneficial for the
firm and luxurious for the clients.
2

TASK 2
2.1 Functioning of government and its bodies in tour and travelling industry
Travel and tourism industry is one of the big industry which generates revenue from the
other countries. In order to generate income from outside sources government prepares a budget
plan to invest in tourism sector that can attract the tourists. The government authorities develops
some specific policies which has a major impact on tourism sector such as it is majorly impacted
by the taxation, environment and transportation strategies. The government establishes policies
that are mainly focused on the social, economical, and infrastructural so that the tourists can be
more beneficial from them and they would get attracted towards the destination (Guttentag,
2015).
Government function – The government develops some policies for the benefits of the
tourist so that they can stay comfortably. They establishes the policies to increase the customer
interests, locations, health and safety measure of the tourists, trade policies, accommodations
where they can stay, transportation facilities at several destinations that can allure the tourists.
Government sponsored bodies - Government is an authorised body which promotes its
tourism interests in the market so that it can allure people. The government has the right to
sponsored its tourism industry to generate the opportunities in the market which can also assist to
increase its income sources.
The travel and tourism industry is sponsored by the ministry of travel and tourism culture
in every nation which prepares the planning, marketing and trade regulations for the tourism
resources that supports the industry (Roxas and Chadee, 2013).
International agencies – In Scotland there is a government body and various non -
government organization which has some interest in tourism industry cause this is one of the
major industry which aid to increase the productivity of tourist places. Besides regulating the
tourism industry government also has some political interest in order to develop the policies. The
government decisions are taken on the international level at which other countries are also
involved that assists the relations with other countries and also simulate to solve the issues.
2.2 Influence of local and national economic policy on success of travel and tourism
It can be said that economic influence plays a crucial role in the success attained by travel
and tourism sector. However, the consideration of travel and tourism sector have been recently
3

inculcated in economic policies formed by the country so that this sector can be developed. The
report which has been provided by the Great Britain Tourism survey report stated that Scotland
can be mentioned to be as one of the most popular destinations in the UK region. There were
approximately 5.46 million trips to Scotland and average time which has been spent by a
traveller is 2.7 days. Therefore it can be determined that such factors played a crucial role in the
development of the economy of the United Kingdom. The people from Germany, France,
Canada and USA are the major contributor to travel and tourism sector in the country. The
government have been successful in influential role which has been played by the tourism sector
in the country and have formulated numerous policies attempting to improve the services and
experience offered to travellers (Mammadov, 2012).
The government of UK have formed an action plan which has been crucial in attainment
of success of travel and tourism. The government have provided funds of approximately 40
million euros so that it is promoted and catered to people in the right manner. There are
numerous offers in term of rail travelling which have persuaded people from all around the world
to discover Scotland. The efforts are further aimed to make visitor economy of the country to be
more competitive and productive so that it leads to improvement in the lives of people as it offers
opportunities to a better livelihood. The encouragement of participation of local people is carried
out so that it is more convenient and simpler for people to visit the country.
2.3 Discussing implication of political change on travel and tourism sector
The changes in political domain carries an impact on the travel and tourism industry as
well. It can be said that changes in the political environment tend to cause both positive and
negative influences on business. The political environment when favourable enhances number
of tourist visitors in the country and vice versa. The changes which are being carried out in the
political environment can impact the attractiveness for travellers mostly relying on the alteration
which has been carried out (Lee and Brahmasrene, 2013). The positive changes are that policies
and initiatives which has been taken by the government in order to improve convenience and
comfort of travellers have resulted in economic benefits of an organisation. The primary
initiatives is involvement of private sector organisations and participation of the local people so
that guests are provided with unmatchable experience. Some of the crucial reason which has
been ensuring that there is a rise in Scottish tourism are increase in air routes, favourable
exchange rates and most importantly outlander effect. It is referred to be an television series
4

which is known to provide heavenly beauty of Scotland.
The radical changes which has been carried out in the political environment have
impacted tourism sector in the a negative manner. The United Kingdom have recently opted out
of their membership with the European union, which have emerged to be a major setback for
the country as Therefore it has become essential to focus on formulation of policies and
strategies which aims to minimize negative impact which has been created by this disruption
(Khare and Khare, 2011). At presently, it can be said that there are Great Britain is perceived to
be less favourable which has minimized level of visitors in the country. Another political reason
which tends to influence tourism on a negative grounds are rise in terrorism, EU referendum
and Presidential shift in the country. Such factors showed a mixed behaviour of travellers as
some people forfeited visiting this nations and took it as a opportunity to make best out of the
lower exchange rates. Therefore it can be finally said that interaction between political
environment and tourism influences number of visitors in the country in the direct manner. But
it has been identified that in spite of such radical occurrences there is a steady growth in the
tourism sector in the country.
TASK 3
3.1 Factors affecting tourism demand
Travel and tourism plays an important role to improve economic condition of country
strong through boosting up annual income. This sector provides support to the nation by
contributing a precious amount of money to government balance which is utilise to render
facilities for public welfare. There are various kinds of factors which impacts on tourism demand
and it is necessary to determine them effectively to reduce their negative impacts (Wu and Shi,
2011). It is beneficial to identify several element that may affect tourism demand so that an
appropriate steps can be taken for decreasing possible risk of problems or issues properly. ‘Visit
Scotland’-Scotland’s National Tourism
Organisation have have to put required actions towards determining risk factors so that they will
easily sort out possible threats and reduce their impacts on productivity as well as profitability of
the company. Some of these factors that may impacts negatively on tourism demand of is give
below:
5

 It includes the factor of economy along with several other aspects such as exchange rates,
political regulations, taxation, environment and so on.
 Problems or issues which are generated by sudden natural disasters.
 It also includes threat of demographic changes and immigration effects.
 Improvement in level of education.
 This may involves issue of pricing policies and product consistency.
 Changing in rules and regulations of legal authorities which are considered compulsorily.
 Sudden change in market tends are also responsible that effects on business of tourism
(Shaw, Bailey and Williams, 2011).
There above mentioned factors are necessary to be observed, analysed and evaluated in
respect to know about their positive and negative impacts on productivity of an organisation. It is
compulsory to identify several risks opportunities regarding these components so that problem
can be ignored effectively.‘Visit Scotland’-Scotland’s National Tourism
Organisation is required to analyse desires factors so that they will become capable to take an
appropriate steps for reducing issues and expanding opportunities to earn better profits as well.
These factors are responsible for changing decisions of people for vesting tourist place through
that company is necessarily take desired steps properly to attain required results.
3.2 Supply factor by organisation to meet effect of demand
There are various kinds of factors which are considered by customers to make an
accurate decision about to visit at place and selecting tourism organisation by the level of
facilities. It is necessary for ‘Visit Scotland’-Scotland’s National Tourism
Organisation to provide an appropriate benefit to clients for improving their demand in market
and profit share. More visiting of people can be considered as demand of people for particular
tourist place such as Edinburgh which is improve by it's attractiveness. It is necessary to put an
appropriate steps for boosting up it's beauty so that more customers will attract towards that area
and visit there. This will provide support to travel organisation, authorities of tourist destination
and economy of the country. It is necessary to allocate desired resources properly to render
required facilities to customers for attaining their satisfaction (Lew, 2011).
Each and every person has their own desires and likes regarding various types of tourist
destinations or historical places. They are fond of visiting there repeatedly through same
travelling agency because they are satisfied with service of the same. It is necessary to maintain
6

supply of few mandatory resources such as electricity, water and many more which are necessary
for customers at the time of visiting somewhere. Along with considering desires of clients, it is
necessary to implement legal strategies or policies while preparing an accurate plan of service
providing to customers for attaining their satisfaction for long term. ‘Visit Scotland’-Scotland’s
National Tourism
Organisation have to make sure about required resources which are compulsory to be collected
by company for rendering required facilities to visitors properly so that they can enjoy their trip
and make them felling satisfactory through services of travelling agency (Buckley, 2012). People
face problem in booking cabs, hotels etc. then these companies become helpful to provide these
facilities to clients in proper manner. The ‘Visit Scotland’-Scotland’s National Tourism
Organisation have undertaken several steps to meet demand effect are mentioned below:
 They have to conduct discussion with stakeholders like clients, hotels, airport, tour
operator etc.
 Collect information about supply of some desired resources such as electricity, water and
customer spending records.
TASK 4
4.1 Positive and negative impacts of different factors
For travel and tourism sector, it is required to provide their effective contribution in
economy growth and development procedure. This is one of the fastest growing industry that
provide several benefits as employment services, GDP and monetary rates. It also has some
negative impacts that are determine below as-
Economic factors – For travel and tourism organisation it is required to provide their effective
contribution in economy development and growth but for this they need to provide higher
satisfaction to visitors on the bases of their requirement and need (Klint And et. al., 2012). It has
different negative and positive impacts as -
 Positive effects – Travel and tourism industry provide its effective contribution in
economy development and growth. These activities are also very beneficial for
employment service for fresh and new talents.
7

 Negative effects – Travel and tourism sector has negative impact if they not provide
satisfy services to visitors. For this, firm needs to use appropriate amount of capital and
funds.
Environmental factors – This is a one specific factor that has direct impact on travel and
tourism sector (Moutinho, 2011). Visitor's demand and their needs are based on environment of a
country. It has both positive and negative impacts that are based on range of visitors who are
coming in Scotland.
 Positive effects – These type of factors are based on environment of a country that help to
attract visitors easily toward this. Sometimes these kind of element assist to maximise
number of tourist in a country.
 Negative effects – Environmental factors has negative impact because sometimes it is
reduce visitors interest toward a country and visitor locations.
Social factor – This type of factors are based on market and customers demand that are requires
to implement effectively for getting desirable growth and profitability. For visit Scotland, it is
required to analyse requirement and demand of visitors which is based on their specific motive.
Through this they need to provide quality services to them.
 Positive effects – For a travel and tourism organisation, it is required to provide their
effective services to visitors on the bases of their requirement and need. Through this
they can easily get higher profitability and income.
 Negative effects – Sometimes demand and behaviour of visitors has negative impact on
travel and tourism sector as well as on industry.
4.2 Strategies for decreasing negative and increasing positive effects of tourism
Tourism sector has been creative number of negative impact on the travelling
environment. For them, it is required to provide effective services to visitors on the bases of their
requirement and need. Through this they can easily provide higher satisfaction to them on the
bases of their requirement need (Hudson and Thal, 2013). All these activities are very beneficial
to build strong relation with tourist for getting long term advantages easily. For this travel and
tourism industry requires to analyse some of the weaknesses to enhance them through effective
manner. Visit Scotland requires to make impactful strategy to maximise their profitability and
growth easily. Strategies for decreasing negative and increasing positive effects of tourism are -
8

 Firm needs to use online processing and social media modes to build direct connection
with inbound and outbound tourists. Through this they can easily resolve their issues and
queries.
 These kind of social media channels helps to analyse visitors requirement and demand for
specific service to provide them quality services after making effective modifications.
 For tourism industry, it is required to build direct connection with tourist to getting higher
benefits and long term income easily.
 Visit Scotland organisation requires to provide attractive offers and services to tourists on
the bases of their capacity to afford them easily. Through their they can easily maximise
organisation's income.
 Main objectives of these organisation's is to provide higher satisfaction to visitors by
providing quality services to them on the base of their desire and needs.
Through these kind of activities,travel and tourism organisation can easily get competitive
advantages from target market.
CONCLUSION
As per the above discussion it has been concluded that travel and tourism sector is wide
in nature as well this is contributing huge amount in development of economy. They are offering
job opportunities to population of that particular nation. Every nation have destinations which
attract more and people for travelling which is contributing huge amount in raising standards of
people living in that country. Same sector have its strong link with government which support
them in growth and development of country. Government provide financial help to companies
through which they can conduct their activities in effectual manner. In this sector satisfaction of
customers play important role thus enterprise are doing proper planning to maker their guest
happy.
9

REFERENCES
Books and journals
Moutinho, L. ed., 2011. Strategic management in tourism. Cabi.
Hudson, S. and Thal, K., 2013. The impact of social media on the consumer decision process:
Implications for tourism marketing. Journal of Travel & Tourism Marketing. 30(1-2).
pp.156-160.
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and
tourism. Taylor & Francis.
Wu, P. and Shi, P., 2011. An estimation of energy consumption and CO 2 emissions in tourism
sector of China. Journal of Geographical Sciences. 21(4). pp.733-745.
Ghimire, K.B., 2013. The native tourist: Mass tourism within developing countries. Routledge.
Zapata, M.J. and Hall, C.M., 2012. Public–private collaboration in the tourism sector: balancing
legitimacy and effectiveness in local tourism partnerships. The Spanish case. Journal of
Policy Research in Tourism, Leisure and Events. 4(1). pp.61-83.
Garín-Muñoz, T. and Pérez-Amaral, T., 2011. Internet usage for travel and tourism: the case of
Spain. Tourism Economics. 17(5). pp.1071-1085.
Guttentag, D., 2015. Airbnb: disruptive innovation and the rise of an informal tourism
accommodation sector. Current issues in Tourism. 18(12). pp.1192-1217.
Roxas, B. and Chadee, D., 2013. Effects of formal institutions on the performance of the tourism
sector in the Philippines: The mediating role of entrepreneurial orientation. Tourism
Management. 37. pp.1-12.
Mammadov, R., 2012. The importance of transportation in tourism sector.
Lee, J.W. and Brahmasrene, T., 2013. Investigating the influence of tourism on economic growth
and carbon emissions: Evidence from panel analysis of the European Union. Tourism
Management. 38. pp.69-76.
Khare, A. and Khare, A., 2011. Blending information technology in Indian travel and tourism
sector. Services Marketing Quarterly. 32(4). pp.302-317.
Shaw, G., Bailey, A. and Williams, A., 2011. Aspects of service-dominant logic and its
implications for tourism management: Examples from the hotel industry. Tourism
Management. 32(2). pp.207-214.
Lew, A.A., 2011. Tourism's role in the global economy. Tourism Geographies. 13(1). pp.148-
151.
Buckley, R., 2012. Sustainable tourism: Research and reality. Annals of Tourism Research.
39(2). pp.528-546.
Klint, L.M. And et.al., 2012. Climate change adaptation in the Pacific Island tourism sector:
analysing the policy environment in Vanuatu. Current Issues in Tourism. 15(3). pp.247-
274.
10