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iii
Chapter 2: Travel Patterns and Trends ..............................................................23
2.1 Introduction ....................................................................................................23
2.2 Tourism Growth...............................................................................................23
2.2.1 International vs. Domestic Tourism ......................................................24
2.2.2 Total International Arrivals ....................................................................24
2.2.3 World's Top Destinations and Tourism Receipts .................................25
2.2.4 Tourism Generators and Related Expenditures .................................26
2.2.5 Tourism Surpluses and Deficits..............................................................27
2.3 Regional Travel Patterns and Trends ...........................................................28
2.3.1 Europe ....................................................................................................28
2.3.2 Asia and the Pacific..............................................................................29
2.3.3 South Asia...............................................................................................31
2.3.4 Americas ................................................................................................32
2.3.5 Middle East ............................................................................................33
2.3.6 Africa ......................................................................................................33
2.4 External Factors That Affect Tourism ............................................................33
2.4.1 Changing Demographics ....................................................................34
2.4.2 Technological Advances .....................................................................34
2.4.3 Political Change....................................................................................35
2.4.4 Sustainable Tourism and the Environment .........................................36
2.4.5 Safety and Health .................................................................................37
2.4.6 Human Resource Development..........................................................37
2.5 Tourism Market Trends....................................................................................37
2.5.1 Changing Consumer Preferences ......................................................38
2.5.2 Product Development and Competition ..........................................39
iv
3.6.4 Airports....................................................................................................56
3.6.5 Other Aspects of the Airline Industry ..................................................57
3.7 Regulation and Deregulation of Air Travel .................................................58
3.7.1 Basic Aspects of Regulation ................................................................58
3.7.2 Pressures on the Bilateral Regulatory System ....................................60
3.7.3 Economic Aspects of Regulation........................................................61
3.8 Challenges Facing Transportation...............................................................62
3.8.1 Fleet Planning ........................................................................................62
3.8.2 Congestion ............................................................................................63
3.8.3 Safety and Security...............................................................................64
3.8.4 Environmental Impacts.........................................................................64
v
5.4 Travel Intermediaries....................................................................................100
5.4.1 Tour Wholesalers ..................................................................................100
5.4.2 Tour Operators .....................................................................................104
5.4.3 The Travel Agent..................................................................................105
5.4.4 Regulation of Intermediaries .............................................................107
5.5 The Impact of Technology on Travel Distribution Systems ......................109
5.5.1 The Link Between Technology and Tourism .....................................109
5.5.2 Computer Reservation Systems (CRS)..............................................110
5.5.3 Ticketing Automation..........................................................................111
5.5.4 The Internet ..........................................................................................112
5.5.5 The Future.............................................................................................112
vi
7.4.2 Theories of Travel Motivation .............................................................149
7.4.3 Market Research and Motivation .....................................................153
vii
SECTION IV: TOURISM IMPACTS ........................................................................209
viii
12.4 The Impacts of Tourism on the Physical Environment............................256
12.4.1 Negative Impacts .............................................................................256
12.4.2 Positive Impacts.................................................................................259
12.4.3 Factors Which Influence Tourism Impacts ......................................259
12.5 Strategies for Managing Impacts ............................................................260
12.5.1 Planning Strategies ...........................................................................261
12.5.2 Marketing and Education Strategies..............................................268
12.5.3 Research and Monitoring ................................................................270
12.6 Tourism and the Physical Environment: Three Case Studies .................270
12.6.1 The Great Barrier Reef, Australia......................................................270
12.6.2 Venice, Italy........................................................................................272
12.6.3 Mt. Huangshan Scenic Area, People's Republic of China ...........273
12.7 Alternative Tourism.....................................................................................274
ix
14.3.3 Providing Data and Advice .............................................................306
14.3.4 Providing Direct Assistance ..............................................................306
14.3.5 Addressing Trade Issues ....................................................................307
14.3.6 Addressing Environmental and Social Issues .................................307
14.4 Important Tourism and Tourism-related Organizations..........................309
14.4.1 World Tourism Organization (WTO)..................................................309
14.4.2 Organization for Economic Cooperation
and Development (OECD) ..............................................................310
14.4.3 International Civil Aviation Organization (ICAO)...........................311
14.4.4 International Air Transport Association (IATA) ................................312
14.4.5 World Travel and Tourism Council (WTTC) ......................................312
14.4.6 Pacific Asia Travel Association (PATA)
and Other Regional Organizations .................................................313
14.4.7 International Bank for
Reconstruction and Development (IBRD).......................................315
14.4.8 International Trade in Services and GATS ......................................315
14.5 Challenges for Tourism Organizations .....................................................317
x
16.5 Tourism Education and Training Providers...............................................350
16.5.1 Formal Programs and Courses ........................................................351
16.5.2 Employer-based Education and Training .......................................353
16.5.3 Education and Training Providers and Skill Standards..................354
16.6 Issues Facing Tourism Human Resources Development........................355
16.6.1 Geopolitical .......................................................................................355
16.6.2 Economic ...........................................................................................356
16.6.3 Social ..................................................................................................356
16.6.4 Information Technology ...................................................................356
16.6.5 Constant Change .............................................................................357
Glossary .............................................................................................................373
Bibliography ......................................................................................................399
xi
1
Section
Perspectives of Tourism
CHAPTER 1
Introduction to Global Tourism
CHAPTER 2
Travel Patterns and Trends
CHAPTER 1
Introduction to Global Tourism Learning Objectives
Learning objectives
domestic tourism
inbound tourism
infrastructure
international tourism
mass tourism
outbound tourism
same day visitor
tourism
tourists
transportation
travel
travel distribution systems
travel industry components
visitors
1
Introduction to Global Tourism
Learning Objectives
1.1 Introduction
The travel and tourism industry is the world’s largest and most diverse
industry. Many nations rely on this dynamic industry as a primary
source for generating revenues, employment, private sector growth,
and infrastructure development. Tourism development is encouraged,
particularly among the developing countries around the world, when
other forms of economic development, such as manufacturing or the
exportation of natural resources, are not commercially viable.
The reasons people desire to travel are complex and varied.
Contributing to the powerful growth tourism has experienced in a
relatively short time frame has been the increased accessibility to the
many components of the travel experience. Transportation to, from, and
within parts of the world once considered remote has become more
affordable for, and within the reach of, the majority of residents in many
nations. Accommodations and restaurants in assorted budget categories Travel: easier
are universally found in major cities, resort locations, adjacent to and cheaper
airports and thoroughfares, and in rural areas. Professional services
provided by travel agencies and tour operators, marketing efforts by
public sector tourism offices, advanced technology that rapidly brings
the tourism components together in a flash for the potential traveler–all
make today’s travel experience safe, comfortable, and enjoyable.
3
Chapter 1: Introduction to Global Tourism Learning Objectives
This chapter will help students of the travel and tourism industry
understand the many positive impacts travel and tourism have on countries
throughout the world. The importance of tourism terminology is
explained, and definitions for the most common terms are provided. Travel
and tourism through a historical context is also treated. The role of tourism
as a major contributor to the global economy is explored, as well as
indicators which reflect the industry’s rapid growth. Other contributions of
tourism are discussed, as is the concept of sustainable tourism. Key
components of this multifaceted industry–tourism distribution,
transportation, hospitality, tourism administration–are summarized.
Finally, basic approaches to studying this dynamic industry are reviewed,
bringing us to the 20th century and the mass tourism movement.
4
Defining Travel and Tourism
1.2.2 Definitions
The World Tourism Organization (WTO), the major intergovernmental body
concerned with tourism, has led the way in establishing a set of definitions
for general use. In 1991, the WTO and the Government of Canada organized
an International Conference on Travel and Tourism Statistics in Ottawa,
Canada which adopted a set of resolutions and recommendations relating to
tourism concepts, definitions, and classifications. The following definitions
are based on the WTO definitions and classifications and explain the
various types of visitors (see Figure 1.1):
• Tourism - The activities of persons traveling to and staying in
places outside their usual environment for not more than one
consecutive year for leisure, business, and other purposes.
• Tourist - (overnight visitor) visitor staying at least one night in a
collective or private accommodation in the place visited.
• Same Day Visitor (Excursionists) - visitor who does not spend the
night in a collective or private accommodation in the place visited.
• Visitor - any person traveling to a place other than that of his/her
usual environment for less than 12 consecutive months and whose
main purpose of travel is not to work for pay in the place visited.
• Traveler - any person on a trip between two or more locations
(WTO, 1995b, p. 17).
Unfortunately, there is still confusion over these very basic definitions.
Even within the same country such as the United States, for example,
different states may use different definitions for data gathering and
statistical purposes.
5
Figure 1.1: Visitors and Other Travelers
6
Source: Adapted from World Tourism Organization, Concepts, Definitions, and Classifications for Tourism Statistics, (1995), p. 22.
Defining Travel and Tourism
7
Chapter 1: Introduction to Global Tourism Learning Objectives
8
History of Travel and Tourism
9
Chapter 1: Introduction to Global Tourism Learning Objectives
Leisure travel Asian civilizations also have a history of leisure travel to resorts, with
in Asia known examples of second homes or seasonal retreats in China as well
as in Japan. Chinese nobility and their guests retreated to the summer
pavilions and villas in Suzhou, Hangzhou and other scenic areas.
10
History of Travel and Tourism
11
Chapter 1: Introduction to Global Tourism Learning Objectives
Initially, recreation tourist trips were generally only day trips because
Beginnings of most people still had only limited discretionary income and a five-day
vacations work week was not commonplace. Toward the end of the 19th century,
workers began to get annual vacations. In order to escape congested and
polluted urban areas, many turned to spas and seaside resorts for their
holidays which set the tone more or less for the modern leisure tourist.
Some destinations, until then visited primarily by the wealthy, were
expanded, while others were newly established to capture this growing
Middle class middle class market. To these destinations, the middle class represented
market a huge market compared with the small number of the earlier wealthy
and aristocratic visitors. What the new tourists lacked in individual
spending power, they more than compensated in terms of the total
volume of arrivals.
12
Components of the Travel Industry
Trading
Developments Safety of Travel
Destination Product
Development Marketing
Computer
Operator Product and MARKET Reservations Systems
Service Development FORCES and Destination
Databases
Source: World Tourism Organization, Global Tourism Forecasts to the Year 2000 and
Beyond, (Madrid: WTO, 1995), p. ix.
13
Chapter 1: Introduction to Global Tourism Learning Objectives
Accommodations
Accommodations or lodging facilities and their related services are
where tourists stay overnight during their travels, accounting for a good
Varieties of portion of the tourists’ total expenditure, typically 20 to 30 percent
accommodations
depending on quality of accommodation, destination, and purpose of
trip. There are a wide variety of types of accommodations which meet
the demands of various budgets, including bed and breakfast
establishments, European style pensions, youth hostels, campgrounds,
recreational vehicle parks, and cruise ships. The hotel, the most common
type of accommodation, has its own categories, extending from
luxurious urban or resort properties, to smaller budget-oriented motels or
motor lodges. Most countries have classification or rating systems for
accommodations, particularly between the hotels and motels, which help
distinguish the level of service provided to the guests.
14
Components of the Travel Industry
Support Services
Support services include shopping facilities and services at the destination
which help fulfill the basic as well as supplementary needs of visitors.
Stores which meet the varying demands of visitors include: souvenir
shops, duty free stores, laundry facilities, grocery and department stores.
Other support services which meet the needs of visitors include tour guide Beneficial for
services, sports and recreation retail and rental shops, as well as tourist and
entertainment facilities. All these support services not only make the travel community
experience more accessible, but fulfill basic needs in addition to the special
extras which make the experience more enjoyable. An added benefit is that
most of these businesses provide local jobs and opportunities for local
entrepreneurship which helps keep money in the host community.
15
Chapter 1: Introduction to Global Tourism Learning Objectives
16
Impacts of Travel and Toursim
Because tourism has the ability to increase the public coffers and create
employment opportunities, the public sector has actively assisted in the
promotion of both international and domestic tourism. A series of government
tourism offices for marketing purposes–national, regional, or at the
state/province level–are found in most countries. The goals are to promote the
region they represent and ensure sustainable tourism development.
Tourism organizations are found in both the public and private sectors
and are organized by:
• Geography - international, regional, national, state or provincial, local;
• Ownership - government, quasi-government, or private;
• Function or type - regulators, suppliers, marketers, developers,
consultants, researchers, educators, publishers, etc.;
• Industry - transportation, travel agents, tour wholesalers, lodging,
attractions;
• Motive - profit or nonprofit (Goeldner, McIntosh, & Ritchie, 1995, p. 71).
17
Chapter 1: Introduction to Global Tourism Learning Objectives
18
The Study of Tourism
Among the tourism industry’s many supporters, it is believed that tourism Benefits of
can ease political tensions, and in effect, act as a catalyst for world peace. tourism
As foreign borders disappear, whether literally or figuratively, there is an
emerging use of the term global village, making the world smaller and
more intimate. The tourism industry and the countries which rely on
tourism for overall development, must provide tourists a safe and secure
atmosphere, as tourism can only prosper in a peaceful environment.
19
Chapter 1: Introduction to Global Tourism Learning Objectives
SUMMARY
This chapter has presented the background on the travel and tourism
industry as the largest service industry in the world. The growth of
domestic and international tourism, the importance of tourism
expenditures, and the contributions of tourism to gross domestic
product and employment opportunities provide many positive effects.
Travel and tourism, when properly planned and managed also bring
other benefits than economic ones such as maintaining cultures,
preserving the environment, and contributing to peace efforts.
Travel and tourism is a multifaceted industry with many components
including travel distribution, transportation and infrastructure, tourism
facilities such as accommodations, food and beverage establishments,
and support services. Both the private and public sectors are involved in
the industry. The challenge for tourism planners and management in both
sectors will be to meet the needs of a more sophisticated traveler, while
balancing the precious resources of a finite world, preserving native
traditions and cultures, and taking social responsibility for negative
impacts on the host community. The next chapter will take a closer look
at travel during the 20th century, travel trends of various countries, as
well as regional and international travel patterns. External factors and
their possible effect on tourism and other world trends will also be
explored.
DISCUSSION QUESTIONS
1. What are the tourism-related definitions for your state/province and
country? Do they differ from the WTO definition?
2. Within a historical context, what have been some of the motives for
travel?
3. Besides economic, environmental and cultural benefits, what are
some other benefits of tourism development?
4. What are examples of the various travel industry components where
you live? How are they interdependent?
5. List some reasons for studying the tourism industry, including your
own.
20
CHAPTER 2
Learning objectives
2.1 Introduction
The previous chapter examined the broad-based travel and tourism
industry and illustrated that through most of recent history, travel was
often an exhausting undertaking. With societal and technological changes,
travel transformed itself into a much desired and accessible leisure
activity–tourism–which has provided enriching experiences to travelers.
This chapter will direct its attention to the current state of modern tourism.
International and regional travel trends such as visitor arrivals, tourism
receipts, top destinations, and tourism expenditures will be examined, in
addition to regional travel patterns, both inbound and outbound. The Importance
understanding of trends is important as they provide a clue to what is likely of trends
to occur in the future, thus providing a basis for destination and tourist
product planning and marketing. External factors including political,
demographic, social and technological changes must also be considered
for their impact on tourism when trends are being analyzed.
23
Chapter 2: Travel Patterns and Trends
24
Tourism Growth
25
Chapter 2: Travel Patterns and Trends
26
Tourism Growth
International Tourism
Rank Country Expenditures (mm
US$)
1 Germany 50,675
2 United States 45,855
3 Japan 36,792
4 United Kingdom 24,737
5 France 16,328
6 Italy 12,419
7 Austria 11,687
8 Russian Federation 11,599
9 Netherlands 11,455
10 Canada 10,220
27
Chapter 2: Travel Patterns and Trends
country’s own nationals when they travel abroad. The U.S., France, and
Italy, as popular international destinations, are among the top countries
which accumulate tourism surpluses. The United States has been
Surplus running a travel surplus since 1990. In 1995, foreign visitors spent
example: U.S. $58.5 billion in the U.S., compared with $45.3 billion spent by
Americans traveling outside the country. Fluctuating foreign exchange
rates have helped inbound travel to the U.S. grow twice as fast as U.S.
outbound travel to foreign countries (WTO, 1996k, pp. 73, 78).
A less desirable economic result, the travel deficit, occurs when total
Deficit expenditures spent in foreign countries from a given country exceed
example: Japan the total tourism receipts earned by foreign inbound tourists. For
example, Japan has experienced a travel deficit for some time, due to
unfavorable exchange rates which have simultaneously enabled foreign
countries to benefit from Japan’s yen-spending outbound tourists.
2.3.1 Europe
As a region, Europe is the world’s number one destination. In 1995,
this region attracted two-thirds of all international tourist arrivals
(WTO, 1996a). Not surprisingly, it also is the leader in intra-regional
travel for a number of reasons:
• Europe contains several relatively small countries.
• Much intra-regional international tourism within Europe takes place
between neighboring countries with common land borders (or
otherwise between countries that are fairly close to each other).
• Modes of travel for smaller countries in close proximity comprise
ground transportation, such as cars, trains, and motorcoaches,
making more cost-prohibitive air travel unnecessary.
28
Regional Travel Patterns and Trends
29
30
Source: World Tourism Organization, WTO News, No. 2., May/June 1996, p. 3.
Regional Travel Patterns and Trends
Top destinations within the Asian region include Hong Kong and
China, followed by Singapore, for 1995. Rapid tourism development in Destinations
countries like Indonesia and Malaysia, as well as relatively new
destinations, such as Cambodia and Vietnam, signal that growth will
continue for the Southeast subregion.
Since opening its doors to tourism in 1978, China has attracted
millions of tourists who are interested in the country’s history, heritage,
cultural diversity, and natural landscapes. The growth in tourism can be
attributed to the extensive efforts of the Chinese government in
promoting tourism and the removal of restrictions on the movement of
tourists. With the increasing quality of tourism services and perceived
value, inbound visitors exceeded all previous records with over 23
million foreign arrivals tallied for 1995. While visitors to China from Tourism to China
compatriot destinations–Hong Kong and Taiwan–still dominate,
Japanese visitors led the way for foreign visitors, the former Soviet
Union placing second, followed by the United States.
Future outbound travel prospects for Asian nations hinge on their
continued economic progress, which has been, and should continue to
be, a major catalyst to world economic performance. China has the Chinese travelers
potential to be a particularly rich source of outbound travelers, with its
rapidly expanding economy. Overall economic growth rates for this
region of the world should range between 4 and 5 percent each year,
which bodes well for this region as an outbound generator.
31
Chapter 2: Travel Patterns and Trends
2.3.4 Americas
Substantial growth was experienced in tourist arrivals across North,
Central and South America, as well as the Caribbean. Overall tourism
receipts to the region stagnated, however, as a result of the United States
dip in both arrivals and receipts for 1995. The U.S. attributed this to
declining numbers of Canadian and Mexican tourists, although overseas
Intra-regional travel held up well. Of the total arrivals into the Americas in 1995, 75
tourism dominates
percent were intra-regional tourist flows. Cuba and Mexico experienced
the quickest growth rate of all the countries of the Americas. Arrivals
into South American countries grew at twice the world average, with
sustained increases from the U.S., Canada, and traffic from within the
subregion. The Caribbean achieved marginal inbound tourism growth
during this year, an outcome of the previous year’s hurricane although
there was an increase in port-calls by cruise lines (WTO, 1996g).
Forecasting the outbound tourism potential for the Americas varies by
subregions. The U.S. and Canada, like Western Europe, is at a stage
where the level of discretionary spending and time devoted for leisure
have reached their peak, meaning that growth of outbound tourism will
slow for interregional travel, while intra-regional traffic should hold
Growth potential up. As economic development and industry continue to make inroads
in South and in South and Central American nations, these two subregions show the
Central America
most promise for increased outbound travel.
32
External Factors that Affect Tourism
2.3.6 Africa
Political instability and civil unrest have discouraged development in
this resource-rich, but investment-poor continent. Political and military Problematic
tourist destination
disturbances and health apprehensions in some sub-Sahara
destinations have left a decidedly substandard image of Africa as a
tourism destination. Inbound foreign arrivals grew only slightly in
1995, although South Africa enjoyed growth in both leisure and
Growth in
business travel. More stable political conditions and a decrease in civil South Africa
discontent led to South Africa experiencing an increase in both foreign
arrivals and tourist receipts for 1995 (WTO 1996f).
The near future for Africa as an outbound generating region mirrors that
of the Middle East. Much needed foreign investment, as well as
improving political stability and education, could help the more
developed African nations improve their productivity and efficiency, thus
stimulating local economies, and creating an interest in outbound travel.
33
Chapter 2: Travel Patterns and Trends
34
External Factors that Affect Tourism
35
Chapter 2: Travel Patterns and Trends
36
External Factors that Affect Tourism
37
Chapter 2: Travel Patterns and Trends
Need for training Developing countries, by contrast, will be faced with burgeoning youth
in developing populations in need of work but without the necessary skills. The shortage
nations of entry- level and skilled workers, plus the increased consumer demand
for improved services, will pressure the industry to provide more
education and training and greater incentives to work in the tourism sector.
Some countries actively pursue human resource planning for tourism
enterprises which is discussed in Chapter 16. Hospitality and tourism
training and education have undergone rapid development in most
countries which heavily rely on the visitor industry for revenues.
Education Secondary schools provide training for students desiring semi-skilled,
entry-level hotel and restaurant jobs. Post-secondary vocational
programs offer special skill training for students interested in
becoming supervisors or professional chefs. Higher education offers
different programs at varying levels, including two-year certificate and
diploma programs, as well as four-year Bachelor’s and Master’s
degrees.
38
Tourism Market Trends
The industry is seeing both a rise in length of stay, particularly from the
older, affluent vacationers with discretionary time, as well as an Longer stays,
increase in shorter holidays by the younger work force that want to more trips
catch their breath and take two- or three-night extended weekend
getaways from the stressful urban pace.
SUMMARY
It is universally accepted that the travel and tourism industry is a growth
industry. Many market factors have contributed to this explosive
tourism growth, including more modern, convenient and accessible
tourism products and services in a variety of price ranges. International
visitors and their spending in other countries, moreover, make the
international travel market a key economic development tool. As a
result many countries have extensive tourism marketing campaigns
geared toward making their country a worthy country to visit.
This chapter provided information on basic international travel flows,
outbound and inbound, as well as tourism receipts and tourism
expenditures of the various countries. Regional tourism patterns were
also reviewed, suggesting that proximity and land size play an
important role in the foreign travel picture. Future outlooks for various
regions were also offered. The positive relationship for developing
nations between the status of a country’s economic development,
increased inbound growth rates, and the likelihood for generating
outbound tourism, was discussed. Developed nations, on the other
39
Chapter 2: Travel Patterns and Trends
DISCUSSION QUESTIONS
1. Describe some of the advances that have affected tourism growth.
2. What are some of the reasons why some countries run tourism
surpluses and others run tourism deficits?
3. What is the difference between inter- and intra-regional tourism,
and why are regional trends important?
4. Why do the countries with the largest proportion of international
travel arrivals and receipts tend to have the slowest growth trends in
international arrivals?
5. What advances in technology tend to aid tourism growth? What
technological advances could stall tourism growth?
40
2
Section
Travel and Tourism
Components and Services
CHAPTER 3
Transportation Services
CHAPTER 4
Transportation Services
Learning objectives
3.1 Introduction
Transportation lies at the heart of the tourist industry. It is the link
between home, destination, accommodation, attraction, and all other
locales of the tourist trip. Its efficiency, comfort, and safety determine,
to a large extent, the quality of the tourism experience. In many cases,
its cost comprises the largest portion of a tourist’s total expenses.
There is a direct relationship between advances in transportation and
growth in the tourism industry. In particular, the automobile and the jet
airplane have made travel accessible to a growing segment of the world’s
population. As the demand for travel expands, the capacity of
transportation modes will be a critical factor in facilitating or hindering Expansion due to
the expansion of the tourism industry. For many destinations, the modern transport
constraints posed by transportation and its infrastructure–such as airports
and roads–constitute the biggest obstacles to growth. In the case of island
destinations, the availability of air access is the sine qua non of tourism
development; without such access, there is little or no touristic activity.
This chapter will cover the basic aspects of passenger travel. The
relationship between transportation and technology will be highlighted
through a discussion of the various modes of travel. Air travel is
covered extensively, given its importance to international tourism. The
main issues facing the air travel industry, including the critical role of
regulation, will be explored.
45
Chapter 3: Transportation Services
46
Historical Development of Passenger Travel
passenger movement and had greatly improved inland access from the
major cities. The famous Orient Express linked Paris with Istanbul in Railway
1883 and London with Istanbul in 1913. In the United States, intercity expansion
trains such as the Broadway Limited and the Golden State Limited were
very popular. By the early 20th century, the train station had become the
focal point of many established and new cities and towns, often
surrounded by hotels, restaurants, and other facilities for travelers.
Meanwhile, improvements in steamship technology in the late 1800s Ocean liners
through the early 1900s led to the age of the great ocean liners, such as
the Mauritania, the Queen Mary, and the Queen Elizabeth, which could
make the trans-Atlantic voyage in less than four days.
47
Chapter 3: Transportation Services
48
Automobile Travel and Ground Transportation
49
Chapter 3: Transportation Services
Automobile Rentals
The automobile rental business generates billions of dollars of revenue
Earnings worldwide, most of which occurs at airports. In 1996, six of the major
car rental companies–Hertz, Avis, Budget, Enterprise, Alamo, and
National–each earned over $1 billion from their global operations.
Hertz, the largest car rental company, operates a fleet of over 500,000
vehicles from approximately 5,400 locations in over 180 countries
(Loverseed, 1996, p. 4).
There have been several significant developments in the automobile
rental business that have benefited tourists. One of those is the fly-
Developments in drive package which combines airline and auto rental expenses into a
industry single product that is less expensive and easier to book for the traveler.
Another ongoing development is in the area of computerized driving
directions and other high-technology aids that make navigation in an
unfamiliar destination simpler and safer. Rental companies are also
offering a range of incentives, including mileage credit (similar in
Incentives concept to the airlines’ frequent flyer programs), partnerships with
hotels and airlines, and expedited check-in and check-out services.
50
Automobile Travel and Ground Transportation
Buses
Buses (also referred to as coaches and motorcoaches) are a major mode
of passenger travel. One of the key advantages of bus travel is that, like Flexibility
automobiles, buses are not limited to fixed or major routes of travel.
Because of this, bus service is very flexible and can reach many more
communities than either railroads or airlines. Buses serve an important
niche in tourism by also providing service between air and rail
terminals, accommodations, and attractions.
One of the most popular types of bus service is the bus tour, which
incorporates into one package transportation, attractions, meals, and Bus tours
sometimes hotel accommodations. Standard bus tours pick up
passengers at their hotels and take them to various attractions, often at a
discounted rate below what the tourist would otherwise pay on his own.
On a per-passenger basis, bus transportation is very economical when
compared with rail and air. Modern buses also have many of the Economical and
comfortable
amenities that tourists have come to expect, such as larger, more
comfortable seats that can recline, air conditioning, and toilets.
European bus service is especially well-developed, and provides many
other amenities, such as bar service.
Recreational Vehicles
Recreational vehicles, or RVs, function like mobile motel rooms,
enabling the traveler to integrate travel mode and accommodation
facility into one unit. RV sales are increasing, and more destinations Transport and
accommodation
are providing the facilities for RVs to dock. These facilities, known as
combined
RV campgrounds, provide hook-ups for water, electricity, and sewage.
Spaces at an RV campground may be reserved, much like a hotel.
Demand for RVs has been strong in recent years. From 1991-1994,
wholesale shipments of RVs grew by 50 percent.
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52
Air Travel
(9.2 percent), Alaska (7.8 percent), and the Mexican Riviera (5.3
percent). It is expected that the growth of the Asia-Pacific region will Top destinations
spur the development of its own cruise industry with Singapore serving
as a main port (Peisley, 1995).
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Passengers
Rank Airline
(thousands)
1 British Airways 23,933
2 Lufthansa 17,507
3 American Airlines 14,893
4 Air France 13,762
5 KLM 11,644
6 United Airlines 11,286
7 Singapore Airlines 9,920
8 SAS 9,806
9 Cathay Pacific 9,743
10 Japan Airlines 9,376
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Air Travel
3.6.3 Costs
As the frequent air fare “wars” among airlines indicate, ticket prices
are a critical component of the flying public’s travel decisions. Besides
an airline’s own capital and operating costs, it must pay a variety of Taxes and fees
taxes and fees to airports. These charges include ticket taxes,
international departure taxes, customs fees, immigration fees,
agriculture fees, and passenger facility charges. These taxes, landing
fees, and other charges increase the total cost of airline operations, and
can have a significant impact on the price of the ticket.
A controversial aspect of airline costs is related to airlines that operate under
Bankruptcy
bankruptcy protection. Deregulation of the industry, particularly in the protection
United States, resulted in the bankruptcy of several major airlines. Those
airlines that continued passenger service operations while in bankruptcy
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Chapter 3: Transportation Services
were able to reduce their operating expenses while the courts oversaw the
disposition of their debts. This, in turn, enabled these airlines to lower their
ticket prices. Other airline companies argued that this created an unfair
situation, since they were forced by the market to also lower their ticket
prices to compete with the bankrupt airline, but without any corresponding
reduction in expenses. Despite these objections, customers benefited from
lower airfares and U.S. airlines such as TWA and Continental were able to
emerge from bankruptcy with stronger balance sheets and viable operations.
3.6.4 Airports
Operations
The modern airport is home to a wide range of activities centered
around the departure and arrival of aircraft. In addition to serving as a
terminal for passenger air travel, airport operations also include:
• Control of air traffic at and in the vicinity of the airport.
• Automobile rental operations. Roughly 70 percent of automobile
rentals occur at airports. Rental operations require large parking
areas and shuttle services to transport people between the rental
office and the airport terminal.
• Baggage processing. The efficient handling of baggage is a critical
component of airport operations. Increasingly, technology is being used
to improve baggage operations. For example, after months of correcting
initial design and engineering flaws, the new Denver International
Airport in the U.S. has a sophisticated baggage system that is
programmed to reduce mishandling of baggage and passenger wait time.
• Cargo and mail. Most of the world’s mail, and much of its cargo, is
transported via airlines. Although largely hidden from the typical
airline passenger, cargo and mail handling are a substantial
component of overall airport operations.
• Customs and immigration operations. This function is related to
safety and security operations, since both require personnel and
technology to check outgoing and incoming passengers and
baggage. Because international airports are major entry points for a
nation, this function is a high priority of overall airport operations.
• Restaurant and retail operations. The traveling public has come to
expect a range of ancillary services at airports. These operations
often represent a significant source of revenue for airports.
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Air Travel
Airport Capacity
The volume of passenger travel through a major international airport is
astonishing. In 1995, each of the top 35 airports worldwide processed
in excess of 20 million passengers. This volume is straining many of
the world’s airports. As a result, many countries are in the process of High volume of
building or expanding terminals that can accommodate these high passengers
levels of traffic. Examples are the Kuala Lumpur International Airport,
Phase I of which is scheduled to open in 1998 and handle 25 million
passengers per year, the Chek Lap Kok airport in Hong Kong
(scheduled for 1998), and the new Bangkok airport (scheduled for
2000 and to handle 55 million annual passengers).
However, the expansion or new construction of an airport is becoming
an increasingly difficult task for governments. The high cost of building
an airport poses a major obstacle. Traditional public financing becomes
riskier and more controversial as airports become more expensive;
projects such as the Denver International Airport in the U.S. and Kansai Building new
airports
International Airport in Osaka, Japan experienced well-publicized cost
overruns. Airlines have become more aggressive in challenging landing
and other airport fees and taxes that appear to place an unfair burden on
their industry. Finally, the social and environmental impacts of
constructing new airports have required lengthy and sometimes
contentious entitlement processes, in which residents near the proposed
airport sites have fought against their development.
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58
Regulation and Deregulation of Air Travel
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Chapter 3: Transportation Services
60
Regulation and Deregulation of Air Travel
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62
Challenges Facing Transportation
3.8.2 Congestion
Congestion of roads, passenger terminals, and airports is a condition
that most travelers face at one time or another, especially in urban areas.
Inadequate facilities to handle growing demand is often the primary
cause of congestion, but it can also result from traffic flow design
problems, repairs and other construction-related activity, and tighter
security procedures. Visa and customs procedures often require Causes of
travelers to stay within the confines of the passenger terminal for longer congestion
periods of time, and contribute to the overall congestion of the terminal.
Congestion can result in significant costs to the traveling public. For
example, a tourist who misses a flight due to airport congestion may
face additional costs relating to the rescheduling of his Problems of
accommodations and rental car. Congestion also places a greater stress congestion
on a security system, especially where persons must be physically
screened and where there are areas of controlled access. The quality of
the visitor experience can also be diminished by overcrowded streets
and terminals, as tourists are subjected to the very pressures that they
wanted to get away from in the first place by taking the vacation.
One cause of congestion is the fluctuation in traffic levels throughout
the year. The volume of leisure travel, in particular, often varies greatly
throughout the year due to factors such as the weather, school
schedules, and work schedules. Besides congestion, these seasonal Seasonality
fluctuations cause other problems for transportation companies. For
example, transportation providers must balance the need for capacity
to handle peak traffic with the costs of maintaining that capacity
through off-peak seasons. While seasonality affects all aspects of the
travel industry, its effects on transportation businesses are pronounced
because of the large costs associated with the industry.
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64
Summary
SUMMARY
As technology has evolved and improved, different modes of transportation
have been dominant at different times in history. Today, from the perspective
of international tourism, air transportation is the most important mode,
having eclipsed ocean liners in the middle part of this century. When all
types of travel are considered, the automobile continues to be the preferred
mode, due to its flexibility and cost. Railroads and ships have lost their
popularity as modes of passenger travel but remain important modes of
freight transportation. Cruises are a unique combination of destination and
transportation, and the cruise ship industry has grown with the advent of fly-
cruise packages that are easily accessible to tourists.
The airline industry has developed over several decades into a dynamic
and highly competitive industry. Air travel costs and safety continue to
be major issues of concern to the industry and the flying public. The
regulatory environment of international air travel has been shaped by
bilateral agreements between countries. Deregulation of airlines and
increasing trade liberalization, among other trends, are exerting
pressure on the existing bilateral system. However, a true multilateral
system has yet to be implemented.
As tourism moves into the new century, there are several key
challenges that transportation will face. Congestion, environmental
impacts, and safety and security concerns will be significant factors of
the transportation environment of the future.
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DISCUSSION QUESTIONS
1. What are some of the major technological developments that have
influenced the development of passenger transportation?
2. What are the advantages of automobile transportation vs. other
modes of travel?
3. Discuss the key aspects of airline transportation.
4. Identify the major operations that occur at airports.
5. What are some of the issues that bilateral air agreements cover?
6. How has deregulation affected the airline industry?
66
CHAPTER 4
Learning objectives
• To understand the hospitality industry and its role within the tourism and
travel industry.
• To appreciate the historic development of the accommodations industry
and related hospitality services.
• To understand the structure of the accommodations industry.
• To understand the role of the food and beverage industry within the
hospitality industry.
• To understand the various forms of managerial systems used in the
accommodations industry.
• To gain an international perspective of the hospitality industry.
4.1 Introduction
Hospitality is the term generally associated with hotels and restaurants.
Today, the accommodations industry (also referred to as the lodging or
hotel industry) and the food and beverage industry (also referred to as the
catering industry) encompass a variety of facilities and are a dynamic part
of the global travel and tourism industry. Everywhere the traveler goes, a Necessary part
place to stay and place to eat are necessities. The accommodations of industry
industry represents a wide array of lodging facilities from luxurious
resorts to modest bed and breakfast establishments. This range of facilities
reflects the different needs and preferences of travelers and market
dynamics. Worldwide, the number of available hotel rooms has increased
rapidly to keep pace with the growth in international and domestic
tourism. The food and beverage industry has also expanded as tourism has
boomed. While hotels and resorts provide much of the core food service
facilities for travelers, restaurants and other food service outlets also serve
travelers. Food service is offered at a variety of facilities including
transportation terminals, airplanes, trains, ships, and attractions. Much
like the accommodations industry, the food and beverage industry is
emerging in the global tourism economy through worldwide chains,
providing new opportunities for the hospitality industry’s growth and
expansion. This chapter explores the accommodations and food and
beverage industries and their role in tourism.
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70
Accommodations Classification
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Chapter 4: Accommodations and Hospitality Services
4.3.1 Hotels
The term “hotel” has assumed a generic meaning around the world,
applying to a wide range of property types. There is no one way to
Defining "hotel"
classify the different types of hotels that exist. In the United States, the
key to the property’s type is based on its amenities identified by the
descriptor preceding “hotel.” In general these descriptors identify the
target markets that the property aims to attract such as airport hotel,
convention hotel, commercial hotel, luxury hotel, budget or economy
hotel, casino or resort hotel. Some subgroups within hotels include:
72
Table 4.2: Selected Classification Systems
France Guide Michelin U.S. AAA Israel Official U.K. Official Spain Official
Accommodations Classification
boards
annual evaluations;
anonymous inspections unregulated & dependent on
Type of Monitoring anonymous inspections over-night stays for high questionnaires, inspections
every 1-4 years regional policy
rated properties
hotels with government
System Funded By Michelin; sale of guide books AAA; membership dues government government
subsidy
Source: Adapted from Gee, International Hotels, Development and Management, p. 407.
Chapter 4: Accommodations and Hospitality Services
74
Accommodations Classification
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76
Accommodations Classification
foreign borrowing has become more common (Gee, 1994, p. 127). Developing
Many governments in developing countries have developed incentive countries
packages to lure needed hotel and resort development. Such incentive
packages often include government participation, reduced or deferred
taxes, or assistance in securing investment capital. Many developing
countries have also established governmental agencies to assist foreign
investors deal efficiently with other governmental agencies and permits.
Company
Rank 1994 Organization Rooms 1994 Hotels 1994
Headquarters
1 Hospitality Franchise Systems USA 424,352 4,291
2 Holiday Inn Worldwide USA 356,000 1,930
3 Best Western International USA 280,144 3,409
4 Accor France 256,607 2,265
5 Choice Hotels International USA 247,069 2,827
6 Marriott International USA 180,500 851
7 ITT Sheraton Corp. USA 132,477 425
8 Hilton Hotels Corp. USA 92,452 226
9 Forte Plc England 88,153 888
10 Carlson/Radisson/SAS USA 79,482 349
11 Promus Cos. USA 78,690 570
Hyatt Hotels/Hyatt
12 USA 77,882 170
International
13 Club Mediteranee SA France 65,128 262
14 Inter-Continental Hotels England 53,092 141
15 Hilton International England 53,052 162
New World/Renaissance
16 Hong Kong 47,139 140
Hotels
17 Grupo Sol/Melia Spain 46,500 175
18 Westin Hotels & Resorts USA 39,470 76
19 La Quinta Inns USA 29,276 227
20 Societe du Louvre France 29,120 468
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78
Food and Beverage Establishment Classification
and beverage sales in 1994 (PKF Consulting, 1994, pp. 5, 58). In some
locales such as Singapore and Hong Kong, food and beverage sales are
as high as 50 percent of hotel revenues.
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Chapter 4: Accommodations and Hospitality Services
they hold, and purpose of their trips. Some may be quite cost-conscious
Business and while others may be on liberal expense accounts. As such, business
leisure guests travelers are found in all price levels of the hotel business. To cater to
the needs of business travelers, hotels have provided business-related
amenities such as in-room computer connections and business centers
in hotels. These centers offer such services as photocopying and fax
machines, desktop publishing software, computer work stations, laser
printers, video conferencing capabilities, and clerical staff on call. In
contrast, it is estimated that about 40 percent of worldwide demand for
hotel rooms, especially within the resort category, fall into the leisure
or personal travel markets. The leisure markets are highly segmented
by lifestyle are often more sensitive to economics, political situations,
and price-value relationships. In general, the hospitality industry has
found that these market segments tend to react positively to packaged
travel, loyalty awards, and other travel incentives.
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Ownership and Management of Accommodations
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Chapter 4: Accommodations and Hospitality Services
4.7.2 Franchising
A franchise is “an arrangement in which the owner of a trademark,
tradename or copyright licenses others, under specified conditions or
limitations, to use the owner’s trademark, tradename or copyright in
providing goods or services.” Hotel franchising comes in many forms,
but the basic premise is that the owner remains in control of the
Defining management and the property, yet has the advantages of a large chain in
"franchise"
terms of trademark or tradename and marketing outreach. Most
franchise systems are set up with the owner of the property, known as the
franchisee, obtaining the right to use the name and to be part of the
national or international chain, belonging to the franchiser. Rights given
to the property owner include exclusivity of franchise rights to areas
defined by the franchiser. Under contract, the franchisee agrees to abide
by the operating policies and practices as defined by the franchiser in the
agreement. In general, the franchisee will agree to pay a fee and in most
cases some percentage of gross sales as defined by the specific contract.
In general, the advantages to the franchise system for an owner include:
• The right to use the brand name.
• Being part of a reservations system which has international access.
• The right to purchase supplies via the franchiser. In most cases this
will afford savings to the owner.
• Professional managerial assistance. This is of obvious benefit to an
owner who may have limited experience in the hotel industry.
Among the disadvantages to the franchise system are:
• The franchisee does not have complete management control. In general
the policies and procedures must be followed as set by the franchiser.
• The franchisee must pay for the franchise rights and agree to pay
monthly fees.
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Ownership and Management of Accommodations
• The franchisee is tied to the franchiser and how the brand name
fares in the marketplace tends to affect all parts of the system (Gee,
1994, pp. 242-243).
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Hotel Rates
Hotel rates can be one of the most confusing parts of hotel operational
analysis. The officially assigned rate for each type of room in the property
is called the rack rate. In reality, hotels have dozens of rates that are
discounted off the rack rate. The rack rate, which is based on the
investment cost and required revenues to cover fixed and variable
operating costs, is generally the highest rate charged for a room.
Discounted rates are part of the marketing plan to attract various market
segments. Discounted rates can be offered to such groups as government
employees, members of the military, tour groups, senior citizens, and
many others. The most important measure regarding hotel rates is the
Standard rates
average daily rate (ADR), which is calculated by dividing the total room
and discounts
revenue by the number of rooms occupied. Thus, heavy discounting will
result in a lower ADR. In recent times, the ADR is more often referred to
as sales per room occupied. The need to generate sufficient sales to get
beyond the breakeven point has been a major factor in discounting by
hotel management. Progressive hotel operators today use forms of yield
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Ownership and Management of Accommodations
Occupancy Rate
The occupancy ratio or rate is as important an indicator of profitability
as is the ADR. The occupancy rate is calculated by dividing the number
of occupied rooms by the number of rooms available for sale. Thus, if the
hotel has 300 rooms available for sale, and 200 rooms are occupied, the
occupancy rate is 67 percent. Hotels rarely operate at 100 percent Occupancy
occupancy for an entire year, and depending on its ADR, may need as low needed for
profitability
as 50 percent or as high as 80 percent to achieve profitability. As a general
rule, hotels require at least 65 percent occupancy for profitability.
There are many variables that affect the level of hotel occupancy. It is
important to know the occupancy rate of the hotel, but knowing how
many people were in the rooms is another important factor. Multiple
occupancy tends to increase the revenue for a hotel property. There are
other variables such as the rate charged, but in general the higher the
percentage of double occupancy the more revenue. As mentioned Guests per room
earlier, rates charged for rooms vary from the rack rate in accordance
with marketing programs. The average rate per room occupied is an
indication of discounting and multiple occupancy in the property. A
Higher average rate per room will be achieved when there is less room
price discounting and when there are more guests per room.
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86
Hotel Operations
4.8.1 Reservations
Although direct individual hotel reservations still account for more than
one-third of all hotel bookings, technology is rapidly changing these
reservation patterns. The worldwide, toll-free reservation systems and
computers and the Internet are making it easier for individuals to arrange
their own travel. Increasingly, hotels are part of reservation systems that Customer's
computer use
link hotels by some common affiliation. The airlines’ computer
reservation systems (CRS) are becoming interactive as travel companies
invest in the hardware and software to link the systems together resulting
in airlines, travel agencies, car rental companies, and hotel chains
offering easy access to travelers. The CRS have increasingly evolved into
global distribution systems (GDS) which link all parts of the distribution
system electronically. In the future, clients will be able to view pictures
and “tour” the property before a reservation is placed, and the worldwide
reservation system that is currently emerging will become a major force
for change in the lodging industry.
4.8.2 Marketing
Marketing the hospitality facility today must be viewed in terms of a
global market. The reservations systems are a vital part of that marketing
system. But today’s hospitality operator faces a more complex
marketplace. National tourism administrations (NTAs) are also important
to the hotels in international marketing since they usually work with the
local travel entities such as travel agents, travel wholesalers, and
convention planners in large-scale promotions. The NTAs normally have International
a great deal of marketing information regarding major buyers that is of marketing
great value to hotels. Decisions to advertise to segments must be viewed
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88
Hotel Operations
Personal selling has long been important to the hotel industry. This
involves direct contact of the sales force of the hotel with the potential
client. These activities extend to direct contact with members of the travel Personal selling
trade. Personal selling tends to be effective but expensive. Combined with
the expense is the reality that selling services in cross-cultural settings
presents more challenges since in the international arena, the sales person
must understand cultural patterns as well as the language.
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90
Travel industry Linkages
accommodation for every two or more paid nights. The various programs
are often confusing to both the consumer and the travel agents as programs
are continually modified. These programs, nevertheless, generally build
important partnerships within the industry and often develop important
consumer brand name loyalties (Kaiser & Helber, 1987, p. 179).
SUMMARY
The hospitality industry, representing the accommodations industry
and the food and beverage sector, comprises a major part of the global
tourism industry in terms of revenue and employment. The growth in
global tourism has resulted in many changes to the accommodation
and food service industry in recent years. Hotels and restaurants have
increasingly become part of national, regional and international chains.
Franchising has been used extensively in the accommodations industry
as well as the food and service industry, which allows a more rapid
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Chapter 4: Accommodations and Hospitality Services
DISCUSSION QUESTIONS
1. What factors have contributed to globalization of the lodging industry?
2. What are the sources of hotel revenue and what are the expenses?
3. What do ADR and occupancy rate mean?
4. List and describe the major classifications of hotels.
5. What are some of the major trends in the hotel industry?
6. What are the types of food service operations and how do they
differ according to the markets they serve?
7. What are some worldwide trends in the food service industry?
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CHAPTER 5
Travel Distribution Systems
Learning objectives
commissions
computerized reservation system (CRS)
distribution systems - direct and indirect
electronic ticket delivery network (ETDN)
global distribution system (GDS)
group inclusive tour (GIT) or inclusive tour (IT)
Internet
land arrangements
satellite ticket printer (STP)
specialty channeler
suppliers
ticketless travel
tour operators
tour program
tour wholesaler
travel agent
travel intermediaries
5
Travel Distribution Systems
5.1 Introduction
We usually associate a product with its production and consumption
stages, often overlooking an intervening process which moves the
product from production to the consumption stage. This process is
called distribution. Theoretically, the distribution of the tourist
product resembles that of other industries. It involves the participation
of wholesalers, retailers, and other intermediaries or middlemen, all Differences in
distributing the
responsible for bringing the product from the supplier to the consumer
tourist product
in a sales distribution system. In practice, however, two factors make
the distribution of the tourist product unique. First, unlike agricultural
or manufactured products which can be transported to the consumer, it
is usually the consumer that has to be transported to the point of
consumption for the tourist product. For example, to enjoy the use of a
hotel room, a meal or a tour, the consumer must go to the destination.
Second, unlike tangible products with a shelf-life, the tourist product is
highly perishable. An unsold hotel room, meal or tour bus seat has no
income value in the marketplace the day after.
Collectively, these factors make the selling of the tourist product a
challenging task. Thus, in order to better understand the mechanics of
the tourism market and its economic significance, it is important to gain
a basic understanding of the sales distribution systems and their role in
influencing sales. This chapter describes the basic types of distribution
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Chapter 5: Travel Distribution Systems
96
Types of Distribution Systems
97
Figure 5.1: Tourism Distribution Channels
98
OR
Direct Provider
Indirect Provider
Hotel
Restaurant
Travel Agency
Customer Airlines
Tour Operator
Theme Park
Tour Wholesaler
Retail Shops
Specialty Channeler
Cruise Lines
Ground Transportation
Types of Distribution Systems
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Chapter 5: Travel Distribution Systems
100
Travel Intermediaries
Types of Wholesalers
Tour wholesalers can be classified in various ways including the following:
• The inbound wholesaler arranges tour packages for tourists visiting
the country where the wholesaler is based. Inbound wholesalers do
not necessarily operate only in the country where they offer tours
and some maintain sales branches in other countries.
• The outbound wholesaler arranges packaged travel for tourists who
wish to travel to destinations outside the country where the
wholesaler is located. Unlike the inbound wholesaler, the outbound
wholesaler does not usually focus on a single destination, but may
offer a wide variety of packages and destinations. However, both of
these wholesalers tend to cater to the needs of the mass market in
order to have the necessary volume leverage.
• The domestic wholesaler designs and packages tours for local
residents who travel within the country where the wholesaler operates.
• The independent wholesaler represents the majority of wholesalers
or about three-quarters of the industry. However, independents also
experience the largest failure rate as they are not in a position to
benefit from the financial support of a large company.
• The airline wholesaler can be either a subsidiary selling the seats of
a particular airline or a wholesale business that has formed a
brokerage relationship with an airline.
• The wholesale travel agent is a travel agent who puts together
customized versions of tour packages to satisfy the needs of market
niches within their customer base. These travel agents such as
American Express Travel Related Services and Thomas Cook Travel
often assume the retail and wholesaler roles at the same time.
Similarly, the wholesaler may sometimes act as a travel agent by
operating retail outlets.
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102
Travel Intermediaries
Despite this cash flow benefit, the wholesaler faces considerable risks
as well. Factors such as changing preferences, unfavorable weather
conditions, safety concerns, or political upheavals can destabilize
markets and render destinations unsaleable. Moreover, when making a
large number of advance reservations with a supplier, the wholesaler Economic risks
must enter into a sales contract for which he is bonded. Despite the
inclusion of typical cancellation clauses in a contract, the wholesaler
may still incur significant losses from forgone deposits and pre-
payments, and the closer the cancellation is to the departure date, the
greater the reduction of the deposits.
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104
Travel Intermediaries
105
Chapter 5: Travel Distribution Systems
106
Travel Intermediaries
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108
The Impact of Technology on Travel Distribution Systems
Wholesalers
For a new wholesaler to enter the industry, usually a local business license
and compliance with governmental and airline regulations are required.
Nevertheless, wholesalers may be subject to additional constraints, some
of those monetary, if they choose to join certain professional associations. Requirements
In the U.S., the tour operator industry is largely self-regulated, and most and constraints
belong to the U.S. Tour Operators Association (USTOA). The USTOA
requires an indemnity bond from its members. This goes toward the
Consumer Payment Protection Program which helps refund the money to
customers in case the wholesaler goes out of business.
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110
The Impact of Technology on Travel Distribution Systems
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Chapter 5: Travel Distribution Systems
112
Summary
SUMMARY
Travel sales distribution systems provide the means by which the
tourism product or service moves from the supplier to the customer.
The distribution system can be direct or indirect depending on the
number of intermediaries or middlemen–tour wholesalers, tour
operators, travel agents–who play a role in the process. The use of
intermediaries is a cost-effective method of distribution and each
intermediary plays an important role. Tour wholesalers and operators
generally create and provide the tour package while travel agents sell
the tours and service the customer directly. Travel agents receive their
income from suppliers and wholesalers through commissions and
account for a major portion of reservations and bookings in the travel
industry. However, the relationships within the travel distribution
systems are expected to change in the future with the challenges posed
by new technology. Direct booking by consumers through computers
using on-line services and the use of ticketless travel which by-passes
the need for the purchase and issuing of actual tickets are expected to
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Chapter 5: Travel Distribution Systems
reduce the demand for services from travel intermediaries. The travel
sales distribution system will need to adapt to the new technologies as
well as to changing consumer tastes and preferences in travel in order
to maintain its major role in the travel industry.
DISCUSSION QUESTIONS
1. What are the different types of travel sales distribution systems and
how do they operate?
2. Who are the major suppliers of travel services?
3. What are the primary functions of the tour wholesaler?
4. What are the differences between the tour wholesaler and the tour
operator?
5. What services does the travel agent provide to the customer?
6. How do each of the intermediaries derive income and revenue?
7. In what ways will technological changes affect the travel sales
distribution industry in the future?
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CHAPTER 6
Learning objectives
• To identify the changes in the leisure and business travel markets that
have facilitated the development of special services and products.
• To identify some of the major special services and products in the leisure
and business travel markets.
• To understand the MICE market and the various specialized roles that
meeting planners, convention centers, events managers, and convention
and visitors bureaus play.
adventure tourism
convention center
convention and visitors bureau (CVB)
cultural tourism
ecotourism
educational tourism
event manager
health tourism
meeting planners
meetings, incentive, convention and exposition (MICE) market
new age tourism
rural tourism
6
Special Services and Products
6.1 Introduction
As the tourism industry has matured and tourists have become more
knowledgeable and sophisticated, special types of tourism services and
products have been developed to meet their travel needs. These special Changes in
services and products have grown out of changes and pressures markets and
destinations
affecting tourism supply components (such as destinations and
attractions) and the traveling public. Both the leisure and business
travel markets are affected by these changes and pressures. As a result,
special services and products serve certain niche markets.
Special areas of leisure travel reflect the public’s diverse reasons and
motivations for traveling. Chapter 7 discusses the many different
reasons why people travel and the psychological aspects of their choices
of destinations and activities. As greater numbers of people travel, and
as tourists look for different travel experiences, those markets that were
once considered too small to merit much attention by suppliers are now
growing into substantial and profitable niches such as ecotourism,
adventure tourism, health tourism, educational tourism and “new age”
tourism dealing with people’s interest in spiritualism and metaphysics.
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Chapter 6: Special Services and Products
Special markets Business travel has also developed its own special markets. Meetings
and conventions events now have professional planners to deal with the
complex activities and needs that are unique to these events. In addition,
destinations now compete vigorously to host these types of events.
This chapter examines some of the main special services and products
that have developed in both the leisure and business travel markets.
6.2.2 Ecotourism
One form of tourism which has gained much attention in recent years
is ecotourism. Although there are several definitions of this term,
there is general agreement that in ecotourism the physical environment
is the focus of the touristic activity. For the purposes of this chapter
ecotourism will be defined as any tourism which:
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Special Segments of Leisure Travel
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Special Segments of Leisure Travel
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Special Segments of Business Travel
6.3.1 Meetings
Meetings can be defined as events designed to bring people together
for the purpose of exchanging information. Meetings can be held on-
premise at one of the companies or organizations that is convening the Corporate and
meeting, or off-premise at other sites, requiring the rental of meeting association
meetings
facilities. It is the off-premise meeting market that is of primary
concern to the tourism industry.
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Special Segments of Business Travel
6.3.3 Expositions
Expositions are generally large events at which vendors can display
and market their products or services to a contingent of potential
clients and buyers. The vendors or exhibitors pay a fee to set up their
displays, usually based on the size of the area their displays require. Display and
Large expositions can cover hundreds of thousands of square feet of market
exhibition space. The goals of the exhibitors are to attract attendees,
inform them of their product or service, and establish a contact that
will lead to a sale.
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6.3.4 Conventions
The term convention refers to an event that combines both meeting and
exposition. The conventions market can be divided into those that are
Combination sponsored by professional and trade associations, and those that are
meeting/exposition sponsored by corporations. Associations account for about 70 percent
of the market, and corporations about 30 percent.
Conventions have the reputation for generating high expenditures on a
per visitor basis, as well as creating substantial economic impacts for
High expenditures the host economy. The many different segments of the tourism industry
that benefit from convention expenditures include hotels, restaurants,
car rental, ground transportation, entertainment, and retail.
There are several reasons for the high level of involvement of the
government or the public sector with the convention business. First,
high development costs and limited potential for realizing operating
profits generally require that the government either own or subsidize
the center. With modern centers approaching 186,000 square meters (2
Public million square feet) of exhibition space, development of a center
involvement
almost always requires some form of public financing. Furthermore,
the actual convention operations generally lose money or, at best, break
even. This is due to the high cost of running a center, and to the fact
that competition among centers tends to keep rent rates low.
From the government’s perspective, the financial risks posed by a
convention center are outweighed by their larger economic impact on
the host community and economy. It is the ability of a center to generate
visitor activity and revenues for such convention supporting businesses
as hotels, restaurants, entertainment, and the surrounding area that
Economic impact provides the main reason for its development. The visitor expenditures,
in turn, generate employment, tax revenues, and generally boost the
area’s economy, all of which serve to offset the center’s operating loss
and create an overall net benefit to the area. To the government, the
operating loss it sustains is a worthwhile cost in light of the jobs, taxes,
and healthier economy it gains. Because of their size and the amount of
visitor activity they generate, conventions are often perceived as serving
an underlying public purpose.
Secondly, large convention events bring prestige to a city. Large
conventions or expositions are often covered in national and
Prestige and international news. For the duration of the convention, the host city may
media attention
receive daily exposure and coverage from the media. From the
standpoint of the host city’s visitor industry, this kind of media attention
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Special Segments of Business Travel
Meeting Planners
Planning a successful meeting requires a great deal of logistical
coordination and oversight of many different areas. As a result, overall
responsibility for a meeting is often given to professional meeting
planners, many of whom specialize in different types of meetings. Some
planners are independent businesses that perform their services for client Professional
coordinators
organizations. Large organizations that hold meetings on a regular basis
may employ their own planners on staff. The responsibilities of a planner
will vary depending on the type of meeting being planned, facilities
being used, sponsoring or host organization, and other variables.
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Site selection Site selection is a crucial part of the planning process. Planners must
consider a number of criteria when choosing a site for an event. The
most important criteria, in descending order of importance, are:
• Availability of hotels or other facilities for meetings.
• Affordability of the destination.
• Ease of transporting attendees to and from the location.
• Transportation costs.
• Distance traveled by the attendees.
• Climate of the location.
• Availability of recreational facilities such as golf, swimming, and
tennis (Braley, 1996, p. 73).
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Special Segments of Business Travel
Convention Centers
Convention centers are large facilities that accommodate many of the
events discussed in this chapter. Newly constructed and expanded centers
are extremely large, with some new and expanded centers providing
nearly two million square feet of exhibition space. For example,
McCormick Center in Chicago, which currently has 148,800 square Profit-earning
meters (1.6 million square feet) of exhibit space, is in the process of centers
expanding to over 186,000 square meters (2 million square feet) by 1997.
Convention centers earn revenue from a variety of sources, including the
rent of the facility, food and beverage service, and concession stands.
One of the key aspects of a convention center is its location. Centers need
to be within reasonable distance of a major airport, since most delegates
will usually arrive by air. Centers should also be close to, or incorporate,
adequate hotel accommodations. There should also be a variety of food, Location
retail, and entertainment establishments in the vicinity of the center and
the accommodations. These considerations are extremely important to an
organization that is considering a convention site, because they are
critical to the delegates’ attendance and enjoyment of the event.
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Event Managers
Once an event has been booked for the convention center, the center
Link between operator assigns it to an event manager. From this point forward, the
center and client event manager becomes the link between the center and the client,
whether it be a planner or the sponsoring organization itself.
One of the key responsibilities of an event manager is to ensure that the
event contract is followed. The contract between a convention center and
a client for a specific event contains provisions for all aspects of the event,
Event contract including the client’s requirements for the event, the agreed upon rental,
and the mutual responsibilities and obligations of both parties. The
contract will also specify the consequences of cancellation of the event,
nonperformance by either party, and other contingencies. As planning and
preparation for an event move forward, adherence to the terms of the
contract must be enforced to prevent disputes and last-minute problems.
SUMMARY
The special travel segments discussed in this chapter represent some of the
faster growing areas of tourism. They are the result of greater product
differentiation in the industry, which in turn is being driven by changes in
the traveling public. Given the rapid growth and change of the tourism
industry, it should be expected that new services and products will continue
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Summary
to appear. The proliferation of special services and products will provide the
tourist of the coming century with an array of travel choices. Perhaps these
choices will enable tourists in the future to design their “perfect” vacations.
The special leisure travel segments discussed in this chapter share a
common goal of bringing tourists closer to the natural environment.
The success of these travel segments points to the tourism industry’s
role in leading the world’s efforts to protect and preserve its
environmental and cultural resources.
The business travel market is coming under increasing pressure from
concerns over travel costs and the availability of new teleconferencing
technologies. Despite these pressures, the special market segments
covered in this chapter have shown strong growth in recent years.
Recognizing the greater role of the MICE market, cities are developing
and expanding their meeting and convention facilities at a rapid pace.
As discussed, large meeting events create business and publicity that
are extremely valuable for the host destination.
As the MICE market grows, planners, convention centers, and other
key components of the industry are becoming increasingly specialized
and sophisticated. CVBs will play a vital role in the future, as
destinations compete vigorously to fill their meetings and conventions
facilities. With the growing availability of facilities and destinations,
planners will have to ensure that they understand their clients’ needs in
order to best match them with what the market has to offer.
DISCUSSION QUESTIONS
1. What are several special segments of the leisure travel market? What
are their main characteristics?
2. What are the changes in the leisure travel market that have
facilitated the development of these special segments?
3. Can you identify the special business travel segments? How
important are they to the overall business travel market?
4. What are some of the reasons for the development of these special
business travel segments?
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3
Section
Tourism Marketing and Promotion
CHAPTER 7
Tourism Marketing
CHAPTER 9
Learning objectives
allocentric
anomic
business travel
ego-enhancement
family life cycle
market segmentation
multimotive
optimal arousal
pleasure travel
pull factors
push factors
psychocentric
religious travel
special interest travel
travel career ladder
Values Attitudes LIfestyle Segmentation (VALS)
visiting friends and relatives (VFR) travel
7
Tourism Market Segments
and Travel Psychology
7.1 Introduction
Tourism places are settings for the behaviors and experiences of many
different types of visitors. As the gates of any large North American theme
park open, a variety of visitors begin their day’s entertainment: some are
teenagers in small groups, others are young couples, while families and
senior citizens also stroll through the gates. As intercontinental flights pull
into the major European airports, a further variety of visitors begin their
day’s travels: some attired in business clothes are met by colleagues, others
in sports uniforms are greeted by tournament organizers, several are
reunited with friends and relatives, while still others are escorted by tour Different types
of tourists
leaders to their waiting ground transport. As the afternoon wears on and
the lobby of a large Asian hotel fills with incoming guests, further
differentiation among tourists can be witnessed: there are young Asian
adults enjoying tea in the lounge, conventioneers wearing name badges on
their way to function rooms, well-dressed European middle-aged couples,
and a few Australian families with children already dressed for the
swimming pool and impatient to get there. Clearly on a global scale,
tourists fit into many possible categories, and it is the task of this chapter
to describe these differences.
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Describing Tourists by Purpose of Travel
139
140
United
Bermuda Hawaii Indonesia Australia Hong Kong Pakistan
Kingdom
Leisure, Recreation and Holidays 82.6% 79.4% 74.4% 62.3% 54.1% 43.2% 19.8%
Business and Professional 10.6% 11.4% 23.2% 13.7% 30.5% 26.6% 28.5%
Other (includes VFR, health,
6.8% 9.2% 2.4% 24.0% 15.4% 30.2% 51.7%
religious pilgrimages)
Total Visits (000's) 413 6,326 3,403 2,996 19,154 8,938 379
Describing Tourists by Purpose of Travel
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Recreational Travel
In contrast with other leisure travel, special interest travel tends to
include a single or dominant focus to the tourist’s holiday taking and
Hobbyists an enjoyment of specific on-site activities. The special interest traveler
is likely to be an enthusiastic hobbyist, a club member, or a devotee of
a particular product or experience. Yachting holidays are an example
that illustrates the specific activities that characterize special interest
tourism. The different yachting styles include bareboat cruising,
skippered cruises, luxury yachting, and flotilla yachting. These
variations provide greater access for more people of varying levels of
skill and socio-economic status.
Special interest travel also includes specialty accommodation styles
which organize travelers’ experiences, such as health farms, coastal
resorts, bed and breakfast inns, and backpacker hostels. One study
Specialty noted that specialty accommodation guests appear to be better
Accommodation educated, have higher incomes, and occupy managerial, professional or
Guests
executive positions. They spend more time planning their trips than
conventional accommodation users, and pursue different activities
while on holiday. They appear to favor nonbeach outdoor recreation
activities including bird-watching, hiking, swimming in lakes or rivers,
walking, and horseback riding (Morrison, Hsieh, & O’Leary, 1995).
As noted earlier, special interest tourism is often associated with one
dominant activity. In a study of visitors to the Rotterdam Museum park, a
complex which includes a museum for modern architecture, a museum of
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Describing Tourists by Purpose of Travel
natural history, a local art museum, a gallery for temporary art exhibitions,
and a fine arts museum, over 50 percent of the respondents said that the Dominant
fine arts museum was the primary reason for their visit to Rotterdam and activities
20 percent were motivated primarily by one of the other museums in the
complex. For urban tourism in this part of Europe, museum visiting is a
valued and primary special interest activity with respondents giving
explanations of their motives with phrases such as a museum visit
provides “food for thought,” offers opportunity “to learn something,” and
“enriches their life” (Jansen-Verbeke & Van Rekom, 1996).
Religious Travel
Travel for religious purposes ranges across a spectrum of intensity. At
the less intensive end of the spectrum certain religious sites may be
visited as a part of the attractions of a region. European cathedrals, for
example, may be appreciated for their physical splendor and their
architectural beauty. At a more intense level the supposed healing
powers of particular holy places such as Lourdes, France may be one Levels
of several points of interest of a travelers’ holiday in a country. At the of intensity
most intensive level, pilgrimages to sites which define the religion of
a particular group may be the sole purpose of the travel, and indeed for
sites such as Mecca in Saudi Arabia or the Vatican as the center of
world Catholicism, tourism is a major management concern.
The Islamic pilgrimage (the Hajj) to Mecca, for example, is an activity
of enormous significance in the contemporary world economy. It was
noted in Table 7.1 that the “other” purpose of visiting for some
countries was a large percentage of their total visitation. For a country
such as Saudi Arabia, more than 55 percent of all visitors fall into this
category and most of these are tourists motivated by strong religious
concerns. Devout Muslims from nations such as Bangladesh, Chad, Pilgrimages
Mali, and Somalia may be using their full economic resources for this to Mecca
one significant act of international travel. There are also affluent
Muslims staying in first class hotels who make regular pilgrimages to
fulfill their spiritual needs. A further feature of the pilgrimage to Mecca
is the concentration of the activity as the estimated two million visitors
(approximately 50 percent of the total are domestic pilgrims) converge
on a single site within a specific one-month period. A visit to Mecca is
a contemporary example of the continued importance of religious travel
as a major organizer of tourism and of the lives of the faithful.
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144
Sociodemographic Factors and Life Circumstances
travel than ever before. It has been suggested that this market segment
travels more frequently, goes longer distances, stays away longer, and
relies more on travel agents than any other segment of the population. The senior market
In fact, senior travelers tend to be highly social, and the resort
complexes set up to provide for these travelers involve hectic schedules
of physical and recreational pursuits. Much of the importance of the
senior market is due to changing social role expectations and the
availabilities of health care facilities, especially in countries such as the
United States. These changes are removing the physical and
psychological limitations that constrained the elderly in earlier eras.
A particularly notable segment of senior travelers is the so-called
snowbirds. These travelers, complete with their mobile homes or
recreation vehicles, seek the winter sun in the southern part of the "Snowbirds"
United States, in such destinations as Arizona, Texas, and Florida.
Parallel examples of this sunseeking behavior of older mobile tourists
take place in Europe and Australia.
Another significant age segment of travelers is the long-stay budget
traveler. These travelers are typically less than 30 years old and may
spend up to 12 months moving in a circuit of Southeast Asian and
Australian destinations where there are inexpensive “backpacker” Young budget
hostels set up to support their budget and long-stay travel style. The travelers
total travel expenditure of these travelers, although spread over a longer
period of time, is greater than most other international tourists and is
focused on activities and tours, not accommodation purchases.
7.3.2 Gender
An assessment of gender issues in tourism reveals that substantial
changes have taken place in this market in the last twenty years.
Motivations underlying women’s travel include escaping from a routine
or domestic environment, changes in personal circumstances, such as
a family death, a broken romance or a change in marital status, a desire Women's travel
motivations
to experience the thrill of danger, and a desire by women to
demonstrate their own abilities, independence, and competence.
Women also play an important role as facilitators of other’s leisure
(particularly husbands, children, parents, and working colleagues)
while considering their own leisure and travel needs as secondary.
Women are also playing an increasingly important role in the business
travel market. Over one-third of U.S. business travel is undertaken by Businesswomen
women and the percentage of women travelers in general appears to be
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7.3.3 Education
Aside from income, one of the most important factors in determining the
propensity to travel is the strong link between travel and education.
Numerous studies have demonstrated that as an individual’s educational
Tendency of attainment increases, so does his/her desire to travel. Even among youth
travelers being travelers, the largest percentage will be associated with college students
educated
in search of new experiences and opportunity for self-discovery. So
important is travel to this group that the majority feel that if travel were
not individually affordable, it ought to be government subsidized.
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Table 7.2: Consumption As It Relates to Life Cycle
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Approaches to Tourist Motivation
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not limit its focus to one need, must be able to manage dynamic changes
Theory within individuals and society, and must balance needs influenced by other
requirements
people with those determined by individuals themselves. The discussion
below considers five approaches to tourist motivation in light of the
requirements for a sound theory outlined in Table 7.3.
Attribute Description
Must be able to integrate existing tourist needs,
The task of the theory reorganize the needs, and provide a new orientation for
future research
Must be appealing to specialist researchers, useful in
The appeal of the theory tourism industry settings, and credible to marketers and
consumers
Must be relatively easy to explain to potential users and
Ease of communication
be universal (not country specific) in its application
Must be amenable to empirical study; the ideas can be
Ability to measure travel motivation translated into questions and responses for assessment
purposes
Must consider the view that travelers may seek to satisfy
A multimotive vs. single-trait approach several needs at once; must be able to model the pattern
of traveler needs, not just consider one need
Must recognize that both individuals and societies
A dynamic vs. snapshot approach change over time; must be able to consider or model the
changes that are taking place continuously in tourism
Must be able to consider that travelers are variously
motivated by intrinsic, self-satisfying goals and at other
The roles of extrinsic and intrinsic motivation
times are motivated by extrinsic, socially controlled
rewards (e.g., others' opinions)
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Approaches to Tourist Motivation
Optimal Arousal
A third tourist motivation theory argues that tourist and leisure behavior
takes place within a framework of optimal arousal and incongruity (Iso-
Ahola, 1982). Iso-Ahola suggested that while individuals seek different
levels of stimulation, they share the need to avoid either overstimulation
(mental and physical exhaustion) or boredom (too little stimulation). The
study noted that leisure needs change during the lifespan and across places,
thus introducing a potential dynamic element into his categorization of
visitors. This theory emphasizes the participant’s feelings of self-
determination and competence as the means of understanding tourist
motivation, and on the experience in which travelers are engaged and on
their actual participation in travel behavior rather than abstract assessments Stimulation levels
of life purposes. A weakness of this theory is the lack of specificity in
measuring preferred stimulation levels or the relationships between self-
determination, competence, and preferred stimulation.
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Approaches to Tourist Motivation
Fulfillment needs
Need for self-actualization
Need for flow experiences
Relationship needs
Other directed Self-directed
Need to reduce anxiety Need to give love, affection
Overall pattern of about others Overall pattern
motives is Need to affiliate of motives is
the important the important
feature feature
Safety/security
Physiological needs
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Mean Importance
Item
Rating*
Going to places I haven't visited before 3.26
Outstanding scenery 3.16
Meeting new and different people 3.11
Opportunities to increase one's knowledge 3.10
Interesting rural countryside 3.10
Destinations that provide value for
3.01
my holiday money
Personal safety 3.01
Arts and cultural attractions 2.98
Public transportation such as airlines 2.97
Experiencing new and different lifestyles 2.97
Having fun, being entertained 2.92
Standards of hygiene and cleanliness 2.89
Visiting friends and relatives 2.86
Historical, archaeological or military
2.85
sites, buildings, and places
Just relaxing 2.85
Escaping from the ordinary 2.85
Being together as a family 2.84
Inexpensive travel to the country 2.79
The best deal I could get 2.78
Availability of pre-trip/incountry tourist
2.78
information
Being able to communicate in English 2.72
Inexpensive travel within the country 2.71
Nice weather 2.69
Trying new food 2.67
Shopping 2.66
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Summary
Mean Importance
Item
Rating*
Ease of obtaining visa 2.61
Visits to appreciate natural
2.59
ecological sites (forests, wetlands, etc.)
Talking about the trip after I returned home 2.55
Meeting people with similar interests 2.55
Getting a change from a busy job 2.47
Unique or different native cultural 2.45
groups such as Eskimo and Indian
Ease of exchanging the currency 2.40
Getting away from the demands of home 2.36
Finding thrills and excitement 2.33
Exotic atmosphere 2.30
Unique or different immigrant culture 2.27
Ease of driving on my own 2.25
Advertised low cost excursions 2.24
Environmental quality of the air, water, and soil 2.24
Indulging in luxury 2.20
Visiting places where my family came from 2.19
Activities for the whole family 2.16
Going places my friends have not been 1.97
Being able to communicate in the foreign
1.96
language
Outdoor activity 1.92
Experiencing a simpler lifestyle 1.91
Doing nothing at all 1.83
Exercise and fitness opportunities 1.55
Roughing it 1.50
SUMMARY
This chapter has suggested that there are numerous ways to describe
visitors. Initially the focus of the discussion was concerned with key
travel purposes, particularly as reflected in the collection of international
tourism statistics. The categories of pleasure travel, business travel,
visiting friends and relatives, religious travel and special interest travel
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were all considered and some defining features and illustrative studies of
these groups were presented. Next, some sociodemographic descriptions
of visitors were reviewed with attention being paid to senior and youth
travelers and to gender-based studies in travel. Further consideration was
given to independent travelers vs. package tourists. It was also noted that
people’s life circumstances strongly influence travel opportunities and
the concept of family life cycle was reviewed together with a brief
discussion of lifestyle and disability. In order to provide a more advanced
understanding of traveler differences, the topic of tourist motivation was
considered. An important distinction was drawn between questions such
as why people travel vs. why people go to specific destinations. The
scope of travel motivation information was reviewed by considering
three sources of material. A brief consideration of market survey work
and historical records of traveler motivation was provided while a more
extensive discussion of tourist motivation theories together with their
strengths and weaknesses was undertaken.
DISCUSSION QUESTIONS
1. What are some physical ways to categorize travelers? What are the
limitations of these categories?
2. In what ways are business travel and pleasure travel coming closer
together?
3. In what forms does religious travel still persist?
4. Distinguish between special interest travel and mainstream tourism.
5. What are some general family life cycle influences on travel?
6. What are some ways in which a theory of tourist motivation can be
useful?
7. What approaches could be combined to measure travel motivation?
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CHAPTER 8
Tourism Marketing
Learning objectives
8.1 Introduction
To compete in today’s tourism marketplace, organizations in both the
public and private sectors must know who their customers are and what
they want. They must also be able to communicate the availability of
tourism products and services to potential customers and convince them
to become actual customers–to travel to a destination or attraction that
has been developed or to purchase the products and services such as a
tour package or airline ticket. These activities are what marketing is all Making potential
about. For countries that expect to gain from tourism activities, the customers real
customers
marketing of the country as a unique travel destination may be
undertaken by the national tourism administration (NTA). For
communities that hope to compete for their share of visitors, the
marketing of a distinctive culture, attraction or outstanding amenities
might be the central theme. For firms in the private sector, success may
be dependent on effective marketing and selling activities of the airline,
hotel chain, or tour company. This chapter provides a broad discussion
of marketing concepts as a foundation for understanding the importance
of marketing to the tourism industry and the global tourism economy.
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When marketing matches the right product or service with the right
customer at the right place and the right time, the results are a profitable
business and a satisfied customer.
How an organization approaches marketing may reflect any of several
different basic marketing philosophies. As in any other field, theories
Approaches to and their application develop and change over time so that the
marketing marketing practices used by an organization in the travel industry
today will differ from those used by a similar organization in the past.
While practices may vary, they all reflect in varying degrees one of the
following marketing concepts or philosophies.
• Production Concept. This concept presumes that customers are
mainly interested in price and availability. Management’s job is,
therefore, to produce the service as efficiently as possible keeping
costs low so prices, which are the main product feature, can be
competitive. Too often, under this concept, management tends to
adopt a “commodity mentality,” forgetting the customer’s shifting
Price and
availability
desires and needs. In the early stages of tourism development from
the 1950s to the 1970s, for example, it was not uncommon to find
hotels offering only a single type of accommodation or to find one-
or two-item restaurants which greatly simplified business practices
for owners and operators. Customers could take it or leave it; and in
a noncompetitive environment, owners would do very well. Today’s
markets, however, are based on the concept of choice and
production must consider optimum ways of providing for choice
while containing costs that are imposed by variety.
• Product Concept. This concept is similar to the production concept,
but focuses on the service or product itself. In this case, the goal is
to produce someone’s, usually the inventor’s, dream of the product
Service or product
or service with the expectation that a market will follow. “Build it
and they will come” best expresses this philosophy. The fast food
industry is an applicable example of both production and product
concepts–limited menus, controlled production, fast service and low
prices–appealing to a wide market of consumers around the world.
• Selling Concept. This concept maintains that intense selling and
promotion efforts are needed to ensure sufficient sales. Should sales
begin to drop, the response is to increase sales efforts and to allocate
Promotion efforts
more money to promotion then to production. It is common, for
example, for firms to offer discounts or special promotions when sales
begin to decline without considering factors such as levels of customer
satisfaction or revenue contribution. The fallacy is that if the cause of
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Characteristics of Services Marketing
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162
Market Segmentation
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Chapter 8: Tourism Marketing
164
The Market Mix
Category Variables
age, gender, marital status, race, ethnic group, income,
Demographic education, occupation, family size, family life cycle,
religion, social class, nationality
region, city or metropolitan area size, population density,
Geographic
climate, terrain, market density
Psychographic personality attributes, lifestyle, motives
occasion, benefit expectations, usage rate, brand loyalty,
Behavioral
attitude toward product
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Promotion
Public Relations
Product Advertising
Brand Selling
Image Media Used
Packaging
TARGET
MARKET
SEGMENT
Place
(Channels of Distribution)
Price
Direct Sales
Match, above, or below
Retail Travel Agents
current market
Tour Operators
price
Hotel
Representatives
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The Market Mix
8.5.1 Product
The tourism product includes not only the physical product and service
but also planning and development, branding, and packaging. The
marketing concept and societal marketing concept discussed earlier in New product
this chapter suggest that any new product development must meet the development
needs of some segment of the market and also be developed with the
overall good of society in mind. In deciding on whether to offer a new
product, there are several criteria that should be met.
• There should be sufficient demand for the product or service to
generate a profit for the organization.
• The new product or service should fit in with the overall image and
mission of the organization.
• Sufficient resources should be available to offer the product or
service including enough trained personnel.
• The new product or service should contribute to the overall profit or
growth of the organization or destination, even if the new offering
may not bring in a profit by itself.
Clearly, development of new products and services is a complex task.
Consumer needs and wants constantly change and competitors
continually offer new or improved products. Over time, a product that
has been very successful is likely to become less so and eventually may
be phased out completely. The product life cycle illustrated in Figure
8.2 provides a framework for describing the process of product
development through various stages as follows:
• Product development begins with an idea for a new product or
service. There are no sales during this period although investment
costs are incurred.
• Introduction of the new product or service also reflects high
investment costs to promote and advertise the new product with
relatively low sales volume resulting in little or no profit.
• Growth is a period of rapid expansion with increasing profit levels.
There may be few or no competitors at the beginning of this stage,
but as profits increase, competitors may begin to enter the market.
• Maturity is marked by a slower rate of sales growth and a leveling
off of sales. Increasing expenditures to hold off competitors will be
needed with resulting declines in profits.
• Decline sees a rapid fall off of sales and profit. The number of
competitors will decrease as firms choose to withdraw from the market.
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Sales
Profits
8.5.3 Price
Setting the price of a product of service is a complex process involving
considerations both within and outside the organization. At the same
time, setting the right price is critical as it is the only revenue-generating
element in the marketing mix.
Internal factors
a) Internal factors for consideration include:
• Positioning or how consumers perceive the product relative to
competition. Many organizations offer a variety of products targeted
at different levels or positions which are reflected in the pricing
strategies of the firm.
• Survival for organizations struggling with economic recessions,
overcapacity, and strong competition. If demand for hotel rooms in
a specific location declines substantially, the response of a specific
hotel may be to reduce prices and cut costs until demand recovers.
Other properties may lower prices to match or may choose not to
lower prices, losing the more budget-minded customers.
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8.5.4 Promotion
Promotion is essentially communication with the goal of changing the
behavior of the consumer, specifically to purchase a tourism product
such as air travel, hotel accommodations, restaurant meals, tours, or a
Promotional complete destination package. Before undertaking any promotional
objectives effort, the objectives of the campaign must be set. Effective objectives
are quantifiable, measurable, specific, and realistically attainable
within a specified time frame. Understanding where the potential
buyers are in terms of readiness to buy is important in setting
appropriate objectives and developing effective promotional materials.
For example, in the selection of a travel destination for a vacation, a
consumer must go through several stages in making a decision. These
stages, illustrated in Figure 8.3, reflect the buyer readiness states:
• Consumer awareness of the destination (or product) can range from
total unawareness of its existence to knowing only the destination
name to knowing a little about the destination. Promotion aimed at
this stage will focus on providing critical information to increase the
consumers’ level of knowledge. New York City’s promotion using
“The Big Apple” theme in the early 1970s is a classic example of a
successful destination promotion using a recognizable image.
• Consumer knowledge about the destination is the target of
promotion. A national tourism administration (NTA) may feature
specific attractions or outstanding recreational facilities of different
parts of the country as promotions targeted to the vacationer.
• Consumer attitudes vary according to cultural, ideological, and
other differences. For example, an advertisement for African safaris
featuring a successful hunter posing with his trophy of a dead lion
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The Market Mix
may be a positive image for hunters but would be negative for those
interested in animal rights, environmental protection, and
preservation of animal species.
• Consumer preference is established in terms of liking one product
over others in the marketplace. Each product must promote those
features and benefits that will make a difference in the consumer’s
buying decision. A destination like Hawaii or Bali may feature its
climate, activities, beautiful scenery, or unique culture. Destinations
and companies like tour agencies may choose to focus on quality,
unique services, location, price–whatever it is that makes their
products of particular value to their target audience.
• Consumer conviction and purchase are the final steps and are
usually closely linked. The NTA or other marketers want to create a
firm intention to come to a destination or to purchase followed by
the actual purchase of the product. Special pricing is commonly
used to increase sales during off-season periods at many
destinations. For example, airlines offer lower fares for advance
purchases and for travel during non-peak hours and days.
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
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The Market Mix
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Push Strategy
Pull Strategy
Demand Demand
Suppliers Retailers and Wholesalers Consumers
Media Selection
Once a decision has been made to advertise, selections must be made
about the type of media to use to most effectively deliver the desired
message. The most common choices are newspapers, magazines, Using different
media types
television, radio, direct mail, and outdoor billboards. In selecting
which media is best, several factors must be considered:
• Reach measures the percentage of people in a target market that are
exposed to the message during a specific period of time. For
example, the advertiser might want to reach 75 percent of the market
within a year.
• Frequency is how many times the average person in the target market
sees the advertisement. An advertiser might, for example, want the
average person to see the message three times during the campaign.
• Impact is the qualitative value of the message. This includes the
source credibility, visual quality, and noise level of the particular
medium. Newspapers, for example, have less visual quality than
magazines, and certain media types and selections of media have
less credibility than others. Noise level refers to the stimuli
competing for the viewer’s attention while the message is shown.
With radio, for example, the listener is often also carrying on
conversations, driving, or completing some task while the radio is
playing so the noise level is high.
• Cost includes both the total cost and the cost per contact (cost of
reaching one member of the audience.) Television, for example, has
a low cost per contact but a high total cost.
• Market selectivity is the ability to target particular groups whether by
geographic region or another of the bases for market segmentation.
Daily newspapers offer a great deal of geographic segmentation, but
very little demographic, psychographic, or behavioral segmentation.
Magazines offer more options for different types of segmentation,
but may not offer as specific a geographic segmentation.
• Timing flexibility is the lead time needed to place, remove, or
change a message. Newspapers offer the most timing flexibility.
Magazines and television require much longer lead times to produce
the advertisement.
The advantages and disadvantages of each are summarized in Table 8.3.
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Table 8.3: Comparison of Major Media Types
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The following suggested rules were developed as an aid for National Tourism
Administrations (NTA) that do not have marketing plans. They are designed to
maximize the use of existing resources and avoid unnecessary expense.
1. Employ market expertise –either in-house or external– when drawing up
the initial plans.
2. Develop a thorough understanding of existing offerings and of their
absolute and relative advantages and shortcomings with respect to
competing destinations.
3. Identify and study the competition in order to clearly identify any market
gaps and capitalize on the main strengths that the country has.
4. Prepare a strategic plan for supply spanning several years, to improve
deficiencies and strengthen advantages.
5. Thoroughly consider potential demand. Access to such information is
relatively straightforward in view of the existence of numerous studies on
demand in the main tourism source countries.
6. Set strategic goals in line with tourist arrival capacity, transport capacity and
existing promotional resources. Goals should be defined in terms of market
share in each of the main source countries, because large fluctuations in
exchange rates make it difficult to forecast foreign exchange earnings.
7. Once the three-year strategic plan has been completed, the corresponding
one-year operational plan can be drawn up.
8. Given the scant resources of most NTAs, yearly operational plans should
concentrate on a few markets only; these need not be national but could
be limited to certain regions or even cities.
9. Do not address the public in general until appropriate measures have been
taken with opinion leaders; journalists, travel agents, specific interest groups.
10. Include the private sector in the preparation and execution of marketing
plans from the very outset.
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Marketing Plans
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Marketing Plans
for marketing efforts through the life of the plan. Sound market
research including analyses of market trends, competition, and
environmental factors must be completed to select the best target
markets. This will allow more effective and efficient marketing.
Planning
In many cases this analysis will identify areas that must be improved example
before the objectives of the organization can be met. For example, a
destination may decide that the market for conventions and meetings
has strong potential for their location. A decision might be made to
invest in developing additional convention facilities to attract this
market. However, further analysis may reveal that there are too few
hotel rooms or insufficient transportation access. A long-term
investment strategy to improve all needed infrastructure would be
needed in addition to investment in the convention center itself.
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SUMMARY
Marketing includes all activities involved in bringing buyers and
sellers together in an exchange relationship. Tourism products are
almost exclusively services, and the supply of tourism services is often
difficult to adjust rapidly because tourism demand is elastic, and the
tourism product is actually a combination of many different products.
Market segmentation is used to group people into categories based on
demographic, geographic, psychographic, and behavioral
characteristics. The market mix combines the various factors that
influence the marketing effort into four main categories: product,
place, price, and promotion. The product life cycle describes the
various stages during a product’s development, while place represents
distribution or how the product or service is delivered to the customer.
Setting the price of a product or service is a complex process involving
a variety of factors such as marketing objectives, the marketing mix
strategy, costs, demand, consumer perceptions of price and value, and
competition. Promotion is communication with the goal of changing
the behavior of the consumer. The promotion mix involves the
selection of promotional tools from four basic types: advertising,
personal sales, sales promotion, and publicity or public relations.
Marketing plans are essential to ensure that all efforts are focused on
attaining the goals and objectives of the organization over the short-
and long-term. Developing an effective marketing plan begins with an
environment analysis including consideration of social, political, and
economic factors. An analysis of the competition and market trends
should also be completed. The marketing plan should specify how the
market is to be segmented, the strategic goals and objectives, and
provide action plans to reach the desired goals.
DISCUSSION QUESTIONS
1. What are the differences between the different marketing concepts?
2. Are some characteristics of market segments more important than
others, or are they equally important? Why?
3. A resort destination is considering adding a second golf course to
its facilities. What factors should be considered in deciding whether
to expand the resort in this manner?
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Summary
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CHAPTER 9
Learning objectives
accountability assessment
Delphi Model
Judgment-Aided Model (JAM)
multivariate regression analysis
nonsurvey techniques
primary data
propensities to travel
qualitative forecasting methods
quantitative forecasting methods
resistances to travel
secondary data
time-series models
types of surveys
9
Tourism Research
and Forecasting
9.1 Introduction
Tourism research is an objective, systematic, and logical investigation
of travel-related problems. In response to the globalization of tourism
activities and industry, tourism research has become increasingly
Importance
important to assist decision making and planning for the tourism
of investigating
product, which is comprised of all the goods and services that are problems
necessary to accommodate the visitor. In the fast changing
international tourism environment, tourism planners and managers
need to respond sufficiently to external challenges like new
technologies and increasing competition, as well as internal factors like
financial and human resource constraints.
The interrelationships between research, marketing, and forecasting
can be seen in some examples of everyday uses of tourism research in
the industry including:
• Hotels and resorts studying the impacts of new technologies such as the
World Wide Web and video conferencing on the business travel market.
• Airlines investigating attitudes and behaviors of leisure travelers in
light of shifting global travel patterns and increased security measures.
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Tourism Research
that the tourism research process is well designed and pertinent to the
defined problem. Although the benefits of a research study might be Benefits vs. cost
apparent, the need is often weighed against the expense of conducting the
study, in terms of time, money, and opportunity cost. The research design
will depend on the particular problem at hand, and the basic research study
is focused as to its scope, relevant variables, and parameters. The
identification of a problem may arise from observations of trends or
behavior in visitors. In other instances, there may be a need to distinguish
facts from observations or to test a hypothesis (Ryan, 1995; see Table 9.1).
The value of the research process is in providing users with useful and
relevant information that they can implement in their decision making Providing
information for
process. Thus, the research must be clearly understood and future benefits
disseminated to interested and concerned parties. Beyond answering
immediate concerns, a well-designed study also has the potential for
future benefits by establishing the groundwork for follow-up work.
The application of the research results is the desired goal of any project.
Hence, adequate planning and support are necessary in order to ensure
practicable application. In this process, the interpretation of the statistical
results and other findings into usable information provides one of the
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5. Plan primary
data collection
6. Design data
collection
instruments
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Tourism Research
Secondary Data
In recent years, there has been an overwhelming flow of information
related to tourism, travel, recreation, and leisure. Low cost and
convenience are clearly the biggest advantages of obtaining secondary Advantages
data. Instead of printing data collection forms, hiring interviewers,
editing, and tabulating the results, researchers may go to the library and
take information from published records compiled by somebody else.
Another advantage of secondary data is that they can be collected more
quickly than primary data. While an original research project might take
60 to 90 days or more to complete, secondary data can be accessed
electronically in hours or collected within a few days. In addition, if the
data is part of a larger series, comparability might be an advantage.
There are, however, limitations in using secondary data. For instance, the
information may not fit the problem that is being researched, may be
outdated, or in forms which do not answer the specific problem at hand.
In evaluating secondary data, consideration is also given to the Disadvantages
organization which collected the data and the purposes for which they
were collected. Accuracy will depend on the application of objective and
systematic methods of data collection. The reputation, experience, and
degree of independence of the research organization are relevant
considerations in assessing the reliability of the data, and reliable sources
usually give a detailed description of their methods of data collection. In
this regard, data based on mandatory reporting is often considered more
desirable than voluntary compliance. An organization such as a national
tourism administration (NTA) which regularly collects and publishes
travel data as its chief function can provide invaluable data.
In order to obtain current and reliable statistical data on tourism,
standard definitions, classifications, and measurement methods and
objectives have been established to assist NTAs. In June 1991, the
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Primary Data
When it is not possible to get the needed information through
secondary sources, research organizations obtain primary data or
original sources of information. There are various methods that are
used to gather primary data, including the widely used survey method.
Gathering Non-survey techniques include the observational method and the
methods
experimental method. Given the complex nature of travel and tourism
and the challenges presented by a fast changing economy and
marketplace, there is an increasing need to conduct primary research
for the sake of developing marketing and planning strategies. Some
types of surveys and their uses are (Goeldner etal., 1995):
Different types • Factual surveys which pose questions to the respondent allowing an
of surveys accurate answer rather than an opinion. Factual surveys generally
provide better results than opinion or interpretive surveys.
• Opinion surveys which ask participants to express an opinion or
make an appraisal. For instance, a respondent may be asked to rate
the services provided by the resort as excellent, good, average, fair,
or poor, enabling management to assess guest satisfaction.
• Interpretative surveys which ask questions to gain insight into the
subject’s psychological behavior, for example, why they chose a
particular tour package. Results from interpretive surveys tend to be
limited since they rely on self-reporting, and respondents may be
unclear or unwilling to state why they made certain decisions.
Surveys can be conducted by personal interviews, telephone
interviews, self-completed questionnaires, focus groups, or electronic
methods. A description of different methods follows:
• Personal interviews or face-to-face interviews use a pre-structured
questionnaire allowing the interviewer to exert a certain degree of
control over the interview environment. In addition, the interviewer
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Organizations Conducting Research
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Relationship Between Marketing and Research
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Relationship Between Marketing and Research
Table 9.2: Major Types of Tourism Establishments for Tourism Marketing Research
Accommodations
Hotels and motels
Hostels and refuges
Camping and caravan sites
Health-oriented accommodations
Other lodging
Restaurants, bars and canteens
Restaurants
Bars and other drinking places
Night clubs and dinner theaters
Transportation
Air transport
Interurban rail passenger service
Scheduled and long-distance tour buses
Cruise ships
Recreational, cultural, sporting activities
Dramatic arts, music and other art activities
Amusement parks
Museums
Historical sites and buildings
Spectator sport facilities
Gambling, betting operations, casinos
Participant sport facilities
Fairs, festivals and other special events
Convention and conference centers
Other services
Travel agents
Tour operators
Guides and sightseeing services
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Relationship Between Marketing and Research
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The Importance of Forecasting Tourism Demand
Quantitative Approaches
Quantitative approaches to demand forecasting can be divided into
causal and non-causal (time-series) methods. Causal models attempt to Causal and non-
explain changes in tourism demand in relation to one or more causal methods
explanatory variables in order to forecast future demand. Causal
models include econometric models that use: (1) multivariate
regression techniques or (2) gravity and trip-generation models.
• Multivariate regression analysis is the most popular causal technique
used for demand forecasting. Multivariate regression models examine
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The Importance of Forecasting Tourism Demand
Qualitative Approaches
Qualitative forecasting methods are also designed to predict future
demand and to assess the possible outcomes of events. However, in
contrast to the more objective approach provided by quantitative Perceptions and
methods, this approach seeks subjective inputs through the judgments
perceptions, judgments, and accumulated experiences from experts in
the tourism field. In particular, qualitative methods can provide a
valuable means to augment quantitative tourism forecasting models.
In addition, qualitative methods are useful if past data are insufficient or
inapplicable because the destination is experiencing new or unanticipated
developments. For instance, a destination that is just starting to develop its
tourism industry may not have historical data on market shares, New developments
seasonality, and visitor expenditures. Another destination might be
contemplating expanding into new capital-intensive or controversial
markets like conventions or gaming. Moreover, if a region experiences
social and political unrest, an existing data base may no longer be valid for
quantitative forecasting. Typically, these are situations where qualitative
models could be useful in analyzing and predicting consumer behavior.
Examples of qualitative methods include market surveys, the Delphi
method, and the Judgment-Aided Model:
• Market surveys of actual or potential visitors are the traditional way
of obtaining qualitative information. Visitor surveys, however, are
expensive, and an alternative is to survey tourist service providers
such as airlines, hoteliers, and tour wholesalers. For example, a
Market surveys
national tourism administration could canvass hotels and tour
wholesalers about expectations about advanced reservations and
expected hiring for the following year. Depending on the extent and
degree of industry collaboration, fairly accurate forecasts are
possible. Speculations about the future from experienced and well-
informed tourism authorities can provide valuable insights,
direction and rationale for decision-makers.
• The Delphi Model technique is essentially a method to obtain
consensus from qualified individuals about the likely occurrence of
certain situations or events. A series of questionnaires are
administered to a group of experts. Each participant answers the Questioning
questionnaire independently from each other to prevent peer experts
pressure or group dominance. Two or more rounds of questionnaires
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The Importance of Forecasting Tourism Demand
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SUMMARY
Tourism research does more than just provide information for travel
planners and managers to make better decisions. The value of tourism
research is its potential for providing an ongoing and comprehensive
means of decision support and proactive planning. Marketing research,
which is an important part of tourism research, is a necessary tool for both
public and private sector decision makers to determine effective
strategies. Today, there is an increasing need to use sound marketing
research in order to develop competitive products and successful
marketing strategies. Well-planned tourism development must also be
based on reliable and valid forecasting information, which attempts to
anticipate the future and which is another important dimension of tourism
research.
DISCUSSION QUESTIONS
1. List and define the sources of data that are used in tourism research.
2. What types of organizations are involved in conducting tourism
research?
3. Briefly describe what is involved in an organization’s tourism
market research process.
4. What are the four areas that accountability research should address?
5. What are the reasons for the gap between producers and users of
tourism research?
6. Compare quantitative methods versus qualitative methods in
forecasting tourism demand.
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4
Section
Tourism Impacts
CHAPTER 10
Learning objectives
balance of payments
cost-benefit analysis
direct and indirect employment
direct, indirect, and induced benefits
indicators
input-output analysis
leakage
price elasticity
tourism multipliers
tourism satellite accounts
10
Contributions of Tourism to
Economic Development
10.1 Introduction
There is a growing recognition that innovative approaches must be
adopted in order to maintain the economic health of a number of
countries, communities, and regions. While conditions vary from region
to region, tourism has been seen as an important form of economic Economic
development and
development. It has also been promoted as a somewhat benign agent of
social change
economic and social change, a promulgator of peace through interaction
and dialogue, and a service-based industry capable of creating
employment and income. However, in countries and states with
burgeoning tourism traffic, there is also an awareness and knowledge of
the more intangible and indirect economic costs of tourism.
While it can be argued that tourism does offer an important alternative
form of economic activity, it must be seen as only one component of a
larger series of development initiatives within any economic system. That
is not to say that tourism in selected circumstances cannot be the major
source of income and jobs in a community or region, but rather that the Variable impact
impact and role of tourism will vary from region to region. Experience
has shown that tourism may take many forms and meet a number of
tourist motivations. Experience has also shown that destinations can rise
and fall in popularity, driven by various factors in the destination’s internal
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Understanding Economic Impacts
• Political stability.
• Expertise of human resources and ability of decision-makers (public
and private) to market and promote the destination effectively.
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Chapter 10: Contributions of Tourism to Economic Development
on overall wages and salaries. In fact, many of the jobs at the technical,
managerial, and professional levels require education and training
which command compensation commensurate with these
qualifications. In many cases, compensation in the tourism industry is
competitive with high-technology industries.
Tourism provides both direct and indirect employment. Companies that
provide direct employment are those whose employees are in contact
Contact with with tourists or directly affect the tourist experience. Companies that
tourists provide direct employment include hotels, food service operators, airlines,
cruise lines, travel agents, attractions, and shopping outlets. Companies
that provide indirect employment in the tourism industry are those that
serve the direct employment companies. These indirect employment
companies, which may be restaurant suppliers, construction firms that
Companies build hotels, and aircraft manufacturers, are dependent on the companies
contact with providing direct employment for their revenues. Overall, direct and
industry
indirect employment in tourism represent a sizeable portion of total
employment. As shown in Table 10.1, both direct and indirect employment
opportunities in tourism are expected to grow over the next decade.
Indirect
Direct Employment
Year Employment % of TOTAL
% of Total
Total
1991 4.9 5.3 10.2
1994 5.1 5.5 10.6
2005 5.4 5.9 11.3
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Measuring Tourism Economic Impacts
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Chapter 10: Contributions of Tourism to Economic Development
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Measuring Tourism Economic Impacts
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Chapter 10: Contributions of Tourism to Economic Development
the investment and spending by the businesses which benefit directly from
Domestic inter- tourism expenditures. The direct business receipts, when re-funneled as
business
transactions
investments or used to purchase other goods and services from domestic
suppliers (who, in turn, purchase goods and services from other domestic
suppliers), stimulate income and employment in other sectors.
In addition, tourism spending within the destination can create induced
benefits. As income levels rise due to the direct and indirect effects of
the change in the level of tourism expenditure, some of the additional
personal income (related to the change in tourism expenditures) is spent
Personal within the destination. This results in induced benefits, such as higher
income spent levels of income and jobs in the local goods and service sector. Hence,
tourist spending creates direct benefits in tourism-related services and
sectors such as accommodation, hospitality, attractions, events, and
transportation, and indirect and induced benefits in other sectors such
as agriculture, construction, and manufacturing. Indirect and induced
benefits are also referred to as the secondary effect.
Leakage
Some of the added revenues from the increase in tourism expenditures may,
however, undergo leakage. Leakage refers to the process through which
tourism receipts leave the destination’s economy. Revenues may leak out of
the local economy in the form of payment for imports or moneys saved
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Measuring Tourism Economic Impacts
Multiplier Effect
The net effect of the successive rounds of spending and leakage of the
added tourism expenditure is the multiplier effect. Tourism multipliers
attempt to measure the relationship between the direct tourism
expenditure in the economy and the secondary effect of the expenditure Spending
and leakage
upon the economy. Some of the factors which affect the multiplier are the
size of the local economy, the propensity of tourists and residents to buy
imported goods or services, and the propensity of residents to save rather
than spend (where saving reflects money kept out of circulation, and not
re-invested). In mathematical terms, the multiplier can be shown as:
Multiplier = 1/(1 - C + M)
where C = marginal propensity to consume (the proportion of any
increase in income spent on consumption of goods and services), and
where M = marginal propensity to import (the proportion of any
increase in income spent on imported goods and services).
Some commonly used multipliers are:
• The income multiplier, which measures the extra domestic income
(primary and secondary) generated by an extra unit of tourism
expenditure.
• The employment multiplier, which measures the increased number
of primary and secondary jobs created by an extra unit of tourism
expenditure.
• The government multiplier, which measures the government
revenue created by an extra unit of tourism expenditure.
Multipliers can be calculated for a country, region, or community.
However, the information provided by tourism multipliers has to be
evaluated with a great deal of care. Factors such as the size of the
destination can affect the multiplier significantly. A smaller economy
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Chapter 10: Contributions of Tourism to Economic Development
may have a much smaller multiplier than a larger one since more goods
and services might be imported to meet the tourists’ needs, resulting in
Evaluations a greater leakage of revenues out of the destination. Hence, multipliers
and comparisons may vary greatly among communities within a country or region.
Furthermore, since tourism multipliers can be calculated in a number
of different ways, care must be taken when comparing the multipliers
of different countries. Multipliers should be examined along with other
measurements and indicators to determine the positive and negative
economic impact of tourism on the community.
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Monitoring Economic Impacts
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Obstacles to Economic Development Through Tourism
Community Obstacles
Negative perceptions of tourism are often found at the local level.
Tourism activities, as a whole, are generally viewed as a collection of
small business ventures, unlike a large factory that may be the main Perceptions of
tourism work
employer in many communities. Often, tourism work is viewed as a
short-term or temporary activity until more appealing and profitable
employment can be found, since many tourism positions are in fact, entry
level jobs or seen as low status occupations. These perceptions act as a
deterrent to greater local participation in tourism-related employment.
Overcoming these negative feelings and providing for a hospitable host
community is an important challenge.
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Chapter 10: Contributions of Tourism to Economic Development
Environmental Obstacles
The emphasis in much of tourism activity tends to be on attracting
larger numbers of tourists to a region or site, which can pose problems
Problem of
for environmentally sensitive areas. It is clear that some environments
tourist numbers
may have to generate high-yielding tourist activities to generate
sufficient income while protecting social and natural environments.
This is difficult to accomplish in the highly competitive tourism market.
Lack of Integration
There is limited integration and cooperation between many tourism
Limited businesses given that, for the most part, the local tourism industry
cooperation
tends to be fragmented or lacking in tourism expertise.
Institutional Obstacles
In some cases there is little coordinated governmental support and
Little public promotion for tourism initiatives. In addition, government can lack the
support proper structure to help plan and manage tourism. In other instances,
political and ideological issues make tourism planning and
management difficult to implement.
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Facilitating Employment in the Tourism Sector
Coordination
Coordination at both policy and action levels among the various
agencies involved and among the different levels of government is vital
to sound development. This is particularly relevant to the development Policy and action
and implementation of tourism and environmental policies, and in the
provision of service such as transportation, parking, and water and
sewer capacities.
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Cooperation
Cooperation among local businesses and tourism operators stems from
the interrelated nature of tourism, where one business or operation can
be directly affected by the success or quality of another. Tourism
partnerships in the areas of planning, management, marketing, and
funding for tourism ventures by local financial organizations provide one
avenue of cooperation. Public-private partnerships to support the
development and funding of tourism initiatives and cooperation among
Making neighboring regions and communities are forms of cooperation
partnerships involving government. In many instances, it is not just one town or site
that attracts tourists, but rather the larger area and its environs. A case in
point is San Francisco, California where the nearby wine producing
counties of Napa and Sonoma are important draws for many tourists.
Cooperative arrangements enable communities to capture a range of
benefits for the entire region, while independent efforts often result in a
duplication of efforts and an inefficient use of limited resources. One
area of particular importance is marketing linkages among operators at
the local, regional, national, and international levels.
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Summary
SUMMARY
Tourism is becoming an increasingly important force in the world
economy. Tourism’s contributions to total production and to
employment are significant and growing. As the industry matures and
as governments recognize its importance, there will be greater
emphasis on the accurate measurement of tourism’s economic impacts.
This measurement has been hampered by the unique structure of
tourism which does not conform to the established norms of
production-based industry analysis. Increasingly, however, better
statistical approaches based on demand are yielding more accurate
information on tourism’s direct and indirect benefits. At the same time,
tourism’s costs are being studied more carefully and anticipated in
policy and planning. The development of realistic indicators for
tourism’s costs and benefits has played an important role in enabling
the public and private sectors to maximize tourism’s positive economic
benefits.
DISCUSSION QUESTIONS
1. What are some of the costs of tourism development that could affect
the economic benefits of tourism in a community?
2. How do tourism expenditures turn over (multiply) in the destination?
3. How can leakage be reduced?
4. What advice would you give a community’s destination manager
regarding the use of multipliers for his community?
5. Why is cost-benefit analysis a useful tool in economic analysis?
6. What role do indicators play in economic analysis?
7. What are some of the obstacles to generating economic benefits
from tourism?
8. As a destination manager, how would you ensure that tourism
development generates employment in your community or region?
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CHAPTER 11
Learning objectives
cultural arrogance
culture shaping inbound tourism
culture shaping outbound tourism
culture shock
demonstration effect
ethnic tourism
interpretation
sociocultural impacts of tourism
urban tourism
11
Social and Cultural
Aspects of Tourism
11.1 Introduction
One clear lesson from the history of tourism is that not everyone has
been happy to have guests. Tourism has attracted both praise and
criticism–praise for its potential or real economic contributions;
criticism for its sometimes adverse affect on places and host residents.
The criticism of tourism has come not only from academic researchers Criticism of
and cultural commentators, but also from government officials and tourism
policy makers and from residents and host communities themselves.
When criticisms are strident, the consequences for visitors range from
indifference to outright hostility from the community to the denial of
public investment in tourism infrastructure. The challenge for tourism
managers, planners, and researchers is to find ways to develop tourism
as an industry providing travel experiences which are rewarding and
sustainable for both hosts and guests.
This chapter describes some of the principles that have been proposed
for ensuring that the tourism industry of the future is characterized by
these rewarding and sustainable travel experiences. In particular, the
discussion will focus on the interaction between sustainable tourism and
social and cultural resources. The chapter will review the importance of
social and cultural attractions in tourism, describe the negative and
positive social and cultural impacts of tourism, and discuss practices
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Chapter 11: Social and Cultural Aspects of Tourism
232
Sustainable Tourism
Source: Globe '90 Conference, Tourism Stream, Action Strategy for Sustainable
Tourism Development, Vancouver BC, Canada. As quoted in WTO, Sustainable
Tourism Development: Guide for Local Planners (Madrid: WTO, 1993), p. 40.
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The Sociocultural Impacts of Tourism
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Chapter 11: Social and Cultural Aspects of Tourism
Community Conflict
Not all social exchanges between tourists and visitors are negative.
Younger residents of tourist destinations sometimes express the belief that
tourism is a positive force in creating a less rigid society. This loosening
of traditional restrictions is often associated with a phenomenon called
Differences in the demonstration effect. For example, local, and usually younger,
perceptions
residents who are exposed often to Western tourists are likely to emulate
their dress and habits. While this may seem to be a positive impact for
those residents who adopt the more relaxed standards, it can be seen as a
dangerous and negative trend to older or more traditional residents. Such
differences in perception can lead to conflict within communities.
Tourism can further contribute to community conflict indirectly
through the creation of new job and economic opportunities. Although
Creation of jobs new economic and employment options are given by residents as a
and opportunities
major positive impact from tourism, such opportunities are not always
evenly spread across communities. For example, tourism typically
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The Sociocultural Impacts of Tourism
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Chapter 11: Social and Cultural Aspects of Tourism
238
Strategies to Manage Sociocultural Impacts of Torusim
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Chapter 11: Social and Cultural Aspects of Tourism
Two key terms, culture shock and cultural arrogance, are important in
understanding the obstacles to sustainable sociocultural tourism.
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Strategies to Manage Sociocultural Impacts of Torusim
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Chapter 11: Social and Cultural Aspects of Tourism
242
The Relationship Between Culture and Tourism
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Chapter 11: Social and Cultural Aspects of Tourism
244
The Relationship Between Culture and Tourism
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Chapter 11: Social and Cultural Aspects of Tourism
Cultural icons million visits. Even these substantial figures seem limited when compared
with Europe’s most visited cultural attraction, France’s Pompidou Centre,
with over 8 million visitors annually. At the broad and popular culture
level, Disney World Florida with over 12 million visitors annually is
arguably the greatest cultural icon in the modern tourism world.
A transnational European study on cultural tourism found that
museums (59 percent) and historic monuments (56 percent) were the
two most popular categories of cultural tourism attractions, while
Specific and heritage centers (37 percent), art galleries (24 percent) and the
general cultural performing arts (22 percent) received moderate levels of interest. The
tourists
study also found that there are two categories of cultural tourists:
specific and general. Specific cultural tourists travel specifically to
visit the cultural attraction, rating it as important or very important in
their overall choice of the destination, while general cultural tourists
have a more incidental or passing interest in cultural attractions. Based
on this study, cultural tourism is growing at about or slightly less than
the overall rate of tourism growth.
Urban Tourism
It was noted earlier that culture as a motivator for tourist behavior and
as a force shaping inbound tourism is also concerned with the ways of
life of a community and society. Two components of this broader and
usually more “popular” view of culture include urban tourism and
ethnic tourism. Urban tourism focuses on the mix of attractions which
motivate travel to major population centers and while specific cultural
icons are a part of this mix, qualities such as atmosphere, layout, and
the friendliness of local residents are equally important cultural
features of destination image.
New York City can be seen as an example of urban tourism. Its cultural
tourism base includes an extensive number and diversity of restaurants,
New York museums, theaters, concert halls, visual arts, ethnic neighborhoods, and
historic sites. In 1990 it was estimated that 25 million visitors, including
day trippers, came to the city, of which 5.6 million were international
visitors. The latter figure represents 14.4 percent or one seventh of all
international visitors to the nation. The competitiveness of urban
tourism destinations is reflected by the promotional efforts among cities
for special events, festivals, and meetings and conventions. Culture and
history are being employed as tourist attractions, but there is concern
regarding the ways in which these reinterpretations of the past might
distort or suppress community and visitor understanding.
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Interpretation for Sustainable Tourism
Ethnic Tourism
Ethnic tourism, a second basic component of cultural importance,
refers to tourism focused on a group’s traditions and lifestyle and is
used principally to highlight tourism in developing communities or
specialized enclaves. Ethnic tourism is sometimes described as
motivated by tourists’ desires to see “the other” (van den Berghe,
1993). This motivation is consistent with the need to learn and to
satisfy curiosity motives as depicted in the more generic definition of
cultural tourism. Additionally, ethnic tourism may embrace motives of
social comparison or even the development of relationships as people Developing
seek to understand their own lives in the context of how other groups communities'
traditions and
and individuals organize human existence. lifestyles
Ethnic tourism may take the form of viewing local festivals, of attending
special ceremonies such as fire-walking, burials, weddings or initiations or
more simply watching local activities such as fishing or handicraft
manufacture. At times ethnic tourism may include eating with local
families, touring villages, farms stays or traveling with community
members on special walks or treks. The high level of contact between locals
and visitors in ethnic tourism may produce a range of positive and negative
sociocultural impacts which will be described in the following section.
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248
Summary
SUMMARY
At the start of this chapter it was observed that tourists have not always
been welcomed by their host communities. In reviewing the meaning
and value of culture for tourism, in assessing the sociocultural impacts
of tourism, and in reviewing strategies for managing sociocultural
impacts (including interpretation), a strong positive message for the
tourism-host community relationship emerges. Tourism does not
inevitably cause guest-host conflict. With planning, information
provision, and superior management, tourism can be a positive force
for the preservation and revitalization of cultures. Many of the
strategies and tactics recommended for tourists, hosts, and tourism
planners to work towards sustainable tourism depend on developing
effective communication pathways. Tourists need information to
behave in sensitive and appropriate ways, they need a sound knowledge
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Chapter 11: Social and Cultural Aspects of Tourism
of host societies to select their travel wisely, and they need on-site
communication to enhance their experiences. Hosts need information
and can benefit from improving educational and communication
technologies. Host communities need to understand tourism as a
phenomenon, its benefits and costs, and learn from other societies how
to ameliorate negative impacts. Tourism operators need to present their
products so that quality experiences are both promised and offered,
resulting in profitability through repeat visits and personal marketing.
As the newer communication technologies become more widely
available and as groups learn to use existing communication means
more effectively, there is a strong promise that tourists and their hosts
may interact harmoniously.
DISCUSSION QUESTIONS
1. Is tourism changing cultures or merely exploiting them? Discuss
with reference to the impacts of tourism in both developed and
developing nations.
2. If culture is defined as the whole way of life of a group, what
popular or general cultural factors might be used more to attract
visitors to Western cities?
3. Explain how a skilled guide using good interpretive practices could
provide a quality tourism experience of an ethnic community in a
rural setting.
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Chapter 12
Learning objectives
carrying capacity
human-environment interaction categories
LAC model
site hardening
sustainable development
visitor management systems
zoning
12
Sustainable Tourism
and the Environment
12.1 Introduction
The concept of sustainability arose from the recognition that the earth’s
limited resources could not indefinitely support the population and Recognizing the
industrial growth associated with existing approaches to development, earth's limited
and that existing development approaches were not working to reduce resources
poverty or to increase standards of living across all countries.
In Chapter 11 the principles and characteristics of sustainable tourism
were described and the relationship between tourism and sociocultural
resources was explored. This chapter will focus on the physical
environment and its relationship to tourism. The role that the physical
environment plays in tourism will be reviewed and the impacts that
tourism can have on the physical environment will be described. Physical
Strategies and practices to effectively manage the tourism-environment environmental
focus
relationship will be discussed, using examples of successful approaches
to ensure that tourism is sustainable. Three case studies from various
parts of the world will be used to demonstrate the importance of the
physical environment for tourism to the area and as examples of the
ways in which tourism can impact physical environments and the
techniques available to manage these impacts. Finally, alternative
approaches to tourism will be explored and evaluated.
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Chapter 12: Sustainable Tourism and the Environment
254
The Physical Environment. A Core Component of Tourism
GOALS
To improve the quality of life of host communities
To preserve intergenerational and intragenerational equity
To protect the quality of the environment by maintaining biological diversity and
ecological systems
To ensure the cultural integrity and social cohesion of communities
To provide a high quality experience for visitors
CHARACTERISTICS
Tourism which is concerned with the quality of experiences
Tourism which has social equity and community involvement and is mindful of
residents' needs
Tourism which employs locals and has local participation in planning and
decision making
Tourism which operates within the limits of the resource - this includes
minimization of impacts and use of energy and the use of effective waste
management and recycling techniques
Tourism which maintains the full range of recreational, educational and cultural
opportunities within and across generations
Tourism which is based upon activities or designs which reflect and respect the
character of a region
Tourism which allows the guest to gain an understanding of the region visited
and which encourages guests to be concerned about, and protective of, the host
community and environment
Tourism which does not compromise the capacity of other industries or activities
to be sustainable
Tourism which is integrated into local, regional and national plans.
Source: Derived from ESD Working Group (1991), Conlin and Baum (1994)
and Owen, Witt and Gammon (1993).
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Chapter 12: Sustainable Tourism and the Environment
Environmental Damage
The most obvious negative environmental impacts have been those
associated with loss of, or damage to, physical environments. The
Example of the Mediterranean has often been used as an example of how excessive and
Mediterranean intensive hotel development can destroy the natural environment, crowd
out beach views and result in the loss of historic sites. According to the
United Nations Environment Program nearly three-quarters of the sand
dunes on the Mediterranean coast between Gibraltar and Sicily have
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The Impacts of Tourism on the Physical Environment
Pollution
Pollution is another major negative impact of tourism. Transportation is
a major source of both air and noise pollution. It has been estimated that
approximately 2 million tons of aviation fuel are burned each year Different types
of pollution
producing 550 million tons of greenhouse gases and 3.5 million tons of
the chemicals responsible for acid rain (UNEP, 1992). Water pollution
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Chapter 12: Sustainable Tourism and the Environment
from sewage and the use of pesticides, herbicides and fertilizers in resort
landscaping are also major problems for many tourist destinations. For
example, in the Caribbean untreated sewage results in ocean recreational
areas with high bacterial levels. Tourist waste can also cause problems
with overloaded waste disposal systems and litter, such as in England’s
New Forest where thousands of empty bottles are collected each year.
Many of these negative impacts are interrelated and result from the
Destination
vulnerability cumulative and long term impacts of tourist development, as can be seen
in the experience of a ski resort in New Mexico, in the United States,
where poor sewage treatment resulted in water pollution that changed the
insect and fish populations throughout the area and reduced the flow of
water to humans and wildlife that lived in the area. Tropical islands that
are prime tourist destinations and possess fragile environments are
particularly vulnerable to a range of negative environmental impacts
from tourism, such as those that have affected the Maldives including
beach erosion resulting from the construction of resorts, anchor and
trampling damage to coral reefs, and depletion of coral, shell and marine
animal stocks from collecting for tourist souvenirs.
The pressure of increased numbers of people (living even temporarily
in an area) on water, food and energy resources can be severe. It has
been estimated that the average daily water consumption of tourists,
Effects of including the water needs of golf courses, hotel gardens and swimming
tourist density pools, is ten times the level seen as necessary for survival. Lobster and
other marine animal populations are under threat in areas of the
Caribbean because of the demand for seafood for tourists. In the
Himalayas serious erosion has been the consequence of extensive tree
felling to provide fuel for tourist camps and many species suffer from
exploitation for use as tourist souvenirs.
Tourist Activities
Many tourist activities such as boating, diving, walking and skiing can
have negative impacts on the physical environment. The pressure of
numbers can result in the erosion of paths and the wearing away of
Damage caused historic buildings. Anchor damage to marine environments can be
by activities extensive and long lasting. The feeding of wildlife by tourists can lead
to declining animal health and aggressive behavior which in turn can
threaten tourists and residents. Visitors can also introduce non-native
species which disrupt existing ecosystems. The mere presence of
visitors can be harmful in sensitive environments. The tomb of
Tutankhamen in Egypt has suffered severe damage from fungal growth
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The Impacts of Tourism on the Physical Environment
which results from the moisture, dust and bacteria brought into the
tomb by its 5,000 daily visitors. As in many tourism situations the
damage is unintentional and not directly a result of the actions of any
single individual tourist.
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Volume stay in a place the more waste there will be to manage. Developing
ways to measure volume-related impacts presents difficult issues,
however. Impacts usually depend on when and where the tourism is
concentrated (the second factor). For example, a major disturbance
to colonies of herons in New Jersey was only detected when visitors
approached the bird colonies after hatching and/or when visitors
actually walked through the colonies, whereas viewing from a
distance and/or at other times in the breeding cycle had no
discernible impacts on the herons.
• The type of use or tourist activity that takes place at a destination.
The example above of research into tourists and their effects on bird
colonies also found that the type of tourist activity was directly
Activities related to impacts. Clearly, viewing a colony from a distance will
have fewer harmful impacts than walking through a nesting site.
Other variations in tourist behavior are less obvious. For example,
people moving through an area at a constant speed or pace will often
disturb the birds less than if people stop or slow their pace, because
the birds’ attention is more readily drawn to changes in movement.
• The type of environment being impacted. Environments differ in
terms of their sensitivity and fragility. Antarctica, for example, is an
Different sites especially fragile environment because of its harsh climate and
isolation. Coral atolls are more fragile than continental islands as
they are more easily eroded and exposed to the elements. Venice is
more sensitive to tourist pressures than other European historic
cities because its restrictions on pedestrian traffic results in
waterways that are of necessity heavily used.
• The management and planning of tourism. The environmental
impacts of tourism are closely related to the types of planning and
Planning management associated with tourism. Many of the negative impacts
of tourism have occurred in areas where there has been little control
and either poor or no management of tourism development.
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Strategies for Managing Impacts
Policy/Planning Development plans which include tourism and which set out zones or
sites for tourist use, determine rights of access to areas, and consider
what sort of activities are suitable for the area.
Develop and enforce regulations to control aspects of development and
tourist activity.
Require environmental impact assessments and monitoring for tourist
developments.
Use economic mechanisms such as subsidies to encourage more
sustainable practices and user pays to control use and provide income
for conservation and rehabilitation of the environment.
Development/ Consider choice of sites and site design carefully to ensure minimal
Construction impact.
of Facilities Use minimal impact construction techniques.
Use native species for landscaping and appropriate architectural styles.
Management of Conduct environmental audits.
Resources Develop and use recycling, waste minimization and energy efficiency
programs.
Use environmentally friendly products and technologies.
Management of Design systems which control visitor flows.
Visitors Use interpretation/education to encourage sustainable behavior.
Adapting the Harden sites for protection.
Environment Provide facilities which influence visitor activities.
Marketing and Consider tourism concepts and products better suited to the environment.
Promotion Provide accurate information in advertising to ensure that visitors have
appropriate expectations.
Education Use effective interpretation services to encourage visitors to engage in
more sustainable behaviors.
Provide environmental education for tourism personnel.
Develop codes of conduct for tourist, staff, operators and other tourism
sectors.
Research and Support research which seeks to improve understanding of the
Monitoring tourism-environment relationship.
Evaluate the effectiveness of any programs and activities conducted.
Monitor environmental quality.
Carrying Capacity
• What sites or areas are most suitable for tourist development?
• How many visitors should there be in any place? Setting a
numeral limit
• What sorts of tourist activity or development are suitable?
• What infrastructure is necessary for tourism?
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262
Strategies for Managing Impacts
Zoning
The decisions about the type and quantity of tourism which result from a
process like that described in the LAC model are often incorporated into
plans through the identification of zones. Zoning refers to a process
where planners connect types of development or activity to specific areas. Developing
specified areas
Table 12.4 provides an example of zones proposed to manage visitors to
the Galapagos National Park. Zoning approaches usually include several
zones that range from those with no access or very limited access for
visitors (the Pristine/scientific zone in Table 12.4) to those where tourist
facilities are allowed (the Intensive/recreational zone). A common feature
of zoning plans is the clustering of tourist developments into particular
areas where impacts can be dealt with more easily.
1. Pristine/scientific zone
For areas which are remote, uninhabited and which have relatively
undisturbed ecosystems. Visits would be very limited and only allowed with
a permit (required in advance) and with a specially trained guide.
2. Semiprimitive zone
For relatively remote areas where nonmotorized transport is required. There
are limits to visitor numbers and entry requires a permit and a guide.
3. Extensive/natural zone
For sites of natural and cultural interest where group sizes are limited but
no permit or guide is required.
4. Intensive/natural zone
For major sites of natural and cultural interest where moderate levels of use
are permitted.
5. Intensive/recreational zone
For areas near established communities where tourist facilities and
structures can be built. This zone allows for large concentrations of visitors.
6. Rural zone
For areas adjacent to the park where privately run tourist activities could be
developed.
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Environmental Standards
Plans can also include sets of environmental quality standards which
are supported by regulations or legislation to control various aspects of
tourism. These standards can include maximum heights for buildings,
Regulations restrictions on the use of construction materials and controls over
or legislation architectural style and placement of buildings. In the Republic of
Mauritius, for example, development of a resort in a coastal area is
allowed only if it complies with requirements which include:
• A restriction on resort size to a maximum of 200 rooms.
• A restriction on the maximum height of buildings to 12 meters.
• A requirement that hotels with over 75 rooms must install water and
sewage treatment plants.
• A recommendation that regional architectural styles be incorporated
in the design of facilities.
• A requirement that facilities have at least 60 percent of their area
given to landscaping.
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Strategies for Managing Impacts
Design Standards
There are numerous ways in which proposed tourist developments can be
constructed to minimize negative and enhance positive environmental
impacts. The English Tourist Board (ETB) offers the following suggestions
for tourist developers when planning and constructing facilities:
Constructing
• Use local styles of architecture and where appropriate regional facilities
building materials.
• Incorporate features of the site into the design. Use existing
vegetation and land forms as screens and features.
• Think about design features which will minimize energy and other
resource requirements. An example of how this can be done is the
use of vegetation to provide shade and minimize air conditioning
requirements.
• Use construction techniques which have minimal impact on the
environment.
• Use recycled materials wherever possible.
• Use native species in landscaping and encourage the use of the
setting by wildlife (English Tourist Board, 1991).
Table 12.5 contains a list of more specific suggestions to minimize the
impact of tourist structures.
An example of the use of the ETB principles can be found in the
development of a Center Parc holiday village in Sherwood Forest in England's
England. This development blended roads and facilities into the Sherwood Forest
landscape to minimize visual impact and used existing pine trees as
visual screens. The developers also created a lake and stream system
which was stocked with plants from nearby areas and planted 500,000
new trees and bushes to revegetate the area. This new vegetation
provides food and shelter for wildlife and the operators have supplied
nesting boxes to encourage birds to use the area.
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Chapter 12: Sustainable Tourism and the Environment
• Avoid major trees and natural features when deciding on sites for structures.
• Consider water flow through a site when placing structures and divert water
from roads and paths to avoid erosion.
• Do not intensively clear vegetation from lakes, beaches, streams or rivers.
• Space buildings to allow wildlife to move through the area and for belts of
natural vegetation to be established.
• Restrict the use of vehicles both during construction and as a feature of the
finished facilities.
• Use boardwalks both during construction and for pedestrian traffic.
• Pipes and cables can be placed under boardwalks to minimize excavation.
• Use design features to control the intrusion of insects and rodents.
• Use landscape features to enhance natural ventilation.
• Include facilities for recycling and waste treatment.
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Strategies for Managing Impacts
Table 12.6: Mechanisms for Minimizing Resource Use and Waste Management
Source: Examples used in this table were taken from ETB 1991,
Goodall 1992, and Harris and Lieper 1995.
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Chapter 12: Sustainable Tourism and the Environment
actually getting into the environment. For example, the Royal Tyrrell
Museum of Paleontology in Drumheller, Alberta is an interpretive
tourist attraction that is located several hundred kilometers away from
the world heritage area, Dinosaur Provincial Park. This system results
in very few tourists actually going to the park, which reduces intrusion
into a very sensitive environment.
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Strategies for Managing Impacts
appreciate the place in which they work. The use of codes of conduct or
environmental ethics are currently a popular form of education for both
tourists and tour operators. Table 12.7 is an example of one of these codes.
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270
Tourism and the Physical Environment: Three Case Studies
• Accumulation of litter.
• Disruption to habitats and changes in animal behavior as a result of
feeding.
• Water pollution from sediment disturbance, nutrient overload from
the use of fertilizer, and sewage discharge.
The GBR is an example of the way in which a comprehensive and
integrated management strategy can be used to encourage the
sustainability of tourism. The area is contained within a Marine Park
and managed by the Great Barrier Reef Marine Park Authority
(GBRMPA). The GBRMPA has produced both a strategic plan for the
area as a whole as well as detailed regional plans which are updated on
a regular basis. At the core of these plans are a series of zones which
determine the activities that are allowed in various parts of the reef.
Commercial tour operations are allowed in several of the zones with a Operators
permit. These permits require the proposed operator to provide a type of with permits
environmental impact assessment and permits are only given to
operators who can demonstrate that their activities are consistent with
the type of experiences seen as appropriate to the area and that they will
have minimal environmental impacts. Operators who place major
structures on the reef must also provide a bond to the GBRMPA to
ensure that sites are rehabilitated if necessary. A variety of conditions
related to numbers of visitors, places of anchoring, types of structures
and types of activities allowed are attached to each permit.
The GBRMPA also relies heavily on education as a management
strategy and offers both training packages for reef operators and their
staff but also numerous forms of interpretation for both staff and
tourists. In conjunction with tour operators in the region the GBRMPA
has developed a series of environmental best practice principles for a
range of tourist activities. Table 12.8 contains two examples of these, Education
and research
one designed for operators feeding fish on tours and one for visitors
who snorkel. Monitoring and research is also an important management
strategy used in this case. The GBRMPA itself conducts research into
tourism impacts and along with the recently established Cooperative
Research Centre for Reef Research is continuing to investigate not only
the impacts of tourism on the reef, but also visitor expectations and
responses to interpretive programs, and the development of technology
to minimize environmental impacts.
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Source: Great Barrier Reef Marine Park Authority, 1996, pp. 6 and 9.
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Tourism and the Physical Environment: Three Case Studies
times as many visitors to the historic center of the city than there were
residents. Surveys of visitors to this destination indicate that the tourists
come to experience the city’s “unique character, which combines heritage
and important cultural events with the peculiar physical structure of the
centre” (Costa, Manente, & van der Borg, 1993, p. 51).
Venice suffers from high levels of both physical and social impacts
from tourism. The major negative environmental impacts of tourism in
Venice are water pollution, including sewage from hotels and litter, and
air pollution from tourist buses and boats. In recent years the city has Physical impacts,
e.g. water
experienced algal blooms as a consequence of water pollution. These pollution
large growths of algae float along the surface of the water, choking
oxygen supplies to fish and creating decay that results in foul smelling
areas. It has been estimated that such occurrences can result in
significant drops in tourist trade, and is a clear example of the
importance to tourism of maintaining environmental quality. In
addition, the large number of visitors at several sites has resulted in the
wearing down of stone floors and stairs and damage to art work due to
increases in humidity and temperature inside buildings.
While Venice has no overall tourism strategy or plan, several
management options have been proposed to alleviate the problems
associated with tourism to Venice. The main focus of these proposals has
been to deal with the number and flow of visitors to and through the city.
A series of actions have been undertaken to encourage tourists to use
alternative means of transportation to access the city, to use alternative
routes to travel through the city and to visit in intermediate seasons.
These include both actual restrictions on tourist movements, such as Dealing with
limiting the use of transport terminals by tour buses, and promotional visitor flow
campaigns advertising lesser known sites within the city and
encouraging visitors to come at less crowded times. The city is also
considering attempts to restrict numbers of visitors by offering a Venice
Card or tour package which is booked in advance, is limited in number
and which offers the holder discounts and advantages such as not having
to wait in lines for entry tickets. The aim would be to make this package
sufficiently attractive that it would be used by the majority of visitors.
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Chapter 12: Sustainable Tourism and the Environment
buildings and sites. Tourism here has grown from 282,000 visitors in
1979 to more than 1.3 million visitors in 1990. Tourism focuses on the
experience of the destination’s beautiful and exotic environment.
Rapid growth in tourist numbers has been associated with various
environmental impacts including reduction of animal and vegetation
resources, urbanization of scenic areas, loss of balance of water
Environmental distribution, and pollution. In peak periods, visitors can leave up to
problems 1,000 tons of rubbish and 3,000 tons of sewage, much of which flows
directly into rivers. These rivers have also been disturbed by the
building of reservoirs to supply water for tourist developments.
Developments constructed to take advantage of scenic views have
created disordered urban landscapes in what were natural scenic areas.
These developments have also cleared extensive areas of forest and
many of the plants and animals of the region are now endangered.
The following actions have been suggested to manage tourism to this
world heritage area:
• Develop a plan which includes regulations: controlling the
construction of tourist facilities; creating a zoning system which
restricts access to particularly sensitive sites and opens up lesser
Regulations known sites to ease pressure on intensively used points; setting limits
to the number of visitors allowed into particular places; controlling
facility construction to encourage the use of traditional architectural
styles; and effectively addressing the issue of waste treatment.
• Provide better infrastructure such as site hardening and visitor
centers and gardens.
• Develop itineraries or routes which can ease the flow of visitors
through the area and encourage visitors to follow these suggested paths.
• Establish a monitoring program to “help in acquiring an exact
knowledge of the changes in the ecological environment, and in tapping
the tourism resource in a rational way” (Tiansheng, 1992, p. 30).
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Summary
SUMMARY
In many places the relationship between tourism and the physical
environment has been one of conflict. Many examples can be found of
the negative impacts that tourism has had on the physical environment.
This chapter has described some of these impacts including the
destruction of natural and cultural heritage to make way for tourism
facilities, the creation of pollution, and pressure on resources.
Unplanned and uncontrolled tourism can destroy its own assets as
much of tourism is dependent upon environmental quality.
The challenge for tourism planners, managers and developers is to
move from a relationship marked by conflict to one of symbiosis. In a
symbiotic relationship tourism depends upon the physical environment
as a core feature of the products it provides and the physical
environment benefits from tourism. This is the goal of sustainable
tourism. This chapter has described the major characteristics of
sustainable tourism and offered a range of strategies which can be used
to achieve this type of tourism.
DISCUSSION QUESTIONS
1. Consider tourism products in your local area and discuss the
importance of the physical environment in those products.
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Section
5
Tourism Policy and Planning
CHAPTER 13
CHAPTER 16
Conclusion
CHAPTER 13
Learning objectives
government regulation
national tourism administration (NTA)
tourism policy
tourism planning
13
The Role of Government
in Tourism Policy
and Administration
13.1 Introduction
Tourism, like other forms of economic activity, takes place in an
environment that is shaped by many different forces. One of the most
important of these forces–if not the most important–is exerted by a complex
web of policies, laws, regulations, and other actions of governments.
As we have discussed in earlier chapters, tourism is comprised of
industries and activities that stretch not only across nations and
regions, but across traditional lines of business and industry as well.
The businesses that provide tourism services, therefore, must contend Travel laws,
with actions of different levels within a government, of many different policies and
regulations
governments, and of a variety of types of laws and regulations aimed
at different industries.
International tourism relies on a high degree of communication and
cooperation among nations with respect to this complex network of laws,
regulations, and policies. Consider, for example, something as basic as air
travel to another country: the availability, frequency, and cost of the plane
ride are subject to bilateral air travel agreements; the exchange of one
currency for another is subject to rates and terms set by currency agreements
and to the complex workings of the international currency markets; and entry
into the destination country is regulated by visa and other immigration or
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Reasons for Government Involvement in Tourism and the Economy
From this hypothetical example, one can see that the actions or
inactions of government can have a great impact upon nearly every
aspect of tourism. Tourism-related laws, regulations, and restrictions
range from the broad and inclusive such as air traffic agreements that
dictate the frequency and cost of airline trips, to the minute such as a
local law that specifies the amount of indigenous material that an
“authentic” souvenir needs to contain in order to be labeled as such.
Governments are extensively involved in all travel experiences, even if
the effects of their involvement may not be immediately apparent.
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Reasons for Government Involvement in Tourism and the Economy
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13.4.1 Policy
Goals and Policy generally refers to an overall, high-level plan that includes goals
procedures and procedures. Public policy, therefore, takes into account the desired
end results of a government and the methods for attaining those results.
For example, a government might pursue a policy of greater economic
growth through tourism development by creating generous tax incentives
for resort developers. Policy is meant to provide guidance by addressing
the issues that are central to any effort to develop and sustain a tourism
industry. Policies embody goals and strategies that a government has
adopted with respect to tourism, economic development, employment,
political relations, or, more likely, a combination of these and other areas.
Importance Because policy provides direction, of the four roles or functions of public
of policies
sector involvement in tourism listed above that of policy formulation is
probably the most important.
Policies are generally found in formal statements, such as laws and official
documents and speeches. However, policies can also be informal and
Formal and unstated, and can be discerned from patterns or trends of governmental
informal policies actions. For example, a government jurisdiction that consistently
disapproves every application to build a hotel within its borders, but does
not possess any formal statement on hotel development, may nevertheless
be guided by a clear policy. In this respect, it is important to note that
policy can be evident as much from government inaction as its actions.
In general, a nation will have several broad policy areas, such as
economic policy, educational policy, and social welfare policy. Often,
Policy and
these broad policy areas will coincide with the organizational structure
government
structure of the government, with each ministry or department having the
responsibility to formulate and administer its own policies. The actual
names and formal relationships among the various government
departments vary from nation to nation.
Tourism policy is generally considered to be an area within a nation’s
overall economic policy. Economic policy is concerned with the
structure and growth of a nation’s economy and is often articulated in
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Roles of the Public Sector in Tourism
ten-year plans that project conditions in the coming decade and plan
the nation’s economic growth within those conditions. Some of the key
areas of concern in economic policy are labor force, investment and
finance, important industries, and trade. Interrelated
policies
It is important to understand that a nation’s various policy areas are
interrelated, reflecting the complex and dynamic nature of modern
society itself. Impacts in one policy area will likely effect changes in
other areas. Thus, tourism policy makers need to adopt a
comprehensive perspective and consider all of the possible impacts and
relationships that tourism will have with other areas of society.
The formulation of tourism policy, therefore, is a crucial responsibility
of a government that wishes to develop or sustain tourism as an integral
part of its economy. Tourism policy articulates goals and direction,
strategies and objectives, and by so doing enables the government to
lead and actively pursue the kind of development its people want.
Tourism policy thus requires that policy makers–legislators,
administrators, business executives–consider the following issues:
• The role of tourism in the economy. (How important is tourism to
the overall economy? How important is tourism with respect to
other industries?)
• Control of tourism development. (What kind of tourism
development is desirable and appropriate? Where should tourism
development occur?)
• Administration of tourism. (At what level should tourism be
represented in the government’s organizational structure?)
• Government support for tourism. (What amount of public resources
should be directed to tourism’s support and growth?)
• Tourism’s impacts. (What kinds of impacts, both positive and
negative, will tourism have on the existing society, culture, and
environment, and how will these be addressed?)
As can be seen, these are issues which are likely to generate substantial
debate. Different regions within a country may be at odds over the
location of planned development, different segments of the population Debate
may disagree over the perceived impacts of tourism, and different potential
businesses may struggle to direct development in a manner that favors
them. The process that a government employs in order to arrive at its
policy must account for the many competing constituencies that wish
to be represented in the final product.
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13.4.2 Planning
Tourism constitutes a means of economic development. On this point,
all countries would agree, and, in fact, it is the primary reason that they
Means of seek to develop the industry. But economic development in today’s
economic complex and global business environment is far from being a simple
development
process. Tourism is a certain kind of industry that has its own unique
requirements, impacts, and rewards. Fulfilling those requirements,
minimizing the negative impacts, and reaping the rewards, are the
primary goals of tourism planning.
Planning is particularly important for tourism development because of
two characteristics of the tourism industry. First, tourism is a complex
industry that stretches across many different sectors and businesses;
A site-specific therefore, it is an industry which is often not formally recognized in
industry statistical analyses of the economy. As a result, hard data and information
about tourism tend to be fragmented among different subject areas.
Complicating the first characteristic is the fact that tourism is a site-
specific industry. Two destinations may be comparable in terms of size
and visitor market, but because of their unique circumstances–including
the physical environment, availability of services, government and
culture–their industries may take vastly different forms. Each destination
will have different problems, or will need to address similar problems in
Young different ways. Because mass tourism is a relatively young industry, even
industry destinations that are considered established may be only 30-40 years old,
and are still learning from their own experiences. In turn, newer
destinations are trying to learn from the mistakes of others.
Planning enables government and industry to compensate for these
factors by providing a structure to collect and analyze information
Providing a
relevant to tourism development and a process to achieve it. The
structure for
analysis planning process requires policy makers to consider all aspects and
impacts of the industry (which are discussed in Chapter 15). Those
issues raise the following types of questions:
• Marketing analysis and strategy: What kind of travelers should be
appealed to and how can they be attracted?
• Physical infrastructure: Are existing airports, roads, and utilities
adequate for the level of tourism projected? If not, what needs to be
improved and expanded? How will these improvements and
expansions be financed?
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13.4.3 Development
Although development is often thought of as a private sector activity,
there are circumstances in which the government can play a useful, and
sometimes necessary, role. For example, in many cases the existing
private sector may lack sufficient size and capital to undertake the
Government as development of a destination on its own. In these cases, government
developer may get involved by taking the role of developer, or by taking on a
partnership role as the provider or guarantor of capital, or in any of a
number of other ways. Sometimes, in cases where certain areas have
been designated and planned for tourism development, the government
may wish to control the overall development by assuming the role of
lead developer. In this way, the government can coordinate the
construction of the actual visitor facilities with necessary improvements
in infrastructure or other activities such as education and training.
There are certain projects that, by virtue of their size and importance to the
country or destination as a whole, almost always require a leading
Project government role. Airports, major land transportation projects, and water-
importance related projects that involve dredging are examples of such tourism-related
projects. Governments have the ability to fund such projects by issuing
bonds and other financial instruments, thereby providing an essential
element of the development process that the private sector often cannot.
13.4.4 Regulation
The regulatory role of government is very important for the tourism
industry, because so much of it is intended to protect the consumer.
Consumer
Government regulation plays a critically important role in protecting
protection
tourists and enhancing their travel experiences in many ways, including:
• Consumer protection laws and rules that require travel agencies to
deposit their customers’ advance booking deposits in a trust
account, to ensure that the moneys will be used for the purpose of
securing their reservations.
• Fire safety laws that mandate a minimum number of exits and
emergency lights on each floor of a hotel, in case of a fire.
• Health and food safety regulations that require food service
establishments to maintain minimum standards of safety and sanitation.
• Competency standards that require bus and boat operators to
possess requisite skills and knowledge.
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Levels of Government Involvement
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Chapter 13: The Role of Government in Tourism Policy and Administration
role in its economy. The ministry would have its own staff and would
be included in the regular process of government budgeting and
funding. In addition, it is likely that tourism would also be given a
prominent place in master economic and development plans, tax and
other economic incentive programs, physical plant and
infrastructure plans, and other such important activities. National
tourism planning generally involves the designation of regions or
areas to be targeted for tourism development.
• Infrastructure development. A national government’s involvement in
tourism is also significant because of the resources that can be
marshaled at the national level. Some aspects of tourism
development, particularly the construction of the infrastructure and
national parks necessary to accommodate both citizens and tourists,
require tremendous amounts of capital, amounts that often
necessitate the use of government financing capabilities such as
taxes, bonds and loan guarantees.
• Marketing. Many national governments take an active role in
promoting their countries as destinations to the outside world. This
kind of promotion can be particularly useful for countries whose
tourism industry lacks sufficient resources to generate large
marketing campaigns. As discussed below, national tourism
administrations (NTAs) have traditionally been conceived and
formed primarily as marketing bodies of the national government.
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Summary
SUMMARY
In today’s global economy, the relationship between industry and
government is a close and vital one. International tourism, which by
definition involves the movement of people across national borders, is
heavily dependent upon governmental policies and actions. In addition,
because tourism involves and impacts many different parts of society,
it is subject to governmental involvement across a wide range of
activities. At the international, national, regional, and local levels, there
are important links between government and the tourism industry.
The presence or absence of a national tourism policy is important in
setting goals and directing development of the industry. Through
policy, governments can articulate their objectives in pursuing tourism
and their concerns regarding its impacts. Whatever its degree of
involvement in the industry, government can fulfil a valuable role by
emphasizing the long-range and comprehensive view of tourism’s
place in the development of a country’s economy and society. As the
industry grows, governments who turn to tourism development will
have greater expectations of its contribution to the country. NTAs
provide a means of preventing these expectations from conflicting with
each other, and of managing the industry’s many different aspects.
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DISCUSSION QUESTIONS
1. In what ways can government policy hurt the tourism industry of a
country?
2. Compare and contrast the effect of international vs. national
government involvement in tourism policy making.
3. Name the four general categories of the public sectors actions in the
tourism industry. In what ways does one category impact another
category?
4. This chapter discusses how government regulation protects the
individual tourist. What are some ways in which government
regulation may protect businesses within the tourist industry?
5. Define the function of a National Tourism Administration (NTA)
and describe its three basic forms.
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CHAPTER 14
Learning objectives
14.1 Introduction
The previous chapter examined the importance of government
involvement in the travel industry, and discussed the various levels of
policy and regulation ranging from the local level to the international
level. The diversity of policy issues that affect tourism is evidence of the
industry’s unique structure, which stretches across many different Need for
economic sectors and has various social impacts. Tourism thus requires communication
a great deal of communication and cooperation among government,
business, and host communities. Because of this need for
communication and cooperation, many kinds of organizations,
including ones of voluntary membership, have been established to serve
travel and tourism-related interests. These organizations satisfy many
different purposes, but they all provide a means by which the various
sectors of the travel industry can articulate and pursue common goals.
Nowhere is this need for communication and cooperation more
necessary than in the international arena, where the structural
complexity of the industry is compounded by different national International
priorities and policies. This chapter focuses on international tourism- cooperation
related organizations. Specifically, it discusses their roles and
functions, and examines the concerns, purposes, and activities of these
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Chapter 14: The Role of International and Regional Organizations in Tourism
Regional Organizations
Because tourism is tied closely to geography, many tourism organizations
have been formed on the basis of regional proximity or affiliation. Such
organizations often are formed initially for the purpose of marketing and
Geographical increasing the travel market’s awareness of their respective regions. The
organizations rationale behind regional marketing is that potential visitors will be more
attracted by the collective attractions of a region rather than by an
individual destination, particularly when the region is not well known to
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Purposes and Objectives of Tourism Organizations
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Important Tourism and Tourism-related Organizations
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Important Tourism and Tourism-related Organizations
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Important Tourism and Tourism-related Organizations
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Important Tourism and Tourism-related Organizations
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Chapter 14: The Role of International and Regional Organizations in Tourism
ultimately benefits all nations. To continue the example cited above, while
country A may indeed experience a decline in its steel industry in a free-
trade scenario, a commensurate increase in its exports to country B (paid for
Benefits of by the earnings that B receives from selling its steel to A) will offset that
free trade
decline and, in the long run, result in greater growth for both countries. Free-
trade advocates note that each country–due to its natural resources, costs of
labor and capital, and other factors–can be efficient only in certain areas.
Because of this fact, free trade and open markets will enable the
international economic system as a whole to benefit from these efficiencies.
Country B may be able to produce steel for half the cost of country A, but
A’s citizens will only be able to benefit from this efficiency–they can only
have the benefit of paying less for steel and spending more on other
things–if A and B are in an open trading relationship. One can quickly see
how restrictive or free-trade practices will directly affect the cost of doing
business in tourism, ranging from the cost of hotel construction to the cost
of producing and distributing marketing material.
Commercial treaties are formal agreements that establish rights and
conditions of trade relations between the nations signing the treaty.
International These treaties cover areas such as the property rights of foreign
trade relations nationals, taxation of foreign investments, debts owed to foreign
entities, port regulations, commercial relations during war, and the
jurisdiction of consuls. Nations that have significant economic
relationships with each other often establish trade agreements, which
are less formal and permanent than commercial treaties. Trade
agreements cover such areas as tariffs, customs, copyrights,
commercial laws and arbitration, and restrictions on specific products.
The most important trade agreement of modern times is the General
Agreement on Tariffs and Trade (GATT). GATT grew out of a
recognition by many countries of the problems of protectionist policies,
Important especially those that restricted trade during the period between the First
multilateral trade and Second World Wars. GATT was signed in October 1947 by 23
agreement
countries, with its administration based in Geneva. As a multilateral trade
agreement, GATT is dedicated to reducing tariffs and other obstacles to
trade. Throughout its history, several rounds or trade conferences have
been held to address various issues and problems. The latest round, begun
in Uruguay in 1986, culminated in April 1994 with the dissolution of
GATT and its reorganization as the World Trade Organization.
The significance of the Uruguay Round for tourism was the formation of
the General Agreement on Trade in Services (GATS). Unlike GATT,
which did not address trade in services, GATS is specifically dedicated
to the issues and problems of such trade, including those relating to
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SUMMARY
As tourism expands, so too does the need for communication and
cooperation among the many private and public interests that are
involved in the industry. Tourism organizations–comprised of public
sector members, private sector members, or both–fulfill this important
role. They enable an industry that lacks broad-based recognition and
support to pursue common goals through collective action.
Tourism organizations such as the WTO, WTTC, PATA, CTA and many
others play a valuable and vital role in world travel. They do this by
serving not only the direct needs of their members, but by addressing the
long-term, broader issues such as peace and environmental sustenance in
the interest of the entire industry and the world community.
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Summary
DISCUSSION QUESTIONS
1. What are the three major types of international tourism
organizations presented in this chapter?
2. What are some of the different purposes and objectives of
international tourism organizations?
3. What is the role and importance of the WTO?
4. What are some of the challenges that will face tourism
organizations in the future?
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Chapter 15
Learning objectives
action plan
business and legal environment
destination planning
economic and financial analysis
impact analysis
master plan
planning
supply and demand analysis
15
Tourism Planning and
Destination Development
15.1 Introduction
As the economic bases of many countries are increasingly challenged
by world markets and technology, many governments see tourism as a
major opportunity for economic development and a tool for creating a
better community. The reliance on tourism as a tool for development is
based on such evidence as tourism’s effectiveness as an engine of
employment, a means of wealth redistribution, and its potential in Necessity of
restoring blighted areas in a community. Communities and regions planning
vary widely in their economic development life cycle. Some are
thriving, while others are attempting to reverse the process of
community and economic decline. In these latter instances, the
physical environment of a community may be deteriorating and
community spirit low; tourism therefore becomes a potentially
attractive replacement for businesses that have shut down or moved
away. Unfortunately, a great many communities have pursued tourism
development either without planning or without considering larger
planning or community economic development processes.
This chapter will examine tourism planning approaches and discuss the
role of tourism planning within the broader context of community Preventing
economic development. Planning seeks to simultaneously prevent negative impacts
and meeting goals
negative impacts and meet the goals and objectives of a community. The
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The Forms of Tourism Planning
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The Need for Tourism Planning
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Levels of Tourism Planning in the Public Sector
secondary level and local municipal governments at the lowest levels. Implementation
However, it is important to note that there is often a close relationship of plan
between the levels of government. For example, the local government
may be charged with the responsibility of imposing on tourism
employers certain employee health and safety rules that have been
formed at the national level. Examples of areas usually associated with
local tourism planning include the following:
• Creating and enforcing zoning policies, including site planning and
the design of buildings and landscaping.
• Establishing and enforcing environmental regulations.
• Facilitating the participation of all interest groups in tourism.
• Local infrastructure planning, including energy requirements and
allocation to tourism.
• Providing public access to use amenities which are privately built.
• Providing services for visitors and residents.
• Education, training, and other human resources services.
• Financing tourism development.
• Marketing and promotion of the local destination.
• Taxation issues.
In many cases the degree of government involvement during the
planning process will change over time. For example, when a local
government determines a master planned area and acts as the main
developer, its initial involvement will be significant and controlling. Shifts in
involvement
The municipality or state will hire the architects, engineers, and other
such consultants and direct their work. As the project progresses, the
government gradually withdraws into the background and encourages
private sector companies to take the lead in arranging financing, hiring
consultants, and ultimately building and operating the facilities.
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Organizing the Planning and Development Process
early stage in the process is important in order to generate support and Need for
commitment to the process, and thus reduce the chances of later involvement
resistance by an actor who has not been involved.
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Market Analysis
Increasing competition among destinations requires knowledge of
changing trends in the visitor market. A destination that offers sun, sea,
Matching visitor and surf now has a multitude of competitors, as do other types of
with destination
destinations. Differentiating one tourism destination from another
requires greater and more sophisticated marketing information and
techniques to ensure a proper “fit” between what is offered and what
visitors want. Market analysis is therefore crucial for planners and
developers. Two key components of a market analysis include:
- Tourist arrivals and characteristics, including information on a
visitor’s place of origin, demographic and socioeconomic profile,
travel itinerary, purpose of visit, length of stay, and spending
patterns. These are discussed in Chapter 7.
- Travel patterns and trends, which should place the destination and
its visitor profile within the context of general travel patterns and
trends which are discussed in Chapter 2. An assessment of the broad
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Elements of a Tourism Plan
Site Selection
If the purpose of the destination plan is to guide new development in
an undeveloped area, a supply analysis would be oriented to the Assessment of
planned, rather than the existing, tourism product. Thus, rather than an planned
development
assessment of existing hotel accommodations (which may be limited or
nonexistent), such an analysis might look at various locations for the
proposed hotels and commercial buildings. The following are criteria
used to assess potential integrated hotel resorts:
- Proximity of the site to tourist attraction features.
- Desirability of the site’s micro-climate.
- Attractiveness of the physical environment of the site.
- Availability of land that can be feasibly developed.
- Access to major tourist gateways and regional attractions.
- Adequate transportation and utilities infrastructure.
- Absence of environmentally vulnerable areas at the site.
- Receptivity and feelings of the resident population to the industry.
- Availability of a local work force and sufficient housing.
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Elements of a Tourism Plan
between public and private funds. Elements that are generally covered
in an analysis of infrastructure include facilities and services such as
airports, harbors, roads, public transportation, water supply, power,
sewage, solid waste disposal, and telecommunications.
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Elements of a Tourism Plan
changes become all the more important in light of the fact that a particular
destination may base its appeal on the local population and its culture.
The sociocultural impacts assessment begins with the collection of
demographic data (birth and death rates, age profile, marriage patterns,
family size), economic data (personal incomes, source of incomes, household
sizes), health data (disease rates, life expectancy), social indicators (crime
statistics, educational levels), and cultural beliefs and practices. Based on this Sociocultural
issues
data, the plan can address issues such as the following:
- To what extent is the society dependent upon a more traditional
economy (e.g., barter) rather than a cash-based market economy?
- How will existing family structures and patterns fit with the possible
employment of family members? This issue has proven to be
particularly important in traditional patriarchal societies where
women have entered the work force for the first time, and develop a
social and economic network outside of the family.
- How do the residents feel about the uses to which the land will be
put (in particular, the construction of accommodations and
commercial facilities)? Will the construction alter their access or use
of shoreline and other areas?
- How do residents feel about performing cultural practices before
foreigners? About selling traditional artifacts and wares?
- Is the local society relatively egalitarian, or are there clear divisions
among various strata? How might this affect their willingness and
ability to work in service-related positions?
- How might the availability and use of consumer goods affect the
local society? How might they react to visitors whose consumption
patterns reflect a much higher standard of living?
In recent years, the issues related to environmental and socioeconomic
impacts have become more pressing as more destinations turn to
ecotourism. Ecotourism (which is discussed in detail in Chapter 6) is
intended to give the visitor a closer and more authentic experience of
the destination. In so doing, however, it also places both visitor and the
local environment and culture in much closer contact. In some cases,
this has worked to the detriment of the local society, which by its
openness to the visitor is now more vulnerable. The market for
ecotourism continues to grow, however, and thus these impacts will
continue to be important for both visitors and local societies to consider.
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Factors Affecting Tourism Planning
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SUMMARY
A successful tourist destination rarely happens by accident. Rather, it
is the product of careful planning in a number of critical areas. In a
comprehensive analysis of the development of a visitor destination,
these areas range from the visitors themselves to the local
infrastructure. The experience of many destinations has demonstrated
that such a comprehensive analysis is necessary to anticipate the wide
range of impacts that tourism brings to a society. In the past, tourism
planning had often been reactive due to the inherent difficulties of
dealing with the future and to the nature of the organizations in which
many planners have worked. Because of the difficulties of forecasting
and projecting the future, plans and policies often did not meet their
stated goals and in many cases also brought about unexpected results.
The resulting crisis in planning, as well as the accumulated experience
in this area, has brought about a more realistic view of the limitations
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SUMMARY
DISCUSSION QUESTIONS
1. Why is tourism planning important?
2. What are the levels of tourism planning?
3. Who are the actors involved in the planning process?
4. What are the major elements of a destination plan?
5. How is tourism planning usually organized?
6. What is the purpose of a tourism impact analysis?
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CHAPTER 16
Learning objectives
academic programs
advanced management programs
certification
cross-border labor flow
cross-functional skills
human resources planning
skill standards
vocational programs
16
Tourism Human Resources
Planning and Development
16.1 Introduction
Tourism is essentially a service business, and the many people whom a
visitor encounters and relies on to provide for basic needs and entertainment
are critical to the success of a tourism destination. Tourism is also the
business of hospitality, therefore, when service is provided, the friendliness Hospitality and
of the service delivery matters. It is an axiom that people don’t go where service business
they do not feel welcomed. Thus the roles of host and guest define in large
measure the memorableness of the visitor experience and determines
whether there will be repeat business. Professionalism, effective skills,
efficiency, and courtesy as service characteristics do not happen in a
vacuum–they are the result of education and training investments.
Recognizing that workers as providers of service are essential to the industry’s
success, governments are working actively with industry to establish Workers:
essential to
employment policies and skill standards to meet the needs of an increasingly success
competitive global environment. Education and training providers, who now
deliver an array of programs and courses, are also examining their curricula
in the context of real world skills and knowledge needs.
This chapter will examine aspects of tourism’s human resources or work
force, as well as the nature of service in the tourism industry. It will
discuss the importance and methods of assessing human resources needs
in the industry, for both new and existing destinations, and the role
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Human Resources Planning
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Tourism Employment and Career Opportunities
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Table 16.2: Job Advancement Opportunities in Hotels
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a competitive edge in a global market. In the U.S., the push for skill
standards is also based on the need to fight stagnating wages for 50-80
percent of the nation’s workers. In Europe, the European Economic
Community (EEC) in 1990 launched the “Year of Tourism” which was
organized to promote European tourism in the face of increasing
competition from other destinations. However, it was recognized that a
well-educated and trained work force was needed to accomplish this
objective. Some European countries had cited a deterioration in service
as a reason for the drop in their market share.
A skill standards system assumes that all productive workers need
some occupational preparation. Developing a skill standards system
involves three major groups: the employer, who sets the performance
specifications that identify the knowledge and skills an individual
needs to succeed in the workplace; education and training providers,
Occupational who design and deliver the programs to raise worker skills to meet
preparation professional standards; and a government coordinating body, such as a
board or commission, to ensure a centralized system of standards and
assessments for certification. A description of the employer and
government roles follows and the role of education and training
providers will be discussed in a later section.
The Employer
The Institute of Policy Research at Johns Hopkins University defines
skills as “marketable competencies,” reflecting the movement of many
Seeking standards developed economies from a job-based to a skills-based economy
(Shephard & Cooper, 1995). Employers seek work-related standards
that are measurable and certifiable, providing them confidence that the
workers will be qualified. In addition, because the impetus has been to
develop a work force that can compete globally, countries and regions
have sought common measures or benchmarks.
In Canada, the U.K., and other European countries, industry with the
support of education has created profiles of jobs based on competencies.
The European Center for the Development of Vocational Training has
conducted a survey to analyze key job functions and the knowledge and
Job profiles skills required (Sheldon & Gee, 1987). In the United States, the school-
to-work program focuses on critical skills, competencies, and knowledge
needed by students to succeed in different occupations linked to these
skills. Competencies and knowledge areas are defined by advisory
councils which include employers, educators, and other experts.
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Quality of Service and the Work Force
Government Coordination
Many countries have established government coordinating bodies to
centralize the skill standards and certification system and to serve as a
means of communication between employer and education and training
providers. Such bodies ensure that the system is responsive to changing
economic conditions and need for skill types. Most countries also have Certification and
communication
industry training boards or national training councils that regulate and
set policy for various work training programs. Traditionally, these boards
have concerned themselves mainly with established industries such as
those of mechanical, electrical, and construction trades, but tourism is
beginning to be included in their purview. Examples of coordinating
bodies for tourism skill standards include India National Board,
Singapore Hotel Trade Advisory Committee, and the Philippines’ Hotel
and Restaurant Industry Training Board Foundation, Inc. (Ortiz, 1992).
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Tourism Education and Training Providers
Academic Programs
The academic programs are usually found at universities, with
students taking a core of general studies in the first two years of study
and specific courses in the professional field in a four-year
baccalaureate degree program. There is some variation in how these
programs are structured. Most baccalaureate hospitality programs
focus on hotel and catering management. These programs provide both Hotel
general management, including business studies, and specific skills management
programs and
training in the hospitality field. Work experience in the form of internships
internships of a semester or year length are usually a mandatory part of
the curriculum. Besides hospitality programs, there are programs and
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352
Tourism Education and Training Providers
High School 36 34 12 6
Technical School 36 36 14 6
College or University 24 25 62 47
Post Graduate Institution 5 4 13 42
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Issues Facing Tourism Human Resources Development
general topics and skills and risk having graduates with no “hard” skills
which are immediately applicable on the work environment. From the
employer’s perspective, institutional education and training providers
often seem too rigid and out of touch with the needs of the industry.
From the educators’ viewpoint, industry seems not to know how to
beneficially employ the trained skills that graduates have to offer.
Despite these concerns, there has been gradual progress in establishing
a partnership between education and training providers and the
industry in developing skill standards and certification systems. In
some countries such as Australia and Canada, skill standards have been Progress
established in certain occupational areas as well as a certification
process by education and training providers. The establishment of
government coordinating bodies in countries discussed earlier
represents an important step in developing occupational profiles and
assessing current education and training providers.
The WTO has taken the lead in establishing a network of education and
training centers to implement strategies and standards to increase
WTO's education
professionalism in advanced tourism education and training. In 1997,
network
there were 14 WTO centers distributed on a regional basis cooperating
in the development of tourism education and training curricula and
research. Cooperating institutions are also involved with the centers in
the WTO Education and Training Network.
16.6.1 Geopolitical
With the end of the Cold War, major realignments in political affiliations Political
are occurring. In Europe, there are increased business opportunities in realignments
the Central Independent States or CIS (part of former USSR and eastern
Europe). An increasingly unified European regional economy has
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created labor shifts and increased demand for travel. In the Americas, the
North American Free Trade Agreement (NAFTA) has made it easier to
move businesses across borders. In the Asia-Pacific region, China and
Vietnam are moving rapidly toward market economies, generating a
need for capital, training, and labor. These changes will impact travel and
tourism as more people will be traveling to developing countries and
there will be a greater need for training of the work force, especially in
cross-cultural skills and communications. In addition, the work force
Labor migration will be more apt to migrate, which means that more cross-border labor
flows will occur, increasing the stratification of jobs. The need for skill
standards and certification systems that cross national boundaries will be
greater because of a transient work force; the work force has to be seen
in regional and global terms rather than at company or country levels.
16.6.2 Economic
Global competition is increasing, and investors and bankers are
becoming more aggressive in pursuing their return on investment from
tourism companies. In the 1990s, management companies are no
Need for creative longer in the driver’s seat as they were during the 1980s and now must
managers satisfy both the guests and owners. The implication of this trend is that
management must work smarter and more creatively. Skills at a
premium will be problem solving, commitment to the business, and
being multi-skilled with the decentralization of authority in the new
“power-sharing” styles of management.
16.6.3 Social
Aspirations are rising as educational levels increase around the world.
Workers want more from their careers. On the other hand, workers are
Career and now turning down jobs that offer more pay but a lesser quality of life.
lifestyle issues The implication for human resources development is that a skill
standards system may address these career and lifestyle issues.
Tourism occupations will gain credibility, attracting more talented
individuals, as well as provide clear benchmarking for career growth.
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SUMMARY
SUMMARY
This chapter has emphasized the importance of human resources
development, especially given the size of the tourism industry
worldwide and the central role service plays in the industry. The
projected worldwide growth of the tourism industry will increase the
demand for labor. In addition, the labor-intensive, service-dependent,
and widely diverse nature of the tourism industry makes it a priority to
have a well-educated and trained work force. Also discussed was the
need to first assess the skill, knowledge, and attitudes needed for the
positions in the industry both for new and existing destinations. The
establishment of skill standards and a certification system, with regular
employer input and coordination by government, is one way to ensure
that industry skills are made known in a consistent way and can be
changed. The education and training providers deliver a range of
programs and courses from vocational to advanced management to in-
house training. However, it was pointed out that more has to be done in
meeting industry needs and that some countries are already taking steps
to establish a comprehensive skills standards system and provide for the
certification of skills. Finally, some broad global trends were discussed
that might have an impact on the tourism work force in the future.
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DISCUSSION QUESTIONS
1. Why is the tourism industry unique in its dependence on a quality
work force for its growth?
2. Why is the tourism industry difficult to define as an industry?
3. What steps need to be taken to ensure work force quality in a
tourism destination?
4. Discuss the roles of the employer, government, and education and
training providers in developing and implementing skill standards
and a certification system.
5. In light of current global trends, why are skill standards and
certification systems important to tourism’s future?
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CHAPTER 17
Conclusion
17
Conclusion
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The Challenges of Growth
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Chapter 17: Conclusion
activity that threaten their established ones. There are few other
developments that are as massive in scale, as costly, and as important
to the economic vitality of an area, than a modern airport. Their very
importance and impact means that planning an airport will be fraught
with contention and complications that can delay the project for years.
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The Challenges of Growth
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Chapter 17: Conclusion
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Sustainable Tourism and the Future
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Chapter 17: Conclusion
368
Malé Declaration on Sustainable Tourism
Exhibit 17.1
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Chapter 17: Conclusion
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Glossary
rack rate: The regular published rates of a hotel. When special rates
are quoted, they represent a discount from the rack rate.
rebate: The practice of sharing, demanding, collecting, or receiving
less compensation for air transportation, or for any service in
connection therewith, than the rates, fares, or charges specified in the
air carrier’s currently effective tariffs.
recreational vehicle (RV): A motorized self-contained camping trailer
or a truck or van used for traveling.
re-entry permit: Document allowing alien residents to return from
trips outside the country.
region: In the domestic context, “region” refers to any area within a
country, usually a tourism destination area; in the international context
“region” refers to a grouping of countries, usually in a common
geographic area.
regional carrier: A carrier serving a particular area only.
residence: The place where the visitor resides.
resident: A person is considered to be a resident in a place if the person:
a) has lived for most of the past year (12 months) in that place; or
b) has lived in that place for a shorter period and intends to return
within 12 months to live in that place.
resort: Geographic or business area offering a variety of facilities services
and activities for the accommodation, use and enjoyment of the visitors.
retail travel agent: A travel agent that sells travel products on a retail
basis on behalf of his/her principals, airlines, cruiselines, hotels, car
rentals, and so on, for a commission to the general public.
rural tourism: type of tourism that bases its appeal and offered
services on some aspect of the real or imagined rural, nonurban way of
life; the vast quiet, unrushed countryside, varieties of trees and
animals, and so forth.
same day visitor: Temporary visitors staying less than 24 hours in the
destination visited and not making an overnight stay.
satellite ticket printer (STP): Free-standing computerized machine
capable of accepting reservations and issuing tickets, boarding passes,
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About the Authors
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About the Authors
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Bibliography
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