Tourism can be seen as one of the key industries in world as it contributes more than 10% in global economic output along with one out of ten jobs, (WTTC, n.d). This statement of World Travel & Tourism Council indicates the importance of tourism industry in world economy. In current scenario world tourism industry is booming and so as in Britain. It is the key competitor for this industry and rated 7th in the world for number of visitors as well as their spending. This report will provide the understanding of the environment under which this industry operates. This report includes the study of history and structure of travel and tourism, national policies about this sector and effect of changes in policies. This study also includes impacts of industry developments as well as effects of supply and demand.

1. Assignment
The Travel and Tourism Sector
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The Travel
and
Tourism Sector

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Table of Contents
Introduction.................................................................................................................................1
TASK 1: History and Structure of the Travel and Tourism Sector ............................................1
1.1 Historical Developments in Travel and Tourism Sector.......................................................1
1.2 Structure of Travel and Tourism Sector in UK.....................................................................2
TASK 2: Influence of Local and National Government and International Agencies.................4
2.1 Function of Government/ Government Sponsored Bodies/ International Agencies ...........4
2.2 Local and National Economic Policies Influence the success of Travel of Tourism
Industry ......................................................................................................................................5
2.3 Implications of political Change on the Travel and Tourism Sector in different
Countries.....................................................................................................................................5
3.2 How Supply Has Changed To Meet the Effects of Demand ...............................................7
TASK 4: Impacts of Tourism ....................................................................................................7
Conclusion .................................................................................................................................10
References...................................................................................................................................11

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Table of Figure
Figure 1 Structure of UK Tourism Industry ..............................................................................2
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INTRODUCTION
Tourism can be seen as one of the key industries in world as it contributes more than 10% in global
economic output along with one out of ten jobs, (WTTC, n.d). This statement of World Travel & Tourism
Council indicates the importance of tourism industry in world economy. In current scenario world tourism
industry is booming and so as in Britain. It is the key competitor for this industry and rated 7th in the
world for number of visitors as well as their spending. This report will provide the understanding of the
environment under which this industry operates. This report includes the study of history and
structure of travel and tourism, national policies about this sector and effect of changes in policies. This
study also includes impacts of industry developments as well as effects of supply and demand.To make clear
understanding of each topic this report will be divided into four different parts, first will describe the
history and structure of industry, then influence by local and national governments, third will indicate the
effect of supply and demand, and last will define the impacts of this sector. At the end of this report a set
of conclusion will provide summary of entire study.
TASK 1: History and Structure of the Travel and Tourism Sector
1.1 Historical Developments in Travel and Tourism Sector
Before 2,000 years the rich people of ancient Rome used to spend their summer by taking the tour of
countryside and coasts, this was the time when tourism business came into existence. During the medieval
age, the increased interest in pilgrimages provided a fast growth to this sector. People started taking more
interest in tours as organisers arranged tours basics of journey along with places for eat and sleep. Such
arrangements by owner played a key role in development of this sector (Lickorish, Jenkins, 1997). Hundreds
of years later in 18th
century two other factors health and culture encouraged the start of more
regular and widespread tourism. People who were able to afford started to visit seaside towns and spa (Gyr,
2010). These visits benefited Europe from the fresh air and spring waters. Later in the century English
people started to take educational tours for studying sculpture and architecture, most of them used to go Italy
to learn painting, people also started taking interest in visiting historical places. From the early nineteenth
century this industry became popular and steadily successful but was still limited to a small number
of people as it was very expansive. The increased income level of people increases the desires of them for a
different life cycle in 1960s. In the same era, commercial aircrafts were able to carry passengers from and
to any airport in the world with a reasonably priced ticket (Watson, n.d). These changes played a major
role and influenced a mass growth in number of visitors, these increased number of tourists influenced
extraordinary growth in faculties like resorts, fishing villages, holiday packages, family tour services and
hotels (Sisay, 2009).
The major force behind these developments was money, in 2006 Spain, France and United State were more
popular destinations with the total earning of $180 billion along with 189 million visitors. Figures like this
motivated many countries to focus on their tourism sector. The result can be seen in recent years as the
boom in this industry (Buckley, 2006).

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1.2 Structure of Travel and Tourism Sector in UK
In UK economy tourism industry has a significant contribution as many businesses are depends directly or
indirectly on it. The structure of this sector can be described by the help of below figure:
Figure 1 Structure of UK Tourism Industry
(Source: Dale and Oliver, 2005)
The above figure can be divided into 5 major factors which shapes this industry:
Attractions
Tour Operators
Travel Agates
Accommodation
Places which people like to visit these either can be natural or man made
People who produce holidays in form of package
Link between tour operators and people who wish to visit
Places to eat and sleep

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2.2 Local and National Economic Policies Influence the success of Travel of Tourism Industry
Most of the countries suffered from recession and the GDP at annual rates for the year 2009 declined by 9.8%
in UK and it results in decreased number of tourists. But by changing local economic policies UK
government controlled the decreasing numbers of tourist. One of the key economic factor is exchange rate of
pound, this rate is quite strong compare to many other foreign currency so foreign traveller can spend more
money. Another issue which need to be discussed is seasonality, as holidays are the busiest time for this sector
(Goodwin, n.d). Most of the policies focus on the sustainability of developing tourism. Economic
viability is an essential element of this sustainability. Governments play a significant role in success of
tourism industry after knowing the importance of this sector. Positive changes in economic policies
influence this industry. The tourism industry works with a number of governmental departments and
bodies so that they can get the full potential of visitor economy.
2.3 Implications of political Change on the Travel and Tourism Sector in different Countries
Political changes can make a huge effect on the tourism sector of a country. Fundamental changes
in politics can cause fear for their safety in mind of tourists and they can avoid visiting such countries.
Political changes in home country of tourist can also have an impact on the tourism industry of other
country. The attractiveness of a country can be increased or decreased by political changes. It depends on the
type of change that the number of tourist will increase or decrees. If a country is known as unsafe place
for tourists before changes in their safety policies but if changes results in a felling of greater safety then
that country can slowly recover to a batter status of tourism industry. Political changes in a country
can make it the hub for tourists, decrees formalities and safety are the major factors behind success if
tourism sector. People would like to visit such places where they have to follow less legal bounders and
get better security. On the other hand if a country make their visa policies tougher then it may possible that
the number of visitors decrees (Hall, Smith and Marciszewska, 2006).

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Conclusion
This study provides the understanding of Tourism and Travel sector operation environment. It also
includes a brief introduction with history of this sector and effect of various policy changes on it. This
report provides a comprehensive study of supply and demand effect on this sector. The last part of the
report indicates positive and negative effects of tourism and strategy for maximize the positive and
minimize the negative effects. This report includes all the relevant information which requires in providing
a clear understanding of Travel and Tourism sector.

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REFERENCES
Books
 Batta, R. N. 2000. Tourism and the environment. New Delhi: Indus Publishing Company.
 Buckely, R. 2006. Adventure Tourism. UK: CABI.
 Dale, G. and Oliver, H. 2005. BTEC National Travel and Tourism. Oxford: Heinemann
Educational Publishers.
 Hall, D. R., Smith, M. K. and Marciszewska, B. 2006. Tourism in the new Europe: The
Challanges and Opportunities of Eu Enlargement. UK: CABI.
 Lickorish, L. J. and Jenkins, C. L. 1997. Introduction to Tourism. Oxford: Butterworth-
Heinemann.
 Nagle, G. 1999. Tourism, Leisure and Recreation. Nelson Thornes.