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Sample Report On Travel And Tourism Industry

44421Downloads1 I Published: 22 May ,2017

History of Traveling

Tour and tourism holds a vast past and history of ages. Traveling is not a new concept and it has been done from ages in name of different needs and requirements. The tour means the activity of traveling of tourist or travelers, where tourism includes all the activity which is directly or indirectly related to operate the tour. Travel and tourism thus has developed an effective history in the world and has developed significant trend of operating and organizing tours for various purpose (Sharpley, 2006). The hospitality industry has helped in developing the effective impact on the development of tourism. Tourism industry has become one of the world's largest and most profitable industry. The scope of growth and innovation has created effective integration of services and development of the countries. The industry is the major sources of income for many countries within the world.

The present report focuses on developing an effective understanding about the industry norms and its system within various countries. The impact of various policies of government as well economic conditions tune its development and growth. Various bodies influences the profitability of the industry highly within countries (Middleton and, 2009). The report focuses on understanding the influence of these bodies on the industry. The success depends on effective integration of both local and national bodies thus the excellence of services are measured by the same. The report aims to build the understanding about the development of travel and tourism, its impact and different level of integration for services which makes the industry profitable and helps in overall growth of the country.

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Traveling is an age old concept and has helped in the development of the countries, families and people. Ancient people used to travel for food and resources but had the least idea about tourism (Blanke and Chiesa, 2013). With civilization within the economy the industry also developed an effective structure thus creating a definite form and system of working in the market. Tourism is defined as and activity of a person traveling to and staying in place outside of his usual environment for not more than one consecutive year for, leisure, business or any other purpose.

By the early 21st century international tourism has become one of the world's most crucial economic activities. The industry thus has developed an unique interest in its development and growth within ages (Tourism today, 2014). The major factors that has helped the growth of the sector consists of social, cultural, economic and technological changes within the market. These factors helped the operators in creating effective integration within various parts and stake holders. The resources that help an individual in developing the need of tour are time, money health, transport and safety.

Tourism history

Early tourism started with Nomads who traveled around the world in search of food and shelter. These travelers gathered food, traded around the world and gave rise to the barter system. 1500 BC is marked as the era when the Europeans visited pyramids and thus developed the tourism for pilgrimage. Religious curiosity enhances this within the economy (Visit Britain. 2015). Business travel was yet another crucial factor that helped tourism to grow within the economy. Merchants from various countries developed the tourism sector later in order to create an effective growth within the industry. In 14 century Christopher Columbus sailed westward. Vasco da Gama sailed to India to earn money. Thus business travel has always been the integral part of tourism industry. This developed the business travel within the world where merchants developed the coins and currencies to carry on trade around the world. The trades then were carried on ships in order to develop the trade relations all over the world.

The modern tourism today have been shaped and developed from the era of 18th century. This is the remarkable era which shaped up the major source of tourism within the countries. An early form of modern tourism was the grand tour undertaken by young nobles between the 16th and 18th centuries. Money, trade and civilization developed the industry and enhanced the structure of tourism. This helped in creating a broad platform for social graces, art culture, education etc. Development of railways in 1830 a new picture to the tourism industry. Urbanization and attractiveness of country side grabbed the interest of travelers in hope of making wealth and developing technology and finding work. This era gave rise to huge travelers and thus shaped the economy within different countries (1920s Travel. The World Suddenly Became Smaller, 2012). Railways and transportation developed in this age and thus tourism was easy and quick.

In the context of the history of tourism, the term "introductory phase" refers to all the developments, structures and innovations of modern tourism between the first third of the 19th century and around 1950. The starting phase lasted until 1915. this period observes the up gradation in middle class and thus enhancing the sector. This developed its way towards mass tourism. With gradual yet continuous development in the structure and system of tourism the modern day tourism stands with the effective and highly efficient system of accommodation, transportation and trade relations among people and countries. The next phase developed the sector and reduced the cost of tourism within the world which increased the interest of travelers from around the world. Thomas cook invaded the well established structure of planning and arranging the tourism facilities. The development of tourism in the 20th century can be divided using a number of different periodisations. It is common, and plausible, to identify a "developmental phase" between 1915 and 1945. The innovative development of the system pioneered the family tourism and developed the sector for personal leisure and peace. The last phase embraces the developments in tourism during the post-war period up to the present. The innovation, renovations, development in infrastructure, government policies and social and cultural factors etc are the major factors that has helped the sector in developing as a whole.

Breakdown structure of travel and tourism sector

Modern tourism has developed an effective system which helped in creating the structure within the economy. The tourism industry is developed and structured in order to create and meet the need and demands of the people while fulfilling the industrial policies and framework. Tourism industry consists of a well developed integration of various services which helps in creating a leisure experience for the travels and visitors within the country (Kilkenny, 2009). Tourism helps the country in inflow of foreign current thus creating an effective impact on the development of current society.

The above figure represents the clear description of various players in the tourism industry. It has developed a well structured system of working within the economy in order to generate high income for the country. The key players of tourism industry in Britain are:

Transportation: This is the major factor that has enhanced the travel and tourism within the economy. Transportation brings mobility and thus facilitated the sector. Various sources of travel and tourism has helped the sector in effectively establishing within the sector. Airways, railways, buses, taxis, cars etc are the major sources that helps tourists to visit new places within various nations of the world.

Accommodation: The services of the industry regards the accommodation as the critical success factor for the country. The tours and travels invites guests for the stay in the country and explore the country to archive the objective. To achieve the objective accommodation plays a very significant role (Liu and Wall, 2006). Hotels, villas and apartments are some options for the same. This factors bring huge business within the country.

Tour-operator: The people, groups or firm that deliver products of travel and tourism to the consumers. These are the major resources of the company who develop the plan and organizes the tour on a small or large scale. These includes business and leisure travel agents (Hall, 2011). The distributors are indulged with the people for direct or indirect selling. These includes in internet, traveling agents etc.

Travel agents: These are the individual companies who work around the world to increase the demand for the sector. The agencies work to create new business prospects for the country. It helps in promoting regions of UK to oversea and local audience to educate people about the availability of the options.

Attractions: These factors helps in developing various measures that attracts increased tourism within the sector. These may include personal factors, social factors, cultural factors etc. Natural history, modern technology, natural beauty, cultural heritage etc are the major attractive on that attracts people all over the world. These factors has developed medical tourism, cultural tourism, Eco-tourism etc.

Entertainment: Entertainment is the very crucial factor that helps in developing the sector efficiently within the society. Lack of entertainment may lead to low growth in the sector. The sources of entertainment within the sector are adventure sports, historical visits, cultural drives, mountaineering, heritage travel etc. For example Australia has developed water sports and reef diving as the major source of entertainment which helped the country in attracting huge travelers.

Support services: This factor helps in providing the value for the services. The development of venue and organizing the event helps in developing the valuable services within the country. Sponsorship plays a significant role for the same. Companies often provide financial help for promotion and advertisement among the travelers and foreign guests.

Food and service: Food and accommodation are few crucial sources of tourism sector. Food is the major essence of entertainment and helps in developing the sector. Effective food services may help in developing the sector effectively within the economy.

Interrelationships and influence of various bodies on travel and tourism sector

Tourism industry is developing on a high pace within the economy. Various factors helps in developing the sector. The growth of the industry is not independent. It depends on various factors that helps in shaping the actual working system within the country. All business activities are interrelated. Growth of one sector helps in the development of the other (Ayuso, 2007). The three major bodies that helps in developing the industry and creating the effective growth within the industry includes the following:

World tourism organization

he United Nations World Tourism Organization is a regulatory body of united nation which helps the country in development of tourism. The agency lays various policies and plans to promote traffic within the country while creating the effective code of conduct and industrial ethics to operate within the stands thus creating the efficient impact on the organizational working. It takes the major factors of concern into consideration such as global development, sustainability and promotion of the destination for the growth and development of the country (Cuccia and Rizzo, 2011). The focus of the agency is to maximize the socioeconomic growth within the country thus creating n effective impact on the system.

The regulatory body focuses on the following issues within the country:

  • Developing global code of ethics for tourism industry
  • Minimizing the negative impact of various factors within the country
  • Maximizing the socioeconomic growth of the country
  • Generating employment opportunities thus reducing poverty within the country
  • Generating market knowledge to promote and increase the competitiveness of the country and the sector

UNWTO has developed various projects and plans to in over 100 countries for the development of technical skills of the country and developing high competitive standards for the industry. Its helps in managing and regulating the industry with prospective sources of development. This department interrelated its activities within the sector to help the economy in developing to enhance the structure. WTO lays the policies and ethical code of conduct for the tour operators within the country. This helps them in developing an effective understanding about the sector and develops the plans and trips as per the policies and regulations laid. This department majorly deals with the domestic operations of the country.

The department of media culture and sports

Department of culture media and sports, England helps the country in developing the prospects of promotion and development of tourism within the country. The department has the responsibility of sports and culture within the country. This helps in creating effective measures of tourism in the country (Lee and Chang, 2008). The department helps the country in developing effective relations with other countries thus creating the simple yet effective means of growth and development. It has various responsibilities to promote and develop the cultural and heritage value of the country in order to enhance the new and effective prospects for development. This authoritative department maintains the value of various factors of growth and development within the country. The cultural and sports are the major sources of tourism. Thus, the policies regarding these are laid:

  • Policies of telecommunication and internet
  • Developing historic environment within the country
  • Developing policies of handling and managing of architecture and design
  • Policies for licensing of alcohol and entertainment
  • Gambling and racing policies
  • Press freedom and regulations
  • Sports events development and management

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This department interrelate its activities with various tour industries and heritage resources of the country. This department helps in creating an effective and attractive image of the country to attract maximum tourism. The activities of the Tourism sector of the country is enhanced by the same as it helps in developing the major policies and regulation related to developing tourism within the country.

Impact Of Local And National Economic Policies On Travel And Tourism Sector

The local and national contribution of the country helps efficiently in the development and growth of the sector. The policies laid in the market helps in creating the regulatory impact on the working system of the company. The country is efficiently developed and managed by the various economic policies. This helps it in creating the effective impact of growth and sustainability in the economy. The economic policies for development and growth of the country are laid on the both local and national level (Dwyer and, 2009). The local policies focus on developing the region by creating efficient impact and growth strategies. The employment opportunities within the region helps the development of overall structure of the country. The impact of these policies may lead to the following:

Overall economic growth: The economic development of the country depends on the effective integration of policies and procedures within the sector. The policies for local development within the company helps in creating the effective impact on the overall growth of the country. This provides the country with high prospects for growth and development of the country. The rural and urban tourism are developed by the same. For example the development of transportation facilities within the country may help in developing the wide prospect for tourism in the region as well.

Sponsorship and funding: The sponsorship and funding are planned to develop the country. These helps in fetching the advantage of government aids in every part of the country thus creating the better and effective growth opportunities within the market and helping in the promotion of tourism sector. For example the tourism training sponsorship has helped wide opportunities for young talents to polish their capabilities and grow in the field of tourism. Funding options within the country are created to develop the industry. However, this creates the hindrance for the same. The funds and loans withing the sector have various restriction which regulates the business activities. The cost volume of business and stability factors varies for the industry. The development of these factors helps in generating the new and effective opportunities for the businesses and country to flourish.

Economic policies: The economic policies of the country deals with the taxation policies which helps in regulating the flow of funds and purchasing power of the individual. However, these policies have direct and indirect impact on the tourism sector as well. The taxation policies helps the domestic industries in developing the sources of funds thus helping in the development of the country and its services. The airport taxes for example helps in creating an effective impact on the funding of domestic services. This helps the country in managing the funds to develop the airport services. The services tax hospitality and food services create an indirect source of funds for the country thus create a favorable impact on the development of the income of the country.

Implications of political changes in different countries on travel and tourism sector

Political factors are very significant part of the travel and tourism industry. It helps the country in developing the wide prospects of growth and development within the sector. The policies laid by the government helps in developing the prospects of various types of tourism (Mayor and Tol, 2007). The political instability creates a negative impact on the travelers as that may pose the risk of regional unrest and high level of chaos and confusions. There are some efficient examples in the market which has created high impact on the overall tourism sector.

Case scenario 1 : China

Political change leads to reformation of policies and procedures within the economy. The government of China has revived the policies regarding travel and tourism recently which has developed high prospects for growth within the country. The liberalization of the policies has helped the country in creating the effective development aspects within the country (Choi and Sirakaya, 2006). The country has high cultural and heritage value thus the country now has faced the major source of earning from the tourism sector. Thus, it has helped the country in developing and reforming entirely. China has thus developed its tourism sector such that it has become the leading source of income for the country. The changes in policies helped in the domestic development of the sector. The source of income, employment rate, disposable income etc all effected in favor of the country.

Case scenario 2 : Ukraine

Political change may sometimes bring the negative impact in the working of the country within the economy. The enticement unrest affect the overall working and development of the country. The Ukraine crises lead to heavy internal disturbance which resulted in riots and domestic unrest. This resulted in slowing down the tourism within the country. The threatening impacts of domestic violence has created a highly negative impact on people thus the tourism sectors has heavily suffered the implications.

Case scenario 3 : Srilanka

The political policies have effective impact on the growth and development of the country. The travel and tourism sector focuses on developing the new plans for destination tourism. This helps the country in developing the effective measures to grow within the economy. The policies of many countries focuses on creating an effective source of income through tourism and thus has created favorable policies for the same. The new policies for development and funding mey help in developing the country as happened in Srilanka.

The civil war in Srilanka has helped the country in developing the effective laws and regulatory bodies. The country reformed the majority policy into proper system. This helped the country in creating developing the tourism sector by developing effective relations with the outside world (Ashley, and, 2007). The regulatory bodies and authorities of the country helped in developing the country such that its is able to enjoy the high economic turnover by developing efficient policies and regulations.

Various factors affecting the demand in the industry

Tourism sector is highly affected by various factors within the economy. The marketing and promotional factors have led in developing the demand for the country (Airey and Chong, 2010). Every country has now created the effective measure for global positioning of the country in order to develop the tourism within the country. However various factors that affect the demand within the economy are:

Political stability in the country: The political stability is a very crucial factor for the development and growth of the country and tourism industry. The political factors help in developing the policies on the basis of which the industry flourish or subside within the economy (Sundbo, Orfila-Sintes and Sørensen, 2007). The political stability is very crucial in order to develop the growth aspects. The instability in government in Ukraine led to diminishing results in the tourism sector. The threat of domestic riots has resulted in creating high economic loss for the country. The stability in India has helped the country in growing the industry highly thus developing the country in an efficient manner.

Currency exchange rates: The currency exchange rates lays the policy of pricing for the tourism industry. This plays a vital role in the development of tourism within the country. The economic crises of 2009 resulted in high exchange rate for the Great British Pounds which resulted in minimizing the tourism within the country. Currency exchange rate provides the purchasing power to the travelers thus plays a significant role within the industry.

Demographic factors: the composition people within the country helps in creating the impact on level of services within the-country (Cazcarro, Hoekstra and Chóliz, 2014). The country or region with high number of older people may result in low integration of services. This may result in low destination tourism within the country. The people will not be able to create the positive impact on the tourism industry.

Environmentalism: The environmental factors are creating an increased impact on the travel and tourism sector within the country. The practices of sustainability restrict many activities within the country (Cortes-Jimenez and Pulina, 2010). However, that helps in developing cleanliness and effective competitive advantages. For example the environmental practices in Australia has encountered the danger of environmental changes for reefs and corals thus the government has developed strict regulations for water sports and tourism activities. This has effective impact in creating increased demand by preserving the natural beauty of the country.

The impact of supply in special interest tourism on the demand in the sector

Special interest tourism Special interest tourism is defined as traveling with the primary motivation of practicing or enjoying a special interest (Albaladejo-Pina and Díaz-Delfa, 2009). This can include unusual hobbies, activities, themes or destinations, which tend to attract niche markets. The term ‘special interest tourism’ has traditionally been used for those forms of tourism which focus on activities which attract a small number of highly dedicated visitors. However, this sector has now helped the countries in creating a competitive edge within the industry.

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Supplying to the demands of special interests helps in creating a diverse image of the country within the economy. Various countries has developed the niche tourism practices for the promotion of the industry (Fons, Fierro and Patiño, 2011). This helps them in responding to the post modern demands of the tourists thus creating high impact of development within the country. Australia has developed the effective means of tourism for reef and coral tourism. The geographical value of the country has developed the advantage of the factor to the country. This has helped in meeting the demands of people highly and providing them services accordingly.

The similar example is that of festive tourism in Spain. The Tomatino festival and Bull running event invited large spectators in the country and thus develops high demand for the same. However, this helps the country in effective forecasting of seasonal demand and thus arranging for accommodating and transportation facilities for the tourism (Spain’s Tourism Industry Ranked the Most Friendly in the World, 2015). Thus, special interest demand helps the industry in effective evaluation of the factors that may affect the demand of tourism and thus may help in creating the proper facilities for the same.


From the above report we can conclude that travel and tourism industry has broad environment which include different sectors for the development and tourism itself. This assignment highlights the history of travel and tourism sector and how it influence local and national government of a particular country. It provides that tourism is one of the profitable industries among all. It also describes declining demand in tourism sector. Further, it also discuss about the impact of political, social and environmental aspects of tourism and the positive and negative impact on tourism sector. We can say that tourism as the revenue generating unit for any country. Through this country earn revenue and generates income for tourist guides.

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  • Ayuso, S., 2007. Comparing voluntary policy instruments for sustainable tourism: The experience of the Spanish hotel sector.Journal of Sustainable Tourism.
  • Cortes-Jimenez, I. and Pulina, M., 2010. Inbound tourism and long-run economic growth.Current Issues in Tourism.
  • Fons, M. V. S., Fierro, J. A. M. and y Patiño, M. G., 2011. Rural tourism: A sustainable alternative.Applied Energy.
  • Kilkenny, S., 2009. Travel and Tourism.Network Journal.
  • Lee, C. C. and Chien, M. S., 2008. Structural breaks, tourism development, and economic growth: Evidence from Taiwan.Mathematics and Computers in Simulation.
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