The Travel and Tourism Sector

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Table of Contents
Introduction ............................................................................................................................................. 3
Task 1 ...................................................................................................................................................... 4
LO1: Understand the history and structure of the travel and tourism sector. ..................................... 4
P 1.1 Explain key historical developments in the travel and tourism sector. .................................. 4
P 1.2 Explain the structure of the travel and tourism sector. .......................................................... 4
Task 2 ...................................................................................................................................................... 8
LO2: Understand the influence of local and national governments and international agencies on the
travel and tourism sector. .................................................................................................................... 8
P2.1 Analyse the function of government, government sponsored bodies and international
agencies in travel and tourism. Please use specific and relevant examples. ................................. 10
P 2.2 Explain how local and national economic policy influences the success of the travel and
tourism sector. ............................................................................................................................... 12
P 2.3 Discuss the implications of political change on the travel and tourism sector in different
countries. ....................................................................................................................................... 14
Task 3 .................................................................................................................................................... 18
LO3: Understand the effects of supply and demand on the travel and tourism sector...................... 18
Executive Summary ...................................................................................................................... 18
Introduction ................................................................................................................................... 18
P 3.1 Explain factors affecting tourism demand. .......................................................................... 19
P 3.2 Explain how supply has changed at TUI Group to meet the effects of demand. ................. 20
Conclusion .................................................................................................................................... 21
Task 4 .................................................................................................................................................... 22
LO4: Understand the impacts of tourism. ......................................................................................... 22
Executive Summary ...................................................................................................................... 22
Introduction ................................................................................................................................... 22
P 4.1 Evaluate the main positive and negative economic, environmental and social impacts of
tourism with reference to TUI Group Businesses. ........................................................................ 23
P 4.2 Explain strategies that can be used to minimise the negative impacts while maximising the
positive impacts for example on TUI Group businesses. .............................................................. 25
Conclusion .................................................................................................................................... 26
Conclusion ............................................................................................................................................ 26
References ............................................................................................................................................. 27

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Introduction
The following assignment will discuss the various aspects of the travel and tourism sector with
reference to TUI Group of UK. The first part of assignment will discuss the development and
structure of travel and tourism in UK. The second part will focus on the role of government
and other bodies in the travel and tourism sector. The third past of assignment deals with the
implications of supply and demand in tourism while the last part of the assignment will discuss
the impact of the various macro-environmental factors like economic, social and environmental
on the travel and tourism sector.

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 Task 1
LO1: Understand the history and structure of the travel and tourism sector.
Introduction: P 1.2 Explain the structure of the Conclusion: The
The travel and tourism industry has travel and tourism sector. information contained in this
emerged as the fastest growing sector Being a huge industry, the travel leaflet clearly gives the
in the present times due to the and tourism sector consists of understanding of the
increasing willingness of the tourists many other sectors which are different key historical
to explore new places and gain explained as below: developments in the travel
knowledge about the various Transportation: The most and tourism sector of UK
destinations. The following task will important part of tourism industry over the past few decades.
examine the key historical is transportation as it enables the The various important
developments in the travel and tourists to roam from one place to elements of the travel and
tourism structure as well as the travel another. Transportation sector tourism sector have also
and tourism sector’s structure. consists of various different types been discussed in this leaflet.
P 1.1 Explain key historical of transport like Airways,
developments in the travel and Railways, Buses, Cars, and Cruise
tourism sector. etc.
The travel and tourism sector of UK Accommodation:
has experienced many key historical Accommodation is the next
developments over the period of time. important element of the travel and
Those are: tourism sector. Tourism depends
on tourists who travel from one
 The first holiday with the pay act
destination to another. Therefore,
was introduced in UK in the year
they require accommodation in
1938 which helped the tourism
order to stay at and have access to
industry of UK to develop
various services like food, drinks
(Mason, 2015)
and entertainment during their trip.
 The first air holiday package was It includes hotels, resorts, guest
introduced in UK in the year 1950 houses etc. (Cook & Marqua,
which further improved the travel 2014).
and tourism sector of UK. Information and Coordination:
 In order to improve the travel and In order to travel from one place to
tourism sector of UK, the another, various information is

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 government of UK developed required by the tourists in order to
proper Airport infrastructure in travel safely. This information is
the year 1952. This helped the provided to tourists through tourist
tourism industry to provide better information centres, travel guides,
facilities to its customers by travel agencies etc.
providing effective air travel Tour Operators: Tour operators
services. make for an important part of the
travel and tourism sector as they
 During 1960s, proper
provide quality services to tourists
transportation facilities were
in bulk. For example: TUI
developed by the local authorities
provides bulk services to tourists
of UK in order to provide
including flight tickets, rail tickets,
enhanced services to national and
bus tickets, different holiday
international tourists. Better rail
packages with accommodation and
services and improved bus
customized packages according to
services facilitated travel in UK.
the tourist.
This helped in the development of
Government: Government also
tourism in UK (Mason, 2015)
plays a major role in the tourism
 For the further development of sector as the regulation.
the travel and tourism sector in Promotion, controlling and
UK, the internet services were planning of tourism is in hands of
introduced in UK in the year 1960 government (Wilcockson, 2014)
which enabled the visitors as well Attractions: The main reason
as the tourism agents to book air, behind the travel by tourists is the
railway and bus tickets online. Attractions. Attractions lure the
This increased the effectiveness travellers to travel to a particular
of the travel and tourism sector of destination. Attractions include
UK. natural attractions, cultural
 The government introduced the attractions as well as historical
countryside act as well as the attractions.
Development of Tourism act in

UK in the year 1969 which further
developed this sector.

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 The provision of 4-5 holidays in a
month was provided to the
employees working in UK for the
tourism holidays. This
encouraged and developed the
tourism in UK (Mason, 2015)

 During the early 2000, the

merging of the British Tourist
Authority and the English
Tourism Council further
improved the travel and tourism
sector of UK. Currently the
organization is being known by
the name of Visit Britain. This
organization is currently
focussing on improving the social
as well as the technological
infrastructure of the UK in order
to further improve the tourism of
UK.

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(Source: https://www.slideshare.net/JohnEdwardEstayo/history-of-tourism-36876178)

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Task 2
LO2: Understand the influence of local and national governments and international
agencies on the travel and tourism sector.

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Introduction: The following presentation is presented by the project officer of TUI Group and
is based on the understanding of the influence that the government and government sponsored
bodies has on the travel and tourism sector of UK and China. The various strategies and policies
for the further development of tourism in a country are under the control of the government
and other international bodies that influences the tourism sector.

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P2.1 Analyse the function of government, government sponsored bodies and international
agencies in travel and tourism. Please use specific and relevant examples.

Speaker Notes: The above slide demonstrates the various functions of government and
government sponsored bodies in the travel and tourism sector. The role of government and
other government bodies is very crucial in the travel and tourism sector. As discussed above,
the various policies and strategies essential for the growth and development of tourism depends
greatly on the government and other international agencies like WTO and UNWTO. It is the
responsibility of the government to develop policies related to tourism so as to encourage
tourism in UK by making travel easier for the tourists. UNWTO is responsible for encouraging
sustainable tourism in UK in association with WTTC which is mostly concerned about the
economic impacts of tourism on the government of UK (Thomas, 2017).

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Speaker Notes: The above slide is the continuation of the previous slide demonstrating various
functions of government in travel and tourism sector. Besides above discussed functions, it is
also the duty of the government and various government sponsored bodies to establish the
advanced technological features in the tourism industry in order to encourage tourism in UK
and China. For example: Government introduced the Development of Tourism Act in UK in
the year 1969. Issues of tourism are handled by UNWTO and organizations like Visit Britain,
which encourages tourism, are funded by the government. In addition to this, the various
policies related to the sustainable usage of the various natural resources of environment and
reduction in pollution and waste disposal are formulated by WWF. (Thomas, 2017).

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P 2.2 Explain how local and national economic policy influences the success of the travel
and tourism sector.

Speaker Notes: According to the above slide, the travel and tourism sector is greatly
influenced by the various policies of the government which includes taxation policies, visa
policies, policies related to security of tourists and environmental protection policies. It
influences the tourism sector. For example: The Visa policies of UK has resulted in the increase
in the number of tourists from China to UK. In addition to this, the tourism sector is also
affected by the monetary policies. For example: The fall in the currency rate of UK resulting
from monetary policies will increase the tourism activities in UK. In addition to this the local
policies also have a considerable impact on the tourism. For example. The policies related to
transportation, infrastructure development etc. (Tanwar, 2016).

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Speaker Notes: According to the above slide, the travel and tourism sector is also influenced
by the various immigration policies of government. For example: The tourism in China and
UK may increase or decrease depending on whether the government of these countries allow
foreign investors to invest in their economy (Tanwar, 2016).

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P 2.3 Discuss the implications of political change on the travel and tourism sector in
different countries.

Speaker Notes: The above slide describes the importance of the political factors for the success
of the travel and tourism sector. The political stability encourages tourism in country. In UK,
terrorism and crime activities have greatly affected the tourism activities. In addition to this,
the various amendments made by the government of China in tourism policies also has affected
the tourism activities (Calder, 2016).

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Speaker Notes: According to above slide, the effects of political changes on tourism can be
better understood by taking example of Brexit. UK has decided to leave European Union and
this has affected tourism in UK as the number of visitors to UK from Europe is almost double
than the number of visitors from the rest of the world. Now, Visa is required by Europeans in
order to visit UK which has affected the tourism in UK and the tourism has been decreased as
compared to before Brexit. (Calder, 2016).

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Conclusion: Thus, from the above presentation, it is being clear that how important is the role
of government, government sponsored bodies and other international agencies in the travel and
tourism sector. The growth as well as future success of tourism depends greatly on the
government of the country.

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Task 3
LO3: Understand the effects of supply and demand on the travel and tourism sector.
Executive Summary
The following report will help in gaining the understanding of how the travel and tourism sector
of UK is effected by the supply and demand. In the following report, we will discuss the various
different factors that have an impact on the demand of the tourism and how supply has changed
in the tourism sector of UK in order to meet the increasing demand of tourism.

Introduction
Tourism is one of the most important sectors for the economic development of UK. But the
demand of travel and tourism sector in UK is influenced by several factors. Those factors will
be discussed in this report. In addition to this, we will also discuss how TUI group has changed
its services over time in order to meet the increasing demand of tourism.

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P 3.1 Explain factors affecting tourism demand.
The growth and development of the tourism sector depends greatly on the tourism demand.
There are various different factors that affects the purchasing decision of the travellers for a
particular destination which in turn affects the tourism demand. The factors affecting the
demand for the same are as follows:

Economic Factors: There exists many economic factors that affects the demand of the tourism
in UK. The economic factors consists of the exchange rates in UK, job situations, employment
rate etc. The economic situations of UK like recession and financial crisis also have a great
impact on the demand for the tourism in UK. The improved economic conditions leads to the
increase in the per capita income of individuals which in turn leads to the development of
tourism in UK (Buckley, 2012).

Political Factors: The political situations of the country have a major impact on the demand
for tourism in UK. The role of the government is also very important in this sector. The various
political factors which affect tourism demand include currency exchange rates of UK, tax rates,
inflation, and growth rate in UK. The various rules and regulations of government and various
tourism policies like visa policies also affect the tourism demand in UK. In addition to this
security concerns like increasing terrorism activities in UK also affects the demand of tourism
in UK.

Socio-economic factors: The socio –economic factors affecting tourism demand includes
accommodation facilities, infrastructure of UK, accessibility and other amenities. The
accessibility to different destinations of UK by tourists and the quality of the transportation
services offered have a great impact on the tourism demand. The cultural heritage and the
scenic beauty of the destinations also affect the tourism demand. The quality of the
accommodation services in addition to other facilities also affects the experience of the tourists
and hence the demand of the tourism in UK (Hall, et. al., 2015).

Environmental Factors: The changing climatic situations as well as the weather has a great
impact on the tourism of UK. For example: Most of the tourists prefer to visit UK in the
month of July and August as the summers are pleasant in UK. On the other hand the months
between Decembers to February are not favourable for tourism as winters of UK are
considered to be harsh.

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P 3.2 Explain how supply has changed at TUI Group to meet the effects of demand.
The Group of TUI has enhanced its services to its consumers by extended its line of products
in the various areas so as to fulfil the demand effects of tourism in UK (TUI, 2015). The
company has changed its traditional supply where the products manufactured were being
pushed without having any knowledge of the feedback or the requirements to modern supply
where the products are being manufactured and supplied according to the needs or requirements
of the customers. The various areas where product lines are extended are airlines, travel
agencies, hotels etc. By doing this, the TUI management is expected to see the growth in the
business turnover by at-least 10%. In order to meet the demand effects, the number of
employees working for TUI Group has increased to 67,000. The TUI Group has modernised
its cruise services in order to expand the luxury service provider segment. In addition to this,
TUI Group has made partnerships with various aviation companies like Etihad Aviation Group
so as to expand its services and provide services in destinations like Switzerland, Germany etc.
Thus, it can be said, that in order to meet the demand effects, mostly expansion strategy is
adopted by the TUI Group. Similarly, the TUI group has also expanded its services in relation
with the hotels so as to serve more and more tourists at the same time. TUI Group is also
considering increasing the number of its branch offices in the various cities of UK in order to
meet the increasing demand of tourism. The TUI Group has also focused to increase the
availability of its services for the tourists. More than 180 countries are currently being served
by the services of TUI group. Thus, it can be said that in order to meet the demand effects, TUI
is focusing mainly on expansion strategy and making partnerships with other major hospitality
organizations in UK (WTT, 2015).

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(Source: https://www.marketing91.com/managing-supply-demand/)

Conclusion
Thus, from the above report it can be concluded that supply and demand with respect to travel
and tourism sector are interdependent. The TUI group needs to maintain the balance between
the supply of its services to its customers and the demand of its services by tourism. We have
also discussed the various factors that have an impact on the demand of tourism.

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Task 4
LO4: Understand the impacts of tourism.
Executive Summary
The tourism sector has become one of the most important sectors leading to the development
of country. The activities of tourism has major economic, environmental as well as social
impacts on the business of TUI Group. In the following report we will discuss those impacts
which includes both positive and negative impacts.

Introduction
The following report will focus on the various social, economic as well as environmental
impacts of tourism on the Greece and Egypt with reference to the business activities of TUI.
Along with these factors, we will also discuss the strategies for overcoming the negative
impacts of tourism.

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P 4.1 Evaluate the main positive and negative economic, environmental and social
impacts of tourism with reference to TUI Group Businesses.
The various social, economic as well as environmental impacts of tourism on Greece and Egypt
with reference to TUI Group businesses are as follows:

Positive Impacts

Economic: The positive economic impact that tourism has on the Greece is the economic
development of the country as a result of increasing activities in Greece. Greece is famous for
its scenic beauty and beautiful environment, which attracts visitors from different parts of
world to Greece. This helps in the revenue generation in country as a result of higher currency
exchange rates. This leads to the economic development of the Greece. Similarly, In Egypt,
tourism contributes a major portion in the economic development of the country by generating
revenue though taxes on tourists, currency exchange etc. which helps the TUI in expanding its
business further in these countries (Houston, 2013).

Environmental: In order to attract more and more visitors from across the globe and for further
developing the tourism in Greece, the government of Greece makes serious efforts so as to
preserve the natural environment of Greece, which is the main attraction of visitors. The
cultural heritage is also being preserved and taken good care of. This encourage tourism and
hence the business of TUI in Greece. Egypt is famous for its beaches, great Pyramids as well
as sand dunes which are being taken care in order to encourage tourism in Egypt. This helps
the TUI group businesses to further expand their business activities in Greece and Egypt.

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Social: Tourism improves the standard of living of people of Greece by contributing in the per
capita income as it provides employment to many of the population. This helps the TUI, in
getting the more skilled staff for its business operations. Similarly, the famous culture of Egypt
makes it a popular destination among the tourists. This in turn gives opportunity to TUI group
to flourish its business operations in Egypt.

Negative Impacts

Economic: The increased tourism has created inflation situations in Greece because of the high
prices of commodities for the local people of Greece as well as Egypt. This affects the business
of TUI Group in Greece and Egypt (WTTC, 2017).

Environmental: The increasing tourism activities in Greece and Egypt has led to the over
usage of the various natural resources. This is being done in order to cope with the increasing
demand of tourism in these countries which has increased pollution and thus has affected TUI
group’s businesses.

Social: The not so maintained infrastructure of Greece as well as the less interest of people of
Egypt in the tourism activities has affected the business activities of TUI group in Greece and
Egypt.

(Source: http://www.nileinternational.net/en/?p=70658)

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P 4.2 Explain strategies that can be used to minimise the negative impacts while
maximising the positive impacts for example on TUI Group businesses.
The government of Greece as well as Egypt should adopt the following strategies in order to
minimise negative impacts of tourism and maximising positive impacts:

Egypt:

 The government of Egypt along with TUI Group should adopt strategies to promote and
encourage tourism in Egypt as it is a strong contributor in the economic development of
the country.
 The government should make efforts to increase the education standard in Egypt so as to
boost the tourism activities in Egypt.
 In order to increase tourism, Government of Egypt needs to make policies for reducing the
pollution and waste disposal caused due to tourism activities (Harris, et. al., 2012).

Greece:

 Proper maintenance of tourist spots and preservation of natural environment will help the
TUI Group in maximising its profits from the tourism activities in Greece.
 The inflation situations at Greece need to be handled by the Government by introducing
custom policies.

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 The government of Greece should make strict rules and restrictions for the environmental
protection and impose fines on the destruction of the natural environment by tourist
activities (WTTC, 2017).

Conclusion
Thus, the above report gives the clear information regarding the various social, environmental
and economic impacts of tourism on the business of TUI Group in countries like Greece and
Egypt and the various strategies have been suggested for the further development of tourism in
these countries.

Conclusion
In the above assignment we have clearly discussed the key historical developments and
structure of tourism in UK over the past few decades. We have also focussed on the
implications of the political changes in China and UK on the travel and tourism industries of
these countries. The various factors affecting the demand of tourism have also been discussed
and the supply of TUI is being discussed. Also, we have explained the various impacts of
tourism on the social, environmental and economic development of the countries like Greece
and Egypt.

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References
 Buckley, R., 2012. Adventure Tourism Management. Routledge.
 Calder, S., 2016. How Brexit will affect British Tourism. [Online] Independent. Available
at: http://www.independent.co.uk/travel/news-and-advice/brexit-british-tourism-impact-
eu-referendum-a7066371.html [Accessed 07 May 2018]
 Cook, R.A., & Marqua, J.J., 2014. Tourism: The business of hospitality and travel.
Pearson Education.
 Hall, C.M., Gossling, S., & Scott, D., 2015. The Routledge Handbook of tourism and
sustainability. Routledge.
 Harris, R., Williams, P., & Griffin, T., 2012. Sustainable Tourism. Taylor and Francis,
Burlington.
 Houston, K., 2013. How economic policies influence the tourism sector. [Online]
Slideshare. Available at: https://www.slideshare.net/karenhouston125/pp7-how-
economic-policies-influence-the-tourism-sector-v1 [Accessed 07 May 2018]
 Mason, E., 2015. A brief history of London Tourism since 1800. [Online] History Extra.
Available at: http://www.historyextra.com/article/animals/brief-history-london-tourism
[Accessed 06 May 2018]

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 Tanwar, N., 2016. Role of government in Tourism. [Online] Slideshare. Available
at: https://www.slideshare.net/nareshtanwar5/role-of-government-in-tourism-
66366747 [Accessed: 07 May 2018]
 Thomas, A., 2017. Function of government and government sponsored bodies,
[Online] issuu, Available
at: https://issuu.com/aanathomas/docs/function_of_government__government [Accessed
07 May 2018]
 TUI, 2015. Guidelines for the environmental sustainability in Hotels. London: TUI.
 WTTC, 2017. Economic Impact 2017 Greece. [Online] WTTC. Available at:
https://www.wttc.org/-/media/files/reports/economic-impact-research/countries-
2017/greece2017.pdf [Accessed 06 May 2018]
 WTT, 2015. The Authority on World Travel and Tourism. London: WTT.
 Wilcockson, D., 2014. Role of Government in the travel and tourism sector. [Online]
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