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Strategic Management


Tourism is a very important part of the economic growth of any country. It can be describes as an act of spending time away from home for the purpose of relaxation, recreation, etc (Doz, 2017). Similarly, many individual travel for commercial purposes by taking commercial facilities such as hotels, airlines, etc. This report will be discussing about tourism strategic plans and its benefits. Similarly, there will be a discussion about different examples of destinations which have benefited from tourism strategic planning. There are various planning approaches for tourism development which has been implemented in different parts of United Kingdom.

However, there are certain pros and cons of these approaches that are discussed in the file. Furthermore, the contribution of historic buildings of UK towards strategic tourism development has also been mentioned along with the example of such building which is used for events, leisure, etc. However, these historic building tourism has also benefited local area in economical and social manner.    


1.1 Examine the benefit of producing tourism strategic plan and give an example of a destination that has benefited from it.

Tourism strategic planning is a very crucial element. It can be described as a process which involves consideration of needs and wants of tourist for tourism and using the data to analyse and deliver best programs, activities and other resources in order to enhance their travelling experience (Eden and Ackermann, 2013).  Along with this, tourism strategy planning is consist of other functions such as coordinating with government of other countries to maintain the tourism infrastructure. It helps in maximising the potential of the location, nature and its culture which helps in social and economical benefits. Addition to this, other tourism sectors that are involved in the tourism planning are transportation means such as airports, roadways, etc. and hotel hotel sector.

There are various benefits of tourism strategic plan which are discussed below:

  • Helps in Maintenance- Tourism is highly dependant on the maintenance of key attraction points of the location. Talking about London, there are numerous tourist destinations such as Buckingham Palace and changing guard, British museum, Tower of London, etc. Many of these locations are from historic buildings of UK which attracts most of the travellers to London. Thus, tourism strategic planning helps in maintaining these buildings in order to attract more tourism and preserves the history and culture of respective country.     
  • Maximise foreign exchange- The tourist that visit UK are from all over the world. As the currency and its rate is different in every country. Tourism helps in increasing the foreign exchange. In order to maximise the foreign exchange, tourism strategy planning plays a vital role by planning and attracting tourism from across the borders (Grunig, 2013). Similarly, it provides ease to the employees to exchange their currency which helps in benefiting the economy of United Kingdom.
  • Helps in promoting tourism- Tourism strategic planning helps in managing tourism flow which is very important for the tourism sector of United Kingdom. This is because various other sectors such as hospitality, airlines, local shops, etc. are dependant on the tourists. In order to do that, the main bodies in tourism planning and management promote various advertisements and tactics in order to increase the attractiveness of the country. This helps in providing knowledge about different tourist attractions and increase the popularity globally.  
  • Maintain Sustainable tourism-Sustainable tourism is one of the recent trend which is been adapted by many countries. It can be described as an initiative taken towards low impact on the nature, local culture and values by the tourist (Hahn, 2013). Addition to this, sustainable tourism helps in ensuring that the development in tourism industry helps in attaining positive experience for the tourists.
  • Information centre- Through effective tourism strategic plan, the tourist are able to attain information about different tourist destinations, accommodation  and maps of the city. These are maintained by the local government. Hence, it helps in attaining trust of the tourist about the authenticity of data provided and provides a future scope of travellers visiting again. It is a crucial service for maintaining and improving tourism sector.
  • Economical growth- Tourism strategic plan plays a vital role in growth of economy. As with effective planning and strategies, more tourists can be attracted to visit which can benefit various sectors of the country including local shops, hotels, etc. Addition to this, tourism planning also facilitates in providing job opportunities to the locals in respective sector. This helps in increasing the employment rate which also leads to growth of the economy of UK.
  • Preserving culture and values- It is one of the main priority while planning strategies for the tourism to reserve the culture and history of the tourist city.Hence, the government of UK take various initiatives to preserve the cultural monuments and other elements which reflects the roots of history of the country (Hair and, 2012). Similarly, various awareness camps are initiated to spread awareness among preserving the culture and values of the country.
  • Development of sector- One of the key benefit of tourism strategic planning isto assure the of travellers and other sectors that are dependant on them. Thus, it is the key responsibility to assure that low price are offered in return of high quality products and services which helps in enhancing the experience of travellers and maintains a good reputation of the tourism sector of UK.


One of the prime destination which has benefited from tourism strategic planning is London in United Kingdom (Hill, Jones and Schilling, 2014). The tourism industry has set a maximum record to pass approximately 40 million tourist visits in 2018. This reflects a rise of 4.4% in respective year which shows that there will be benefit to other industries of London as well such as hotels, retail, etc. The travellers are visiting from different countries such as US, China, etc. to avail low prices on luxury designed products.

As shown in the graph, the number of tourist visits has been increasing with every year. Similarly in 2018, it has reached to 41.7 million which is a huge growth in the tourism industry of United Kingdom (Hill, 2017). This has been achieved with effective tourist strategic planning with the help of safe guarding the cultural monuments, tourist destinations, etc. Addition to this, there have been various efforts put in by the local government of London in order to promote the tourism and other attraction of the state such as shopping, etc. The amount of spending by the visitors from different countries in UK was £25.1 billion in 2017. However, it has increased to

£26.9 billion in 2018 which shows the pace of growth of economy of UK (UK braced for record number of tourists in 2018, 2018). Hence, it can be concluded that London has a huge role in growth of economy of United Kingdom. Similarly, There are various information centres for the visitors in London which helps in providing information about all the tourist locations of London including the restaurants (Hitt, Ireland and Hoskisson, 2012). A city map of London is also offered to the tourist which helps in easing out their free movement in the whole city.

Similar to this, the number of employment created by tourism industry in London has facilitated 13% of the individuals of the respective city. Most of the tourist are attracted to travel London because of Buckingham Palace which is one of the most popular travel location. Hence, the number of visitors that are attracted to visit the respective location is near by 15 million every year (London's Tourism Industry, 2018). This is because of the tourist management that is planned by tourism strategic planning of the city. Thus, tourism sector of London is highly influenced by these strategic planning which helps in managing, maintaining and initiating policies to overcome issues that are arising in the industry.        

1.2 Evaluate a planning approach for tourism development and illustrate your evaluation with an example of where this planning approach has been implemented. Discuss the pros and cons.

Tourism and Development:

Tourism is the travel for pleasure and business and it is the theory and practice of touring the business. It is the development that provide the quality growth in tourism sectors in terms of strong plans and policies and can marketing throughout the world (Killen and, 2012). It can includes accessible way to reach the destination, proper facilities like hotels, means of transportation and the civic amenities. GDP, revenue, per capita income are the symptoms of the development. It can create strategies, plans to increase, develop that can encourage the tourism for the country.

Planning approach : 

It is the approach that where one can set all the goals and objectives, define the different strategies that can implement plans , procedures can define the various alternatives in a planning manner. It is the fundamental function result in best degree that can provide various resources that are available for the people in tourism. The planning approach can constitute four elements:-Democratic, systematic, Integrative and goal oriented.

Economic approach:

It is a type of planning approach in tourism development that can increase the potential ingredient in various developmental strategies. It has emerged to be the foundation of the environment pyramid in certain economics, while it can contribute to a significant extent in the general development process (Meyer, Neck and Meeks, 2017). The operation  of the tourism industry is not as simplistic as it is a complex of various inter-linked and inter-acting process that can developed the strategies which initialise the tourism sector. The scope of tourism is quiet large covering of visitors and visitors related services. It is a whole world of travel, accommodation, catering and other hospitality services, transportation and other components including promotion and want and needs of travellers.

It is a synthesis of activities, services and industries that gives forth for a travel perspective to find the sum total of operations mainly of economic nature which can directly related to the movement of foreigners inside and outside the country, city or region.

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Tourism development is the major part in the outside India that can satisfy visitors, positive attitudes towards tourists in the host communities. The positive consequence of the tourism development were the considerable generation of the employment that can increased foreign exchange earnings which guide the economy by becoming the welfare state of the nation. In this the marketing is the primary tool in the economy that can remain dominant for tourism planning tool (Priem, Li and Carr, 2012). The marketing techniques can become more complicated that can include the considerations and understanding about the tourist behaviour, segmentation and consumer choice  theory that can provide the input-output models for providing and analysing economic benefits.

The example to illustrate the tourism development is London, it is the economy which had made a supply chain beneficial to the society ,their will be the close linkage between the visitors economy and the other areas of the state.

The link that have been evident in the impacts on the retail profits through economic stock events, made the long term of growth , travel and tourism sector  that will continue  to be strong as the investment and development takes place in an open and sustainable manner. In this manner their will be greater capture to a direct and induced impacts through annual research report. In the developing country London , the combination of travel & tourism to GDP is been calculated to be consistent with the output as expressed in the tourism characteristic sectors such as hotels, airlines, airports, travel agents and leisure that deals directly with the tourists (Vogel and Güttel, 2013).

Travel and tourism investment  can spends the investment in different sectors, as it is an important aspect of both current and future activity such as the purchase of the new aircraft and construction of new hotels. The government is spending in many sectors  which helps travel & tourism activity to diversify their business in the different sectors of the London . Some of the examples are given below:-


make the retailer profit through economic stock events, such as the London tube in 2005.


Stakeholders have suggested that there are crucial links through supply chain, particularly in the form of manufacturing of goods and services in the transport sector, food and beverages and hotel equipment.

Health and life sciences:-

There will be well developed health care systems and improvements in technology that had supported the growth of medical tourism with consumers (Doz, 2017). The revenues can be generated by tourism in London comprise approximately 10% of the city's gross value added income, and it is projected that tourists in London spend approximately £13.08 million per year (Hahn, 2013). Around 13% of the people who work in London are employed by the tourism sector  

Some of the pros and cons are:-


  • It is good for are a region's economy, that can create jobs based on the tourist influx and businesses like hotels and boutiques that can cater tourists.
  • It allows the visitors to experience a region in a planned and expected way, tourist destination are organized in a way where they are usually have enough hotels and restaurants.
  • Regions that will get a lot of tourism can have the incentive to keep the area clean, safe which benefits all the nation of the country.
  • It can add sales tax that had collected from the tourists may benefit local infrastructure and schools.
  • It can have the direct impact on the society that can manipulate all the strategies which can make the resources in a well manner.


  • The kinds of jobs that tourism has creates are often low-paying jobs like maids and store clerks.
  • Tourists can be added that put strains on the public services, such as police and ambulance.
  • Tourists may be seasonal , and the town may suffer off due to the slowdown in income.
  • Tourist destinations can often seem “inauthentic”, it not only portraying the overall region accurately.
  • The wrong kind can bring in a seedy element and their will be increase in crime, bars and strip clubs in economy.


2.1 Assess how the historic buildings contribute to strategic tourism development. Give one example of historic building in London tourism that is used for  leisure and events functions and how it benefits in local area socially and economically.

Historic buildings are one  of the most important element in tourism destination of United Kingdom. These heritage sites helps in representing the fine art work of human creations in the history. There are various tourism attractions in London such as shopping, food, parks and others. However, the utmost attraction of United Kingdom is its history (Hill, 2017). Thus, it is important to preserve these historical places in order to attract more tourism in the city. The tourism strategies are build for the travellers according to their priority. Every traveller have different choice and needs for travelling.

Thus, different packages are developed to fulfil the needs and wants of these customers where hotels, stays and destinations are planned as per the desire and budget of the visitor. Apart from this, these building are also used in managing and conducting events and facilitates leisure of the traveller. There are various historic buildings in London which are used for the respective purpose such as The queen's house, Westminster Abbey church, Hampton Court Palace, etc.

Hampton Court Palace

It is one of the Tourist attractions in London which is a royal palace. The place became accessible for public during the time of Queen Victoria reign which is no longer a queen residence. There are various activities conducted in Hampton Court Palace such as royal feasts, fishing, festivals, bicycle tours, overnight stays, etc (Eden and Ackermann, 2013). These are the man reasons why individuals travel across the world to attend these festivals and have a night access to the royal place. Along with this, there are various attraction points in Hampton Court Palace such as Henry VIII's Apartment and the great hall, the royal garden, the clock court,the maze, etc. Due to these different variety of historic attraction, the building is able to attract more tourism to London city as it is perfect for leisure and visitors who are interested in arts. With the help of its art gallery, it is able to attract visitors that are interested in arts and history. Apart from this, there are other benefits of  Hampton Court Palace to the local society and economy. The benefits to socially and Economically in local areas are mentioned below:

  • Cultural enhancement- The history of London is one of its unique feature which makes it different from other states and countries. Hence, Hampton Court Palace helps in educating and spreading general awareness about the history and culture of London through its architecture and other detailed factors (Grunig, 2013). This helps in influencing travellers with the local culture and helps in attracting more travellers in the future. Addition to this, these historic monuments are one of the key reasons of reserving the roots and history
  • Taxation- Hampton Court Palace attracts lot of travellers every year. Due to this, the government is able to earn tax through different mediums such as tickets, products and services that are consumed by the visitors and many more. These taxes help in earning monitory benefits for the country which ultimately help in benefiting the economy of destination.
  • Development of the locality- As there is a continuous requirement of restoration of Hampton Court Palace.Due to this, there is a regular check on the management and construction of the property. However, in order to attract the visitors, it is important to maintain the near by locality as well. Hence, the government pays a huge amount of focus on maintaining the locality which ultimately helps in providing a good state of living for the local people of United Kingdom.


From the above discussion it can be concluded that tourism is a vast industry which needs planning, management and monitoring in order to maintain the quality of services and other facilities that are offered to the travellers. Along with this, it can also be analysed that tourism strategic planning helps in managing the culture, values and various other benefits to the respective country. Addition to this, the growth of number of visitors in London can also be seen which shows a positive impact of tourism management. Similarly, the economical approach of tourism development is very crucial for economic growth of the country. Addition to this, it helps in providing a well planned tourism experience to the travellers in small regions. There are various historic buildings in London which are responsible for development of tourism strategies.

Apart from this, these historic buildings also helps in providing job opportunities which ultimately grows the economy. Also, these help other sectors to earn as well such as food and beverages, decorations, security agencies, etc.    


  • Doz, Y.L., 2017. Strategic management in multinational companies. In International Business (pp. 229-248). Routledge.
  • Eden, C. and Ackermann, F., 2013. Making strategy: The journey of strategic management. Sage.
  • Grunig, J.E., 2013. Furnishing the Edifice: Ongoing Research on Public Relations as a Strategic Management Function. In Public Relations and Communication Management (pp. 41-66). Routledge.
  • Hahn, R., 2013. ISO 26000 and the standardization of strategic management processes for sustainability and corporate social responsibility.Business Strategy and the Environment. 22(7). pp.442-455.
  • Hair, J.F., and, 2012. The use of partial least squares structural equation modeling in strategic management research: a review of past practices and recommendations for future applications. Long range planning. 45(5-6). pp.320-340.
  • Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated approach. Cengage Learning.
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