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Travel and Tourism
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Introduction
The report is based on the Travel and Tourism Industry Today, as well as the Challenges for Sustainable Development. The report highlights the history and structure of the travel and tourism industry, on the influence if local, regional and international governments on the travel and tourism industry, the effect of supply and demand in the travel and tourism industry and the impacts of the travel and tourism sector. The aim of the report is to get an insight into the management and operation of travel and tourism organizations.
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History and Structure of the travel and tourism sector
The different tourism specialist has divided the history of trims development into six eras.
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The Empire Era (B.C.E. to 5th century):
Near 4000 B.C.E.: - Invention of money by the Sumerians which helped a lot to flourish tourism. Due to this travel became easier through paying.
2050 B.C.E.: - This era witnessed the development of road transport. In this era, there was no model of tourism, but people used to explore different places with the help of animals acting as vehicles. (Shrestha, 2011) -
The Middle Age Era (5th to 14th century)
500 to 1400 C.E/A.D.: During Europe’s middle age era, a kingly party in an unfamiliar region sends a harbinger to lookout for the finest route, look for accommodation and food and further return back to the group as controller and guide. -
Renaissance era (14th to 16th century):
The trend of re-invention and re-travelling began in this era. People fascination for travelling increased for the purpose of business and pleasure. -
Grand Tour Era (1613 to 1785 Ad.) 1744 ad:
The idea of modern hotel began in London. During this period, people who were rich and elite used to travel. -
The mobility era (1800-1944):
It was among the key eras where tourism flourished in a fast pace due to the development of auto bans, air travel and progresses in the industry. -
The modern era (1945 to till now)
This period saw various progresses at technological front which travel easier, safe and secure without any issues.
STRUCTURE
There is not a common structure of tourism. How every country opts to establish its tourism industry depends on local factors, including leadership of the industry, standing and significance of tourism to the local economy as well as the approach of the local government. The models given below show the usual structural decisions for local government’s participation in tourism.
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Model 1: This model is suitable when local government recognizes tourism as a significant generator of economy and chooses to donate important resources such as workforce, amenities as well as marketing funds. It also identifies that tourism is principally a private sector corporate activity and forms a tool so as to provide industry input as well as suggestions on tourism expansion strategies. (Tourism Excellence Team, 2014)
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Model 2: This model is suitable where local authorities recognize tourism as being significant, but doesn’t desire to participate in the management and application, trusting that it is great to be industry driven. In this model, local government should believe in responsibility for return on the sources invested from the tourism organization.
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Model 3: This model is proper where it is believed that region wise economic development is best structured independent of local government, to boost important community involvement. It also integrates all facets of economic growth.
Victoria’s New Approach
Victorian areas are now served by a number of Regional Tourism Boards that are accountable for setting the planned vision as well as a route for tourism.
Influence of local and national governments and international agencies on the travel and tourism sector
The role of the government, as per the traditional political model, relates to maintenance of law and order, internal communication as well as transport infrastructure and economic rearrangement. All these things have an effect on tourism. The role of government in tourist industry can be divided into two parts MARCO and MICRO.
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MACRO: It is the formation of the entire Tourism plans/strategies and policies to guarantee sustainable growth and expansion of the tourism industry in social, economic as well as environmental front.
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MICRO: This includes Brand Headship of the tourist destination, guaranteeing creative, synchronized, economical as well as compliant of marketing,
Irrespective of structure, it is important to form an honest alliance between local authorities and the private sector. This will only be accomplished through solid local as well as regional tourist associations. Councils reveal the requirements and urgencies of their ratepayers, so it is essential for the commercial community to prompt their elected legislatures of the requirement to back the progress of the local tourism/travel industry as an important part of the Council’s economic expansion contract. (DownWithTyranny, 2011)
Explain how local and national economic policy influences the success of the travel and tourism sector
There are a various ways in which economic policy could have an effect on the accomplishment of the tourism sector. To start with, there are ways that the kind of economic policies a government takes up can have a straight effect on the tourism industry. Such effect would happen when a government makes strategies clearly meant for the tourism industry. For instance, if local authorities subsidize the structure of a hotel in an attractive town, the tourist industry in that area will surely expand.
Secondly, several economic policies can indirectly affect tourism. For instance, the monetary policies of the government are mostly not aimed at tourism. In case a government's monetary guideline leads to downfall of exchange rate for its currency, this will benefit tourism. This has happened as the country's currency will become inexpensive and holidays in that territory will become cheaper for tourists. (Basu & Marg, 2010)
Discuss the implications of political change on the travel and tourism sector in different countries
Political environment influences functioning and skill of tourism industry in any country irrespective of its size and area of operation. Examination of the political environment in the territory named Fiji discloses the increase of hateful groups and political unrest has negatively impacted the reputation and subsequently dejected tourists to design their visits appropriately. Political disturbance in the country has also impacted the global relations with countries who have been hugely donating to the revenue from tourism industry. This has eventually impacted the marketing plans and strategies used by the central Government and other associations attached to the tourism sector. (SINGH, 2012)
Understand the effects of supply and demand on the travel and tourism sector
The demand for tourism can be defined in numerous ways depending on the economic, geographic, psychological and political point of view. As per the geographic perspective, tourism demand is the number of persons who travel or desire to travel and consume tourist facilities and services at areas away from their work or residence places. One of the key issues pertaining to tourism as specified in a number of official declarations, demand is the person’s individual’s right. The nature of expansion at a tourist place is formed by the demand for tourism in that particular country. Such demand in any territory is formed by tourism prospects. Tourism opportunities signify a combination of fascinations, and it is also essential to convey a quality creation and experience. Systematic designing and management based on sustainable ideologies, are essential for the expansion of tourism. (Randle & Halter, 2013)
Explain factors affecting tourism demand
Tourism demand is impacted by various external factors, such as market forces as well as economic factors, directing to the production of physical as well as monetary flows that have solid economic, social, cultural and environmental impacts. (W, et al., 2006)
External factors are those that relate to a person’s environment. Examples of such factors are disposable income, time availability, improvement in technology and amendment in the demographic structure of a society. Internal factors are based on a person’s requirement like medical facilities, education, business as well as physical factors. Hence, these factors complement very nearly to the idea of travelling. Huge increased incomes, higher free time, and expansion in improved means of transport contribute to increased demand for travel and tourism.
Explain how supply has changed to meet the effects of demand
The supply of tourism products essentially involves how numerous mechanisms of the tourist product are positioned at the disposal of tourists. Tourism contractors can be categorized under the following headings: Hospitality, Transport and Attractions/Products. Tourism service providers supply their services as per the demands of the tourists. For this purpose they do several surveys so as the services are provided as per their demand and preferences. (Banskota, 2012)
Evaluate the main positive and negative economic, environmental and social impacts of tourism in two countries
Country 1: Kathmandu (Nepal)
Tourism spreads into the diverse aspects of Nepalese life and it generates employment opportunities and aids in the advancement and conservation of art and culture.
Economic Impact
Tourism is the main source of revenue generation in Nepal. Endorsing the country as a tourism destination the country can benefit from foreign currencies. The Ministry of Tourism, in cooperation with Nepal Tourism Board and other NGOs, is working together to promote the nation. Almost half of the population is depending directly or indirectly on the tourism industry. Nepal has 8 out of the 10 highest mountains in the world and handles a large number of tourists for mountaineering, trekking and water rafting. The foreign guests while entering Nepal have to pay the visa fee to the Government of Nepal and similarly, they again have to pay for each purpose. This is how the Government of Nepal is generating foreign exchange. But the recent earthquake in Nepal has negatively impacted tourism industry.
Environmental Impact
A huge development of tourism can create environmental problems in the host region. This has been a rising problem in developing nations. Kathmandu, the capital city of Nepal, has about three and a half million citizens and the number of vehicles, hotels and restaurants has to be more, but the workforce to maintain the waste and pollutants are less compared to the population.
Mount Everest is the highest peak in the world and located in Nepal. The climbing expedition should be commanded by the companies which are completely committed to the environment of Everest. This is just an example and solution for environmental effects of tourism. Not only on Everest in each and every place should the visitors follow the principle of eco-tourism.
Country 2: Beijing (China)
Economic Impact
The contribution of tourism to the Chinese economy includes direct and indirect effects, which are classified as: -
Increase in domestic production.
Generation of government tax.
Generation of labor income and creation of employment.
Foreign exchange earnings from inbound tourist expenditures.
Other economic effects on regional development, income distribution.
The indirect effect of tourism is much larger than the direct effect. The direct and indirect effects show tourism contributes substantially to the Chinese economy. However, compared with other final demands of government consumption, and investment, the multiplier effects of tourism are not outstanding, but they are generally larger than those of exports. The analysis finds that domestic tourist expenditures generate a higher impact on the Chinese economy than inbound tourist expenditures. Domestic tourist expenditure has higher direct and indirect effects on domestic production, labor income, indirect tax, employment etc. than inbound tourist expenditure.
Environmental Impact
Studies on tourism environmental impacts have entered a new era in China with a large number of energetic researchers conducting research in this area. Research areas have been centring on tourism related environmental impacts, tourism environment carrying capacity, tourism environmental quality and its evaluation, tourism environmental conservation, measures of environmental protection, tourism environmental case studies etc.
Explain strategies that can be used to minimize the negative impacts while maximizing the positive
Several organizations have taken initiatives in minimizing the negative impacts and maximizing the positive impacts of tourism.
Tourist hotels/resorts are also taking initiatives for reducing negative impacts and trying to become more sustainable.
For instance, two resorts in Florida i.e. the west coast Tradewinds Island Resorts in St. Pete Beach and the east coast Disney Vero Beach Resort, in Vero Beach, Florida are qualified in the Florida Green Lodging program. They have been provided leadership to shield endangered marine turtles and also been accepted as leaders in sustainable tourism.
Various ways in which resorts and others can minimize negative impacts while maximizing the positive are: -
Recycling
Water preservation
Erosion management that includes planting of sea oats and native plant species
Coastal habitat conservation and partnering with groups like Tampa Bay Watch
Energy conservation, including use of energy star appliances
Bus stops in front of the resorts
Lowering down net carbon emissions
Lowering down waste to landfill
Usage of energy effective lighting and Energy Star machines
Barring usage of straws and plastic covers in public areas
Sustainable tourism practices are beneficial for trade and commerce and can add substantial income to a company and the tourism industry. Also, sustainable tourism can turn areas of poverty into flourishing economic development regions.
If travel staff/operators, hotels, resorts, and attractive tourist areas, begin to move toward sustainable tourism, the tourism industry can flourish. (Pretoria, 2002)
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Banskota, -. D. K., 2012. Impact of Tourism on Local Employment and Incomes in Three Selected Destinations: Case Studies of Sauraha, Nagarkot and Bhaktapur , s.l.: ku.edu.np.
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Basu, K. & Marg, V. S., 2010. IMPACT OF POLITICAL INSTABILITY AND TERRORISM IN THE TOURISM INDUSTRY OF THREE MIDDLE-EAST COUNTRIES: AN ECONOMETRIC EXPLORATION, s.l.: ijbts.
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DownWithTyranny, 2011. How Does Political Unrest Impact Tourism?. Political Unrest Impact Tourism?, 22 january.
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Pretoria, U. o., 2002. TOURISM DEMAND AND SUPPLY , s.l.: s.n.
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Randle, D. D. & Halter, D. R., 2013. The Tourism Crisis: Impacts and Solutions. The Tourism Crisis, 09 October.
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Shrestha, S., 2011. History of world tourism development. World tourism development, December.
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SINGH, G., 2012. POLITICAL ENVIRONMENT AND ITS IMPACT ON TOURISM MARKETING: A CASE STUDY OF FIJI. INTERNATIONAL JOURNAL OF MARKETING, FINANCIAL SERVICES & MANAGEMENT RESEARCH, 01(06), pp. 1-10.
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Tourism Excellence Team, 2014. Tourism Structures. [Online]
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Available at: http://www.tourismexcellence.com.au/growing-destinations/tourism-structure.html
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W, L., Q, Z., C, L. & Q, X., 2006. Tourism's impacts on natural resources: A positive case from China.. October, 38(04), pp. 572-9.
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