Tourism: principle, practice and procedure

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Tourism: Principles, Practices, Philosophies

9th Edition - ©2003

• Understand what tourism is and itsmany definitions.

• Learn the components of tourismand tourism management.

• Examine the various approaches to

studying tourism.• Appreciate how important thisindustry is to the economy of theworld and of many countries.

• Know the benefits and costs oftourism.

Learning Objectives

Chapter 1: Tour ism i n Perspective

Part One: Tourism Overview





Definition of Tourism Tourism may be defined as theprocesses, activities, and outcomes

arising from the relationships andthe interactions among tourists,tourism suppliers, hostgovernments, host communities,and surrounding environments thatare involved in the attracting andhosting of visitors.







WTO Definition of Tourism

Tourism comprises the activities of

persons traveling to and staying inplaces outside their usualenvironment for not more than oneconsecutive year for leisure, businessand other purposes.







Visitor

A ―visitor‖ is defined as those personswho travel to a country other thanthat in which they have their usualresidence but outside their usualenvironment for a period notexceeding twelve months and whose

main purpose of visit is other than theexercise of an activity remuneratedfrom within the place visited.







Classification of Travelers

(1) Tourists in international technical definitions.(2) Excursionists in international technical definitions.(3) Travelers whose trips are shorter than those that qualify for travel and

tourism; e.g., under 50 miles (80 km) from home.(4) Students traveling between home and school only -- other travel of students

is within scope of travel and tourism.(5) All persons moving to a new place of residence including all one-way

travelers, such as emigrants, immigrants, refugees, domestic migrants, andnomads.







The Tourism Phenomenon:Components of tourism and tourism management







Tourism Course

Departmentor Discipline

TourismStudies

S o c i o

l o g y o

f

T o u r i s m

S o c

i o l o g y

P ar k

s an

d

R e c r e

a t i on

Source: adapted from Jafar Jafari, University of Wisconsin-Stout, Study ofTourism: Choices of Discipline and Approach.

Disciplinary inputs to the tourism field







In 2001 it is estimated toaccount for some:

• $3.5 trillion of Economic Activity• 207 million jobs

In 2011 it is estimated toaccount for :

• $7.0 trillion of Economic Activity• 260 million jobs

Travel and Tourism ---World’s Largest Industry

Source: WTTC







• Travel and Tourism will continue toexpand faster than the economy as awhole and faster than comparableindustries.

• By 2011 Travel & Tourism is expectedto account for:*Over twice the output at $7.0 trillion *More jobs --- 260 million employees

• Growth depends on enlightenedgovernment policy

Travel and Tourism CanDouble in Size by 2011

Source: WTTC







World’s Top 5 TourismDestinations

2000International Market Share

Tourist Arrivals % of WorldRank, (thousands) % Change Total,2000 Country 2000 1999/00 2000

1 France 74,500 2.0 10.72 United States 52,700 8.7 7.5

3 Spain 48,500 3.7 6.94 Italy 41,200 12.8 5.95 China 31,200 15.5 4.5

Source: WTO







World’s Top 5 Tourism Earners2000

International Market ShareTourism Receipts % of World

Rank, (US$ million) % Change Total,2000 Country 2000 1999/00 2000

1 United States 83,800 11.9 17.62 Spain 31,000 -4.3 6.5

3 France 29,900 -5.1 6.44 Italy 27,700 -2.5 5.85 United Kingdom 19,300 -4.7 4.0

Source: WTO







Tourism:What it Means to the U.S.Economy

• Travel spending in U.S. generated $584.4

billion in 2000.• Tourism is the nation‘s third largest retail

industry.• Tourism is the nation‘s largest service export. • Over 7 million Americans employed directly

in the travel industry, 9 million indirectly for atotal of over 16 million jobs.• Tourism is the first, second, or third largest

employer in 29 states.• Tourism provides more than 684,000

executive level positions in each year.• Travel industry provides a disproportionate

number of jobs for the traditionallydisadvantaged.

Source: Travel Industry Association of America (TIA)







• Can be developed withlocal products andresources

• Diversifies theeconomy

• Tends to be compatiblewith other economic

activities• Spreads development

• High multiplier impact

• Increasesgovernmental

revenues

Benefits of Tourism -Economic

• Provides employmentopportunities

• Generates foreignexchange

• Increases Incomes

• Increases GNP

• Can be built onexisting infrastructure

• Develops aninfrastructure that willalso help stimulatelocal commerce and

industry







• Broadens educational and culturalhorizons• Improves quality of life - higher

incomes and improved standards ofliving

• Justifies environmental protection andimprovement

• Provides tourist andrecreational facilities

that may be used bya local population

Benefits of Tourism -Social







• Reinforces preservation of heritage andtradition

• Visitor interest in local culture providesemployment for artists, musicians andother performing artists enhancingcultural heritage

• Breaks down language barriers,sociocultural barriers, class barriers,racial barriers, political barriers, andreligious barriers

• Creates a favorable worldwide imagefor a destination

• Promotes a global community• Promotes international understanding

and peace

Benefits of Tourism -Cultural







• Creates social problems

• Degrades the natural physicalenvironment and creates pollution

• Degrades the cultural environment

• Threatens family structure• Commercializes culture, religion, and

the arts

• Creates misunderstanding

• Creates conflicts in the host society

• Contributes to disease, economicfluctuation, and transportation problems

Disadvantages of Tourism -Social







• Recognize the antiquity of human travelover vast distances on both sea andland.

• Understand how these journeys haveevolved from trips which were difficultand often dangerous to mass travel formillions today.

• Learn the names of some of the greattravelers in history who wroteastonishing accounts of exotic placesthey had visited.

• Discover the many similarities in travel

motivations, economic conditions,political situations, attractions, andtourist facilities during the time of theRoman Empire and that of today.

Learning Objectives

Chapter 2: Tour ism Through the Ages






• Great Pyramids of Egypt (includingSphinx)

• Hanging Gardens of Babylon• Tomb of Mausolus at Halicarnassus• Statue of Zeus at Olympia

• Collosus of Rhodes in the Harbor atRhodes• Great Lighthouse (Pharos) in

Alexandria, Egypt• Temple Artemis at Ephesus

Seven Wonders of theAncient World

The Great Pyramids of Egyptare the sole remaining wonder.







• Stagecoach Travel• Water Travel• Rail Travel

• Automobile andMotorcoach Travel• Air Travel

Historic Transportation







• Evaluate future job opportunitiesin the tourism field.

• Learn about the careersavailable.

• Discover which might matchyour interests and abilities.

• Know additional sources ofinformation on careers .

Learning Objectives

Chapter 3: Career Opportuni ties






• Airlines

• Bus Companies

• Cruise Companies

• Railroads

• Rental CarCompanies

• Hotel, Motels, andResorts

• Travel Agencies

• Tour Companies• Food Service

Career Possibilities

• Tourism Education

• Tourism Research

• TravelCommunications

• Recreation andLeisure

• Attractions• Tourist Offices and

InformationCenters

• Convention andVisitor Bureaus

• Meeting Planners







Career Paths Within theTourism Industry

Paths within education system and industry …………………………………………

Paths into industry __________________________________________

Grad 11

Grad 12

College

PrivateTraining

School

Vocational

SeniorExecutive

Entre-preneur

University

Front Line

Supervisor

Manager

Career

Undergrad

Post Grad







Sam p le Occu pat io n s ,Valu es & In teres ts

Accommodations

HotelOwner

HotelManager

OperationsChambermaid

EntryChambermaid

Tour &Travel

Tour BusLine Owner

Tour BusLine Mgr..

Tour BusDriver

Ticket Agent

Attractions

AmusementPark G.M.

Director ofSpecial Attractions

OperationsRide

Operator

Entry RideOperator

Food &Beverage

RestaurantOwner

RestaurantManager

Ass‘t ExecutiveHousekeeper Superintendent ofBus Maintenance Amusement ParkSupervisorMaitre D‘

Bartender

Food &Beverage

Server

trepreneur

anager

pervisor

perations

try Level

PredominantValues andInterests

People

Quality

Challenge

Flexibility

Novelty/Change

People

Pre-employment

Personal Worth Work







Learning Objectives

• Understand the magnitude of world tourismin terms of the vast numbers oforganizations that serve the needs of theirdiverse memberships.

• Recognize the variety of types and

functions of tourism organizations.• Know why states support official offices of

tourism.

• Learn how national, regional, and trade

organizations are structured and operated.

Chapter 4: World, National, Regional and Other Organi zations

Part Two: How Tourism Is Organized





Tourism Organizations



W or ld & NationalTr avel Industr y Associations

W orld & NationalGover nment

Tour ism Of f ices

State and Pr ovincialGover nment

Tour ism Off ices

Local& CityGover nment

Tour ism

Depar tments

Local & RegionalTourism Associations/ Convention & V isitor

Bur eaus

State and Pr ovincialTravel Industry Associations





Tourism Organizations

Tourism organizations can be viewedin the following ways:

1. Geographically

2. By ownership

3. By function

4. By industry

5. By motive







International TourismOrganizations

Some goals of WTTC are:

1. Work with governments to make tourism a

strategic economic development andemployment priority.

2. Move toward open and competitivemarkets.

3. Pursue sustainable development.4. Eliminate barriers to growth in the

industry.

World Travel an d To ur is m Cou n ci l







International TourismOrganizations

• Most widely recognized organization intourism

• Serves as a global forum• Transfers tourism know-how• Produces statistics and market research• Develops tourism human resources• Works to facilitate travel• Promotes sustainability• Creates special projects

Wor ld To u rism Org an izat ion (WTO)







DevelopmentalOrganizations

Examples:• World Bank

• United Nations Development

Program• Asian Development Bank

• FONATUR (Mexico)

• EMBRATUR (Brazil)







Regional InternationalOrganizations

• Organization for EconomicCooperation and Development

Mostly European membership, but theUnited States, Canada, Japan and

Australia are also members.• Pacific Asia Travel Association

(PATA) Represents nations in Asia and thePacific.







National Organizations• Office of Travel and Tourism

Industries (OTTI)– International Trade Administration, U.S.

Department of Commerce– Research and Policy

• Travel Industry Association ofAmerica (TIA)

–leading private tourism organization in U.S.– Represents the whole U.S. travel industry

– Promotes and facilitates increased travel toand within the U.S.

• Canadian Tourism

Commission– Public-private partnership– Plans, directs, manages, and implements

programs to generate and promote tourismin Canada.







State Organizations• All 50 states have travel

promotion offices.• Spend $695.8 million on

tourism development.• View tourism as a tool for

economic development.







Other TourismOrganizations

• Convention and Visitor Bureaus (CVBs ) * Not-for-profit umbrella organizations that represent a

city or urban area in the solicitation an servicing of alltypes of travelers to that city or area, whether theyvisit for business, pleasure, or both.

• International Association of Conventionand Visitor Bureaus (IACVB)

* Most city CVBs belong to this organization.







Learning Objectives

• Comprehend the importance of

transportation in tourism.• Understand the airline industry and

its role in travel.

• Examine the domination of theautomobile in travel.

• Learn about the role of rail andmotorcoach travel.

• Study the cruise industry.

Chapter 5: Passenger Transportation







Operating Sectors of theTourism Industry

Chapter 5: Passenger TransportationChapter 5: Passenger Transportation






Passenger Transportation Structure

Other

Transportation

Road Rail Water

MotorBike

AutoBus VehiclesUsed for Accommodation

Inland Maritime

Air

er

Private

ScheduledCharter

andTour

Operator

Scheduled

Rental

PrivatelyOwned

TruckCamper

MotorHome

TravelTrailerTentTrailer

Other

Commercial

PrivateCommercial

Private PrivateSnowmobiles

Foot

Bicycles

HorseDrawn

Vehicles

AerialTramway

and Ski Lif

CharterScheduled

Commercial

Charter

Scheduled







Urgent TransportationProblems

1. Congestion

2. Safety and security

3. Environmental damage

4. Seasonality







Airline Industry

• World airline industry carries over1 billion passengers per year.

• The U.S. airline industry in 2000* Employed 679,967 people

* Carried 1.6 million passengers each day

* Recorded revenues of $129.5 billion

However, during 1990 - 1993, U.S. carrierslost more than $12.8 billion. A weak airtransportation system affects the rental car

business, hotels, and attractions.In 2001 carriers suffered record losses.







Rail Industry

• Reached its peak volumein the U.S. in 1920.

• Major railroads want out of thepassenger service business (exceptcommuter service). Passengerservice depends on Amtrak. Thesituation is similar in Canada with

passenger service dependent on VIARail.• Passenger rail service is much more

important outside of North America.Efficient, economical, high speedtrains provide an alternative to airtravel.







Motorcoach Industry

• Intercity bus passengers tend to be lowerincome non-business travelers who arevery price sensitive.

• Intercity bus service is becoming lessimportant due to increased auto ownershipand aggressive airline pricing.

• Bus travel is characterized by:

• More travel to and from rural areas andsmall towns than other modes oftransportation.

• Lower average ticket revenues than othermodes.

• Intercity bus industry is a small-businessindustry with a great deal of flexibility.• Many bus companies focus primarily or

exclusively on charter, tour or commuteroperations.







Cruise Industry • Fastest growing segment of the travel

industry.• Since 1980 had average annual growth

rate of 8.4%.

• Expanding fleets.

• Adding new ports of call.

• Seeing consolidation.

• Served by the Cruise Lines

International Association.







The Lodging Industry

• World hotel room inventory growsabout 2.5% a year.• Occupancy rates average 65%

overall.

• 72% of the world‘s hotel rooms arelocated in Europe and North America. Europe has 45% of therooms.

• In 2000, the U.S. lodging industry

generated $108.5 billion in sales,numbered 53,500 properties, 4.1millions rooms, and recorded profitsof $24 billion.

Chapter 6: H ospital i ty and Related Services






Food Services Structure

Food Services

Independent Chain In-Hotel

Fast FoodRestaurants

TraditionalRestaurants

Ethnic Local

Cafeterias

Specialty

Independent

Broad Menu

Specialty Ethnic

Local

MinimalService

Full Service







Food Service Industry (2001)

U.S. sales total estimated $399 billion --5% over 2000.

Employs more than 11 million people.•2.0 million more employees expected by2005.

•Nearly 60% of employees are women,13% are Hispanic, and 11% are African-

American.•Industry employees more more minoritymanagers than any other retail industry.

Travelers contribute about

$130 billion to sales each year.







Meetings and Conventions

• Industry worth $82 billion.

• Average convention attendeespends $218 per day, stays 4.1days and spends $895 perevent.

• Convention centers areexpanding.







Tourism Distribution Channels

Suppliers Transportation Providers Accommodations Food Service Resorts

Recreation, Entertainment, Etc.

Customers Individuals Pleasure Groups Business Groups, Etc.

TourWholesaler

SpecialtyChanneler

Retail Travel Agent

SpecialtyChanneler

SpecialtyChanneler

SpecialtyChanneler

TourWholesaler

TourWholesaler

TourWholesaler

Retail Travel Agent

Retail Travel Agent

Retail Travel Agent

DirectChannel

viaTelephone

InternetSuppliers

Office

Chapter 7: Organizations in the Di str ibuti on Pr ocess






Learning Objectives

• Examine the attractionsindustry.

• Look at the role of theme parks.

• Understand the gaming

industry.• Describe public andcommercial recreation facilities.

• Recognize shopping as a travelattraction .

Chapter 8: Attr actions, Recreation, E ntertainment and Other






Learning Objectives • Adopt a professional approach to

motivation and recognize differences in

other people‘s motives. • Appreciate the range of ideas on travel

motivation.

• Be aware of contemporary researchpractices in tourism that integratemotive and feature destinationassessments.

• Be familiar with conceptual approachesto tourism motivation and recognizethere is continual development andenhancement of ideas in this field .

Chapter 9: M otivation for Pleasur e Travel

Part Three: Understanding Travel Behavior





ravelers tend to bemore selective in theirmphasis on travel

motives withxperience

Self-esteem/development needs

Fulfillment needs

Relationship needs

Safety/security needs

Physiological

Other=directed Self=directed

Other=directed Self=directed

Self=directed Other=directed

Externally oriented Internally oriented

Travelers have multiplemotives in their pattern

of needs even thoughone category of needs

may be more dominant Need for self-actualization Need for flow experiences

Need for status Need for respect and recognition Need for achievement

Need for self-development Need for growth Need for curiosity/mental stimulation Need for mastery, control, competence Need for self-efficacy Need to repeat intrinsically satisfying behaviors

Need to reduce anxiety about others Need to affiliate

Need to give love, direction

Need to reduce anxiety Need to predict and explain the world

Need for security

Need for escape, excitement, curiosity Need for arousal, external excitement and stimulation

Need for sex, eating, drinking Need for relaxation (manage arousal level)

A “spine” or “core” of needs for nearly all travelers seems to include relationships, curiosity, and relaxation

Chapter 9: M otivation for Pleasur e Travel






Learning Objectives • Recognize that travel experiences are the

best way to learn about other cultures.

• Identify the cultural factors in tourism.• Appreciate the rewards of participation in

life-seeing tourism.

• Become aware of the most effectivepromotional measures involving an area‘scultural resources.

• Realize the importance of culturalattractions to any area promoting itself asa tourist destination.

• Evaluate the contributions thatinternational tourism can make towardworld peace.

Chapter 10: Cultural and International Tourism for Life’s Enrichment






Market TiesSpecial Events

Entertainment

SuperstructureCulture

Climate

W o r k

D r e

s s

A r c

h i t e

c t u r

e

H a n d i c r a f t

s

H i s t o r y

R e l i g i o n

La n g u a g e

E d u c a t i o n T r a d i t i o n s

L e i s u r e A c t i v i t i e s

A r t / M

u s i c

G a s t r o n o m y

STAGE 1Core factors that

determine the overallattractiveness of a

tourism region.

STAGE 2Social and cultural

elements contributingto the attractivenessof a tourism region

Mix of Activities

Physiography &Climate







Six Categories of Tourism

1. Ethnic Tourism

2. Cultural Tourism

3. Historical Tourism

4. Environmental Tourism5. Recreational Tourism

6. Business Tourism

Source: Valene Smith, Hosts and Guests, 1977.







Negative Social Effects ofTourism on a Host Society 1. Introduction of undesirable activities such as

gambling

2. Demonstration effect • Local people wanting the same luxuries andimported goods as those had by tourists

3. Racial tension4. Development of a servile attitude on the part of

tourist business employees5. Trinketization of arts and crafts6. Standardization of employees roles7. Loss of cultural pride8. Too rapid change in local ways9. Disproportionate numbers of worker in low-paid,

menial jobsThese effects can be moderated or

eliminated by intelligent planning andprogressive management methods.


Chapter 11: Sociology of Tour ism





Four Extremes Relating to theBehavior Preferences of the

International Tourist 1. Relaxation versus activity

2. Familiarity versus novelty

3. Dependence versus autonomy4. Order versus disorder







Barriers to Travel 1. Cost

2. Lack of time

3. Health limitations

4. Family stage5. Lack of interest

6. Fear and safety







Learning Objectives • Know the four major supply components that

any tourist area must possess.

• Become familiar with the newer forms ofaccommodations — condominium apartmentsand time sharing arrangements.

• Be able to use the mathematical formula tocalculate the number of guest rooms neededfor the estimated future demand.

• Develop the ability to perform a task analysisin order to match supply components withanticipated demand.

• Discover methods of adjusting supplycomponents in accordance with fluctuatingdemand levels.

Chapter 12: Tour ism Components and Supply

Part Four: Tourism Supply, Demand Policy, Planning,and Development





Tourism Supply Components

Can be classified

into four main categories:1. Natural resources

2. Built Environment

3. Operating Sectors

4. Spirit of hospitalityand otherresource







Formula to Calculate Numberof Hotel Rooms Required

R = T x P x LS x N

whereT = number of touristsP = percentage staying in hotelsN = total number of guest

nights/number ofguests

R = room demand pernights/number

O = hotel occupancy used forestimating;divide number of roomsneeded at 100%occupancy by estimatedoccupancy

S = number of days per yearin business

L = average length of stay

Example

T = 1,560,000 visitorsP = 98%L = 9 days

N = 1.69 0 = 70 % S = 365 days

R = 1,560,000 x .98 x 9365 x 1.69

R = 22,306 (rooms neededat 100% occupancy)at 70 % occupancy needR = 22,306/.70 = 31,866rooms







Learning Objectives

• Know the definition of demand and

its application and importance intourism development planning.

• Understand the factors determiningthe magnitude and fluctuations of

demand.• Become able to apply various

methods to measure and forecastdemand.

Chapter 13: M easur in g and F orecasting D emand






Measures of ActualDemand

1. Visitor arrivals– Number of people arriving at a

destination who stay for 24 hoursor longer

2. Visitor - days or -nights– = no. of visitors x avg. no. of days

or nights at destination

3. Amounts spent– = no. of visitor - days or - nights

x avg. expenditure per day/night







Projection MethodologySeveral statistical methods or econometricanalysis can be used to project demand.

• Trend analysis method

• Simple Regression — Linear least squaremethod

• Multiple Regression — Linear least squaresmethod

• Computer simulations and models

• Executive Judgement (Delphi) method







Three Major Goals of Tourism

1) Maximize the amount of psychological

experience for tourists.2) Maximize the profits for firms providing

goods and services to tourists.

3) Maximize the direct (primary) andindirect (secondary) impacts of touristexpenditures on a community or region.

These goals are often compatible but incertain situations they can be

incompatible.

Chapter 14: Tourism’s Economic Impact






Tourism Policy:A Definition

Tourism policy can bedefined as follows:

A set of regulations, rules,guidelines, directives, and

development/ promotion objectivesand strategies that provide aframework within which thecollective and individual decisionsdirectly affecting tourismdevelopment and the daily activitieswithin a destination are taken.

Chapter 15: Tour ism Policy, Stru ctur e, Content and Process






Some Elements of Successful“total tourism destination

management” COMPETITIVENESS

[Resource Deployment]

Business/EconomicManagement Skills

SUSTAINABILITY

[Resource Stewardship]

Environmental ManagementCapabilities

Marketing

Financial Management

Operations Management

Human Resources Management

Information Management

Organization Management

Strategic Planning

Water Quality Management

Air Quality Management

Wildlife Management

Forest/Plant Management

Visitor Management

Resident/CommunityManagement

Commemorative Integrity

Information Management

Destination Monitoring Destination Research







TransportationIndustries andInfrastructure

Tourism: Some of its multipleinterfaces with other sectorsof the economy and society

Legal/Political Players

Technology

Sector

Environmental Movement

Entertainment

Industry

Resource Extraction Industries

Health Services Sector

Education Sector

Financial

Sector

T T

O O

U U R R I I

S S

M M







The Structure andComposition of Tourism

Policy

SupplyDevelopment

Strategies

SupplyDevelopment

Strategies

Operational/TacticalSupply Development

Policies/Programs

Operational/Tactical

Supply DevelopmentPolicies/Programs

Destination AuditDestination Audit

Tourism Objectivesand ConstraintsTourism Objectivesand Constraints

Macro-ManagementOrganizational

Structure

Macro-ManagementOrganizational

Structure

Operational/TacticalDemand Development

Policies/Programs

Operational/Tactical

Demand DevelopmentPolicies/Programs

DemandDevelopment

Strategies

DemandDevelopment

Strategies

Tourism PhilosophyTourism Philosophy

Tourism VisionTourism Vision







Relating Tourism Planningto Tourism Policy

SIMILARITIES1. They both deal with the future development of a tourism destination or

region;2. They both emphasize the strategic dimensions of managerial action –

although planning must also address a number of tactical concerns.

DIFFERENCES1. Policy formulation is definitely very ―big picture‖ while much of planning

is characterized by an attention to detail;2. Policy formulation is a creative, intellectual process, while planning is

generally a more constrained exercise;3. Policy, and particularly its visioning component, has a very long-term

strategic emphasis, while planning tends to be more restrictive in itstime horizon. A one-year planning cycle is not uncommon, although 3-5year plans are a possibility. In contrast, destination visions may have a5, 10, 50, or even a 100 year time horizon;

4. Policy formulation must allow for as yet unseen circumstances andtechnologies to be considered. In contrast, planning tends to assume

current conditions and technologies, with some allowances forpredictable, or evolutionary change;5. Policy formulation tends to emphasize a systematic determination of

―WHAT‖ should be done in long-term tourism development, whileplanning tends to emphasize the ―HOW‖ for the achievement of specificdestination goals.

Chapter 16: Tour ism Plann ing, Development, and Social Consideration






Some Advantages of Tourism

• Provide employmentopportunities

• Generates foreignexchange

• Increases incomes

• Increases GNP

• Development of tourisminfrastructure helps tostimulate localcommerce and industry

• Justifies environmental

protection andimprovement

• Increase governmentalrevenues

• Diversifies the economy• Creates a favorable

worldwide image for thedestination

• Facilitates the process ofmodernization

• Provides tourist andrecreation al facilities forthe local population

• Provides foreigners andopportunity to befavorable impressed bylittle-known nation orregions

Chapter 16: Tour ism Plann ing, Development, and Social Consideration






WTTC~ Key Environmental Issues ~

Global warmingDepletion of the ozone layer

Acid rain

Depletion and pollution ofwater resources

Depletion and pollutionof land resources

Chapter 17: Tour ism and the Envir onment






WTTC~ Implications of Resource Depletion ~

Political instability or increased competition for landcould lead to loss of potential new tourismdestinations and degradation of existing destinations.

Loss of landscape and wildlife could cause adecrease in customer satisfaction with tourism

products and hence lower propensity to travel tosome destinations.

Higher fuel prices could lead to operational priceincreases and corresponding decreases in thenumber of travelers in this price- sensitive market.”







Elements of the WTTC Visionof Travel & Tourism

and the EnvironmentTravel & Tourism is an integral aspect of modern societiesGlobal awareness of environmental damage is developingrapidlyThe resources of the world‘s largest industry can and mustbe harnessed to achieve environmental goalsThe industry has the potential to influence billions ofcustomers per years and to use its leverage to achieve

beneficial environmental effectsThe customer challenge will exert a growing pressure toachieve environmental improvementsEnvironmental lobbies will add pressure to develop goodenvironmental practiceSelf-regulation must be developed rapidly and effectivelyand used to influence the development of appropriate andworkable regulationsCorporate environmental mission statements are a vitalfirst step toward self-regulationEnvironmental leadership must come from the majorinternational companies







The Premises ofSustainable Development

• The Premise of Interdependency• The Premise of Multidisciplinarity

• The Premise of PreviousExperience

• The Premise that Nature is Better

• The Premise of Politics andPower







Sustainable Development andTourism: The Critical Areas

• Defining the RelevantPopulation/Community

• Defining the Time Horizon

• Defining the Dimensions ofSustainability

• Defining the Values thatUnderlie SustainableDevelopment







Sustainable Tourism~ An Agenda for Action ~

ACTIVITIES: Coordinating the development of a tourismphilosophy and vision for the community/ region

Specifying the major goals of the community/regionwith respect to tourism

Obtaining consensus concerning the social, physical,

and cultural carrying capacity of thecommunity/region in question

Identifying the specific action initiatives necessary tomeet the tourism development objectives whilerespecting the destination‘s carrying capacities

Gaining agreement on the measures to be used in

monitoring the impacts of tourism in thecommunity/region

Gathering and disseminating information concerningthe impacts of tourism on the community/region







Sustainable Tourism~ An Agenda for Action ~

PROGRAM ELEMENTS:

Maximum total visitation levels to a community/region

An obligatory tax to support tourism infrastructureplanning, development, and maintenance

Community-supported legislation to protect and

preserve unique resources and heritage sitesCommunity and industry consensus concerningarchitectural and signage standards

Support for standards and certification programs thatencourage staff development and the delivery of

high-quality service







• Responsible travel to natural areasthat conserves the environment andsustains the well-being of local people

• Environmentally friendly travel thatemphasizes seeing and saving naturalhabitats and archeological treasures

• A tool for conservation

• Ecologically responsible tourism

Definitions of Ecotourism

Some definitions of ecotourism

are as follows:







• Provides jobs and income for localpeople

• Makes possible funds to purchaseand improve protected or naturalareas to attract more ecotourists inthe future

• Provides environmental educationfor visitors

• Encourages heritage andenvironmental preservation andenhancement

Benefits and Importanceof Ecotourism







Translating Idealism intoSustainable Tourism

~ What Managers Need to Know ~

Measures of• The general relationship

between tourism and theenvironment

• The effects of environmentalfactors on tourism

• The impacts of the tourismindustry on the environment







Types of Indicators

• Core indicators of sustainable tourism which have been developed for

general application to all destinations• Destination-specific indicators

applicable to particular ecosystems ortypes of tourism. These indicators fall

into two categories: – Supplementary ecosystem-specific indicators forapplication to particular ecosystems (e.g., coastalareas, parks and protected areas, or mountainousregions).

– Site-specific indicators that are developed uniquelyfor the particular site. These indicators reflect

important factors of the site. Which may not beadequately covered by the core and supplementaryeco-system-specific indicator sets, but arenonetheless needed for management of the

particular site.







Core Indicators ofSustainable Tourism

Indicator Specific MeasuresSite Protection Category of site protection according to IUCN a indexStress Tourist numbers visiting site (per annum/peak month)Use Intensity Intensity of use in peak period (persons/hectare)

Social Impact Ratio of tourists to locals (peak period and over time)Development Control Existence of environmental review procedure or formal controls

over development of site and use densities

Waste ManagementPercentage of sewage from site receiving treatment (additionalindicators may include structural limits of other infrastructuralcapacity on site, such as water supply)

Planning Process Existence of organized regional plan for tourist destination region(including tourism component)

Critical Ecosystems Number of rare/endangered speciesConsumer Satisfaction Level of satisfaction by visitors (questionnaire-based)

Local Satisfaction Level of satisfaction by locals (questionnaire-based)Tourism Contributionto Local Economy Proportion of total economic activity generated by tourism only

Composite Indices b Specific Measures

Carrying Capacity Composite early warning measure of key factors affecting the

ability of the site to support different levels of tourism

Site Stress Composite measure of levels of impact on the site (its natural

and cultural attributes due to tourism and other sector cumulative stresses)

Attractivity

Qualitative measure of those site attributes that make itattractive to tourism and can change over time

a International Union for the Conservation of Nature and Natural Resources

b The composite indices are largely composed of site-specific variables. Consequently, the identification and evaluation of the indicatorscomposing these indices require on-site direction from an appropriately trained and experienced observer. In the future, based on theexperiences in designing composite indicators for specific sites, it may be possible to derive these indices in a more systematic fashion.See the case studies for Villa Gesell and Peninsula Valdes for application of these indices.

Source: World Tourism Organization







Tourism IndustryAssociations of Canada

• Enjoy our diverse natural and cultural heritage

and help us to protect and preserve it.• Assist us in our conservation efforts through the

efficient use of resources, including energy andwater.

• Experience the friendliness of our people andthe welcoming spirit of our communities. Helpus to preserve these attributes by respectingour traditions, customs, and local regulations.

• Avoid activities which threaten wildlife or plantpopulations, or which may be potentiallydamaging to our natural environment.

• Select tourism products and services thatdemonstrate social, cultural, and environmentalsensitivity.







• Recognize the role and scope oftravel research

• Learn the travel research process

• Study secondary data and how itcan be used

• Understand the methods ofcollecting primary data

• Know who does travel research

Learning Objectives

Chapter 18: Travel and Tour ism Research

Part Five: Essentials of Tourism Research and Marketing





1. To delineate significant problems

2. To keep an organization or a businessin touch with its markets

3. To reduce waste4. To develop new sources of profit

5. To aid in sales promotion

6. To create goodwill

Uses of Travel Research Some uses or functions of travel

research are:







1. Identify the problem

2. Conduct a situation analysis3. Conduct an informal investigation

4. Develop a formal research design

5. Collect the data6. Tabulate and analyze

7. Interpret

8. Write the report9. Follow up

The Travel Research Process







Sources of InformationSec o n d ary Data

Saves time and money if the data is related to your

problem and is relatively current.

The following criteria may be use to appraise thevalue of information obtained from secondary datasources:1. The organizations supplying the data2. The authority under which the data was gathered3. Freedom from bias4. Adequacy from the sample5. The nature for the unit in which the data are

expressed6. Accuracy of the data7. Pertinency to the problem8. Careful work







Basic Research Methods

• Focus Groups

• The Survey Method – Factual surveys

– Opinion surveys

– Interpretive surveys

– Personal interviews

– Telephone surveys

– Mail surveys

– Electronic devices

• Observational method

• Experimental method







Marketing Mix The marketing mix is composed ofevery factor that influences themarketing effort.

1. Timing

2. Brands

3. Packaging

4. Pricing

5. Channels ofdistribution

6. Product

7. Image

8. Advertising

9. Selling

10. Publicrelations

Chapter 19: Touri sm M arketing






Product Life Cycle







Factors that InfluencePrice Policies

1. Product quality

2. Productdistinctiveness

3. Extent of thecompetition

4. Method ofdistribution

5. Character of themarket

6. Cost of theproduct andservice

7. Cost of distribution

8. Margin of profitdesired

9. Seasonality

10. Special promotionalprices

11. Psychologicalconsiderations







Price Skimming

Skimming is appropriate when the

product or service has the followingcharacteristics:

• Price inelasticity

• No close substitutes

• High promotion elasticity

• Distinct market segments basedon price







Penetration Pricing

• High price elasticity

• Economies of scales

• An easy fit of the product intoconsumer purchasing patterns

Penetration pricing is appropriatewhen the following factors arepresent:







Selection ofChannels of Distribution

Channels of distribution are selected by:

1. Analyzing the product2. Determining the nature and extent of

the market

3. Analyzing the channels by sales4. Determining the cooperation you can

expect from the channel

5. Determining the assistance you will

have to give to the channel6. Determining the number outlets

outlets to be used







Promotion In order to sell the product it is

necessary to:1. Attract attention

2. Create interest

3. Create a desire

4. Get action







Typical Bases for MarketSegmentation

• Geographic

• Demographic

• Socio-economic

• Psychographic

• Behavior patterns

• Consumption patterns

• Consumer predispositions







• Examine forecasts concerning thegrowth of international tourism.

• Identify the major global forces whichare shaping the tourism of tomorrow.

• Understand the impacts, both positiveand negative, which these forces arelikely to have on tourism markets and onthe ability of destinations to respond tothe demands of these markets.

• Highlight the powerful and positive

impact that the environmentalmovement has had, and will increasinglyhave, on tourism development.

Learning Objectives

Chapter 20: Tourism’s Future

Part Six: Tourism Prospects





The World of Tourismin 2020

Forecasts of International Tourists Arrivals (millions)Worldwide and by Region 1995-2020

Tourist Arrivals (million)Regions

1995 2000 2010 2020Europe 335 390 527 717

East Asia/Pacific 80 116 231 438

Americas 111 134 195 284

Africa 20 27 46 75

Middle East 14 19 37 69

South Asia 4 6 11 19

World 564 692 1,047 1,602







WTO – Tourism to the Year 2020The principal determinants of, and influences on, international tourismactivity taken over the duration of the 1995 and 2020 period areidentified as being:

Economic

continued moderate-to-good rates of global economic growth above average economic performance of the Asian tiger economies

emerging importance of new tiger economies (i.e. China, India,Brazil, Indonesia, Russia)

widening gap between rich-poor countries

spread of harmonization of currencies

Technology information technology development

transport technology advances

Political

removal of barriers to international travel

transport and other forms of deregulation

Demographic aging population and contracting workforces in industrializedcountries leading to South North migration

erosion of the traditional western household

(continued on next slide)







WTO – Tourism to the Year 2020(continued from previous slide)

Globalization

growing power of international economic and market forces andconsequent reduced control of individual states and non-globalcorporation

Localization

conflict in developing countries between identity and modernity

demand from groups defined on ethnicity, religion and socialstructures to be recognized in their own rights

Socio-Environmental Awareness

boosted public awareness of socio-cultural and environmentalissues

greater media reporting on major global problems (e.g. reducingwater supplies)

Living and Working Environments

growing urban congestion both in the industrialized and (especially)developing worlds

Change from “Service” to “Experience” Economy focus switching to delivering unique experiences that personallyengage the customer

Marketing

use of electronic technology to identify and communicate withmarket segments and niches







Economic

New Realities New Horizons

Many high-quality public facilities and attractionsthat have traditionally been supported and/orsubsidized by governments will come underserious funding pressures.

Market competition will prove a powerful force inkeeping the costs of travel under control, thuskeep accessible to a large percentage of thepopulation.

It will become more difficult to justify and to

publicly finance large- scale ―megaprojects‖ or ―megamonuments,‖ some of that have becomemajor, symbolic tourism attractions. As well,supporting infrastructure, such as roads andairports, will be more difficult to f inance.

There will be new opportunities for innovative

financing approaches for megaprojects andmegadevelopments that enjoy the support of theresidents of a destination (e.g., communitybonds).

Rise of the City State


Large countries will find it less desirable and lessproductive to undertake general awareness-typepromotion; budgets for such promotions willdecline.

Those highly focused destinations that have highvisibility, good access, an attractive product, andwhich can develop a distinctive image willdominate the market.

Smaller destinations having no particularlyunique characteristics will find it even moredifficult to compete with higher-profile centers.

Strategic alliances and reciprocal agreementsbetween city-states that complement oneanother will grow in importance.

Nations/economic communities may becomemuch more demanding in terms of visitor entryrequirements as they perceive that ―tourists‖risk transforming themselves into refugees ordefacto immigrants.

Diverse, multicultural societies brought aboutthrough immigration will create increaseddemand for travel as people exchange visits withfamilies and friends.

Destination residents may become increasinglyless tolerant of ―visibly‖ or ―linguistically‖different visitors whom they see as posing athreat as a potential immigrant.

Ethnic groups in tourism generating countrieswill have the opportunity to develop,educational/cultural travel experiences for theircompatriots. Such experiences could involve

both pre-travel and travel experiences.







The Move to Branding of DestinationsNew Realities New Horizons

Destinations will have the ability to identify anddifferentiate themselves more effectively.

Destinations cannot be modified like otherconsumer products when it is found the existingbrand is viewed negatively.

The value in creating unique brands will increasedramatically.

The expertise for destination brand creation ishard to find —and costly.

Smaller destinations having no particularlyunique characteristics will find it even moredifficult to compete with higher-profile centers.

Strategic alliances and reciprocal agreementsbetween city-states that complement oneanother will grow in importance.

Nations/economic communities may becomemuch more demanding in terms of visitor entryrequir ements as they perceive that ―tourists‖risk transforming themselves into refugees ordefacto immigrants.

Diverse, multicultural societies brought aboutthrough immigration will create increaseddemand for travel as people exchange visits withfamilies and friends.

Political


The tourism planning and development processwill be increasingly constrained and slowed bythe need for meaningful public involvement andinput.

Implementation of approved development planswill be easier as ―surprises‖ will be minimizedand as broader agreement results from publicinvolvement.

It will be more difficult for individual operatorsto proceed with nonconforming developments — sometimes at the risk of inhibiting innovation.

The formulation of ―resident responsive visions‖of local/regional tourism will provide morecommitment to tourism and greater coherencyin the tourism product/experience provided by adestination.

Environmental


Virtually all future tourism development will beconstrained by the need for environmentalsensitivity.

Conservation, preservation, and restorationpresent new themes for the design of tourismexperiences. Regions that are presentlyundeveloped or in a natural state have a unique

opportunity to provide an attractive experienceto visitors.

The non-economic costs of tourism will need tobe factored into development decisions. Thecosts of development, using nontraditionalaccounting frameworks, will increase, thusforcing higher prices on the travel experience.

Emphasis on the quality of the tourismexperience will reduce growth in the number oftravelers but enhance net financial and non-financial impacts on tourism destinations.







Technology


The rapid evolution of technology makes theinvestment in hardware, software, and trainingmore than many tourism firms can afford.

Certain sectors of tourism are finding technologyto be a cost-effective means for marketing tosmall niche markets; other larger sectors areproving highly successful in utilizing technologyto actually close sales.

Much of the human resource base of the tourismindustry is ill-equipped and thus ill-disposedtoward the widespread adoption of technology.At least passive resistance may be encounteredat all levels.

Because of the present low level of penetrationof technology on tourism, there is muchpotential for significant gains on performanceand productivity both in terms of facility designand service delivery.

Introducing technology without losing thewarmth of the human experience will be difficult.Choosing the appropriate balance of high-tech/high-touch will require insight and good

judgment.

Education and training levels will have toincrease if managers and staff are to select andimplement technology-based improvements inan effective manner (EIESP, 1991).

The Knowledge-Based Society


Modem technology is increasingly attempting toprovide alternatives to physical travel.Teleconferencing is finally gaining wideracceptance; virtual interface technology

purports to provide the travel experiencewithout travel.

Travelers will increasingly want to trulyexperience and understand a destination. As aresult, they will be interested in spending moretime in a region and interfacing with residents in

more meaningful ways.

Knowledge-based employees tend to work insanitized, controlled environments. As such,they may shun travel experiences that arephysically challenging, moderatelyuncomfortable, or culturally threatening.

Travelers of the future will be increasinglyreceptive to technologies and services thatfacilitate travel while reducing costs andminimizing the need for menial and/ordemeaning labor.

Demographic Shifts


The aging of travelers from traditional tourism-generating countries will cause demands for newexperiences and new facilities. As aconsequence, existing tourism plant maybecome economically obsolete.

For the next 20 years, residents of developednations in the 45 – 65 age category will increasesubstantially. These individuals will have thetime, the discretionary income, and the desire totravel.

Increasingly diverse lifestyles will make marketsegmentation increasingly important. However,the tailoring of ―designer vacations‖ will make itharder to standardize the tourism product, andthus to control costs.

Firms that can read, anticipate, and respond tothe specific needs/desires of high quality nicheor ―special interest‖ markets in innovative wayswill have great opportunities for success.





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Tourism: principle, practice and procedure

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