LECTURE NOTES 1

PERSPECTIVES ON INTERNATIONAL TOURISM

1. Introduction to global tourism

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 are not commercially viable.

Contributing to the powerful growth tourism has experienced in a 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 are universally found in major cities, resort locations, adjacent to 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.

2. Historical perspective on travel and tourism

Table 1.1. lists some of the milestones in the development of tourism. Long before the invention of the wheel, travel occurred for a variety of reasons, being confined to fairly small geographic areas, though. There is a rich history of people and cultures that form the foundation of tourism and provides important insights into the reasons for travel and the eventual development of tourism. Therefore, a brief review of tourism’s historical development is in order to fully appreciate today’s modern tourism environment and to understand tourism challenges.

a. Early AgesWhile the concept of travel and tourism is as old as civilization itself, history reveals that travel was not always a pleasurable experience. In the past, few people enjoyed leisure time – for ordinary people time off was usually for religious purposes – for holy days – hence the word “holidays”.

Logical travel motivators for people in the prehistoric civilizations focused on gathering food, avoiding dangers and moving to more favorable climates. With the development of humankind, there was a decreasing need for nomadic existence, resulting in another travel motivator – the trade and barter of goods.The point at which simple travel evolved into more complex activities of tourism is hard to identify. However, tourism as an industry probably began

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to develop during the Empire Era, which stretched from the time of the Egyptians to the Greeks and finally came to an end with the fall of the Roman Empire.As ancient world empires grew in Africa, Asia, and the Middle East, the infrastructure necessary for travel, such as land routes and waterways was created and vehicles for travel were developed. The beginnings of official government travel were a direct result of rulers who sent their emissaries to observe the progress of wars throughout sprawling empires or to collect taxes from the citizenry. The Egyptian Kingdoms (4850 – 715 B.C.) were the first known civilization to have consolidated governmental functions at centralized locations. During the Egyptian dynasties, travel for both business and pleasure began to flourish, and hospitality centers were built along major routes and in the cities to accommodate travelers between central government posts and the outlying territories. During the height of the Assyrian empire, the means of travel were improved, largely for military use, roads were also improved and markers were established to indicate distances. The Persians who defeated the Assyrians made further improvements to the road systems and developed four-wheeled carriages for transportation.The early Greeks (900 – 200 B.C.) advanced travel and tourism developments in two particular areas. First, through the development of a coin currency, replacing the need for travelers to carry goods to barter at their final destination for other goods and services. Secondly, the Greek language spread throughout the Mediterranean area, making it easier to communicate as one traveled. Since most of the Greek towns and cities were located along the coast, travel was primarily by sea. Travel for government business was kept to a minimum because of the independent nature of the city-state system, but the Greeks liked to visit other cities for pleasure, particularly Athens. They also enjoyed traveling to religious festivals, and events like the Olympic Games held every four years at Olympia.At the height of the Roman Empire (500 B.C. – 300 A.D.), the ruling patrician class enjoyed their leisure during the periods of relative peace. Like the Greeks before them, they observed their own athletic and religious events and traveled to these sites. Sightseeing was also popular with the wealthy Romans, and many visited Greece. A ten-volume travel guide was published in 170 A.D. by the Greek Pausanias, entitled A Guide to Greece; the guide targeted the Roman tourist market and described the Grecian monuments, sculptures, and the stories and myths behind them. Romans also toured Egypt to see the Sphinx and the Pyramids. Alexandria was a cosmopolitan oasis for Roman aristocracy, since many nationalities were represented there including Egyptians, Greeks, Jews, Ethiopians, Indians, and Syrians. Egypt’s weather was also a travel incentive for the Romans, as it offered a sunny, hot, and dry environment. The citizens of the Roman Empire also liked to shop when abroad, as most tourists do today. The practice of hiding purchases from custom officials probably originated with this class, a result of high duties, typically 25%, placed on imported purchases.Many of the hassles to travel to distant places were removed because Roman currency was universally accepted and Greek and Latin were common

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languages. In addition, a common legal system provided protection and peace of mind, allowing people to travel further away from home for commerce, adventure and pleasure.Asian civilizations also have a history of leisure travel to resorts, with 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.

Table 1.1 Milestones in the development of tourismPrerecorded history Travel begins to occur out of a sense of adventure

and curiosity4850 B.C. – 715 B.C. Egyptians travel to centralized government

locations1760 B.C. – 1027 B.C. Shang dynasties establish trade routes to distant

locations throughout the Far East1100 B.C. – 800 B.C. Phoenicians develop large sailing fleets for trade

and travel throughout their empire900 B.C. – 200 B.C. Greeks develop common language and currency ,

and traveler services emerge as city-states become destinations

500 B.C. – 300 A.D. Romans improve roads, inns and the legal system, to further travel for commerce, adventure and pleasure

300 A.D. – 900 A.D. Mayans establish trade and travel routes in parts of Central and North America

1096 A.D. – 1295 A.D. European travel on failed religious crusades to retake the Holy Lands from Muslim control introduced these military forces to new places and cultures

1275 A.D. – 1295 A.D. Marco Polo’s travel throughout the Far East begin to heighten interest in travel and trade

14th – 16th centuries Trade routes develop as commercial activities grow and merchants venture into new territories

1613 A.D. – 1785 A.D. Grand Tour Era makes travel a status symbol for wealthy individuals seeking to experience cultures of the civilized world

18th – 19th centuries Industrial Revolution gives rise to technological advances, making travel and trade more efficient and expanding markets; increasing personal incomes make travel both a business necessity and leisure activity

1841 Thomas Cook organizes first group tour in England1903 Wright Brothers usher in era of flight with the first

successful aircraft flight1913 Westinghouse Corporation institutes paid vacations

for its workers1914 Henry Ford begins mass production of the Model T1919 First scheduled airline passenger flight debuts

between London and Paris

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1945 World War II ends and ushers in new era of prosperity, giving rise to millions of people with the time, money and interest to travel for pleasure and business

1950 Diners Club introduces the first credit card1952 Jet passenger service inaugurated between London

and Johannesburg, South Africa1978 Competition on routes and fares begins with signing

of Airline Deregulation Act2001 September 11th terrorist attacks heightened security

measures for travel across USA2001 Transportation Security Administration created to

ensure airline passenger safety as terrorism threats persist

2002 Introduction of the EURO currency signaling liberalization of travel among member nations of the EU

Source: Cook & al. (2006), Tourism. The Business of Travel, pp. 10

b. Middle Ages – 5th to 14th centuryDuring the Middle Ages from about the 5th to 14th century A.D., trade and travel declined, as roads fell into disrepair and overall travel conditions became difficult as well as dangerous. During this period, the Christian Church was the primary impetus for travel with the spreading of monasteries and the Christian religion. Monks and priests encouraged the public to go on pilgrimages, and by the 14th century, pilgrimages were an organized mass phenomena served by a growing network of charitable hospices with growing ranks of participants from most social classes. Christians went to Jerusalem and Rome, and even though the pilgrimages had a religious basis, they were also seen as social and recreational journeys.In the latter part of the 13th century, Marco Polo explored the land routes from Europe to Asia. In China, Polo discovered a well-developed road system, the first having been built during the Chou dynasty (1122-1221 B.C.). Polo’s book on his travels was the West’s main source of information about life in the East during this period. Other travel books began to appear with the advent of the printing press, and Sir John Mandeville’s Travels in 1357 was printed in several foreign languages, with descriptions of travel to places as far away as Southeast Asia.By the 15th century there is a record of an actual package tour which originated in Venice to the Holy Land. For the price of the package, the tourist received passage, meals, accommodations, donkey rides, and the bribe money necessary to avoid red tape. Early versions of today’s convenience fast food stands popped up along heavily trafficked pilgrim travel ways. Roadside hawkers during high seasons would sell wine, fruits, fish, meats, bread and cakes from roadside tents.

c. The Renaissance – 14th to 17th centuryTravelers between the 14th and 17th centuries used as their travel motivator the desire to broaden one’s experience and knowledge. The Grand Tour Era

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(1613 – 1785), which marked the height of luxurious travel and tourism activities, originated with the wealthy English and soon spread and became fashionable among individuals who had time and money. Travel, and the knowledge provided by these travels, became a status symbol representing the ultimate in social and educational experience. Queen Elizabeth I approved a form of travel to groom future diplomats, and the universities such as Oxford and Cambridge in England and Salamanca in Spain provided travel fellowships. England also issued a traveler’s license which was good for two to three years and it disclosed travel restrictions, how much money, how many horses, and servants (usually three) the traveler could take. Tourists also were issued passports, but surrendered them at exit posts, and picked up new ones for each country they visited. Little cash was carried; instead they used a line of credit which worked like the modern day traveler’s checks. The Elizabethan traveler usually went to Italy, by way of Paris and Frankfurt. The loosely organized Elizabethan tour later became more highly structured into what became known as the Grand Tour. The organized Grand Tour had its start in the mid-1600’s, and its popularity ran through the mid-1800’s. The desire to gain new knowledge and experiences were still the prime motivators of travel for participants of the Grand Tour; and the Grand Tour was seen as the capstone to educational and cultural attainment of the upper classes. Typically, sons of well-to-do families traveled to specific countries to visit historical sites and ruins as well as to study art, architecture and history. There was even a tour guidebook for the Grand Tour travelers, the 1778 bestseller by Thomas Nugent.

d. The Industrial Revolution – 1750 – 1850The Industrial Revolution, which lasted from about 1750 to 1850 created the base for mass tourism as we know it today. This period brought profound economic and social changes as workers moved away from basic agriculture in rural areas into the manufacturing plants and urban way of life familiar to many people today. The social changes brought on by changes in occupations led to the expansion of a new middle class, an increase in leisure time, and for many, a demand for recreational travel activities leading to a decline in popularity of the elitist Grand Tour.Initially, recreation tourist trips were generally only day trips because most people still had only limited discretionary income and a five-day work week was not common place. Toward the end of the 19th century, workers began to get annual vacations. As the social and economic development of countries accelerated, principally in Europe and North America, wage levels and working conditions improved. Gradually, people were given more time off, forms of transport improved, it became faster and cheaper to move around. 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 market. To these destinations, the middle class represented 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.

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Thomas Cook (1808 – 1892) can be credited with finally bringing travel to the general public by introducing the tour package. In 1841, he organized the first tour for a group of 570 to attend a temperance rally in Leicester, England. For the price of a shilling (12 pence), his customers boarded a chartered train, complete with a picnic lunch and a brass band. The immediate success of his first venture and the demand for more assistance in making travel arrangements led Cook into the full-time business of providing travel services.

e. Modern tourismIt was the combination of desire, mobility, accessibility, and affordability that made mass travel possible. With the 20th century came new technologies such as aviation, computers, robots, and satellite communications, which have transformed the way that people live, work, and play. Modern technology is credited with the development of mass tourism for a number of reasons: it increased leisure time, provided additional discretionary income, enhanced telecommunications, and created more efficient modes of transportation. All those brought new marketing opportunities, Tour operators started up and responded to the demand. The “packaged tour” developed, together with charter air transport. Mass international tourism surged. The great urban development of the Mediterranean coast began to take shape. Other parts of the world started to follow the same patterns of development.

As the world looks ahead, there is little doubt that tourism will continue to be one of the most dynamic growth sectors of the global economy. Despite periodic recessions, political upheavals, wars, and uncertainties about the price and availability of fuel, international tourism is now the largest single item in the world’s foreign trade budget. It is three times bigger than world expenditures on defense.As the new age of tourism evolves, it will be affected by a number of exogenous factors such as economic and financial developments, technological developments and innovations, environmental issues, and marketing factors affecting the structure of the travel and tourism operating sector and product development.

3. International tourism: concepts, definitions

a. Principles and criteria for delimiting tourismWhat is tourism, as compared to travel? That is, what converts the displacement of an individual into a tourism activity?A traveler is any person on a trip between two or more places.Tourism is a subset of travel; it mainly comprises the activities of persons traveling to and staying in places outside their usual environment for leisure, business and other purposes. Thus, tourism is first and foremost a demand-based concept. To make this concept operational, it is logical to take the persons engaging in tourism as a starting point. These persons are called visitors and should be distinguished from other travelers. A visitor refers to any person traveling to a place other than that of his usual environment for less than 12 consecutive months and whose main purpose of

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travel is other than the exercise of an activity remunerated from within the place visited.Thus, tourism comprises 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.

Tourism is different from travel. In order for tourism to happen, there must be a displacement. But not all travel is tourism.

There are three criteria for distinguishing visitors from other travelers:1. the trip should be to a place other than that of the usual environment

The concept of usual environment, and therefore tourism, has two dimensions. The first is frequency. Places which are frequently (on a routine basis) visited by a person are part of the usual environment of that person, even though these places may be located at a considerable distance from the place of residence. The second dimension is distance. Places located close to the place of residence of a person are also part of the usual environment, even though the actual spots are rarely visited. Therefore, the usual environment consists of a certain area around the place of residence

Figure 1.1. Visitors and other travelers

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 Source: WTO (1995), Concepts, definitions and classifications for tourism statistics, pp. 22

(1)   Intended stay in place or country visited is more than 12 months.(2)   Intended stay in place or country visited is 12 months or less.(3) Not visitors from the standpoint of the receiving country if they do not legally enter this country.(4) When they travel from their place or country of origin to the duty station, within or outside the same country and vice versa, and when they are on maneuver (including household servants and dependents accompanying or joining them).(5) When they travel from their country of origin to the duty station and vice versa (including household servants and dependents accompanying or joining them).(6) Including persons escorting them.

2. the stay in the place visited should not last more than 12 consecutive months

A person staying or intending to stay one year or more in a given place is considered a resident of that place and therefore not a visitor from the point of view of tourism statistics

3. the main purpose of the trip should be other than the exercise of an activity remunerated from within the place visited

Anyone entering a country to work or to accompany or joi such a person as a dependant or domestic employee is considered a migrant and not a visitor to that country.

While the term visitor comprises both overnight visitors and same-day visitors, the term tourist is reserved, strictly speaking, to overnight visitors. A same-day visitor (excursionist) is defined as a visitor who does not spend the night in a collective or private accommodation in the place visited (see figure 1.1).

Where people travel, why they choose a particular location and what they do once they arrive is of interest to everyone in the tourism industry. These data are now collected and recorder based on the reasons given for undertaking trips or purpose of visit. The purpose of visit refers to the reason in the absence of which the trip would not have taken place or the given destination would not have been visited. The primary reasons for traveling can be broken down into the following groups: (1) leisure, recreation and holidays; (2) visiting friends and relatives; (3) business and professional; (4) health treatment; (5) religion/pilgrimages; (6) other (see figure 1.1).

b. Forms and Categories of TourismJust as there are different types of visitors, there are different forms and categories of travel which take place, varying by traveler, destination, and motive for travel.Since tourism was defined as a subset of travel, once the shape of tourism determined, its components can be examined.

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There are three forms of tourism in relation to a given area (region, country, group of countries):

- domestic tourism, involving residents of a given area traveling (as visitors) only within that area

- inbound tourism, involving non-residents traveling (as visitors) in the given area;

- outbound tourism, involving residents traveling (as visitors) in an area other than the given area.

If a country is the area of reference, the terms domestic, inbound and outbound tourism can be combined in various ways to derive the following three categories of tourism:

- internal tourism, which comprises domestic and inbound tourism;- national tourism, which comprises domestic tourism and outbound

tourism;- international tourism, which consists of inbound tourism and outbound

tourism.

Figure 1.2. Forms and categories of tourism

Source: World Tourism Organization

4. Travel and tourism industry in recent years

Over the past six decades, tourism has experienced continued growth and diversification to become one of the largest and fastest growing economic sectors in the world. Over time, more and more destinations have opened up and invested in tourism development, turning modern tourism into a key driver for socioeconomic progress.Tourism has become one of the major international trade categories. Today, the export income generated by international tourism ranks fourth after fuels, chemicals and automotive products. For many developing countries, it is one of the main income sources and the number one export category, creating much needed employment and opportunities for development.

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Tourism has initially resisted the economic downturn better than other economic sectors, such as construction, real estate or car manufacturing.Nevertheless, the global economic recession combined with market volatility and a decline in both consumer and business confidence, have taken their toll on demand.As in previous crisis situations, UNWTO expects the following broad patterns in the sector in the short to medium term:_ traffic to closer destinations, including domestic travel, is expected to be favoured as compared to long-haul travel;_ segments such as visiting friends and relatives, repeat visitors, as well as special interest and independent travellers are expected to be more resilient;_ the decline in average length of stay as well as on expenditure is projected to be more pronounced than in the overall volume;_ destinations offering value for money and with favourable exchange rates have an advantage as price becomes a key issue;_ companies will and should concentrate on containment of cost in order to keep their competitive edge;_ more than ever it is necessary to closely work together in the tourism value chain, between public and private sector, and destinations with trade.

5. Factors influencing international tourism

a. Positive factors influencing tourism Three main positive factors play a particularly significant role in the evolution of international tourism demand:

1. Demographic changesIn 2002, for example, there were 150 mil Europeans aged between 35 and 45, 17% more than in 1985. The 35-45 group enjoys the highest disposable income and is increasing at a faster rate than any other age group. The segment over 65 is expected to increase by more than 14 mil people. Older travelers are more flexible with their time and can travel during off-peak periods, contributing to a longer tourism season

2. Increased leisure and holiday timeThe working population of industrialized countries is enjoying increased leisure time and more holidays. Although this is common to all industrialized countries, there are still significant differences: the length of the annual paid holidays in USA and Japan is generally less than a month; Western Europeans workers are entitled to longer paid holidays. France, in particular, allows its workforce 5 weeks of statutory annual paid leave. If national holidays are included, the French enjoy up to 8 weeks of paid vacation a year.

3. Fragmentation of holidays and market segmentation This is a direct consequence of the increase in available holiday time. Now that total annual holiday periods are longer, the traditional “four-week holiday” is disappearing. The concept of one-month vacation is replaced by several shorter breaks, spread over time. The international market has been transformed by this fragmentation and increase in the number of holidays. New products are being created for each market segment to satisfy the

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demand for shorter breaks. As a result, industrial and commercial strategies, adapted to the new conditions of the market, need to be developed and implemented.

b. Negative factors influencing tourism In 2004, world tourism was above all marked by the strong rebound of Asia and the Pacific after the SARS-induced setbacks suffered in 2003, and by the return of the Americas to positive results. The recovery of the world economy, and in particular of the economies of major American and European generating markets, together with the strength of the Asian economies, strongly contributed to the very good results of tourism after 2004. As for geopolitical aspects, notwithstanding the continuing disruptive situation in Iraq and the emergence of new terrorist threats, such as the ones in Madrid (March), Saudi Arabia (May), Turkey (August), Indonesia (September), Russia (August and September) or Egypt (October), the effect of such shocks on travel and on consumer confidence has been declining.In 2005 international tourism sustained the sharp upturn that began in 2004 despite the various tragic events with which it had to contend, like various terrorist attacks and natural disasters, such as the aftermath of the Indian Ocean tsunami and an extraordinarily long and strong hurricane season. The tourism sector has become increasingly resilient over the last few years. In spite of the turbulent environment we live in nowadays, destinations worldwide added some 100 million international arrivals between 2002 and 2005.Despite the volatility of aviation fuel prices through much of the year, resulting in fuel surcharges by many airlines, aggressive competition has driven real-price reductions in air transport over the past 12 months. In fact, people seem to be so drawn by attractive prices for air travel that their desire for travel often over-rides any concerns they may have about external threats.Many events may have resulted in temporary shifts in travel flows, but they have not stopped people traveling. And, while at local level the impact of different events can be severe, it is generally – and increasingly – short-lived.Still, a more cautious attitude within both the industry and governments is felt towards the growth of the sector, based on current uncertainties in a number of different areas. Among the most significant, for example, are concerns over climate change, and the conviction that these will undoubtedly result in measures to stem excessive energy demand, including higher taxes and carbon offset programs. Fears that there might be a human flu pandemic in 2006 proved unfounded, but uncertainty remains. There are other challenges, too, including the continuing debates over travel advisories and visas, which can be – and have proved to be – major impediments to growth.Among the factors that had an impact on tourism demand in 2007, the economic situation was high up the list. Increasing interest rates in some countries and regions, and the implications of this on people with excessive household debt took their toll. The same was true for exchange rate fluctuations. Destinations around the world had to adapt to the new technologies, which were causing a change in the travel market, and harness technology to become more effective and cost-efficient. National tourism

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organizations and administrations needed to work increasingly with industry partners to draw up action plans as to how they can differentiate themselves from their competitors.

In the past years tourism has also been characterized by the redistribution of tourism flows under the influence of exchange rates. Above all Europe has struggled to adapt to the continuing increasing strength of the euro (and some closely related currencies such as the Danish Krone and Swedish Krona). Although interregional traffic gradually started to return in 2004, it was tough for destinations in the euro zone to compete with less expensive destinations elsewhere in the world.

6. Components of the Travel and Tourism Industry

a) Transportation and InfrastructureHow visitors get to, from and within a given destination is the responsibility of the transportation component of tourism. Whether travel is by air, sea, or ground transportation, adequate facilities and services must be in place for the development of a successful destination. For existing tourist destinations, domestic and international tourism is dependent upon the maintenance and improvements of airport terminals, harbors, and road systems. Sufficient transportation is integral to the success of all other components of tourism. The infrastructure refers to components found on or below the ground level that provide the basic framework for effective functioning of development systems such as urban areas, industry, and tourism (Inskeep, 1991, p. 119). Infrastructure components such as water supply, electric power, sewage and solid waste disposal, drainage, and telecommunications are but a few of the more critical elements required for the various tourism dimensions to operate efficiently.

b) Accommodations and Hospitality ServicesAccommodations or lodging facilities and their related services account for a good portion of the tourists’ total expenditure, typically 20 to 30 percent 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, cruise ships etc. 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, which help distinguish the level of service provided to the guests.Food and BeverageRestaurants, bars and other types of eating and drinking outlets, range in size and service levels. Food and beverage are required by tourists and represent another large source of competition for visitor expenditures. The cuisine in itself can be a primary or secondary attraction for many visitors traveling abroad. Support Services

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Support services include shopping facilities and services at the destination which help fulfill the basic as well as supplementary needs of visitors.Other support services which meet the needs of visitors include tour guide services, sports and recreation retail and rental shops, as well as entertainment facilities. All these support services not only make the travel 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.

c) Travel Distribution SystemsThere are several ways to look at the various components and the services provided by the tourism industry including examining the tourism consumer, the tourism product itself, and the direct and indirect distributors of travel-related goods and services. A travel distribution system involves a process which begins with the buyer or customer. The customer typically requires a product–an airline ticket, a cruise booking, a hotel reservation or car rental. The direct distributor is the service or business that provides the product. The indirect distributor is the travel agency, tour wholesaler or operator, or specialty channeler, which may or may not be used as an intermediary to get the product to the customer. These distribution channels serve to link the tourism suppliers and the customers.

d) The Public and Private Sectors in TourismIt was thought at one time that tourism was primarily a private sector concern, since the tourism-related business made the profits and reaped the rewards. It was considered the private sector’s responsibility to develop and produce services and products for visitors. The public sector, represented by government, saw little need to invest scarce resources and funds toward an activity that benefited private interests.However, once governments realized the great economic importance of tourism, especially as an “engine of employment” and source of tax revenue, this attitude changed. Today, there are many interests concerned with tourism’s growth and development from the private sector businesses, both large and small, to the various public sector government structures (e.g., national, regional, state, provincial, municipalities), and international, regional, and national organizations.Tourism consists of both public and private goods based on the supply and allocation of tourism resources. While the private sector is likely to limit its activities to goods or services that can realize profits, the public sector represented by governments must look beyond profit motives to those which will benefit the society as a whole. Public goods might include natural, cultural, and historic attractions and resources which are maintained and protected by government for the benefit of society as a whole, and users are likely to benefit from these goods, such as visiting a national park, without paying for the benefit. Other public goods and services provided by government which affect tourism include regulation, promotion, and marketing of tourism resources.

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National tourism administrations or organizations, whether government sponsored national tourism offices or private associations, help promote and monitor tourism development within the context of a particular country, while state, provincial, and even municipal organizations promote and define the growth of tourism for a smaller area of influence.International organizations, some of which are regional or developmental in nature, provide forums for discussion as well as assistance in tourism marketing and research, the removal of barriers to travel, and a number of other functions. Foremost among intergovernmental organizations is the World Tourism Organization (WTO), a sub-agency of the United Nations.

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