Factors that have led to the Development of the Tourism Industry Report (Assessment)

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Updated: Jan 16th, 2024

A number of milestones have been recorded in the development of tourism particularly in the United Kingdom. Tourism became more popular in the UK way back in 1936 when Butlin Billy initiated his first holiday camp in Skegness. In 1938, the UK government introduced the holiday with pay act that enabled UK citizens to earn their salaries even when on holiday.

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In 1946, a British national Pontin Fred initiated his first ever holiday at a place near Weston Super Mare. Four years later, the first air package holiday was convened by Horizon (BTEC National Travel and Tourism 2012, p.1). In 1952, the tourism sector received a boost with the development of the first passenger airline service.

Because of the passenger jets, in 1960, domestic holidays taken in exceeded 30 million in history and the number of foreign holidays rose to 3.5 million. In early 1960s, America Airlines developed the first distribution systems in the world (World Travel and Tourism Council, 2009, p.3).

According to the History UK (2012, p.1), in 1968, Britain passed the countryside act that allowed for the creation of national parks and the British countryside was designated as tourist destination because of the availability of enough space. The same argument is expressed by the Wales Audit Office (2006, p.2). In 1969, the tourism act was adopted (Eagles et al. 2002, p. 43).

The tourism industry is the biggest sector contributing to the economic growth in Britain through creating jobs and a source of foreign exchange to the country. Tourists are categorized according to their purpose of visit. For instance, we have business tourists, domestic tourists, inbound tourists, leisure tourists and those visiting friends and relatives.

Business tourists travel to different places for a conference, meeting or any events that are related with business. Leisure tourists are those that travel because they are either taking a short break or they are on holiday. Finally, there are those tourists who are said to be visiting friends and relatives as they do not use the accommodation facilities as they are accommodated by their family members and relatives (Eagles & Hillel 2008, p.77).

The tourism industry is characterized by various features. To begin with, majority of businesses in the tourism industry are small although the industry also has few large companies. These companies have high market shares and also have other retail travel business. Majority of organizations in travel and tourism industry are privately owned businesses. The private ownerships range from sole trader to public limited companies.

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The tourism industry comprises of five sectors. The accommodation sector includes guesthouses, holiday centers, exhibition centers, hotels/motels, camping sites. The second is the attraction sector that includes national parks, gardens, sports centers, theme parks, heritage sites and centers museums and galleries.

The third is the transport sector that includes railways, coach operators, airlines, ferries, car rental operators. Destination organization sector which includes local tourist offices, tourist associations, regional tourist offices and national tourist offices. The travel organizers comprise of the retail travel agents, conference organizers, booking agencies, tour brokers and incentive travel organizers.

Factors that have led to the Development of the Tourism Industry

The use of new technology: the tourism industry makes use of modern technology that links tour operators to travel agencies through terminals thereby allowing travel agents to make bookings through the system. Most firms in the tourism industry use computer reservations systems.

They use global distribution systems to link up different computer reservations systems with travel agents. Currently, they use the internet as a means of booking flights and holidays. Tour operators and travel agencies also use the internet to present their services and products and also accept bookings online (Font & Carey 2005, p.22).

Examples of new technology used in tourism industry include self-check in at airports, online check in for airlines, online brochures. Similarly, the use of new technology like the internet has made consumers to be self-reliant and make their own holiday plans and travel arrangements.

Technological developments have resulted in new transport products like the scheduled airline service and charter airline service. Advancements in technology for instance databases, networking, electronic marketing and data processing are significant in attracting more tourists.

The introduction of information technology systems improves services and products in the tourism sector thereby promoting the development of the industry. Tourist industry makes use of information technology system in aspects of accommodation, transportation, package tours and services.

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The use of ICT in the tourist industry contributes to the innovation in the sector. Consumers seek industries, which are familiar with the use of ICT in order to make tourist arrangements. The Certification for Sustainable Tourism (2008, p.23), suggests that tourist industries can only take advantage of ICT if they re-engineer the market process of the industry.

Internet technology enables consumers to carry out on-line direct business. It also improves on the quality, flexibility and efficiency in the distribution and selling of tourism services and products. It also provides the consumer with current information on the destination. It is reported that by 1998, approximately 1.4 million people had purchased travel tickets over the internet (EUHOFA, IH&RA & UNEP 2001, p. 55).

Increased disposable income: disposable income refers to remaining income after deducting pension contributions, tax and national insurance. Increase in disposable income leads to a rise in the expenditure on leisure. With increased disposable income, individuals have high expectations of tourism and travel.

Better levels of education contribute to high levels of tourism (Fair Trade in Tourism South Africa 2008, p.1). If individuals are highly educated, they will be curious about several languages and cultures and eager to experience them. Economic theory suggests that as an individuals income increases, preference for leisure increases (Certification for Sustainable Tourism 2008, p.56).

Improved mobility: this is through car ownership and use, speed trains and modern airplanes. There has been a lot of technological advancement that has improved human mobility over the past 100 years. This has promoted tourism, as it is longer difficult to move from one destination to the other.

For instance, car ownership has increased over the past few decades. In 1961, it is reported that up to 60 percent of household in the UK had a car and by 1989, ownership of private cars hit the 20 million mark. By 1997, car ownership in the UK had reached 70 percent of the total population. This has a great effect on tourism and travel.

Demographic changes: according to Global Sustainable Tourism Criteria (2012, p. 32), demographic factors to a large extent have shaped the modern consumer behavior in most parts of European countries. There are two important demographic trends for instance a rising life expectancy of an older growing society.

Second, there is a decrease in the number of children due to a decrease in fertility in many countries. Other demographic trends include a changing role of women in society, a colorful society due to migration and a rising educational level. It is evident that changes in peoples travel behavior because they have retired or they turn 60 or 65.

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In most times people stick to their holiday patterns which make it easier for the tourist industry to predict the tourist behavior for the next generations. There is a difference in travel behavior in new senior citizens. Research indicates that the new senior generations are likely to surpass the senior travelers when it comes to travel behavior.

For instance, it is expected that the number of holiday tourists between the ages of 70-80 will increase by more than 50% within 15 years to come. In Germany, there is stability in the number of children who go for holiday trips. People aged 50 years and above made 11.5% of family trips and the tourism industry expects that there will be a further increase in family holiday trips.

This information portrays a specific pattern of tourist behavior for instance when compared to other family holiday trips you find that there is high spending, lower seasonality, longer stays and other choices of the destinations.

The economic environment has a strong effect on travel and tourism industry. A strong economy can invest in tourism and travel industry in terms of supporting the industry through the public sector, availing new infrastructure. A strong economy supports the local currency in terms of its value.

This means that tourists who want to travel to foreign locals will use less of their income/wealth to tour those places as compared to a country with a weak currency. It makes tourism more affordable to the population.

An increase in labor time available to many individuals as early as 1983, British workers had at least 4- 5 weeks of holiday in a year. An increase in wages and salaries increases disposable income which also increases income to be spent on leisure. In Britain and most parts of Europe, an individual should work for only 48 hours in a week, which gives them sufficient time to attain work life balance.

Cizmar and Lisjak (2007, p.48) argue that in North America witnessed an increase in leisure time as a result of a decrease in the number of hours required at work this led to an increase in the length of the annual holiday. The increase in access to recreational facilities was accompanied by a drastic increase in car ownership particularly in Western Europe in 1950’s and 1960’s and in North America in 1950’s.

During this period, there was a great improvement in motorway and road system. At this time, a good number of tourists did not rely on privately or publicly owned transport organizations but they planned for their own trips. By 1987, foreign holidays exceeded 20 million, the first time in history. In 1992, the European Union issued a directive on packaged holidays.

Fostering new services and innovative tourist products: tourist’s products are different from other industrial products for instance it involves large capital assets like car rental firms. The development of the tourist industry has seen the rise of new services and products. This has not only increased the industrys profitability but has equally promoted competition within the industry (Craigwell 2007, p.6).

Firms that are unable to offer quality services and products are driven out of the market while those that provide customer experience continue with business. Similarly, the rise of seaside resorts, package holidays, and holiday camps, all weather attractions and long haul destinations have been developed to meet the rising demand for travel and tourism products and services.

List of References

BTEC National Travel and Tourism 2012, Historical development, BTEC. Web.

Certification for Sustainable Tourism 2008, The importance of certification for sustainable tourism, Certification for Sustainable Tourism. Web.

Cizmar, S Lisjak, S 2007, Tourism master plans: An effective tourism destination management tool in SEE. South East European Journal of Economics & Business, 2 (1): 48-57.

Craigwell, R 2007, Tourism competitiveness in Small Island developing states, UNU-WIDER Research Paper No. 2007/19.

Eagles, P & Hillel, O 2008,. Secretariat of the Convention on Biological Diversity, Technical Series no. 36: p 77-86. Web.

Eagles, P et al. 2002, Sustainable tourism in protected areas: guidelines for planning and management, Switzerland and Cambridge Publisher, London.

Fair Trade in Tourism South Africa 2008, Making tourism more responsible and more rewarding,: Annual Report 2007-2008. Web.

Font, X & Carey, B 2005, Marketing sustainable tourism products, United Nations Environment Programme and Regione Tuscana. Web.

Global Sustainable Tourism Criteria 2012, tourism, Global Sustainable Tourism Council, History UK 2012, History of British tourism. Web.

EUHOFA, IH&RA & UNEP 2001, Sowing the seeds of change: an environmental and sustainable tourism teaching pack for the hospitality industry, UNEP. Web.

Wales Audit Office, 2006, Public access to the countryside, Wales. Web.

World Travel and Tourism Council 2009, Travel and tourism economic impact, Caribbean. Web.

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