Business of Travel and Tourism

The Business Environment

8th September 2014

What am I going to learn about today??

Public Sector

Private Sector

Types of Tourism

Regions

The UK Economy

So what is the Public and Private Sector??

Public Sector (Not for Profit)

The public sector is usually composed of organizations that are owned and operated by the government. This includes national and regional tourist boards, local governments and authorities. It can also include visitor attractions such as museums, national parks and other countryside areas.

Private SectorThe private sector is usually composed of organizations that are privately owned and not part of the government. These usually includes corporations (both profit and non-profit), partnerships, and charities. For example: hotels, airlines and tour operators.

THE NEXT SLIDES WILL SHOW OTHER KEY POINTS

Activity OneLook at the next TWO slides and decide whether you think the organisations belong in the Public or Private Sector.

KEY FACTS!!!!Match these key facts to the right sector

• May be huge companies like British Airways

• Fail to make a profit –Cease to trade!

• Maximise sales revenue

• conservation and providing facilities for the public.

• usually aim to provide a service.

• Receive funds from local or central government, (DCMS)

• Increase market share

• Not profit driven

• Small business (Sole Trader)

• Aim to make a profit

Types of Tourism Recap

All Travel and Tourism organisations will be involved in at least one of the following types of tourism:

Domestic Tourism

Inbound Tourism

Outbound Tourism

Activity Two

Look at the TWO slides with the organisations on and identify which type or types of tourism they are involved in and write a sentence that will give a basic description of it. Choose TEN different organisations and try and cover all types of tourism.

For example:

Visit England are a public sector organisation involved in domestic and inbound tourism

Local – depending on where you live, you will have a wide variety of travel and tourism organisations in your local area.

Regional – this will generally be your county or area. Public sector organisations across the world work hard to promote tourism in their regions.

National – many countries welcome tourists and support organisations that encourage tourism development.

International – some travel and tourism organisations operate internationally in more than one country, including airlines, tour operators and hotel groups.

Global – public sector organisations such as the World Tourism Organisation based in Madrid are concerned with global travel and tourism issues, such as alleviating poverty and sustainable tourism development

Geographical Regions

Activity Three – Paired WorkUsing the geographical regions from the previous slide create a list/diagram/poster that will identify travel and tourism organisations that are:

Local – just serving the local area (ie Northwich)

Regional – will provide a service or product in the wider area (ie Cheshire or North West)

National – organisations that operate all over the UK

Transport Companies can be a good example as well as

hotel companies. But don’t forget travel agents

Tourism and the Economy

Data from the World Tourism Organisation (WTO) shows that international tourist

arrivals for business, leisure and other purposes were

estimated at 1billion in 2012, with a forecast growth to 1.8 billion by 2030. International

tourism generated US$1.3 trillion in export earnings in

2012 and supports more than 1 in 11 jobs across the

world

In the UK tourism contributed £127 billion

to the UK economy –this was approx. 9% of the UK’s GDP (see next

slide) and supports nearly 3.1million jobs.

What is GDP??Gross Domestic Product

A measure of the value of goods and services produced in an economy in a year. GDP indicates the wealth and economic development of a country.