Lecture #1The structure and role of

the government and public sector in tourism

Plan & objectives:

• understand the part played by local, regional and central governments and their agencies in the planning and promotion of tourism in a country

• define the term ‘social tourism’ and understand its significance for disadvantaged populations

• explain how governments and local authorities in Britain and elsewhere supervise and exercise control over tourism

• appreciate the organization of public-sector tourism in RT and Britain.

Tourism often plays an important part in a nation’s economy by providing opportunities for employment, contributing to the balance of payments and stimulating economic growth.

Countries that experience an influx of large numbers of tourists, however, also suffer the environmental and social consequences of mass tourism, unless care is taken to plan for and control the flow of tourists.

• At one end of the scale, centrally planned economies may choose to exercise virtually complete control, from policymaking and planning to the building and operating of tourist facilities, the organization of tourist movements and the promotion of tourism at home and abroad.

Types of economic systems

• Most other nations have mixed economies, in which public and private sectors coexist and collaborate in the development of tourism within their borders; only the balance of public versus private involvement will vary.

• C. Humphreys, author’s own research based on ministry of tourism websites, 2011

All countries require reliable supporting infrastructure in order to encourage tourism in the first place, which will inevitably involve local and central government.

Adequate public services, roads, railways, and airports must all be in place before the private sector will be interested in investing in the equally necessary superstructure of hotels, restaurants, entertainment, attractions and other facilities that will bring in the tourists.

We can sum up by saying that a national government’s role in tourism can be

manifested in the following ways:

• in the planning and facilitating of tourism, including the provision of financial and other aid

• in the supervision and control of the component sectors of the tourism industry

• in direct ownership and operation of components of the industry

• in the promotion of the nation and its tourist products to home and overseas markets

• in supporting key tourism interests in a time of financial crisis.

Planning and facilitating tourism

Any country in which tourism plays a prominent role in national income and employment can expect its government to devise policies and plans for the development of tourism. This will include generating guidelines and objectives for the growth and management of tourism, both in the short and long term, and devising strategies designed to achieve those objectives.

Government control over entry

• Accessibility is a key factor in the development of tourism. It relies on both adequate transport and the absence of any political barriers to travel. If visas are required for entry to a country, this will discourage incoming tourism.

• The cost of obtaining visas as well as the complexity of applications can encourage travellers to choose to travel to countries that do not require visas.

Taxation policy• Government policies on taxation

can impact on tourism, whether the taxes are applied directly to tourists (such as an entry or exit tax), the industry (such as on hotel accommodation) or indirectly (such as VAT or sales taxes, which can discourage shopping and benefit countries with lower taxes). It may even encourage day trips across borders to shop in areas where taxes are lower.

The principal responsibilities of country and district authorities that bear on tourism are as follows:

• provision of leisure facilities for tourists (such as conference centers) and residents (theatres, parks, sports centers, museums and so on)

• planning (under country planning policies) – note that district councils

• produce local plans to fit the broad strategy of the county councils structure plans and

• those plans are certified by the county councils• powers to control development and land use

• provision of visitor services (usually in conjunction with tourist bodies)

• parking for coaches and cars• production of statistics on tourism, for use by

the regional tourist boards• marketing the area• upkeep of historic buildings• public health, including food hygiene and safety

issues, as well as litter disposal and the provision of public toilet facilities.

Social tourism

• includes the provision of holidays for socially or financially excluded families, people with disabilities and their carers.