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Travel And Tourism Sector

Introduction to Tourism Industry

Tourism industry plays a crucial role in the economic life of England. UK stood on 8th number in the world in the travel and tourism industry. Maximum people visits to see the attractions. (Peres, 2011).This report promotes the travel and tourism of South of England as its destination and carries out the history, structure of this sector. Further it makes clear the role of regional, national government and global agencies on the travel and tourism sector. Moreover it has explained the effects of supply and demand on the same. Additionally, it has also mentions the economic, environmental and social impacts of tourism and applies strategies that are used to minimize the negative impacts whilst maximizing the positive impacts (Marzo- Navarro, 2009).


Key historical development in the travel and tourism sector

Most earning period for domestic travel in the UK at the time of summer holidays and bank holidays it generates maximum profit at this time (Rozycki, 2005).due to the rising in the prices of the packages it diminished due to the increased operational cost and changes found in the demand of the travelers it makes the tourism company to close their business in year 1980. Further it has analyzed that people have increased visiting abroad in year 1987 whereas domestic holiday was decreased. Sale of travel tickets through internet has been increased (Petrova, 2004). Government has passed one rule that workers can get holidays and increase car ownership and allow individuals to travel frequently on abroad holidays (Samiei, 2012). Several developments have been made regarding technologically or in the use of hi-tech equipment in the travel and tourism sector.

The structure of travel and tourism industry

Tourism is a travel for religious, holiday or for the purposes of business, usually it is undertaken for a short time. Tourism includes to travel different locations in the same country or to visit other countries also (Finsterwalder, 2013). Tourism organization can be defined as the people who travel to other countries for the purpose of business or for spending their holidays but not more than one year. The travel and tourism structure can be classified into six components that are mention below:


Transport is sustainable factor for the existence of economy it facilitates people by offering them quality services. Transport of travel and tourism help the people as well as businessman that help them to complete their business deal with the help of fast transportation through airline services (Petrova, 2004).

Tour operators

Tour operators can be defines as a person or service provider s that provides all services in single packages to their customers. It includes the housing facilities for the travels their amusement sources etc (Bennett, 2001). It fixes the contract with the hotel manager and airline companies and fixes their commission in that. It helps them to generate maximum profit.

Travel agents

Travel agents are the persons or service providers and are the distributors of the product. It works as an advisors and books the number of tour operators. It mainly sells the services of hiring car, shipping facility insurance and accommodation (Roberts, 2005).

Attractions points

These are the main point and attractions that directly increase the sales of tour operators. It includes various places and amusement centers that increase the curiosity of the visitors and it also includes some sort of adventures in their plan so that makes the tour enjoyable for the tourist (Hayward, 2005).


The facility of lodging in travel and tourism industry can be provides by the tour planners in the form of hotels, lodge, guest houses etc. they try to provide best services and make the stay of their customers very comfort.

Additional services

Most of the additional services being provided are in public sector. Tourism industry is supported at national level by Department of Culture, Media and Sports DCMS (Roberts, 2005). Sightseeing union was concerned with the areas of marketing regarding the quality of services and accommodation services

Functions of government, government sponsored bodies, and international agencies in travel and tourism.

The role of government in encouraging and rising tourism, in spite of regular modification to the relief and organization arrangements stayed apparent. It allocate funding and the overall tactical direction for growing the health and liveliness in the tourism sector.

There is one Government body responsible for tourism in England stated as Department of Culture, Media and Sports (DCMS). It is responsible for supporting the tourism industry at national level, for putting regional and local support for the sector into a strategic context” (Ferguson, 2010). DCMS allocate fund in Britain to promote Britain abroad as a tourist destination and to guide and direct the domestic selling of England.

Scotland, Wales and Northern Ireland

It makes the trip of the tourist enjoyable those who visit Scotland and north Ireland it allocate proper funds to take out these activities (Martin, 2007).

The Tourism association

The Tourism union was recognized in year 2001 as the voice of the visitor sector, with a forward to stand for the sector’s visions and anxiety more successfully to the administration.
Regional development agencies (RDAs)

It was created in year 1999 to additional economic expansion in the regions (Bennett, 2001).

There are some more supported and rigid bodies’ organizations set up to supervise the tourism industry, are mention below:

  • Association of British Travel Agents works to facilitates them with the all kind of services that helps them to expand their business in UK.
  • Constitutional bodies such as the Civil aviation authority (CAA)
  • Department for transport (DFT)
  • Department for culture, media and sport (DCMS)
  • Foreign and Commonwealth Office (FCO)

An international tourism agency promotes Britain to overseas customers, promotes regions of UK to overseas and domestic customers and provides information to customers through tourist information centers (Petrova, 2004). For example, World Tourism Organization (WTO) policies published a global code of ethics for tourism that spells out guidelines on the ethical uses of tourist spaces and way of participating in tourisms responsibly.

Local and national economic policy affects to the success of the travel and tourism sector

By many ways in which economic policy could influence the success of the tourism industry the implementation of government economic policy directly affects the tourism sector (Peres, 2011). When government makes such policies it affects the tourism industries. By taking an example of making resort in the own town the local government allocate source of fund in that. There are many other ways by which financial policies affects the working environment of the tourism industry. In case of monetary policy are generally not aimed at tourism sector (Finsterwalder, 2013).

Influence of local economic policy are the tourists have to buy something for their primary or consumptive needs, therefore it leads the local people to provide small or large scope of commerce, which enforce the economic growth (Roberts, 2005). The negative impacts of tourism can be seen as the growing number of immigrant citizen from other places, consumptive style of life, the damage of environment and the alteration culture values. The local people have an awareness of the positive and negative impacts of tourism. Do it can be seen that people’s expectation is tourism can give them positive impact. The tourism development can give positive impact toward economy aspects (Rozycki, 2005). The positive impacts can increase the employment rate, and also increase their income and prosperity.


Political change on the travel and tourism in different countries

Changes that occur politically in the country have direct impact on the tourism industry of that region.

Fundamental changes in a country’s government policies can also affect tourists about their safety that makes them to not choose that country for the same purpose. In Thailand that has a variety of popular beach resorts had following disturbances which, completed to the profession of the airport in its resources. This kind of political changes is like to have negative impacts on the sightseeing business (Hayward, 2005). Political change in the tourists’ home country can also have an impact on the tourism industry. Possibly the best examples can also be as Cuba; the limitations made on travel by US citizens to Cuba badly decrease the forecast for that country’s sightseeing business.

Mexico’s president has taken a step on the drug trade and it has increased the fighting between the military / police and the drug distributors. Because of this biased conflict and obvious risk, people are not coming to Mexico’s resort societies in the large numbers that they used to come earlier. These are the examples of uneven biased surroundings that can affect the tourism (Mark, 2004).


The factors affecting tourism demand in London

The most affecting factor that influences the tourism demand in London are political issues like improvement of Europeans union and war against fear have an effect on the political stability of the government (Stearman, 2010).

As a result of rising consciousness of the environmental penalty, UK government is planning measures to make sure aviation reflects its ecological impacts.

Government’s duty rules and decision about the increasing the petrol prices have affected the purchasing decisions of the individuals in U.K.

Economic factors affect the purchasing power of possible customers and also have an effect on the person company’s contribution. U.K. economy is getting benefit from steady low inflation rate. In year 2004 it has found that inflation rate got decreased to 1.3 % and the figures of unemployment in UK is low (Drake, 2010). There are favorable exchange rates for the residents of UK for travelling abroad by having high position of their pound as compare to other foreign currencies. These are likely to influence the growth of the UK resident travel market.

In social factors modification in the living standards has also been affecting the UK travel market for many years (Hayward, 2005). Delay in the starting family and rise in the number of households including couples with two incomes are the main trend toward the changes in life style. Varying fashions are hard to forcast also has an effect on the tourism market. Increasing development in technology is affecting tourism in UK and all over the world. Changes made in technology have changed its way of operation through booing the tickets via online.

Supply has changed to meet the effects of demand for tourism related products and services in London

Supply has changed as per the need of tourism, supply can be defined as product and services need to fulfill tourism demand. It is a complex product that involves conveys housing, cookery, natural resources, amusement, and services, such as shops and banks, travel agents and tour operators etc. (Buck, 2009). Many factors that affect and influence supply and demand of the products and service an action can be taken to overcome with this and to satisfy customers is to produce the product that is demanded by the customers.

The role of Information communication technologies and e- tourism has transformed the way travel businesses function and has altered the tourism supply chain. Some important changes are allowing companies to understand the methods to improve yield from products and productivity, modify products to assemble market demand, improved communication between suppliers, react timely to changes which helps to manage supply and demand and expand companies operations both geographically and in size (Stearman, 2010). One of the chief characteristics of sightseeing is that the traveler are involved in a decision making process. Supply of accommodation, transport, food and crafts and destination are very important aspects that mostly affect the demand and supply in the tourism. There is a need for supply to deliver quality service resulting in satisfying experience or tourist satisfaction.

Economic, environmental, social, Positive and negative impacts of tourism

Tourism can carry many economic and social benefits, majorly in rural areas and rising countries, but mass tourism is also linked with negative effects (Bennett, 2001).

Policy to minimize the negative impacts and maximizing the positive impacts

Policies that can be use to maximize positive tourism impacts are as mention below:

Retention of visitor spending

Capital used up by local tourists is re- circulated in the local economy that is known as multiplier effect. Administrator should try and remain tourist money within the limited area to keep escape to a minimum (Robberts, 2005).

Widening access to facilities

Make tourist facilities release to as many people as possible, provide immobilize facilities, give allowance for families and children, and to encourage the tourist attraction.

Community Project:

Many of the tourist destinations is developed for the commercial purpose that benefits people or organization in monetary terms. However, few of the government bodies invest in tourism with a motive to benefits local society in terms of improving their standard of living. In this context, development such as community centers, parks, visitor's attraction, transport infrastructure and other related development is done. In this context, Nurture Lakeland is an example which raised1.5 million from visitors in order to conserve projects since 1996.

Employment and training of local people

Investment in training local individuals for tourism work such as of service in hotels, tourist destination, city guiding, hospitality and other related. Training in this context involves higher values of customer service which resultant in more repeat visitors and a sustainable tourism industry.


Tourism commerce requires appreciating the key matter with respect to accountable tourism with a motive to develop sustainable business practices (Samiei, 2012). Tourist requires educating so that they can acquire knowledge regarding ways to defend the environment and hold local communities. Local business gain skills to advance quality standards’. Local people are educated in order to gain the opportunities that been bring by tourism. These all are the strategies to maximize the tourism’s positive impacts whilst minimizing negative impacts of it (Marzo, 2009).


This report has undertaken the topic of travel and tourism that has concluded that there is a well development in the field of travel and tourism in UK (Marzo, 2009). From the report it has been understood that its structure is made in such a manner that directly satisfies its customers as well as increases its overall growth. Further has mentioned the different roles of government and international agencies to promoting travel and tourism in the United Kingdom. Moreover this report concluded the local and national economic policy influences the success of the travel and tourism sector in UK (Rozycki, 2005). Finally it mentions the strategies that are being used in London to minimize the negative tourism impacts.


  • Finsterwalder, J. and Laesser, C., 2013. Segmenting outbound tourists based on their activities: toward experiential consumption spheres in tourism services. Tourism Review.
  • Golmohammadi, A. et. al., 2011. Importance analysis of travel attributes using a rough set‐based neural network: The case of Iranian tourism industry. Journal of Hospitality and Tourism Technology.
  • Law, R. Leung, K. and Wong, R., 2004. The impact of the Internet on travel agencies. International Journal of Contemporary Hospitality Management.
  • Marzo‐Navarro, M. and Pedraja‐Iglesias, M., 2009. Wine tourism development from the perspective of the potential tourist in Spain. International Journal of Contemporary Hospitality Management.
  • Peres, R. Correia, A. and Moital, M., 2011. The indicators of intention to adopt mobile electronic tourist guides. Journal of Hospitality and Tourism Technology.
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  • Rózycki, P. and Winiarski, R., 2005. Social factors influencing tourist activity among youths. Tourism Review.
  • Samiei, N., 2012. Perceived risks in travelling to the Islamic Republic of Iran. Journal of Islamic Marketing.
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