Role of Travel And Tourism in Improving Economy
18 Pages 4412 Words 18605 Downloads
Introduction to Travel
Tourism is the sector in which provides opportunity to people with regard to perform travel and tourism activity in such places which is outside of their usual environment. (Meaning of tourism, 2015). The travel and tourism activity is being carried out by the tourist who plays very crucial role in improving economic condition of the nation. This is because; the activity of travellers opens the source of generating income for all the businesses which are associated with the given industry such as hotel, club and restaurants etc. This report is based upon varied type of case scenarios. This report will provide detailed explanation regarding the impact that the policies of local and national government has on the travel and tourism sector. In addition to this, the report will also depict the effect which supply and demand has on the given sector.
In order to promote the South of London as a travel and tourism destination a briefing paper is prepared and it covers following points.
1.1 Key historical developments in the United Kingdom travel and tourism sector
The key historical developments in the travel and tourism sector of United Kingdom are analysed. Before 2000 years, the rich people of United Kingdom used to spend their summer by taking the tour of the coasts and countryside related points. Thus, it can be said that the given period can be considered as a crucial year as in the particular tenure only the travel and tourism business has came into existence (Mazurski, 2000). In addition to this, during the medieval age the interest of people who are living in United Kingdom are attracted towards pilgrimages type of activity. This activity of people has provided significant growth in the given sectors. Thus, it is because of the given activity people have taken step with regard to perform travel from one place to another. Due to this, the needs and demands of restaurants and hotels have been emerged.
In addition to this, the grand tours of UK has also played very significant role in the growth of travel and tourism industry of the country. It was the traditional trip of United Kingdom and it is basically undertaken by the people who belong to upper income class category (Dluzewska, 2008). The custom has emerged during 1660. The grand tour of UK has gained popularity because of rail and steamship travel which has made the journey of travellers much easier. Furthermore, in the 18th century the travel and tourism related activity has increased because of health and culture related factor. During this century, people were exploring such places for travelling where they can relax and reduce their stress. As a result of it, seaside, spa and towns have gained popularity. This type of travel has increased the demand of European countries.
Moreover, in the 18th century people have started taking interest in learning architecture as well as the history of particular nation. Due to this, the concept such as educational tour has come into existence. As a result people have started visiting historical places.
In the 19th century, travel and tourism industry has become popular. This year was considered as an era of industrialization in which many developments in the business in the given sector were seen (Dwivedi, Yadav and Patel, 2009). Here, in the given year only the commercial aircraft was able to carry out passengers from one place to another Thus, it can be stated that the historical developments in the country has played crucial role in increasing the travel and tourism industry of United Kingdom in an effective way.
1.2 Structure of travel and tourism sector in general and UK particular
Structure of travel and tourism depict about the sector as well as services which is being provided by the travel and tourism firm. In general, the structure of travel and tourism industry consists of following:
Travel planning: It consists of organization which organizes tours for the travelers. The agency, travel agents as well as operators prepare the given type of plans. These individuals arrange both customized and standard travel packages for their respective customers (Structure of travel and tourism, 2015).
Transport: All the firms which arrange transport facilities for travelers are also being counted under travel and tourism industry. It comprises of airline, shipping, roads and rail etc. These means are important as it enable the travelers to perform their travel and tourism activity all around the world. The significant growth in the given sector is playing crucial role in increasing the demand of number of tourist destinations which are very far (Eraqi, 2006). Thus, with an aim to reach their tourist will require an effective mean of transportation.
Accommodation: While traveling from one place to another, tourists require such place where they can stay and spend their night with an aim to activate themselves for the next day travel. The given need of buyers can be fulfilled with the use of another element of travel and tourism sector which consists of hotels and lodges etc.
Local travel: In order to travel within city, travelers will require some kind of transportation means such as taxi, buses and car etc. Through this way only, the traveler can perform tours in the local area of city.
Food and shopping: It includes restaurant business, food joints, and shopping centers and malls etc. These are also the part of travel and tourism industry as they help in fulfilling food related needs and demands of travelers in an appropriate manner.
Tourist sites: The travel and tourism sectors also support growth of local markets as well as food industry of the country (George and Henthorne, 2007). Due to this, the economy of the nation will get benefits.
Public sector: It is the part of economy which provides government goods and services. This sector also plays very critical role in travel and tourism industry. This is because, with the help of given sector, country can carry out the promotion of particular tourist destinations which are prevailing within country. In addition to this, this sector helps in giving education about the culture and heritage history of country to the respective individual.
Besides this, the structure of United Kingdom travel and tourism industry is analyzed. The detailed explanation of the same is depicted in below:
Accommodation: The country like United Kingdom possesses the combination of both big and small hotels. It has facility of discounted accommodation for the customer who cannot afford prices of luxury hotels. In the similar way, it possesses famous hotels like Ritz and Hilton etc. which provides all sort of luxury five start amenities to the customer.
Travel agents: There are various type of travel agents functions in United Kingdom which organizes tours and travels for the local as well as international travelers (Harish, 2010).
However, among all Thomas Cook is being regarded as the one of the most famous travel agent company.
Transport: The transportation system of United Kingdom is well developed. Furthermore, the government of nation makes constant efforts with regard to improve the transportation condition of country in an effective manner.
Public sector: The United Kingdom public sector is funded by both national and local government. The main objective of this sector is to educate and inform the customers about the UK heritage and culture history. Museums, national gallery and regional development organization are some UK public sector firms.
2.1 Analyzing the functions of national government and agency
The government as well as international agency of United Kingdom is playing very significant role in terms of promoting the travel and tourism sector of country. In this regard, it has been identified that the government of United Kingdom is making the efforts of building the greater cooperation with the UK's outbound tourism industry (Stone, 2013). This is done by the government with an aim to promote more sustainable pattern of tourism globally. Besides this, with an aim to encourage the domestic tourists of nation government of United Kingdom organizes programs such as FundVisit England and FundVisit Britain etc. Here, the government runs marketing campaigns through FundVisit England type of program. The given program encourages the people who are living in UK with regard to carry out their travel and tourism activity within the country only (Government of UK, 2015).
Besides this, international agencies such as World Tourism Organization and World travel and Tourism Council are also playing very critical role in terms of promoting the tourism within country. World Tourism Organization generates market knowledge as well as it forms the sustainable tourism policy with an aim to make the tourism of the nation as the effective tool of development. The organization forms such type of policies which plays very effective role in terms of attracting the large number of tourists within country.
World travel and Tourism Council is another international agency which consists of members who works with the government with an aim to raise the awareness about the travel and tourism industry prevailing within the country (Trunfio, Petruzzellis and Nigro, 2006). This council identifies the particular tourist destinations of nation and it makes significant measures with regard to promote the given destination among global citizens in an effective way.
2.2 Local and national economic policy impact on the success of UK travel and tourism industry
The local as well as national economic policy of United Kingdom has its impact upon the success of travel and tourism industry of United Kingdom. For example, the global recession in the year 2009 has caused necessary impact upon the UK tourism sector. In that year, GDP at annual rate was declined by 9.8% in UK. Due to this, condition it became very difficult for the nation with respect to attract large number of tourists within country in an effective manner. However, in the given circumstances government has taken significant measures. Here, in order to control the decrease number of tourist government has performed changes in the local economic policy relating to interest rate (Fyall and Morgan, 2009).
In addition to this, exchange rate is being consider as another economic factor which influences the success of United Kingdom travel and tourism industry. In accordance with the given context, it is identified that the exchange rate of pound is much stronger than other foreign currency. The given thing enables foreign travelers with regard to spend more money. Many of the government policy focus upon sustainable tourism development. In order to promote the sustainable tourism development, economic viability is necessary (Dale and Oliver, 2005). This can be achieved through an effective foreign exchange policy.
Furthermore, the employment condition of country also affect the success of travel and tourism industry. This is because, the success of any company largely depends upon its employees. For instance, if UK tourism industry identifies that the country do not possess sufficient number of skilled employees with an aim to fulfill the workers related needs and demands of them at that time significant impact can be seen upon the operation of travel and tourism industry.
The success of travel and tourism industry also depends upon the spending power of tourists. Here, the low purchasing power of tourists will hinder them with regard to use the goods and services of travel and tourism organization. However, high purchasing power of tourist will influence them with respect to use the services of tourism firm on constant basis. Due to this, tourism industry will get benefit in the form of increased profits and sales.
2.3 Implication of political changes on the travel and tourism sector
The changes in the political environment of country have its impact upon the tourism sector. For example, political government of United Kingdom has framed tourism policy in which it is focusing more upon the safety and security of travelers. This policy needs to be abide or followed by all the companies which are related with the given industry. This policy has its major implication upon the businesses that provides transportation and accommodation facilitates to the tourists. The given thing will force the airline and hotel companies with regard to tighten their security (Maitland and Ritchie, 2009).
In the similar way, there are some government of nation which has very strict policy with regard to get entry in their country. The given type of thing will also cause necessary impact upon the tourists. For example, when selecting tourist destination for holiday purpose tourists will prefer to choose such country which does not possess much legal complications. But, if found then in the given circumstance it will become very difficult for the government of nation like UK with respect to attract large number of travelers (Fletcher, 2014). Due to this, all the businesses that are associated with the tourism sector will get hampered. In the similar way, significant decrease in the number of visitors will be found if government of UK makes its visa policy much tighter (Chon, 2013). Overall, it can be stated that any kind of variation in the political environment of country imposes both positive and negative impact upon the nation. Thus, it is required by the government that it must review its policy on regular basis in order to lure huge visitors.
3.1 Factors effecting tourism in London
Travel and tourism is one of the fastest growing sectors across the world. With the increasing popularity of several tourist destinations there are various factors which also affects the tourism. It can be positive as well as negative. London is a travel and tourism destination for domestic and international visitors. Travel service providers are considered as a common factor which affects the tourism in London. They need to provide better services followed with some of most attractive offers so that visitor’s base can be increased effectively (Liu and Pechacek, 2013).
Increase in inbound tourists to London is one of the most common factors which affect the whole tourism of country. Inbound tourists come here to get better value for their money. London is the most popular place to visit where 15.3 million visitors spent time in the capital. These tourists mostly come to UK for spending their holiday.
Natural disasters as well as terrorism is comes under the negative factor which can have a big effect on tourism. In the year of 2011 due to the ash clouds several flights to be cancelled or delayed. It has covered a huge loss within the tourism as well as airline industries. On the other hand, terrorist attacks are another major factor due to which whole tourism of London can be affected (Mirsanjari, 2012). The London bombing in the year of 2005 have made a safety and security issues for tourists. In 2011, two U.S. airlines were hijacked and intentionally crashed into the World Trade Centre building in New York. Due to these type of most common terrorist attacks visitors might get afraid to go for such places and it highly decreases the overall sales of tourism industry. In addition to this, there are some other and most common negative impacts arising out of travel and tourism activities are in relation with pollution such as noise pollution. It caused to residents under flight paths to airports to overcrowding at transport hubs and the need to improve the infrastructure. There is several scope and chances of increasing employment but salary and wages are low (Newsome, Moore and Dowling, 2012). It covers the negative aspect of country within the area of tourism. There are various aspects which other factors which also effect the tourism industry of the London as the exchange rate differs from country to country. As the culture is diverse and different in the countries as the people have their set beliefs and attributes which they follow in order to maintain their cultural dimensions. There are many restrictions which are imposed in order to ensure the safety and the security of the tourist so that they feel comfortable in visiting country and increasing the tourism industry. The rates of the various facilities are at their peak which is affecting the tourism of London at the grater extend as all the facilities are quite expensive and cannot be entitled with all the personnels. Besides this, there are some other factors assessed which also which leads to affect the demand of tourism in London in an effectual way. The detailed explanation about the same is depicted in below:
Tourist attractions: The demand of tourism in London is affected because of the different attraction points. In this context, it is identified that London is the city which is famous for its varied tourist attractions. The attraction points in London are British museums, National Gallery, National History Museum and Coca Cola London eye etc. In addition to this, the city possess huge list of hotels. It has the food and accommodation facilities for both middle and higher income class customers. In addition to this, London organizes varied sports in the city. For example, Chelsea FC Stadium Tours and Museums is being regarded as one of the largest football museum in London. This attracts many tourist and thereby influence the demand of tourism in London.
Brand image: The image that country build in the mind of tourist also influence the demand of tourism. For example, London is being consider as one of the safe place for tourism. This entails security feeling among the tourist. As result of it they get attracted towards the different destination of London.
Infrastructure: The infrastructure facility of London is well developed. In this regard, it is analyzed that it has all type of transportation means which covers different tourist destinations. In addition to this, London has five major international airports such as Heathrow, Gatwick, Stansted, Luthon and Southend etc. Overall, it can be said that these all given factors affect the tourism activity in London in a positive way.
3.2 How supply has changed to meet the effects of demand for tourism related products and services in London
The whole relationship between price and how much of goods and services is supplied to the market is known as the supply relationship. The supply of country can be easily changed as per the needs and demands of visitors. At the time of changing seasons, consumers and guest’s demands are also changing. Due to this, government of London is requiring to promote some of the best services as per the current season. In the season of summers they can promote their water tourism such as different water sports etc. As per the changing seasonality London needs to change their supply as well (Ryan, Ninov and Aziz, 2012). In case of demand of eco-tourism due to the increase noise pollution etc. most of the service providers need to carry out the different strategies which promote eco-tourism. They can supply all those products which do not contains high amount of waste and dispose as well. In this way, it can be stated that supply has to be changed in order to meet the effects of demand for tourism related products and services in London. Service providers need to carry out various services as per the requirements of their guests.
The number of airports are increases and the facilities provided by this is increased to a great extent. In this context, London has five famous international airports such as Heathrow, Gatwick, Stansted, Luthon and Southend etc. This in turn, resulted in increased the supply of tourism products and services in London. Moreover, the rail transports also improve its service qualities so as to promote the tourism sector. In addition to it, European cities are permitted to operate in the market without getting visa. For example, Canada is one of the European city where people can travel without any kind of visa. Further, the number of hotels and universities are also increased that helps in attracting tourists for further studies. Thus, all this factors cause promoting the tourists by availing better services to them.
Get Help in Any Subject
Our intention is to help numerous students worldwide through effective and accurate work.
4.1 Evaluating the positive and negative impact of factors on London tourism
The tourist destination such as London is impacted through the traveling activity of travelers. The detailed explanation of the same is depicted under following headings:
Economic impact: By promoting tourism within London, positive benefit can be gained by country in the form of increase in the level of employment. In order to meet demand of travelers, government of country has to make measures with regard to open more hotels and restaurants within country. As the result of it, several jobs will be generated in the given sector. The total contribution reflects the current and the future activities of the investments which are being made in order to increase the foreign exchange earnings and contribute in the government earnings.However, travel and tourism activity of travelers depends upon season. Thus, seasonality is the major factor which can cause negative impact upon the economy of London (Stark, 2003).
Environmental impact: The positive impact can be gained by London if government of nation promotes green tourism. In this regard, government must take measures with respect to increase the environmental awareness among buyers. However, generally it has been seen that the ineffective traveling practices of buyer’s causes negative impact upon the natural environment of country. It consists of throwing things on tourist destination places. This leads to affect the natural environment of London.
Social impact: Cross culture exchange is being regarded as the major positive impact that government of London can gain by promoting tourism within country. This activity will provide opportunity to both local and international travelers with regard to increase their awareness relating the culture followed by the citizens of country. However, increase travel and tourism activity in London will lead to increase crime within city.
4.2 Strategies that can be used to minimize the negative tourism impacts while maximizing the positive tourism impacts on London
There are some of the best strategies through which negative impact of tourism can be minimized. It can be reduced by effective use and set strategies for future. Appropriate use of waste and dispose can be made in order to protect the environment as well as surroundings. London can also promote Green tourism as well as eco-tourism in order to convey the responsible behavior towards the tourism. By making tight security for the increasing crime fear in mindset of people can be decreased (Theobald, 2013). For this, several essential steps can be taken into consideration for the overall security purpose. The whole revenue generated by tourism can be used to preserve the environment and improve the tourism facilities. Further, some essential guidelines can also be prepared by the government in which tourism need not to disturb wildlife in any way and they must not leave litter and waste etc.
All the organizations operate in an social environment so it is important for them to provide suitable environment according to the tourists desires. The tourism organizations has to structure its infrastructure keeping into consideration the tourists preferences. Moreover, they have to follow economic rules and regulations of different countries.
Positive tourism impacts on London as well as on the surrounding areas can be easily enhanced by the way of providing high quality services to the guests as well as visitors. Government can also impose low tax rate in order to enhance their tourist’s base. They can also promote their services by providing several discount offers on holiday packages. It helps them in increasing inbound tourism. Government of London can further increase the level of environmental awareness with their host communities (Newsome, Moore and Dowling, 2012).
Attributing all the facts and figure from the given report, it can be stated that the government of nation play very important role in terms of promoting the travel and tourism sector of country. In this regard, it is assessed that government frames policies which regulates the tourism organization of country. In addition to this, the government also organizes varied marketing campaigns in order to spread the information about the untapped tourist destination of nation. Furthermore, by assessing the factors which affect the tourism demand of nation appropriate measure with regard to the same can be taken by the respective authorities.
- Chon, K. S., 2013. Tourism in Southeast Asia: A new direction. Routledge.Ballantyne, R. and Packer, J., 2013. International handbook on ecotourism. Edward Elgar Publishing.
- Dale, G. and Oliver, H., 2005. BTEC National Travel and Tourism. Heinemann.
- Dluzewska, A., 2008. Direct and indirect impact of the tourism industry on drylands: the example of Southern Tunisia. Management of Environmental Quality: An International Journal. 19(6). pp. 661–669.
- Dwivedi, M., Yadav, A. and Patel, V. R., 2009. The online destination image of Goa. Worldwide Hospitality and Tourism Themes. 1(1). pp. 25–39.
- Eraqi, I. M., 2006. Tourism services quality (TourServQual) in Egypt: The viewpoints of external and internal customers. Benchmarking: An International Journal. 13(4). pp. 469 – 492.
- Fletcher, R., 2014.Romancing the wild: Cultural dimensions of ecotourism (p. 264). Durham, NC: Duke University Press.
- Fyall, A. and Morgan, M., 2009. Marketing in Travel and Tourism. 4th ed. Routledge.Holden, A., 2008. Environment and Tourism. London: Routledge.
- George, B. P. and Henthorne, T. L., 2007. Tourism and the general agreement on trade in services: Sustainability and other developmental concerns. International Journal of Social Economics. 34(3). pp. 136-146.
- Harish, R., 2010. Brand architecture in tourism branding: the way forward for India. Journal of Indian Business Research. 21(3). pp. 153–165.
- Liu, C., Li, J. and Pechacek, P., 2013. Current trends of ecotourism in China's nature reserves: A review of the Chinese literature. Tourism Management Perspectives. 7. pp. 16-24.
- Maitland, R., and Ritchie, B., 2009. City tourism, national capital perspectives. Wallingford: CABI Publishing.