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Understand the influence of local and national governments and international agencies on the travel and tourism

Post Date: 11 - Feb - 2020

4.24 The Travel and Tourism Sector

Unit aims: This unit aims to develop understanding of the development and structure of the travel and tourism sector and how it is affected by external agencies and factors. An understanding of the impacts of tourism will also be developed.

Unit level                           4


Unit code                     A/601/1740


GLH                                   60


Credit value                      15


Unit grading structure     Pass


Assessment guidance

Learners will carry out research into the travel and tourism sector and reort on key developments, the structure of the sector and its influences. Learners will analyse the effects of demand and supply reort on the impacts of tourism.

Learning Outcomes The learner will:

Assessment Criteria The learner can:

1. Understand the history and structure of the travel and tourism sector  

1.1 Explain key historical developments in the travel and tourism sector

1.2 Explain the structure of the travel and tourism sector

2.  Understand the influence of local and national governments and international agencies on the travel and tourism

2.1 Analyse the function of government, government sponsored bodies and international agencies in travel and tourism sector                                               

2.2 Explain how local and national economic policies influence the success of the travel and tourism sector

2.3 Discuss the implications of political change on the travel and tourism sector in different countries

3. Understand the effects of supply and demand on the travel and tourism sector

3.1 Explain factors affecting tourism demand 

3.2 Explain how supply has changed to meet the effects of demand

4. Understand the impacts of tourism           

4.1 Evaluate the main positive and negative economic, environmental and social impacts of tourism

4.2 Explain strategies that can be used to minimise the negative impacts whilst maximising the positive impacts

Indicative Content

1.  Understand the history and structure of the travel and tourism sector

Key historical developments

Developments in transport e.g. development of aviation post 1945; introduction of low cost airlines; deregulation of airways; airport expansion; Channel Tunnel; cruise ships; motorway networks; luxury coaches.

  • The Grand Tour
  • introduction of package holidays
  • changes in technology
  • government legislation, Development of Tourism Act,1969, Transport Acts, 1980 and 1985


  • private, public and voluntary sectors
  • industries within travel and tourism: tour operators, travel agents, accommodation services, passenger transport e.g., rail travel, road travel, aviation and airports, sea travel, public sector, visitor attractions, support services

2.  Understand the influence of local and national governments and international agencies on the travel and tourism sector

Function of government

  • development of tourism policy
  • introduction of legislation
  • introduction of duties

Government sponsored bodies

  • tourism departments e.g. Department of Culture, Media and Sport in the UK
  • regional tourist boards
  • tourist offices
  • development agencies
  • local government

International agencies

  • European Union
  • World Tourism Organisation
  • World Travel and Tourism Council
  • International Air Transport Association
  • International Civil Aviation Authority

National economic policy

  • promotion and support for tourism e.g. through Visit Britain or other national tourist offices
  • special events
  • transport policy

Local economic policy

  • promotion of tourism
  • planning
  • grants for tourism development

Implications of political change in different countries

  • change in tourism policy
  • change in transport policy
  • change in duties affecting tourism
  • change in visa/entry requirements
  • political unrest e.g. Arab Spring
  • change in political philosophy e.g change from totalitarian regime to greater levels of democracy and freedom of movement

3. Understand the effects of supply and demand on the travel and tourism sector

Factors affecting demand

Political and economic factors

  • changes in legislation – national and European
  • government policy
  • events e.g. Olympics
  • changes in disposable income
  • changes in VAT
  • new taxation
  • employment levels

Social factors

  • demographics
  • changes in holiday/leisure patterns
  • work patterns
  • demand for budget/luxury products

Environmental factors

  • air emissions
  • carbon footprint
  • choice of environmentally friendly providers
  • sourcing of products

Technological factors

  • improving communication systems
  • software for reservations and planning
  • easier access e.g. flights

Changes in supply

  • luxury hotels
  • budget hotels
  • different modes of transport e.g. larger aircraft, faster high speed trains, bigger cruise ships
  • new destinations
  • increased diversity of tour operators e.g. for adventure holidays, personalised holidays, walking/cycling holidays
  • city breaks

4.  Understand the impacts of tourism

Positive impacts Economic

  • employment- direct and indirect
  • tourism revenue – direct and indirect
  • foreign exchange
  • multiplier effect
  • taxes


  • conservation of historic sites
  • eco tourism
  • improved infrastructure
  • protection of natural environment


  • cultural interaction
  • education
  • preservation of cultural practice e.g. dance Negative


  • leakage
  • movement of population to tourist areas
  • artificial inflation
  • seasonality


  • spoiled habitats
  • damage to historic sites
  • use of natural resources e.g. water


  • rise in crime
  • rise in prostitution
  • local facilities lost to tourism
  • commercialisation of culture and reinforcement of stereotypes
  • overcrowding

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