Analysis of the UK Travel and Tourism Sector: Historical and Current

This report provides a detailed analysis of the UK travel and tourism sector. It begins with an introduction to the sector's development, highlighting historical factors and the impact of Brexit. The report then delves into the sector's structure, including transportation, accommodation, attractions, and travel agents. It examines the roles of national and local governments, government-sponsored bodies, and international agencies in promoting tourism, alongside the influence of economic policies. Furthermore, the report explores factors affecting tourism demand in London and how supply has adapted. It also evaluates the economic, environmental, and social impacts of tourism, offering insights into minimizing negative effects. The report concludes with a summary of the key findings and a reference list.

The Travel and tourism sector

Table of content
Introduction......................................................................................................................................3
Task 1:.............................................................................................................................................3
1.1 Explanation of the key historical developments in the travel and tourism sector in UK..........3
1.2 Explanation of the structure of the travel and tourism sector in general and the UK in
particular..........................................................................................................................................4
M: 1 Demonstrate that you have approached to study and research the structure of the travel and
tourism sector in the UK effectively................................................................................................5
Task 2:.............................................................................................................................................6
2.1 Analysis of the function of the national government, government sponsored bodies and
international agencies in promoting travel and tourism to and in the UK.......................................6
2.2 Explain how the local and national economic policy influences the success of the travel and
tourism sector in the UK..................................................................................................................7
2.3 Discuss the implications of political change on the travel and tourism sector in different
countries...........................................................................................................................................8
M2: Relevant theories and techniques are applied in explaining, analyzing the function of
government and government bodies in the UK...............................................................................9
D1: Conclusion on the significance how the local and national policy influences the success of
the travel and tourism sector in the UK has been drawn through synthesis of ideas justification. .9
Task 3:...........................................................................................................................................10
3.1 Explain the factors affecting tourism demand in London.......................................................10
3.2 Explain how supply has changed to meet the effects of demand for tourism related products
and services in London..................................................................................................................10
M3: using appropriate methods of communication, the factors affecting tourism demand in
London and how the supply meets this demand............................................................................11
D2: plan, organize and manage substantial investigation into the factors affecting tourism and
how the supply meets demand in London.....................................................................................11
Task 4:...........................................................................................................................................12
4.1 Evaluate the main positive and negative economic, environmental and social impacts on
tourism on London and the surrounding areas..............................................................................12
D3: Apply creative thinking in problem solving of how to minimize the negative tourism impacts
while maximizing the positive tourism impacts on London..........................................................13
Conclusion.....................................................................................................................................13
Reference list.................................................................................................................................14
Page 2 of 15

Introduction
With the change in time, the economic and political uncertainty of the tourism sector has come
up in UK thereby quitting EU in the mid of 2016. This in turn has affected the demands of the
customers and the businessmen with an impact on their willingness to spend. With Brexit having
opened many traveling opportunities in UK, the domestic travel has become more affordable for
all people thereby uplifting the business further. This report would be focusing on the key factors
responsible for the development that has taken place in UK in the tourism sector by following
certain techniques and strategies.
Task 1:
1.1 Explanation of the key historical developments in the travel and tourism
sector in UK
In an attempt to enhance the importance of the tourism sector of UK, the government has
introduced new policies and laws for its improvement. The development of Tourism Act of 1969
aimed at collaborating all the various organizations into one by involving them in the tourism
sector. Not only did the Act help in establishing a British tourist Authority and Tourist boards for
England thereby spreading their wings inside and outside of Great Britain but also helped in
providing finances to fund the new hotels and other tourism related establishments thereby
enhancing the business further (Scott et al, 2016). Other acts made in the early part of the 20th
century in England for the benefit of the tourism industry included Air passenger Duty of 1996,
Package travel, package holidays and package tours regulation of 1992, package holidays of
1949 and so on. The UK government has recognized the importance of economic development in
the travel and tourism sector thereby creating more of employment opportunities and playing a
part in the contribution of the balance of payments and encouraging of economic growth.
Keeping the historical and cultural factors in mind with the presence of major international
sporting events, UK today, enjoys a good position in the travel and tourism industry with an
estimated improvement to take place in the near future.
Page 3 of 15

1.2 Explanation of the structure of the travel and tourism sector in general
and the UK in particular
The tourism sector in any country is divided into several parts to increase its structure and take
care of all the sections thereby enhancing the business. They can be categorized into the
following sub parts:
● Transportation facilities: The most crucial part of tourism involves the transportation
facilities that are provided by them to their customers thereby making the journey
comfortable to reach their desired destinations. Several types of transportation services
include Airlines, railways, cruise liners and so on all of which are given due importance
to make the journey comfortable. In UK, the transportation facilities vary according to
the given destinations (Raj and Griffin, 2015). The UK travels and tourism are always is
in the middle of a competition with other companies depending on the distance they
travel and the price range that the customers can afford to pay in order to keep them
satisfied at all times. .
● Accommodation facilities: Providing the best accommodation facilities to the customers
is another important facet of the tourism industry. Taking care of the tourists by
providing them a suitable place to stay by finding the best hotels and lodges to meet their
expectations and providing them the best customer service are the other most important
aspects of tourism industry (Tribe, 2015). It has been noted that in UK, there has been a
19.1 million visits made to London itself where almost £11.9bn has been spent by the
customers in 2016. The capital that has been added as a result comes from the inbound
visits made and customers paying only to spend their nights in the best hotels possible.
● Attractions: In order to keep the customers entertained and motivated throughout their
journey, the tourism sector provides them with a number of attractions which includes all
the natural, historical, cultural and manmade sites to keep the visitors engaged with a
treat. In UK there are a number of tourist attractions which lure the customers to visit
them such as the Buckingham palace and the British Museum which are the main tourist
spots.
● Travel Agents: Whenever a tourist decides to make a visit to any place or discuss about
the best available packages and other related information, they make a visit to the travel
Page 4 of 15

agents. The Travel agents are responsible to provide all the necessary information that the
visitor needs to know thereby providing them other services such as travel advice, ticket
sales and such (Hudson and Thal, 2013). The most famous in UK being Thomas cook
who is well known to provide the best services to their customers thereby adding up more
to their entertainment and luxury.
Thus, several bodies are present within the travel industry such as the Distributors, Public sector
organizations and other regulatory bodies all of which take an active part in adding up to the
comfort and fun of their customers while travelling.
Figure 1: Structure of travel and tourism sector
(Source: Scott et al, 2016)
M: 1 Demonstrate that you have approached to study and research the
structure of the travel and tourism sector in the UK effectively
The tourism industry in UK is considered to be one of the most dynamic and well connected
sectors with a close association of the private and public sector bodies taking an active part to
enhance the industry further. The international private businesses such as the airlines sectors or
the hotel and lodges as well as the Destination Management organizations combine together to
Page 5 of 15

provide the best services to their tourists in both the local and regional levels. John Glen Mp.
who is the minister as well as the head of the tourism industry of UK is responsible to make all
the necessary strategies required in order to make further developments to enhance the
importance of the customers thereby providing them maximum satisfaction from the assistance
they receive. Several groups are appointed to take care of all the important sections of the
tourism sector so that no part remains unchecked before they are provided to their customers in
order to avoid any sort of complains turning up.
Task 2:
2.1 Analysis of the function of the national government, government
sponsored bodies and international agencies in promoting travel and tourism
to and in the UK
In UK, Government has taken up certain set of well planned strategies that has a long reach over
the Whitehall with the help of which several policies have been further made for the
development in tourism. All these planning and strategic methods that have been followed have a
direct impact on both the people who want to travel as well as the business’ development. All the
strategic decisions made by the government thus helps in the social and economic growth of the
country thereby developing the tourism sector (Guttentag, 2015). The involvement of
government is crucial in any type of industry and in the tourism sector thereby improvising on all
their important sections such as economic, social, cultural, industrial and infrastructural aspects.
The UK government has taken all measures in order to make the transportation process in the
country simpler by implementing all the policies which would work for the interests of the
public. Investments made by the government in the form of the best facilities and services help
to promote both the national as well as international visits made by the tourism companies. In
order to enhance the services provided by the tourism companies, the taxation and cost are
reduced by the government beforehand. To strengthen this sector, special entertainment sources
such as games and events have been organized as a well planned strategy to attract more
customers and add to their attractions.
In order to intensify the services further, the governmental bodies provide funds to the travel and
tourism sector thereby helping them to develop better and carry on with their business (Verhey et
al, 2016). Providing special security services to the tourist’s further help to ensure the safety of
Page 6 of 15

their customers and add to the economic values to upgrade the tourism sector for better. In order
to link all the destinations and stay well connected, with the help of government sponsors, proper
management of the travel distribution can be made by preparing an annual report to add value to
the promotion of the business thereby adding up to the public interest.
The international agencies also take an active role in the promotion of the travel industry in UK
by conducting several rules and procedures to make the travelling process easier to other
countries. Those countries which are economically stronger can be further helped by contributing
good values while conducting the services to the tourists to make the process better. The travel
and tourism of UK can only be made better when they can assure to their customers that their
safety comes first when any form of travelling takes place. The international agencies can take an
active part by ensuring the security process while traveling to other countries. In order to
enhance the business further, the procedures followed by each can be established with other
global markets thereby following a standardized pattern for better growth and development in
this sector.
2.2 Explain how the local and national economic policy influences the success
of the travel and tourism sector in the UK
Implementation of economic policies made by the government has a direct impact on the tourism
sector which is explicitly aimed at developing all the sections of this industry (Hudson and Thal,
2013). It is very important for this industry to implement all these policies in order to build up a
strong framework of the country in both economic and social aspects. Several types of socio-
economic benefits are provided by the tourism industry such as exchange of foreign funds
thereby helping in employment opportunities and spreading environmental awareness. Having
paid very less importance to the travel and tourism industry, there are many countries which fail
to make proper use of the possibilities that this sector can provide in the development of the
country (Scott et al, 2016). Due to absence of the sufficient resources in the economy, the
economic policies that are made by the government in both local and national basis fail to
support the main cause of development for which many aspects of the country get hampered
specially the regions which are given special importance. Failing to make proper use of these
economic policies which are intended to be used for the development of the country and the
people living within, many tourist destinations often are overlooked or avoided by the foreign
Page 7 of 15

tourists thereby depriving the economic benefits required to develop this sector. The main aim
of the local and national economic policies is to look after the community and the local people
dwelling within who are primarily dependent on the basic sources in their environment and lack
the financial support. The policies should be made in such a way so as to assist in the
development of the tourism sector and help them spread nationwide. Following all these aspects
of economic policies can help to make a positive difference to the tourism sector in the near
future.
2.3 Discuss the implications of political change on the travel and tourism
sector in different countries
The political environment plays an important role in achieving success in the tourism industry of
any country by spreading their powers over all the tourist destinations. However if there is a lack
of political stability in the country, the effects can even take a turn for the worse by increasing
the risks of terrorism and wars thereby putting the life of the tourists at risk of that particular
country. All these factors have a significant effect on the country and in order to prevent the
sector and the country in particular from facing serious threats, the political changes need to be
made to get hold of the power in all sectors and rid them from any sort of terror from befalling.
The other important issue that may turn up due to absence of political instability in the country is
the spreading of negative publicity for a particular tourist spot thereby reducing the number of
tourists from coming there and leading to the downfall of the tourism sector in that particular
country. Before making any traveling plan, all tourists make a thorough check on the political
situation of that country and the risk rate in order to avoid any form of trouble from turning up
which may threaten their life and hamper their experience altogether. Thus it is the duty of the
government in particular to make sure that their political implications keep the destination safe
and likable to all tourists so that no form of barrier turn up in the process of travelling to ensure a
successful working of the industry and attracting more visitors to claim for their services again.
In UK it has been seen that the rate of political stability in the country is comparatively high and
well managed. The government has taken all the necessary steps to safeguard the work of the
industry as well as the tour of their customers in their country. UK is considered to be among the
safest countries and one of the best destinations to tour with so many tourist spots provided and
with the best services on the part of the tourism industry. While implementing any political
Page 8 of 15

changes in the country the makers must therefore be thoroughly aware of the risks that impound
on their country and eliminating all those to make a safe environment for all people by adopting
correct methods to make the policies successful.
M2: Relevant theories and techniques are applied in explaining, analyzing the
function of government and government bodies in the UK
Participation of the state and the Governmental bodies play a significant role in developing the
tourism sector of UK by adopting several policies and effective techniques (Guttentag, 2015).
The principal aspects of those techniques involve distributing certain specific areas where they
need to pay maximum attention, the role of the destination authority to enhance the tourist spots
and develop the condition of the area in order to attract more customers, implementing all the
important government tourism policies in order to improve the condition of the tourism sectors
better and involvement of the international trade organizations and regional bodies to help in the
work of the government by supporting the work of the tourism sector and providing funds and
security in order to enhance the business and attract as much tourist as possible thereby
providing them the best services possible. Improving the transportation process and investing on
them can help to improve the sector further (Scott et al, 2016). Policies made by them should be
such so as to help in reducing the price rates and taxation policies to make it affordable for the
customers to comply. Ensuring safety of all the travelers is essential work of the government to
avoid any form of hoax from turning up thereby making their economy stronger and attract more
customers from around the world to visit them.
D1: Conclusion on the significance how the local and national policy
influences the success of the travel and tourism sector in the UK has been
drawn through synthesis of ideas justification
It is therefore the main task of the various governmental bodies to support the travel and tourism
industry by demarcating a specific boundary for all. Every tourist needs to know their limitations
and also about the amount of rights they have been provided with when they make a travel to a
different country. It is also the duty of the government as well as the local people to perform
their duty of looking after their guests and keep them from any mishap from turning up. In order
to help in the process of success in the tourism industry, all the local and economic policies need
Page 9 of 15

to properly implement so that they can help to influence and safeguard the business from any
danger in future. Taking care of the political stability in the country is also essential to ensure
safety for all specially the tourists so that no threats befall on them and they are able to enjoy
their entire tour and are fully satisfied in the entire process.
Task 3:
3.1 Explain the factors affecting tourism demand in London
One of the most important factors which need special attention and management in the tourism
industry is the increase in demand of the customers. In UK, London is considered to be the most
extensive tourist destination in both the domestic as well as international scale. The demand
made by the tourists over a particular destination ensures the importance that the place has and
London succeeds in getting that place in UK (Standing et al, 2014). Several factors determine the
importance of a particular destination such as their demography where people would be
interested to invest the most and the Technological factors where the best reviews of a particular
destination along with other interesting information make the tourists get attracted. The reduction
in taxation policies and price rates of that country such as in UK if the GSP is comparatively less
as compared to other values of money, more tourists would automatically want to visit it. The
economic conditions would thus have an important impact in influencing the demand of the
customers where if there is a crisis involved in the economy of a particular country, people are
less likely to make a visit there (Mahrous and Hassan, 2016). Lastly, having a political stability
in the country is essential in order to ensure safety for the tourists and demands would be made
on that basis. UK is considered to have a good political stability thereby an increase in the
demands made by the tourists. London being the most favorite destination spot in UK, people
tend to visit that place the most. With the increase in globalization, it has become easier for all
countries to stay connected and the interdependence has therefore become more evident in order
to influence the demands of their customers in the tourism industry.
3.2 Explain how supply has changed to meet the effects of demand for tourism
related products and services in London
The products and services that are provided by the tourism industry needs to understand how to
maintain a balance between the demands made by the customers and the consequent supplies that
Page 10 of 15

they provide in return for a successful working in the business. Constant efforts are being made
by the government and the stakeholders to help in maintaining the balance between the
customers and the service providers (Becker, 2016). The demand is determined on the basis of a
positive response on the part of the customers and after the necessary changes made, the supply
takes place. However With an increase in demand the price of the product and services are
increased automatically to meet the profit chart and in the process fails to provide the best supply
and satisfy their customers. The quality of Supply changes drastically in the attempt of earning
more profit as a result of which people fail to be satisfied and failing to maintain the balance can
hamper the business in the future with a possibility of decrease in the demands. It has been seen
in London that with more increase in demands made, the supply rates are seen to be considerably
down since they lack to develop their infrastructure thereby lacking in accommodation for so
many customers at the same time due to which the bookings are eventually cancelled. The
pollution rate in London is also considerably high leading to dissatisfaction on the part of the
customers (Page, 2014). It is therefore very important to develop all the important sectors of the
country such as the infrastructure, accommodation services, quality of service provided and such
all of which can either turn up the rate of demands or bring them down if not properly managed.
M3: using appropriate methods of communication, the factors affecting
tourism demand in London and how the supply meets this demand
Refer to the presentation
D2: plan, organize and manage substantial investigation into the factors
affecting tourism and how the supply meets demand in London
Several factors affect the tourism in London including the accommodation and infrastructural
facilities that lack to a great extent in this area. The travelers are willing to spend but due to lack
of proper sources such as accommodation and quality of services the tourism industry lacks their
importance and fails to meet the demands of all their customers. Indirect effects are also seen
over the travel service providers. Hotels and visitor attractions purchases those products that are
essential for their development in order to keep the other half of the tourist satisfied whose
Page 11 of 15

demands can be made (Becker, 2016). Induced effect on employees and investors result in an
increase in their income with an increase in employment opportunities. More employment means
more hands to greet the customers thereby providing a better service to the customers and trying
to meet as much of the needs as possible. Pollution however has an ill effect on the tourism in
London with a lack of proper infrastructural facilities. The number of risks is considerably high
in this sector but with proper management all the flaws can be rectified in the near future.
Lack of proper infrastructural facilities and presence of pollution lowers down the quality of
service provided to the customers as a result of which the demands are influenced to a great
extent thereby meeting the supply rate.
Task 4:
4.1 Evaluate the main positive and negative economic, environmental and
social impacts on tourism on London and the surrounding areas
There are different impacts on tourism which can be both positive and negative. The positive
impacts can be to boost a large amount of money to invest on the local heritage. This will help to
get better local facilities and also creates better education. This interaction can be done
frequently to offer a better lifestyle to the local people (Forno and Garibaldi, 2015). The
interaction with tourists can help to diverse backgrounds of cosmopolitan. This has helped to
create region as well as the people so they do not feel the need of migration to other cities. The
negative impacts can be like heavy traffic in that region can affect the infrastructure and will not
be able to cover up with the tourists. The intrusion might disturb the local culture and might
unrest among other people. This might affect the local people as they will try to copy the style of
the tourists and would start the demonstration effect. This might affect the tradition of the local
people and might affect the culture too.
4.2 Explain strategies that can be used the minimize the negative tourism
impacts while maximizing the positive tourism impacts on London and the
surrounding areas
There are many ways to reduce the negative effects of tourism in London. The best way to
minimize the negative effects can be to start creating new deals which should be attractive and
the prices lower than it was. There are always deals related to tourism this can help to reduce the
Page 12 of 15