TUI Group's China Market Strategy: Influence of Economic Policy

This report examines TUI Group's expansion into the Chinese market, focusing on the influence of direct and indirect factors such as economic policy and political changes, aiming to minimize the negative impacts of tourism. It analyzes the function of government, government-sponsored bodies, and international agencies in travel and tourism, highlighting how local and national economic policies influence the sector's success. The report discusses the role of government policies, including marketing campaigns and productivity enhancements, alongside the contributions of international organizations like the United Nations World Tourism Organization. It also addresses the impact of economic factors such as exchange rates and seasonality on tourism, emphasizing the importance of sustainability and governmental support in fostering the industry's growth.

TUI Group
Expanding its operations in the
Chinese market

Criteria Tasks
• Influence: direct, indirect; economic
policy, political change and planning to
minimise negative effects of tourism.
• Government: levels local, regional,
national, European Union; Government
sponsored bodies, regional tourist boards;
functions and interrelationships

Task 2
• 2.1 – Analysing the function of
government, government sponsored
bodies and international agencies in travel
and tourism
• 2.2- How local and national economic
policy influences the success of the travel
and tourism sector

Function of
government,
• Travellers of all cultures, ages and
interests are being invited to touch, see,
feel and embrace new people, new places,
new options of understanding and a new
aptitude for global connectivity.
• The travel experience, always has an
permanent impact on the development
and growth of the travel destination.

• It is impossible for a nation or region, for
any destination, to open its doors to the
world and not be touched.
• Extract from March 2011. Government
Tourism Policy

GOVERNMENT POLICY
• The described aims of the Policy are to:
• Fund the marketing campaign ever to
appeal visitors to the UK in the years
following 2016. The aim is to attract 4 million
visitors to UK over the next 4 years. = £2bn
more spend in our economy, and 50,000
new jobs.
• Enhance the percentage of UK residents
who holiday in the UK to match those who

• holiday abroad each year.. And make
development for shorter stays to generate a
further £750m of spend and 11,000 new
jobs.
• Progress the sector’s productivity to become
one of the top five most efficient and
competitive visitor economies in the world.
• (2011 Tourism Policy)

International Organisations
• The World Travel and Tourism Council
• TCSP (the Tourism Council of the South
Pacific)
• CTO (the Caribbean Tourism Organisation
• RETOS (the Regional Tourism Organisation of
Southern Africa)
• IATA ( the international Air Transport
Association)
• PATA (the Pacific Asia Travel Association)

• There are more organisations involved in
global tourism, for example hotel and
restaurant associations, and many private
membership and government sponsored
tourism marketing organisations.
• The level of strategy is often weak in
structure and detail. It usually offers
guidance in order to help the member
states (countries)

INTERNATIONAL AGENCIES
United Nations World Tourism Organisation
Aims:
•minimising negative impacts of tourism,
•generating market knowledge
•promoting competitive and sustainable tourism
policies and instruments
•Projects:
•Hotel Energy Solution
•fostering sustainable development
•reducing poverty

• Agora: an online forum to share opinions and
concept papers
• Consulting Unit on Tourism and Biodiversity

Local and national economic
policy influences the success of
the travel and tourism sector
• Most of the countries have suffered from
recession and the GDP at annual rates for
the year 2014 declined by 9.8% in UK and it
results in reduced number of tourists. But
by changing local economic strategies, UK
government controlled the falling numbers
of tourist. One of the key