The travel and tourism sector

Historical development in travel and tourism industry, its structure. The impact of national economic policy in Scotland for success in this area. The function of government, state bodies in the industry. Factors affecting tourism demand in the country.

Рубрика Спорт и туризм
Вид реферат
Язык английский
Дата добавления 11.11.2015
Размер файла 13,2 K

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Oksana Ivasnova

Table of content


1. Historical development in travel and tourism industry

2. Structure of the tourism and travel industry

3. The function of government, government sponsored bodies and international agencies in travel and tourism industry

4. How local and national economic policy influences the success of the travel and tourism sector in Scotland

5. The implications of political change on the travel and tourism sector in different countries

6. Factors affecting tourism demand in Scotland

7. How supply has changed to meet the effects of demand in Scotland


Over the past twenty years, tourism has emerged as one of the leading industries in the world. In fact, travel and tourism is responsible for about 10% of the world economic output. Tourism and travel was often seen as an activity for the wealthy in the past. However, this perception has changed as many people from all walks of life continue contributing to this industry.

This paper outlines the historical developments that have taken place in the travel and tourism industry. The paper also looks at the structure of travel and tourism industry as well as the functions of government, government sponsored bodies and international agencies in travel and tourism industry. This paper will also discuss how a local and national economic policy influences the success of the travel and tourism sector in Scotland. Other issues that will be discussed throughout the paper includes: the implications of political change on the travel and tourism sector indifferent, factors affecting tourism demand in Scotland, how supply has changed to meet the effects of demand in Scotland.

travel tourism scotland economic

1. Historical development in travel and tourism industry

The history of travel and tourism can be categorized into three historical times. These are: Period before 1945, the period from 1945 to 1980 and period of 1980 up to the present day. Prior to 1945, most communities were living in an agricultural world and therefore, did not travel a lot. As the industrial revolution started in the 18th century, only the rich could travel occasionally. The travel and tourism industry was marked with inconsistency as all the industries in this sector operated on their own. Hotels operated on their own, so did the travel as well as the tour operators. The first package tour was introduced by Thomas cook in the year 1841 (Jang & Cai, 2012).

As for the period between 1945 and 1980, it marked the beginning and growth of the tourism and travel industry. This was marked by the rising of tour operators. Hotels started offering a wide range of services that the tourists and travelers needed. Shopping arcades as well as secretarial centers started been built to ensure the guests spend in one complex. The airline business on the other hand also expanding offering transport service and other services such as insurance and accommodation for the travelers. With a combination of several factors, the travel and tourism industry continued to grow. These factors included increase in free time as well as paid holidays. There were also better tour packages as well as the rapid growth of the travel industry that was experienced (Jang & Cai, 2012).

The period of 1980 up to today has seen rapid growth of the travel and tourism industry. There have risen companies that can provide the full range of services. These companies can offer accommodation, travel service and even the required medical and insurance services. There improvement of airline industry services has also led to the rapid growth of the airline industry (Jang & Cai, 2012).

2. Structure of the tourism and travel industry

The tourism and travel industries consist of many dependent components that actively interact with one another to make the whole process complete. These activities range from transport to accommodation and even marketing that enables the whole industry to be complete. Other activities in this sector include the attractions that make people travel and the government regulations that make it possible to move freely to the tourist destinations (Fletcher, 2015). Therefore, it's very common to see one business in the tourism industry spanning in several sectors where the impacts are felt throughout the sector. The tourism and travel industry therefore consists of the following sectors:

1. The sector that is responsible for moving the tourists from one destination to the other. This is the sector that comprises of the travel agents who organize the travels, the airline and the bus industry and finally the tour operators (Fletcher, 2015).

2. The sector that we call the product. This is usually at the destination. The accommodation industry is one of the key sectors in this sector. Other components of this sector are the facilities as well as the attractions site which forms the last part of the destination (Fletcher, 2015).

3. The third sector in the tourism industry is the human part. Humans always provide the labor that drives the tourism industry ranging from assistance to language interpretation where necessary (Fletcher, 2015).

4. The last sector in the tourism industry is the various local and international agencies that make the industry possible to operate. This includes the public sector as well as the government agencies. There are also organizations within every region where tourism is dominant that forms part of this sector. Finally, the organizations that offer industrial training for the workforce of this industry also form an important part of this sector (Fletcher, 2015).

The structure of the travel and tourism industry from the tourist to the geographical or the region aspect is all important components of the industry. The environmental aspect also plays an important role as it puts the economic, political and social cultural aspect into consideration.

3. The function of government, government sponsored bodies and international agencies in travel and tourism industry

The local government as well as the government sponsored bodies play a major role in establishing the policies that are used in the travel and tourism industry. The government therefore ensures that it public sector develops the necessary infrastructure and the amenities required in the industry. This includes provision of health as well as security. The local government ensures the infrastructure well maintained. Local governments also play an important role in protecting the consumer interests as well as ensuring there is fair trading (Vengesayi, 2010).

On the other hand, the government sponsored agencies play a major role in the tourism industry. These agencies responsibilities include planning and doing the necessary research that the government may require in the industry. Other responsibilities of this agencies are those of marketing and ensuring that trade regulation within the industry is followed. They are also in charge of the necessary training and education in the industry. Finally, these agencies ensure there is the necessary facilitation and liberation within the industry (Vengesayi, 2010).

On their parts, the international bodies ensure that a responsible and a sustainable form of tourism are developed globally. These bodies ensure that a global tourism code of ethics is developed and implemented all over the world. These agencies also ensure that the tourists and the local hosts respect the diverse cultural background of every group involved in these form of tourism. They ensure that people only benefit from tourism instead of negatively been affected or even been negatively been impacted by tourism. Finally, these agencies work hand in hand with government to ensure the needed amenities as well as the required infrastructure is in place (Hall, 2008).

4. How local and national economic policy influences the success of the travel and tourism…8 sector in Scotland

Tourism is an important industry in Scotland. Tourists spend a total of 10 billion pounds every year in Scotland. Therefore, tourism generates about 5 billion pounds to the Scottish gross domestic product. The 5 billion pounds represents a 5% of total Scottish GDP. In terms of employments, the tourism industry employs about 211,220 people in Scotland. This represents 9% employment is Scotland. In regards to generating GDP and providing employment opportunities, some local and national economic policies have contributed to the travel and tourism sector in Scotland. Below are some of these policies (Scottish Government, 2014).

First, the national strategy known as tourism Scotland has played a major role in promoting the industry. The tourism Scotland 2020 was established in the year 2012 under the Scottish tourism alliance (STA). This policy also receives the backing of the public sector. This strategy aims at trying to understand the tourism market and matching this to Scotland's capability. This policy has in the long run succeeded in providing a common goal for the travel and tourism industry as well as the supporting industries. The strategy also aligns the industry and the supporting industry with a common ambition, which is the growth of tourism in Scotland (Scottish Government, 2014).

The establishment of the Scottish enterprise has also helped impact tourism in Scotland. This body provides the much needed market intelligence to the tourism companies in Scotland as well as related businesses. This way, the industry and its accomplices can plan, innovate and provide new experiences to tourists and therefore, attracting more and more tourists. The Scottish Enterprise helps the tourism industry in one of the following ways. First, through the Scottish tourism alliance, Scottish enterprise helps develop industry leadership. Second, the enterprise invests in infrastructure needed by the tourism industry. An example of such an infrastructure is the hydro Arena is Glasgow. Finally, the enterprise works together with individual businesses in an effort to help them tap into the available opportunities. Establishment of institutions like visit Scotland as well as the Scottish tourism alliance has helped boost tourism in Scotland (Scottish Government, 2014).

5. The implications of political change on the travel and tourism sector in different countries

One of the factors known to have a huge effect on the tourism and travel industries is the political changes in a country. This is because sudden changes in the political stability of a country can cause fear in the travelling tourists. The tourists are likely to have security concerns about this nation and therefore decide not to visit. Also, political changes in the tourist's home country may affect the tourism of another country. Travelling is likely to be difficult and therefore, the tourist will eventually not travel. Protests against the host nation are likely to affect the operations of the travel and tourism industry. For example, the protests by anti-government demonstrators in Thailand in the year 2008 led to the closure of the nation's Bangkok international airport. This resulted to 3000 people being stranded. This on the other hand had a tarnishing effect on the country's tourism industry as western governments advised their citizens to avoid Thailand as a result of the demonstrations (Cooper, Gilbert & Fyall, 2009).

One of the best ways of making a country a tourist favorite destination is improving the political stability of such a country. This way, the nation becomes attractive and the notion of fear is lost. Also, where the legal procedures required to enter a country are few, tourists are likely to visit such a country. A country with tougher visa application procedures is also likely to affect few number of tourists as tourists tend to favor places where they are least disturbed (Cooper, Gilbert & Fyall, 2009).

Political stability in a country is also somehow related to the economic aspect of this country. Whenever a country is enjoying political stability, there is the likelihood that the right kind of amenities and infrastructure are in place. Roads, health services and even travel agencies will be in the right conditions and this is likely to promote tourism in a positive way. Whenever there is political stability, the financial incentives that are usually offered by the government to local tourism bodies will be channeled to the right paths leading to more tourists destinations and hence growth of the industry (Cooper, Gilbert & Fyall, 2009).

With the current threat of global terrorism worldwide, only a political stable government can deal this threat. Terrorists are likely to attack political instability systems and weaken them completely. Terrorism installs fear in travelling tourists. Governments where tourists originate from will usually impose a travel ban on countries affected by tourism hence having detrimental effects on the industry. Therefore, a politically stable government has a major role in promoting tourism in any country (Cooper, Gilbert & Fyall, 2009).

6. Factors affecting tourism demand in Scotland

As the travel and tourism industry continue to grow and expand, there are many factors that affect tourism demand in any chosen destination. Below are some of the factors that affect tourism demand in Scotland. The first factor that affects tourism demand in Scotland is its well established infrastructure. Road, rail as well as air networks connect Scotland to England. Scotland has a number of airports that serve arriving and departing tourists. Some of these airports are Glasgow international airport, Edinburgh as well as Aberdeen airports. There are daily flights connecting Scotland to other European cities as well as other parts of the world like New York, Philadelphia as well as Vancouver and Toronto, Canada. This air industry plays a major role in ensuring that the tourism industry expands in Scotland (VisitScotland, 2015).

Another factor affecting demand is Scotland's connection to mainland Europe by the car ferrying services that originates from Rosyth and travels to Zeebruggle in Belgium. Another service of this kind is the ferry service between Stranraer and Belfast. These services make it easier to travel to Scotland as the problem of hiring a new car once in Scotland is solved. This greatly helps in saving costs incurred (VisitScotland, 2015)

Finally, the last factor affecting demand of tourism industry in Scotland is its wide range of tourist's destinations. These destinations are distributed throughout different cities such as Edinburgh, Glasgow, Stirling, Aberdeen, and St Andrews. Some of the famous destination in Scotland include: the Ben Nevis Mountain, the Cuillin on the isle of Skye. Other factors affecting demand in Scotland are the rich history of Scottish wine industries. Millions of visitors are taken around the wine distilleries every year. Scotland been the home of golf has also contributed to the growth of this industry. Some of the famous and historic golf courses are the St Andrews as well as the Muirfield and the Royal Troon (VisitScotland, 2015).

7. How supply has changed to meet the effects of demand in Scotland

Many studies and researches in the travel and tourism industry often concentrate on the demand side and overlook the supply side. Nevertheless, the supply side also plays a major role in determining the tourists and travel destination. The supply side is made up of five components namely: The tourist attraction sites, the transportation services used to carry the tourists around, the services as well as the information and finally the promotion aspect which is responsible for advertising the supply side.

To ensure that supply meets demand, the Scottish key players in tourism industry have established the visit Scotland initiative. This body is given the responsibility of ensuring that Scotland delivers a rationale for sustainable tourism and development. The VisitScotland initiative achieves this through the various goals and objectives it sets to ensure that supply meets demand. The changes include: changes in internal operations as well the way Scotland engages with visitors. VisitScotland has also reviewed the way the industry relates with the tourism business partners and related industries (VisitScotland, 2015).

First, Scotland has reduced the impact of tourism transport by establishing better and cost effective means of transport. Scotland has introduced ferrying car service from Scotland to mainland Europe and Ireland. Scotland has also modernized the trains and buses industries to fit with the tourism demand (VisitScotland, 2015).

Second, to ensure that supply meets demand, the Scottish authorities have embarked on protecting the countries natural and cultural heritage. There have been efforts to make visits to Scotland available to people of all walks of life especially the economically challenged people and the disabled. The infrastructure has been built to serve even the disabled. Finally, to ensure that the tourism industry remains at the top, the VisitScotland initiative has improved the tourism sector jobs so that the staff continues delivering the best quality of services to the visitors (VisitScotland, 2015).


1. Cooper C.F., (2009), Tourism Principles and Practice, Essex.: Pearson Education.

2. D., K., (2012), The pull of tourism destinations:A means-end investigation, Journal of Travel Research, 40(4), 385-395.

3. Enz, C., (2012), Safety and security in US hotels, Cornell Hospitality Report, 350-5.

4. Fletcher, J., (2015), International Tourism, International Journal of Tourism Research, 1-23.

5. Hall, C., (2008), Tourism Planning: Policy, Processes and Relationship, Essex: Pearson.

6. Jang, S., (2012), Travel motivations and destination choice, Journal of Travel & Tourism Marketing, 111-133.

7. Vengesayi, S., (2010), Tourism destination attractiveness: the mediating effect of destination support services, 179-85.

8. Scottish Government, 2014

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