The Travel and Tourism Sector in the UK in Response to Changes in the Industry and Society - Assignment Example

Explain how the travel and tourism sector in the UK today has developed in response to changes in the industry and society. Introduction As governments around the recover from the global economic downturn of 2008, governments around the world are struggling to generate economic growth and create jobs [Tou13]. Many governments realize that one of the best means to attain these goals is to promote the tourism sector. Even as GDP declines in most developed economies, global demand for tourism remains high. In 2012, the United Nations World Tourism Organization reported that 1.035 billion international visits were made in 2011, resulting in expenditure in excess of $1 trillion. In the UK, 134 billion Sterling pounds were spent in tourism. This figure represented an increase of 6.9% in 2011. This paper explains the factors behind the increase in demand for and supply of tourism in the UK in the following paragraphs. Demand for tourist products and services Demand for tourist goods and services in the UK has increased substantially during the past few decades. The growth has been so steady that even in the aftermath of the worldwide economic downturn of 2008, tourism earning grew by 6.9% to reach 134 billion Sterling pounds in 2012, compared to 2011 earnings. In absolute terms, the sector earned 9 billion pounds more than it did in 2011. This amount of money is enough to create 180,000 new jobs in the UK. The following paragraphs explain the factors behind this growth. Growing disposable incomes: The disposable of the average British worker has grown tremendously since the Second World War. Disposable income is the income that an individual or a household is left after paying taxes and meeting their basic needs. With more disposable incomes, more and more people can now afford a vacation once in a while. Changing perceptions: Until recently, many citizens of the UK saw tourism as a luxury product that was reserved for the rich in society. This perception has since changed [Tou13]. More and more Britons are coming to appreciate tourism as a basic necessity of today's life. Of course, tourism has notreached the same level of necessity as food, shelter, education and healthcare. Nevertheless, increasingly more Britons are embracing tourism. Government tourism policy: In 2011, the government of the United Kingdom enacted a tourism policy. The policy seeks to promote domestic tourism [Gov111]. The goal was pursued out of the realization that most Britons are more likely to travel abroad for a holiday rather than spend it in the country. As a result, currently under 40% of the money Britons spend on holidays remains in the country. Favourable conditions: in spite of its small size and unfavourable climate, UK is ranked the 7th most popular tourist destination in the world [Tou13]. London remains a favourite for most international travelers. Heathrow remains the biggest international airport in the world. The world's largest group of hotels is British. In 2012, the nation hosted the Olympic and Paralympics Games. All these factors foster tourism in the country, both local and international. Of all the four factors, the author believes that it is the growing disposable incomes that have contributed the most to growing demand for tourism. If people are poor, it does not matter how many beautiful tourist attractions there are in the country. People must have the power to purchase tourist goods and services. More disposable income gives them this power. Supply of tourist products and services The travel industry: tourism and travel industries complement each other. This means that when demand for one trade increases, demand for the other also increases. In turn, when demand for a product or service increases, its suppliers will supply more of it so as to cash in on the increased demand. Since World War II, the travel trade has transformed tremendously. One positive change has been that growing competition to offer a wider variety of products more affordably [The131]. As a result, many Britons today can afford to rent a car and proceed with it on vacation. Hospitality industry: This is another industry that complements the tourism industry. When people are away from their homes on vacation, they need to eat and sleep among other things. Here is where the hospitality industry comes in. Many transformations have taken place in the industry since the Second World War. All these changes have culminated in comfort and affordability [Wor13]. Falling accommodation prices have made hotels more affordable. Hence, more and more people can now go on holiday. Improved transportation: for domestic tourism to flourish, people must be able to move around the country easily, whether by public or private means[Gov111]. For this to happen the transportation infrastructure such as roads and railway line. In addition, the public transport system should be reliable and affordable. If these conditions do not hold, a holiday may cease to be fun. Since, World War II, transportation infrastructure and services have improved. Visitor attraction sites: the basic way by which tourism makes money is by charging visitors a sum of money. However, people just won’t pay for anything. The sites must of good quality. For many years, the central government has worked to improve publicly owned attraction sites. Besides the publicly owned sites, there are several others that are owned and maintained by the private sector. The increased supply of quality tourist attraction sites has also served to increase demand. In the view of the author, improved transportation services and infrastructure have contributed the most to the growth of demand for tourism. This is important because most tourist attraction sites are located at the edges of cities or in the countryside. These necessitate the connectivity of the two activities – tourism and residence. Even those Britons with private cars need good roads. Or else, their cars won’t last long. Conclusion The tourism and travel industry has continued to expand in spite of the recession. This growth has been driven by the forces of demand and supply. Demand forces include higher incomes, a positive change in perception of tourism, government policy and conducive conditions. Supply forces, on the other hand, include the travel and hospitality industries, improved transportation services and infrastructure and visitor attractions. All these forces have colluded to boost local tourism. The author recommends that the government facilitates the implementation of the provisions of the tourism policy. This way, the goal of enhancing local tourism can be realized. References Tou13: , (Tourism Alliance, 2013), Gov111: , (Government of the United Kingdom, 2011), The131: , (The Travel Association, 2013), Wor13: , (World Economic Forum, 2013), Read More