Fundamentals of Planning and Developing Tourism Blent I. Kastarlak Fundamentals of Planning and...

Fundamentals of Planning and Developing TourismFundamentals of Planning and Developing TourismBBülent I. Kastarlaklent I. Kastarlak

© 2012 by Pearson Education, Inc© 2012 by Pearson Education, IncUpper Saddle River, New Jersey 07458 • All Rights ReservedUpper Saddle River, New Jersey 07458 • All Rights Reserved

Fundamentals of Planning and Developing TourismFundamentals of Planning and Developing TourismBBülent I. Kastarlak and Brian Barberlent I. Kastarlak and Brian Barber


Basic Principles of Planning and

Developing Tourism

Basic Principles of Planning and

Developing Tourism

Part One:Part One:Part One:Part One:



UnderstandingTourism

Development

UnderstandingTourism

Development

Chapter One:Chapter One:Chapter One:Chapter One:



An estimated 2.5 billion people are trying to survive on $2 or less a day

The poor typically lack access to education, adequate health services, clean water and sanitation

Rising inequality over the 1990s severely reduced potential impact on poverty from the rapid growth experienced by many countries

1.1 World Development Trends1.1 World Development Trends



1.1 World Development Trends1.1 World Development Trends

Projected GDP increase for developingcountries will decline to 7.1% in 2008

High-income countries are predictedto grow by a modest 2.2%

Projected GDP increase for developingcountries will decline to 7.1% in 2008

High-income countries are predictedto grow by a modest 2.2%

Source: International Bank for Reconstruction and Development/The World Bank: The World Bank Annual Report 2008, The Year in Review, pp.13–15



1.2 World Bank Strategyfor Eliminating Poverty1.2 World Bank Strategyfor Eliminating Poverty

Goal 1Goal 1 Eradicate extreme Eradicate extreme poverty and hungerpoverty and hunger

Goal 2Goal 2 Achieve universal Achieve universal primary educationprimary education

Goal 3Goal 3 Promote gender equality Promote gender equality and empower womenand empower women

Goal 4Goal 4 Reduce child mortality Reduce child mortality

Goal 1Goal 1 Eradicate extreme Eradicate extreme poverty and hungerpoverty and hunger

Goal 2Goal 2 Achieve universal Achieve universal primary educationprimary education

Goal 3Goal 3 Promote gender equality Promote gender equality and empower womenand empower women

Goal 4Goal 4 Reduce child mortality Reduce child mortality

Common targets ofthe international

development community



Source: International Bankfor Reconstruction and

Development/The World Bank: The World Bank Annual Report 2008, The Year in Review, p.17



Goal 5Goal 5 Improve maternal health Improve maternal health

Goal 6 Combat HIV/AIDS, malaria, and other diseases

Goal 7 Ensure environmental sustainability

Goal 8 Develop a global partnership for development

Goal 5Goal 5 Improve maternal health Improve maternal health

Goal 6 Combat HIV/AIDS, malaria, and other diseases

Goal 7 Ensure environmental sustainability

Goal 8 Develop a global partnership for development





Source: International Bankfor Reconstruction and

Development/The World Bank: The World Bank Annual Report 2008, The Year in Review, p.17




The World Bank has established the following strategic priorities for its actions:

― Build the economic conditions for investment, jobs, and sustainable growth

― Invest in poor people and empower them to participate in development

― Reach across country boundaries and address issues regionally and globally

― Improve management and finance practices




Pro-poor tourism:Pro-poor tourism:Paying greater attention to the role tourism development can play in reducing poverty

Paying greater attention to the role tourism development can play in reducing poverty




Travel refers to the activity of travelers

Travelers are those who undertake travel― Domestic, inbound or outbound

1.7 Definitions of “Tourism” and “Tourist”1.7 Definitions of “Tourism” and “Tourist”



Domestic travel is travel within a countryby residents

Inbound travel is travel to a country bynon-residents

Outbound travel is travel outside a countryby residents




A trip refers to travel by a person from the time of departure from his/her usual residence until he/she returns—a round trip

An inbound trip is the travel between arriving in a country and leaving

A domestic trip or an outbound trip will correspond to the travel between leavingthe place of residence and returning




A visitor is a traveler taking a trip to a main destination outside his/her usual environment

― For less than a year; for any main purposeother than employment

Such trips taken qualify as tourism trips― Tourism refers to the activity of visitors


Tourism is therefore a subset of travel,and visitors are a subset of travelers

Tourism is therefore a subset of travel,and visitors are a subset of travelers



A visitor (domestic, inbound or outbound)is classified as:

― A tourist (or overnight visitor) if his/hertrip includes an overnight stay

― A same-day visitor (or excursionist), otherwise




International tourist arrivals reached 903 million in 2007—up 6.6% from 2006

International tourism receipts rose to US $856 billion in 2007—up 5.6% from 2006

Receipts from international passenger transport are estimated at US $165 billion

10 top destinations showed no major changes

Outbound tourism in the past years has been increasingly driven by emerging source markets

1.8 World Tourism Trends1.8 World Tourism Trends



Conclusions drawn from these trends: ― Leisure travel is a function of disposable income

• As is business travel, to an extent

― As disposable income grows in richer countries, international tourists increasingly demand more convenience and better service

― Standards of facilities & services for domestic tourism may vary widely from generally accepted international tourism standards

― Personal security plays a major role in selecting a tourism destination

1.8 World Tourism Trends1.8 World Tourism Trends



1.9 Tourism as an OverlappingEconomic Sector1.9 Tourism as an OverlappingEconomic Sector



1.10 Allocation of Factors of Productionfor Tourism Development1.10 Allocation of Factors of Productionfor Tourism Development



Six fundamental economic questions:Six fundamental economic questions:


What products will be produced?

How much of each product will be produced?

Where will the products be produced?

How will the products be produced?

For whom will the products be produced?

When will the products be produced?

What products will be produced?

How much of each product will be produced?

Where will the products be produced?

How will the products be produced?

For whom will the products be produced?

When will the products be produced?



Increasing returns to scale:Increasing returns to scale:


When labor, land, and all otherinputs are prepared in the proper proportions and quantities, the

result could be a higher multiplier

When labor, land, and all otherinputs are prepared in the proper proportions and quantities, the

result could be a higher multiplier



The city–region service relationship is defined by central place theory

― A central place is an urban center where economic activities originate • and disperse to a service area, hinterland or region,

around it

― The relationship between the central placeand its region is symbiotic• Reciprocal and complementary activities flow

in both directions

1.11 Economic Geography of Tourismand the Theory of Central Places1.11 Economic Geography of Tourismand the Theory of Central Places



The city–region service relationship is defined by central place theory

― Factors determining the perimeter of the service region may depend primarily on city–region relationships• But may also be independent of them

― Factors determining the perimeter of the tourism region are often independent ofthese relations




Walter Christaller showed that:― Urban centers have a rank order

• Centers of various population sizes form ahierarchy over the geography of the land

― If one center of this hierarchy is removed,the system will readjust to compensate• For functions the center previously performed

― Larger cities will be spaced farther apart than smaller towns and villages

― The geographic pattern of urban centers is a product of particular social-economic-physical forces that create the ordered network




Christaller’s two classes of goods and services produced by central places:

― Dispersed goods― Central goods and services




Source: United Nations World Tourism Organization:http://www.unep.fr/scp/tourism/sustain

Sustainable tourism development should:

Make optimal use of environmentalresources that constitute a key element

in tourism development, maintainingessential ecological processes and helpingconserve natural heritage and biodiversity

1.3 Sustainable Tourism as anAgent for Reducing Poverty1.3 Sustainable Tourism as anAgent for Reducing Poverty




Respect the socio-cultural authenticityof host communities, conserve their builtand living cultural heritage and traditional

values, and contribute to inter-cultural understanding and tolerance





Ensure viable, long-term economic operations, providing fairly distributed socio-economic benefits

to stakeholders—including stable employmentand income-earning opportunities, social

services to host communities, andcontributing to poverty alleviation






Ground rules in planning sustainable tourism:― Benefits from tourism are received immediately

• Natural, historical, cultural, and other resourcesare protected for the long-term future

― Tourism development is planned/managed in a way that avoids social & environmental damage • In the near or long term




Ground rules in planning sustainable tourism:― Tourism development enhances environmental

quality and social well-being wherever it occurs• So that tourism destinations retain their

marketability and competitive advantage

― Tourism development and management is an integral part of national & regional development




Kastarlak identified two principal characteristics of tourism fundamental

to understanding the dynamics ofthe tourism industry:

It is not a traditional industrial sector…at least not presently

Its product can be consumed onlyat its place of production

It is not a traditional industrial sector…at least not presently

Its product can be consumed onlyat its place of production

1.5 Tourism as a Productionand Consumption Process1.5 Tourism as a Productionand Consumption Process



The Demonstration Effect:― Tourism has great potential for providing

exposure to different cultures― Applies both to traveling tourists and to

receiving host populations at the destination― Interaction between the two portrays norms,

values, social structure, and social organization of both parties

― The demonstration effect can take place spontaneously or it can be planned

1.6 The Demonstration Effect ofTourism and Social Change1.6 The Demonstration Effect ofTourism and Social Change



A social structure consists of a set of consistently repeated social relationshipsamong groups, individuals, or positions

Social stratification is a subclass of social structure, or a ranking system, among the participants in social relationships

1.6 The Demonstration Effect ofTourism and Social Change1.6 The Demonstration Effect ofTourism and Social Change



Chapter EndChapter EndChapter EndChapter End

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