Friday 28 April 2017

TRAVEL AND TOURISM SECTOR (SM35)

This topic deals with the travel and tourism sector. Especially it deals with the tourism industry of UK. The word tourism means to travel all around may be for pleasure or for business. Tourism deals with business attracting, accommodating, entertaining tourist or tour for business purpose. Tourism may be of various categories such as local, national or international. History of travel and tourism says that human beings like to travel from one place to another. In fact tourism is source of income for various states or government. UK tourism is the world's 8th biggest tourist destination, almost 36.115 million tourist visit UK every year. Important tourist place of UK are in London, The Tower of London. The busiest tourism month for UK is August. This whole assignment is been divided into 4 task. Task 1 deal with the history of travel and tourism sector and the structure of TUI group. Task 2 is all about role of local and national government on the tourism sector. Next task deals about the supply and demand on tourism sector. Last task consists of impacts of tourism and strategies to control negative impacts. In relation to this entire topic it will also analyze the TUI group.

TUI group stands for Touristik Union International. This is a travel and tourism company, headquarter is in Hannover, Germany. It was founded in the year 1923 and current CEO is Friedrich Joussen. The various product and service of the company are charter, airlines, holiday package, hotel, resorts and cruise (www.tuigroup.com). According to a report of 2016 revenue of the company was € 17, 184.6 million, operating income was € 618.3 million and total number of employee are 67,000. The company do have it share listed in Frankfurt stock exchange and London stock exchange. TUI group holds 1800 travel agencies, 6 airlines with 130 aircraft and also 300 hotel and resorts.
Figure 1: Logo of TUI group
(Source: www.tuigroup.com)


Out of much industry tourism seems to be one of the important industries in the world. According to The world travel and tourism council tourism contributes 10% in world’s total economy (Cooper et al. 2008, p. 112). Generally tourism means visit to seaside, resorts, mountain or business enterprise. History of tourism can be done with the three different time variation such as a) before 1945, b) 1945-1979 and lastly c) 1980 to present.
       Before 1945: History says that till the end of 16th century most the people used to live at agricultural communities. After industrial revolution people moved from rural to urban and thus began their period of leisure and travel. Thomas cook started first tour packages in 1841 but at the same time railways developed and even offered trips (Holloway, 2016, p. 145). During middle age Christianity, Buddhism and Islam started pilgrimage the holy travel aims to promote religion. The upper class of the society started to have Grand tour all around Europe, Germany and Italy.
       1945-1979: The main evaluation of this industry took place in the year 1945. In the mid of 1950s UK government made a different department for travel and tourism. Hotel where been reconstructed to attract more tourist. Transport operation developed and made easy for people around the world to travel from one place to another. From 1950s various factor which promoted tourism were that increase in leisure time, paid holidays, cheap tour package and growth of transport (Tribe, 2005, p. 25).

       1980- Present day: In the year 1980s May airlines started offering a complete travel service to the customers. The development of tourism industry of UK and Europe affected various other companies. A recent development in tourism saw various types of tourism such as sustainable tourism, ecotourism, pro-poor tourism, recession tourism, medical tourism and educational tourism (Sharpley, 2006, p. 214). All this types were specialized for various purpose and motives. Tourism industry is growing 4% per year. 
There are some key elements for tourism industry. They are as follows:
       Departing traveller
       Traveller for various region
       Route region
       Destination region
       Returning travellers
This list consists of various departments according to the location. First 3 are related to the geographical and organizational structure according to the tourism (Hudson and Thal, 2013, p. 147). Next point is for the service and goods. Lastly it is self explanatory. Travel and tourism sector contain various important factors such as attraction, transport, tour operator, travel agent and tourism development.
       Attraction- It is related to the natural or artificial attraction. It is the main reason of a tour, a tourist plans to visit certain place because of this attraction (Estol and Font, 2016, p. 121). Natural attraction are ocean, mountains and artificial are related to something made by human being for the tourist.
       Transport- In order to reach that place of attraction, transport places a vital role. It helps people to travel from one place to another.
       Tour operators-They provide holiday package to the tourist who includes accommodation, transport and visit to place. They usually provide information regarding the tour.
       Travel agents- The agents sell their jobs by showing brochures. Normally they act as a connector between tour operator and the tourist.
       Tourism development- This is a board whose main focus is upon development of tourism department (Doh and Guay, 2013, p. 121). Development and safety of the tourist are the main objectives of the department.
Travel and tourism department have witnessed various changes that were introduced in this department. These changes have helped to reduce the negative aspect of tourism department. The local, national and international agencies play a vital role in this industry as a part of this industry and their function affect the outcome of the industry (Cheng et al. 2016, p. 58). The various roles played by the above mentioned bodies are as follows:
       Local government- The main responsibility of the local government is to provide infrastructure and service to the visitors. It even helps the industry to achieve their objectives and also to reduce the negative impact of tourism industry. Local government needs to promote the sustainable tourism by adopting waste management by strategic planning.
       National government- The basic function of government is to impose plans and policy that would aim at reduces environmental impact and also increases the employment and foreign exchange. Safety and security are been handled by the government so that tourist should feel free to visit any parts of a country (Sharpley and Telfer, 2014, p. 145). Development of tourist place are been headed by government of a country. Affordable transport for the tourist should be main objectives of government.
       International agencies- There are some bodies which focus towards development of tourism. The sponsored bodies contribute for the development of tourism and the country. They even frame process and policy which help to have a smooth tourism functioning. The United nation world tourism is the tourism agency for UN. It works for the development of tourism (Mowforth and Munt, 2015, p. 121). It even focuses for making sustainable tourism around the world. The major goal of internal agency is to attract more tourists, earn more profit and also to be world top most tourism agency. But still there are some factors which stop this agency from having a smooth functioning.
 

The travel and tourism industry of a country is very important for the socio-economic factors of a country. According to Saha and Yap, (2014, p. 117), socio-economic benefits can be generated with the help of foreign exchange, employment and environmental awareness. The GDP if UK decreased by 9.8% in the year 2009 and its outcome was that number of tourist decreased. By imposing certain policy UK government had a control on the decrease of tourist (Alvarez and Campo, 2014, p. 120). The main factor was that exchange rate of pound was strong than many other country and this would help tourist to spend more money. One another factor was seasonality as holidays are considered to be most important for tourism. The policies aimed at sustainable development of the industry and economic viability is important for sustainability. Safety and security are been handled by the government so that tourist should feel free to visit any parts of a country. Positive changes were seen because of economic policies. The economic policy even focuses on providing share to the local community (Gartner, 2013, p. 105). Policies of local and national government needs to pay attention towards the local people as they are fu8lly dependent on the natural resources available to them. The sponsored bodies contribute for the development of tourism and the country. They even frame process and policy which help to have a smooth tourism functioning. The United nation world tourism is the tourism agency for UN. It works for the development of tourism. It even focuses for making sustainable tourism around the world. The policy should even focus towards the protection and development of the tourist place. Fund allocation needs to be done to this industry during budget as this would help the industry to develop (Ridderstaat et al. 2014, p. 110). Infrastructure and transport could be improved with proper allocation of fund to the industry.

The travel and tourism development has not been same for all the countries. Those countries which faced political unstableness could not develop the tourism department. Tourism is used as economic and political tools for many countries. Some changes in policies may bring fear in the mind of tourist and they could avoid visiting that particular place. In fact political change in one country can have impact on other country. Number of tourist could increase or decrease due to the change of politics. If tourist considers a place as unsafe then they would avoid visiting that country. Tourist will like to visit those countries where there are less legal formalities and more safety. If a government make its visa policies tougher than tourist for those countries would decrease (Wang and Chen, 2015, p. 109). The negative publicity for tourism destination would affect the tourism industry. If we take example of UK, the high political stability is the main factor of increasing tourism industry as tourist feels safe to visit this country. Some political changes in different countries are as follows:
       China: Deng’s improved the living standard of people and thus made China a strong economic nation. Thus this lead to the rapid industrialization of China. Tourism of this country is improving with every change of year. Recent report says that China has become a most watched and hottest outbound tourist country of the world. A report of 2007 says that China had 55 million oversee tourist, foreign income was 41.9 US dollar and total income was 777.1 billion. 
       Iran: Tourism industry of Iran was very strong before accession of theocracy.  Tourist footfall decreased during the war of Iran and Iraq but after sometimes it revived.  Majority of visitors to Iran during 1979 were religious pilgrims and business people. There is international tension but still government of Iran tries to maintain the smooth functioning of tourism industry. The government also planned to construct 100 hotels near to the tourist destination (Sharpley, 2014, p. 12). 

It is very important to have demand for tourism product and service in the tourism industry. Demand of these products states the number of tourist visiting a destination. The factors which affect the tourism industry in UK are as follows:
       Demographic: When demography of consumer changes then demand of tourist rises as he has more power of spending (Caruso, 2014, p. 20). The demand of tourist always leads the industry in a positive direction. Thus development of industry could be seen.
       Technological: The online reservation and availability of information regarding a tourist destination affected demand as now consumer get to know everything. With the increase in usage of internet demand for tourism is increasing. Increase in transport and support system help to increase in tourism.
       Globalization: With the increase in Globalization consumer and provider could travel from one country to another. This is the reason of increasing the demand for UK tourism.
       Currency rate: Change in currency rate affect change in tourism. UK currency value increase from other so the tourist to spend more money compared to another country. If the price rate of GBP falls then UK tourism will have more demand in America.
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Figure 2: Tourism demand
(Source: Caruso, 2014, p. 20)

The tourism industry mainly focuses on the demand and at the same time it overlooked the supply side. The supply depends upon few factors such as transportation, promotion, attraction, service and information. The most common factor in tourism industry is attraction (Cooper et al. 2008, p. 112). The proper balance between demand and supply has smooth functioning in the tourism industry of UK. According to the situation and demand for tourism, the supply of product and services is decided. According to the manager of TUI is that protection of room from sun radiation, promoting greenery and effort to fulfil demand of customer are important steps taken by TUI. The suppliers of TUI maintain wildlife and thus it help to attract tourist. This organization even focuses at offering training and developmental skills to various suppliers. The company even reward the supplier as “environmental champion’’ and this would motivate them.  
Capture.PNG 
Figure 3: Tourism supply
(Source: Cooper et al. 2008, p. 112)
The figure 3 states the supply factors that help tourism industry to increase its demand. When demand increase the price of those supply increases.

The tourism industry is considered to be the most important industry of a country. The industry has its own benefits and limitation on host as well as on tourist. Here are some positive and negative factors of tourism, they are as follows:
Positive impact:
       Economic: A tourism industry provides employment to many unemployed in retail as well as in transportation. It even gives small scale industry to earn money. Most important part is that rural economical condition gets stronger (Sharpley, 2006, p. 214).
       Social: The local communities get benefited from improvement of infrastructure and new leisure location. It even motivates traditional preservation of customs, festival and handicrafts. A better cultural understanding is been developed between guest and host.
       Environmental: Tourism focus on conserving wildlife and natural resources and thus environment gets protected. Tourism helps to get funds for development and conservation of animals and nature.


Negative impact:
       Economic: Development of tourism is done with improving infrastructure such as road or bridges. The expenditure falls on the government, lots of money gets wasted. Tourism do not always benefited to the local people as sometime international companies takes all the benefits.
       Social: Visitors behaviour would effect on the host such as alcohol problem, prostitution and crimes. Sometime local people are kicked off from their property to make tourist place (Hudson and Thal, 2013, p. 147).
       Environmental: Tourism affects both natural and cultural resources. Wastage of water, destroy of heritage site by overuse. Pollution increase due to overcrowding of tourist. 

The above question explained the positive and negative impact of tourism. Political, social and environmental have negative and positive impact of tourism. Negative economic impact could be control by taking strategy that would help local people to maintain standard of living. Only the required location should be improved, proper survey would help to control expense of money. The diversification strategy could be used to cut down dependency. A committee needed to be appointed which would focus on conservation of natural resources and also to ensure that it have less impact on environment. Environmental agencies needs to be more careful and regular visited or research is needed for various tourist destinations (Holloway, 2016, p. 145). Social negative impact could be reduced if host focus on their own culture and should also try to avoid culture and behaviour of tourist. Personal connection with the tourist needs to be avoided.
Positive impact could be maximising with the usage of latest technology and equipment. More small scale industry needed to be developed near the tourist destination. Wildlife protection department needs to be more alert (Caruso, 2014, p. 20). Steps lightly, making difference and lead the ways are some strategy that could help to bring down negative impact and also to maximise the positive impact. 

Recent studies say that tourism is the most rapid growing industry for all the countries. The countries which possess much natural attraction are the main point of development. The international tourism is also considered as the backbone of globalization. This helps a country to be economically strong. Tourism deals with business attracting, accommodating, entertaining tourist or tour for business purpose. Tourism may be of various categories such as local, national or international. UK tourism is the world's 8th biggest tourist destination, almost 36.115 million tourist visit UK every year. Important tourist place of UK are in London, The Tower of London. The busiest tourism month for UK is August. The entire required angle are been analysed by the writer. Local and the national government needs to take pay more attention towards the development of tourism industry. In the same time it should look towards control negative impact and to maximise the positive impact.

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