tourism - principles, practices, philosopies

Tourism: Principles, Practices, Philosophies

9th Edition - ©2003

• Understand what tourism is and its many definitions.

• Learn the components of tourism and tourism management.

• Examine the various approaches to studying tourism.

• Appreciate how important this industry is to the economy of the world and of many countries.

• Know the benefits and costs of tourism.

Learning Objectives

Chapter 1: Tourism in Perspective

Part One: Tourism Overview



Definition of TourismTourism may be defined as the processes, activities, and outcomes arising from the relationships and the interactions among tourists, tourism suppliers, host governments, host communities, and surrounding environments that are involved in the attracting and hosting of visitors.





WTO Definition of Tourism

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.





Visitor

A “visitor” is defined as those persons who travel to a country other than that in which they have their usual residence but outside their usual environment for a period not exceeding twelve months and whose main purpose of visit is other than the exercise of an activity remunerated from 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, and nomads.





Travel Trade

Sector

AccommodationSector

Even

ts S

ecto

r

Transportation

Sector

Adventure & Outdoor

Recreation SectorFood Services

Sector

National TravelIndustry

Associations

NationalGovernment

Tourism Offices

State and ProvincialGovernment

Tourism Offices

Local andCity Government

TourismDepartments

Local & RegionalTourism Associations/Convention & Visitor

Bureaus

State and ProvincialTravel IndustryAssociationsA

ttractions Sector

Ente

rtain

men

tSe

ctor

Tourism

Services

The Tourism Phenomenon:Components of tourism and tourism management





Tourism Course

Departmentor Discipline

Management of Tourism

Organizations Tourism Studies

Policy Issues

Recreation

Managem

ent

Soc

iolo

gy o

f T

ouris

mTourism

Education

Transportation

StudiesHost-

Guest

Relationsh

ip

Tour

ism

Mot

ivat

ionEco

nom

ics

of T

ouris

m

Rural

Tourism

Geography of Tourism

Tourism Law

Mar

ketin

g of

Tour

ism

Tou

rism

Pla

nnin

g an

d D

evel

opm

ent

Soc

iolo

gyP

arks and R

ecreation

Political

Science

Business

Eco

nom

ics

Anthropology

Geography

Architecture

Agriculture

Transportation

Hotel and

Restaurant

Adm

inistration

Education

Law

Mar

ketin

g

Urb

an a

nd

Reg

iona

l P

lann

ing

New VentureDevelopmentEntrepreneurship

Heritage and

Environment

Management

Environmental

Studies

History

of

Tourism

History

CasinoManagement

Gaming

Sports

Tourism

and Medicine

Kinesiology

Psy

chol

ogy

LandscapeDesign

Hospitality

Studies

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

Disciplinary inputs to the tourism field





In 2001 it is estimated to account for some:

•$3.5 trillion of Economic Activity

•207 million jobs

In 2011 it is estimated to account for :

•$7.0 trillion of Economic Activity

•260 million jobs

Travel and Tourism ---World’s Largest Industry

Source: WTTC





• Travel and Tourism will continue to expand faster than the economy as a whole and faster than comparable industries.

• By 2011 Travel & Tourism is expected to account for:

*Over twice the output at $7.0 trillion *More jobs --- 260 million employees

• Growth depends on enlightened government policy

Travel and Tourism CanDouble in Size by 2011

Source: WTTC





World’s Top 5 Tourism Destinations

2000International Market Share

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

1 France 74,500 2.0 10.72 United States 52,700 8.7 7.53 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 5Tourism Earners

2000

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 6.53 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 a total 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 traditionally disadvantaged.

Source: Travel Industry Association of America (TIA)





• Can be developed with local products and resources

• Diversifies the economy

• Tends to be compatible with other economic activities

• Spreads development

• High multiplier impact

• Increases governmental revenues

Benefits of Tourism - Economic

• Provides employment opportunities

• Generates foreign exchange

• Increases Incomes

• Increases GNP

• Can be built on existing infrastructure

• Develops an infrastructure that will also help stimulate local commerce and industry





• Broadens educational and cultural horizons

• Improves quality of life - higher incomes and improved standards of living

• Justifies environmental protection and improvement

• Provides tourist andrecreational facilitiesthat may be used bya local population

Benefits of Tourism - Social





• Reinforces preservation of heritage and tradition

• Visitor interest in local culture provides employment for artists, musicians and other performing artists enhancing cultural heritage

• Breaks down language barriers, sociocultural barriers, class barriers, racial barriers, political barriers, and religious barriers

• Creates a favorable worldwide image for a destination

• Promotes a global community• Promotes international understanding

and peace

Benefits of Tourism - Cultural





• Develops excess demand

• Results in high leakage

• Creates difficulties of seasonality

• Causes inflation

• Can result in unbalanced economic development

• Increases vulnerability to economic and political changes

Disadvantages of Tourism - Economic





• Creates social problems

• Degrades the natural physical environment 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, economic fluctuation, and transportation problems

Disadvantages of Tourism - Social





• Recognize the antiquity of human travel over vast distances on both sea and land.

• Understand how these journeys have evolved from trips which were difficult and often dangerous to mass travel for millions today.

• Learn the names of some of the great travelers in history who wrote astonishing accounts of exotic places they had visited.

• Discover the many similarities in travel motivations, economic conditions, political situations, attractions, and tourist facilities during the time of the Roman Empire and that of today.

Learning Objectives

Chapter 2: Tourism Through the Ages




• Great Pyramids of Egypt (including Sphinx)

• Hanging Gardens of Babylon• Tomb of Mausolus at Halicarnassus• Statue of Zeus at Olympia• Collosus of Rhodes in the Harbor at

Rhodes• Great Lighthouse (Pharos) in

Alexandria, Egypt• Temple Artemis at Ephesus

Seven Wonders of the Ancient World

The Great Pyramids of Egyptare the sole remaining wonder.





• Stagecoach Travel

• Water Travel

• Rail Travel

• Automobile and Motorcoach Travel

• Air Travel

Historic Transportation





• Evaluate future job opportunities in the tourism field.

• Learn about the careers available.

• Discover which might match your interests and abilities.

• Know additional sources of information on careers.

Learning Objectives

Chapter 3: Career Opportunities




• Airlines

• Bus Companies

• Cruise Companies

• Railroads

• Rental Car Companies

• Hotel, Motels, and Resorts

• Travel Agencies

• Tour Companies

• Food Service

Career Possibilities

• Tourism Education

• Tourism Research

• Travel Communications

• Recreation and Leisure

• Attractions

• Tourist Offices and Information Centers

• Convention and Visitor Bureaus

• Meeting Planners





Career Paths Within the Tourism Industry

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

Paths into industry __________________________________________





Sample Occupations,Values & Interests

Accommodations

Hotel Owner

Hotel Manager

Operations Chambermaid

Entry Chambermaid

Tour & Travel

Tour Bus Line Owner

Tour Bus Line Mgr..

Tour Bus Driver

Ticket Agent

Attractions

Amusement Park G.M.

Director of Special Attractions

Operations Ride

Operator

Entry Ride Operator

Food & Beverage

Restaurant Owner

Restaurant Manager

Ass’t Executive Housekeeper

Superintendent of Bus

Maintenance

Amusement Park Supervisor

Maitre D’

Bartender

Food & Beverage

Server

Entrepreneur

Manager

Supervisor

Operations

Entry Level

Predominant Values and Interests

People

Quality

Challenge

Flexibility

Novelty/Change

People

Pre-employment

Personal Worth Work





Learning Objectives

• Understand the magnitude of world tourism in terms of the vast numbers of organizations that serve the needs of their diverse 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 Organizations

Part Two: How Tourism Is Organized



Tourism Organizations

World & NationalTravel IndustryAssociations

World & NationalGovernment

Tourism Offices

State & ProvincialGovernment

Tourism Offices

Local & CityGovernment

TourismDepartments

Local & RegionalTourism Associations/Convention & Visitor

Bureaus

State & ProvincialTravel IndustryAssociations





Tourism Organizations

Tourism organizations can be viewed in the following ways:

1. Geographically

2. By ownership

3. By function

4. By industry

5. By motive





International Tourism Organizations

Some goals of WTTC are:

1. Work with governments to make tourism a strategic economic development and employment priority.

2. Move toward open and competitive markets.

3. Pursue sustainable development.

4. Eliminate barriers to growth in the industry.

World Travel and Tourism Council





International Tourism Organizations

• Most widely recognized organization in tourism

• Serves as a global forum

• Transfers tourism know-how

• Produces statistics and market research

• Developes tourism human resources

• Works to facilitate travel

• Promotes sustainability

• Creates special projects

World Tourism Organization (WTO)





Developmental Organizations

Examples:

• World Bank

• United Nations Development Program

• Asian Development Bank

• FONATUR (Mexico)

• EMBRATUR (Brazil)





Regional International Organizations

• Organization for Economic Cooperation and Development

Mostly European membership, but the United States, Canada, Japan and Australia are also members.

• Pacific Asia Travel Association (PATA)

Represents nations in Asia and the Pacific.





National Organizations• Office of Travel and Tourism

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

Department of Commerce– Research and Policy

• Travel Industry Association of America (TIA)– leading private tourism organization in U.S.– Represents the whole U.S. travel industry– Promotes and facilitates increased travel to

and within the U.S.

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

programs to generate and promote tourism in 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 Tourism Organizations

• Convention and Visitor Bureaus (CVBs)

* Not-for-profit umbrella organizations that represent a city or urban area in the solicitation an servicing of all types of travelers to that city or area, whether they visit for business, pleasure, or both.

• International Association of Convention and Visitor Bureaus (IACVB)

* Most city CVBs belong to this organization.





Learning Objectives

• Comprehend the importance oftransportation in tourism.

• Understand the airline industry and its role in travel.

• Examine the domination of the automobile in travel.

• Learn about the role of rail and motorcoach travel.

• Study the cruise industry.

Chapter 5: Passenger Transportation





Operating Sectors of the Tourism Industry

Travel Trade

Sector

AccommodationSector

Even

ts S

ecto

rT

ransportation

Sector

Adventure & Outdoor


Sector

Attractions Sector

Ente

rtain

men

tSe

ctor

Tourism

Services

Chapter 5: Passenger TransportationChapter 5: Passenger Transportation




Passenger Transportation Structure

Other

Transportation

Road Rail Water

MotorBike

MotorBike

AutoAutoBusBus VehiclesUsed for Accommodation

VehiclesUsed for Accommodation

InlandInland MaritimeMaritime

Air

Charter

Private

Scheduled

CharterandTour

Operator

Scheduled

Rental

PrivatelyOwned

TruckCamper

MotorHome

TravelTrailer

TentTrailer

Other

Commercial

Private

Commercial

Private PrivateSnowmobile

Foot

Bicycles

HorseDrawn

Vehicles

AerialTramways

and Ski Lifts

Charter

Scheduled

Commercial

Charter

Scheduled





Urgent Transportation Problems

1. Congestion

2. Safety and security

3. Environmental damage

4. Seasonality





Airline Industry

• World airline industry carries over 1 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. carriers lost more than $12.8 billion. A weak air transportation 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 the passenger service business (except commuter service). Passenger service depends on Amtrak. The situation is similar in Canada with passenger service dependent on VIA Rail.

• Passenger rail service is much more important outside of North America. Efficient, economical, high speed trains provide an alternative to air travel.





Motorcoach Industry

• Intercity bus passengers tend to be lower income non-business travelers who are very price sensitive.

• Intercity bus service is becoming less important due to increased auto ownership and aggressive airline pricing.

• Bus travel is characterized by:

• More travel to and from rural areas and small towns than other modes of transportation.

• Lower average ticket revenues than other modes.

• Intercity bus industry is a small-business industry with a great deal of flexibility.

• Many bus companies focus primarily or exclusively on charter, tour or commuter operations.





Automobile• Most popular mode of travel in the world

because of affordability, flexibility, and convenience.

• In the U.S., the Travel Industry Association of America reports that 80% of person- trips are made by auto.

• Rental car industry growing in importance.

* Grosses approximately $24 billion per year.





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 LinesInternational Association.





Learning Objectives

• Study the lodging industry.

• Appreciate the immensity of the restaurant-food service industry.

• Learn the current trends in resorts and timesharing mode of operation.

• Discover why meetings and conventions as well as meeting planners are so important to tourism.

Chapter 6: Hospitality and Related Services




Commercial

Accommodations

Non-Commercial

MotelsMotelsTime Share

FacilitiesTime Share

Facilities

Upscale

Mid Range

Suite Hotels

PrivatePrivate InstitutionalInstitutional

PrivateHomes

College/University

Spas and Health Care

Facilities

Non-ProfitNon-Profit

Hostels

Shelters

YM / YWCA

Bed &Breakfast

Bed &Breakfast

Hotels(Chains/Independent)

Hotels(Chains/Independent)

Meetings &Convention

Hotels

Budget

AirportHotels

Mid Range

Budget

HomeExchange

Deluxe

Luxury

Extended Stay

Economy

ResortHotels

Spa

Casino

Upscale

Accomodations Structure





The Lodging Industry

• World hotel room inventory grows about 2.5% a year.

• Occupancy rates average 65% overall.

• 72% of the world’s hotel rooms are located in Europe and North America. Europe has 45% of the rooms.

• In 2000, the U.S. lodging industry generated $108.5 billion in sales, numbered 53,500 properties, 4.1 millions rooms, and recorded profits of $24 billion.





Top 20 Hotel Chains (2000)Rank Corporate Chain Rooms

Hotels

1 Cendant Corporation 541,3136,455

2 Bass Hotels & Resorts 490,5313,096

3 Marriott International 390,4692,099

4 Accor 389,437 3,4885 Choice Hotels International 350,351

4,3926 Hilton Hotel Corporation 317,823

1,8957 Best Western International 307,737

4,0658 Starwood Hotels & Resorts 227,042

7389 Carlson Hospitality Worldwide 129,234

71610 Hyatt Hotels/Hyatt International 86,711

20111 Sol Meliá 82,656 33812 Hilton International 64,647

22313 Wyndham International 62,262

24214 Compass Group (Forte Hotels) 59,928

45315 Société du Louvre 53,083

86816 FelCor Lodging Trust 50,000

18617 TUI Group 49,801 20418 MeriStar Hotels & Resorts 48,767

22519 Extended Stay America 41,586

39220 U.S. Franchise Systems 41,177

505

*Rankings are based on total rooms

Source: Hotels, July 2001. Hotels magazine, a Cahners Publication, 2000 Clearwater Drive, Oak Brook, IL, U.S.A. 605230





Resorts and Timesharing

• 37% of the world’s resorts are located in the U.S.

• 52% of the world’s timeshare owners are U.S.

• Timeshare resorts are located in 81 countries.

• Timeshare owners reside in 174 nations.

• Major companies such as Disney, Hilton, Marriott, and Hyatt have become involved in timeshare.





Food Services Structure

Food Services

Independent Chain In-Hotel

Fast FoodRestaurantsFast Food

RestaurantsTraditional

RestaurantsTraditional

Restaurants

Ethnic Local

CafeteriasCafeterias

Specialty

Independent

Broad Menu

Specialty Ethnic

Local

Minimal Service

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 by 2005.

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

•Industry employees more more minority managers than any other retail industry.

Travelers contribute about$130 billion to sales each year.





Meetings and Conventions

• Industry worth $82 billion.

• Average convention attendee spends $218 per day, stays 4.1 days and spends $895 per event.

• Convention centers are expanding.





Learning Objectives

• Become familiar with tourism distribution systems organizations and their functions.

• Understand the role of travel agents and their dominance in the distribution system.

• Consider the impact of the Internet on the distribution system.

• Examine the role of the tour wholesaler.

• Recognize that a combination of all channels of distribution can be used by travel suppliers.

Chapter 7: Organizations in the Distribution Process




Tourism Distribution Channels

SuppliersTransportation Providers Accommodations Food Service Resorts

Recreation, Entertainment, Etc.

SuppliersTransportation Providers Accommodations Food Service Resorts

Recreation, Entertainment, Etc.

CustomersIndividuals Pleasure Groups Business Groups, Etc.

CustomersIndividuals Pleasure Groups Business Groups, Etc.

TourWholesaler

SpecialtyChanneler

Retail TravelAgent

SpecialtyChanneler

SpecialtyChanneler

SpecialtyChanneler

TourWholesaler

TourWholesaler

TourWholesaler

Retail TravelAgent

Retail TravelAgent

Retail TravelAgent

DirectChannel

viaTelephone

InternetSuppliers

Office

Chapter 7: Organizations in the Distribution Process




Learning Objectives

•Examine the attractions industry.

•Look at the role of theme parks.

•Understand the gaming industry.

•Describe public and commercial recreation facilities.

•Recognize shopping as a travel attraction.

Chapter 8: Attractions, Recreation, Entertainment and Other




Overview of AttractionsAttractions

HistoricalSites

CulturalAttractionsCultural

AttractionsNatural

AttractionsNatural

AttractionsEventsEvents RecreationRecreation Entertainment

AttractionsEntertainment

Attractions

ArcheologicalSites

Architecture

Cuisine

Monuments

IndustrialSites

Museums

Ethnic

Concerts

Theatre

Landscape

Seascape

Parks

Mountains

Flora

Fauna

Coasts

Islands

Mega-Events

CommunityEvents

Festivals

ReligiousEvents

SportsEvents

TradeShows

Corporate

Sightseeing

Golf

Swimming

Tennis

Hiking

Biking

Snow Sports

Theme Parks

AmusementParks

Casinos

Cinemas

ShoppingFacilities

PerformingArts

Centers

SportsComplexes





Top U.S. Theme Park Admissions (2000)

Theme ParkAttendance

(millions)

1. The Magic Kingdom, Orlando 15.4

2. Disneyland, Anaheim, California 13.9

3. Epcot, Orlando 10.6

4. Disney’s Animal Kingdom, Orlando 8.3

5. Disney-MGM Studios, Orlando 8.9

6. Universal Studios, Orlando 8.1

7. Islands of Adventure at Universal, Orlando 6.0

8.a Universal Studios, Los Angeles 5.4

8.a Sea World, Orlando, Florida 5.2

9. Busch Gardens Tampa Bay 5.0

10. Sea World San Diego, California 3.6

a: Ties

Source: Amusement Business magazine, based in Nashville, Tenn.





Top European Theme Park Admissions

2000 RANK

PARK AND LOCATION 2000

ATTENDANCE (in millions)

1. Disneyland Paris, Marne la Vallée, France 12.0 2. Blackpool (U.K.) Pleasure Beach 6.8 3. Tivoli Gardens, Copenhagen 3.9 4.a Port Aventura, Salou Spain 3.2 5.a Europa Park, Rust, Germany 3.0 6. Liseberg, Gőteborg, Sweden 3.0 7.b De Efteling, Kaatsheuvel, the Netherlands 2.9 7.b Gardaland, Castelnuovo del Garda, Italy 2.9 9. Bakken, Klampenborg, Denmark 2.5 10. Alton Tower, Staffordshire, England 2.5

a and b: Indicates a tie Source: Amusement Business magazine, based in Nashville, Tenn.





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 research practices in tourism that integrate motive and feature destination assessments.

• Be familiar with conceptual approaches to tourism motivation and recognize there is continual development and enhancement of ideas in this field .

Chapter 9: Motivation for Pleasure Travel

Part Three: Understanding Travel Behavior



Requirements of a Sound Theory of Tourist Motivation• Role of the theory.

• Ownership and appeal of the theory.

• Ease of communication.

• Ability to measure travel motivation.

• Multi-motive versus single trait approach.

• Dynamic versus snapshot approach.

• Roles of extrinsic and intrinsic motivation.





Travelers tend to be more selective in their emphasis on travel motives with experience

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 multiple motives in their pattern of needs even though

one category of needs may be more dominant

Need for self-actualizationNeed for flow experiences

Need for statusNeed for respect and recognitionNeed for achievement

Need for self-developmentNeed for growthNeed for curiosity/mental stimulationNeed for mastery, control, competenceNeed for self-efficacyNeed to repeat intrinsically satisfying behaviors

Need to reduce anxiety about othersNeed to affiliate

Need to give love, direction

Need to reduce anxietyNeed to predict and explain the world

Need for security

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

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

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





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 effective promotional measures involving an area’s cultural resources.

• Realize the importance of cultural attractions to any area promoting itself as a tourist destination.

• Evaluate the contributions that international tourism can make toward world peace.

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




M a r k e t T i e s

S p e c i a l E v e n t s

E n t e r t a i n m e n t

S u p e r s t r u c t u r eC u l t u r e

C l i m a t e

S T A G E 1 C o r e f a c t o r s t h a t

d e t e r m i n e t h e o v e r a l l a t t r a c t i v e n e s s o f a

t o u r i s m r e g i o n .

S T A G E 2 S o c i a l a n d c u l t u r a l

e l e m e n t s c o n t r i b u t i n g t o t h e a t t r a c t i v e n e s s o f a t o u r i s m r e g i o n

M ix o f A c t iv it ie s

P h y s io g r a p h y & C lim a t e





Six Categories of Tourism

1. Ethnic Tourism

2. Cultural Tourism

3. Historical Tourism

4. Environmental Tourism

5. Recreational Tourism

6. Business Tourism

Source: Valene Smith, Hosts and Guests, 1977.





Learning Objectives• Appreciate the inordinate social impact that

travel experiences make on the individual, the family or group, and society as a whole — especially the host society.

• Recognize that a country’s indigenous population may resent the presence of visitors, especially in large numbers.

• Discover that travel patterns change with changing life characteristics and social class.

• Become familiar with the concept of social tourism and its importance in various countries.

• Perceive that there are four extremes relating to the travel preferences of international tourists.

Chapter 11: Sociology of Tourism




Negative Social Effects of Tourism on a Host Society1. Introduction of undesirable activities such as

gambling2. Demonstration effect

• Local people wanting the same luxuries and imported 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 jobs

These effects can be moderated or eliminated by intelligent planning and progressive management methods.





Four Extremes Relating to the Behavior Preferences of the

International Tourist

1. Relaxation versus activity

2. Familiarity versus novelty

3. Dependence versus autonomy

4. Order versus disorder





Barriers to Travel

1. Cost

2. Lack of time

3. Health limitations

4. Family stage

5. 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 of accommodations — condominium apartments and time sharing arrangements.

• Be able to use the mathematical formula to calculate the number of guest rooms needed for the estimated future demand.

• Develop the ability to perform a task analysis in order to match supply components with anticipated demand.

• Discover methods of adjusting supply components in accordance with fluctuating demand levels.

Chapter 12: Tourism Components and Supply

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



Components of Tourism

Supply

Travel Trade

Sector

AccommodationSector

Even

ts S

ecto

r

Transportation

Sector

Adventure & Outdoor


Sector

Attractions Sector

Ente

rtain

men

tSe

ctor

Tourism

Services





Tourism Supply Components

Can be classifiedinto four main categories:

1. Natural resources

2. Built Environment

3. Operating Sectors

4. Spirit of hospitalityand otherresource





Formula to Calculate Number of Hotel Rooms Required

R = T x P x L S x N

whereT = number of touristsP = percentage staying in

hotelsN = total number of guest

nights/number of guests

R = room demand per nights/number

O = hotel occupancy used for estimating;

divide number of rooms needed at 100%

occupancy by estimated occupancy

S = number of days per yearin business

L = average length of stay

Example

T = 1,560,000 visitorsP = 98%L = 9 daysN = 1.690 = 70 %S = 365 days R = 1,560,000 x .98 x 9

365 x 1.69

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





Task Analysis

Task analysis is the procedure used in matching supply with demand. The following steps are usually employed:

1. Identification of the present demand

2. A quantitative and qualitative inventory of the existing supply

3. The adequacy of present supply with present demand

4. Examination of present markets and the socioeconomic trends

5. Forecast of tourism demand

6. Matching supply with anticipated demand





J F M A M J J A S O N D

Fluctuating Demand Levelsand Supply (Seasonality)

Seasonality can be reduced through either price differentials or multiple





Learning Objectives

• Know the definition of demand and its application and importance in tourism development planning.

• Understand the factors determining the magnitude and fluctuations of demand.

• Become able to apply various methods to measure and forecast demand.

Chapter 13: Measuring and Forecasting Demand




Vital Demand Data

1. Number of visitors

2. Means of transportation used by visitors to arrive at destination

3. Length of stay and type of accommodations used

4. Amount of money spent by visitors





Demand to a DestinationDemand for travel to a particular destination is a function of the propensity of the individual to travel and the reciprocal of the resistant of the link between origin and destination areas.

Demand = f(propensity, resistance)

Propensity depends on:

•Psychographics

•Demographics(socioeconomic status)

•Marketing effectiveness

Resistance depends on :

•Economic distance

•Cultural distance

•Cost of tourist services

•Quality of service

•Seasonality





Measures of Actual Demand

1. Visitor arrivals– Number of people arriving at a

destination who stay for 24 hours or 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 Methodology

Several statistical methods or econometric analysis can be used to project demand.

• Trend analysis method

• Simple Regression — Linear least square method

• Multiple Regression — Linear least squares method

• Computer simulations and models

• Executive Judgement (Delphi) method





Learning Objectives

• Know the economic generators and impact of tourism

• Perceive the economic importance of tourism in various regions of the world

• Understand multipliers

• Know about balance of payments

• Comprehend elasticity and inelasticity

• Know about tourism satellite accounts

Chapter 14: Tourism’s Economic Impact

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



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) and indirect (secondary) impacts of tourist expenditures on a community or region.

These goals are often compatible but in certain situations they can be

incompatible.





Constraints Faced in Tourism Goal Attainment

• Demand

• Supply of attractive resources

• Technical and environmental constraints

• Time constraints

• Indivisibilities

• Legal constraints

• Self-imposed constraints

• Lack of knowledge

• Limits on supportive resources





Economic Multipliers

• Direct Effect– Result from visitors spending

money in tourist enterprises and providing a living for the owners and managers and creating jobs for employees.

• Indirect Effect– This is the multiplier impact.

This is where visitor spending circulates and recirculates.

• Employment Multiplier

• Income Multiplier





Income Multiplier Formula

Example

$1,000 of tourist expenditure and an MPC of 1/2.

Multiplier =

= $2,000$1,000 x

.5-1

1

Multiplier =

whereM = marginal (extra)P = propensity (inclination)C = consume (spending) MPC S = savings (money out of circulation)

MPS

MPC-1

1

A more simpler formula is Multiplier = 1/MPS





Learning Objectives

• Demonstrate the critical importance of tourism policy to the competitiveness and sustainability of a tourism destination.

• Outline the structure and content of a typical policy framework for a tourism destination.

• Identify some of the methods, techniques, and approaches used to assist in tourism policy formulation.

Chapter 15: Tourism Policy, Structure, Content and Process




The Competitive/Sustainable Tourist Destination: A Managerial Framework

The Competitive/Sustainable

Destination

The Competitive/Sustainable

Destination

Tourism PolicyStructure and

Content

Tourism PolicyStructure and

Content

The PolicyFormulation

Process

The PolicyFormulation

Process

Policy Formulation

Methods

Policy Formulation

Methods





Tourism Policy:A Definition

Tourism policy can be defined as follows:A set of regulations, rules, guidelines, directives, and development/ promotion objectives and strategies that provide a framework within which the collective and individual decisions directly affecting tourism development and the daily activities within a destination are taken.





Examples of the many “stakeholders” in tourism within

a given destination/region. Residents of the “Host” Destination Local/Municipal/Regional/Provincial/National

Governments Local/Regional/National Environmental Groups Local visitors/excursionists Remote visitors/tourists Tourism industry sectors:

Transportation Accommodation Attractions Events Commercial Outdoor Recreation Commercial Visitor Service

Destination Management Organization (DMO) Culture/Heritage Groups Social/Health/Education Groups





Areas Addressed byTourism Policy

1. The roles of tourism within the overall socio-economic development of the destination region

2. The type of destination that will most effectively fulfill the desired roles

3. Taxation – types and levels

4. Financing for the tourism sector – sources and terms

5. The nature and direction of product development and maintenance

6. Transportation access and infrastructure

7. Regulatory practices (e.g. airlines, travel agencies)

8. Environmental practices and restrictions

9. Industry image, credibility

10. Community relationships

11. Human resources and labor supply

12. Union and labor legislation

13. Technology

14. Marketing practices

15. Foreign travel rules





Some Elements of Successful “total tourism destination

management”COMPETI TI VENESS

[Resource Deployment]

Business/EconomicManagement Skills

SUSTAI NABI LI TY

[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

I nformation Management

Destination Monitoring Destination Research





General Economic & Social Policies Affecting Tourism

Taxation – affects costs and thus profitability; Interest Rate Policy – affects costs and thus profitability; Bilateral Air Agreements – determines foreign visitor access; Environmental Policy – limits growth and access to attractive, but sensitive

areas; Customs and Immigration Policy – can facilitate or hinder international

visitation; Communications Policy – can restrict use of certain advertising media; Minimum Wage Policy – can affect labor markets; Welfare Policy – can influence nature and behavior of work force; Education Policy – can affect quality of workforce; Cultural Policy – can affect preservation and promotion of national heritage; Foreign Investment Policy/Regulations – can affect availability of

investment capital; Local Zoning Policy/By-Laws – can restrict or encourage tourism facility

development; National/Provincial/Local Policy re: funding support for major public facilities

(e.g. stadiums, convention centers, museums, parks) – can drastically affect destination attractiveness;

Infrastructure Policy – can make destination safer for visitors, or restrict resident travel to foreign destinations;

Currency/Exchange Rate Policies – directly affects destination cost competitiveness; and

Legal System – determines consumer/visitor protection legislation (e.g. liability for failing to deliver advertised facilities/tours/experiences).





TransportationI ndustries andI nfrastructure

Tourism: Some of its multiple interfaces with other sectors of

the economy and societyLegal/Political

Players

Technology

Sector

EnvironmentalMovement

Entertainment

Industry

ResourceExtractionIndustries

Health ServicesSector

EducationSector

Financial

Sector

TT

OO

UU

RR

II

SS

MM





The Structure and Composition of Tourism

Policy

SupplyDevelopment

Strategies

SupplyDevelopment

Strategies

Operational/TacticalSupply DevelopmentPolicies/Programs

Operational/TacticalSupply DevelopmentPolicies/Programs

Destination AuditDestination Audit

Tourism Objectivesand Constraints

Tourism Objectivesand Constraints

Macro-ManagementOrganizational

Structure

Macro-ManagementOrganizational

Structure

Operational/TacticalDemand Development

Policies/Programs

Operational/TacticalDemand Development

Policies/Programs

Demand Development

Strategies

Demand Development

Strategies

Tourism PhilosophyTourism Philosophy

Tourism VisionTourism Vision





Destination Vision Framework

CoreVision

Elementsof the Vision

EcologyAwareness

Visitor ExperienceEconomy

CommunityGovernance

ValuesOn Which the Vision is Based

PrinciplesGuiding Implementation of Vision

Preamble





• Relate tourism planning to tourism policy.

• Discover what the goals of tourism development should be.

• Recognize that some serious barriers to tourism development must be overcome if a desired growth is to occur.

• Learn the political and economic aspects of development including those related to developing countries.

• Appreciate the importance of architectural design and concern for heritage preservation, local handicrafts, and use of indigenous materials in creating tourist facilities.

Learning Objectives

Chapter 16: Tourism Planning, Development, and Social Consideration




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 its time horizon. A one-year planning cycle is not uncommon, although 3-5 year plans are a possibility. In contrast, destination visions may have a 5, 10, 50, or even a 100 year time horizon;

4. Policy formulation must allow for as yet unseen circumstances and technologies to be considered. In contrast, planning tends to assume current conditions and technologies, with some allowances for predictable, or evolutionary change;

5. Policy formulation tends to emphasize a systematic determination of “WHAT” should be done in long-term tourism development, while planning tends to emphasize the “HOW” for the achievement of specific destination goals.





Some Advantages of Tourism

• Provide employment opportunities

• Generates foreign exchange

• Increases incomes

• Increases GNP

• Development of tourism infrastructure helps to stimulate local commerce and industry

• Justifies environmental protection and improvement

• Increase governmental revenues

• Diversifies the economy

• Creates a favorable worldwide image for the destination

• Facilitates the process of modernization

• Provides tourist and recreation al facilities for the local population

• Provides foreigners and opportunity to be favorable impressed by little-known nation or regions





Some Disadvantages of Tourism

1. Develops excess demand

2. Creates leakages so great that economic benefits do not accrue

3. Diverts funds from more promising forms of economic development

4. Creates social problems from income differences, social differences, introduction of prostitution, gambling, crime, and so on

5. Degrades the natural physical environment

6. Degrades the cultural environment

7. Poses the difficulties of seasonality

8. Increases vulnerability to economic and political changes

9. Adds to inflation of land values and the price of local goods and services





The Planning Process

1. Define the system

2. Formulate objectives

3. Gather data

4. Analyze and interpret

5. Create the preliminary plan

6. Approve the plan

7. Create the final plan

8. Implement the plan





Goals of Tourism Development

1. Provide a framework for raising the living standard of the people through the economic benefits of tourism

2. Develop an infrastructure and provide recreation facilities for visitors and residents alike

3. Ensure development within visitor center and resorts is appropriate to those areas

4. Establish a development program consistent with the cultural, social , and economic philosophy of the government and people of that region

5. Optimize visitor satisfaction





• Recognize the world-wide importance of natural resource conservation and sustainable tourism development.

• Learn how ecotourism can benefit local people.

• Understand the dangers and limitations of ecotourism.

• Understand tourist codes of ethics and guidelines.

• Learn current environmental practices of tourism organizations and suppliers.

• Learn how to maintain natural destinations.

Learning Objectives

Chapter 17: Tourism and the Environment




The WTTC~ Four Myths of Tourism~Myth #1:Travel & Tourism is a non-essential, ‘mass’ activity of affluent people in developed countries.

Myth #2:Tourism’s major environmental impact is damage to developing countries.

Myth #3:Ecotourism is the only logical, sustainable response to the environmental impacts of Travel & Tourism.

Myth # 4:Comprehensive planning regulations and control are the only way to curb the environmental exploitation of Travel & Tourism.





WTTC~ Key Environmental Issues ~

Global warming

Depletion of the ozone layer

Acid rain

Depletion and pollution of water resources

Depletion and pollutionof land resources





WTTC~ Implications of Resource Depletion ~

Political instability or increased competition for land could lead to loss of potential new tourism destinations and degradation of existing destinations.

Loss of landscape and wildlife could cause a decrease in customer satisfaction with tourism products and hence lower propensity to travel to some destinations.

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





Elements of the WTTC Vision of Travel & Tourism

and the Environment Travel & Tourism is an integral aspect of modern societies Global awareness of environmental damage is developing

rapidly The resources of the world’s largest industry can and must

be harnessed to achieve environmental goals The industry has the potential to influence billions of

customers per years and to use its leverage to achieve beneficial environmental effects

The customer challenge will exert a growing pressure to achieve environmental improvements

Environmental lobbies will add pressure to develop good environmental practice

Self-regulation must be developed rapidly and effectively and used to influence the development of appropriate and workable regulations

Corporate environmental mission statements are a vital first step toward self-regulation

Environmental leadership must come from the major international companies





The Premises of Sustainable Development

• The Premise of Interdependency

• The Premise of Multidisciplinarity

• The Premise of Previous Experience

• The Premise that Nature is Better

• The Premise of Politics and Power





Sustainable Development and Tourism: The Critical Areas

• Defining the Relevant Population/Community

• Defining the Time Horizon

• Defining the Dimensions of Sustainability

• Defining the Values that Underlie Sustainable Development





Sustainable Development in Tourism:A Possible Allocation of Responsibility

Level/Organization Responsibilities

Host Community/Region

Defining the tourism philosophy and vision forthe community/region

Establishing social, physical and culturalcarrying capacity for the hostcommunity/region

Destination ManagementCommunity-Organization

Coordination of implementation of communitySD plan tourism

Monitoring of levels and impact of tourism inthe community/region

Individual TourismFirms and Operators

Fair contribution to implementation of SD planfor tourism

Observance of regulations, guideline andpractices for SD

Host Community/Region Encouragement/acceptance of tourism within

parameter of SD plan

Visitors/Tourists

Acceptance of responsibility for minimal self-education with respect to values of host region

Acceptance and observance of terms andconditions of host community SD plan fortourism





Sustainable Tourism~ An Agenda for Action ~

ACTIVITIES: Coordinating the development of a tourism

philosophy and vision for the community/ region

Specifying the major goals of the community/region with respect to tourism

Obtaining consensus concerning the social, physical, and cultural carrying capacity of the community/region in question

Identifying the specific action initiatives necessary to meet the tourism development objectives while respecting the destination’s carrying capacities

Gaining agreement on the measures to be used in monitoring the impacts of tourism in the community/region

Gathering and disseminating information concerning the 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 infrastructure planning, development, and maintenance

Community-supported legislation to protect and preserve unique resources and heritage sites

Community and industry consensus concerning architectural and signage standards

Support for standards and certification programs that encourage staff development and the delivery of high-quality service





• Responsible travel to natural areas that conserves the environment and sustains the well-being of local people

• Environmentally friendly travel that emphasizes seeing and saving natural habitats 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 local people

• Makes possible funds to purchase and improve protected or natural areas to attract more ecotourists in the future

• Provides environmental education for visitors

• Encourages heritage and environmental preservation and enhancement

Benefits and Importance of Ecotourism





Translating Idealism into Sustainable Tourism

~ What Managers Need to Know ~

Measures of

• The general relationship between tourism and the environment

• The effects of environmental factors on tourism

• The impacts of the tourism industry 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 or types of tourism. These indicators fall into two categories:

– Supplementary ecosystem-specific indicators for application to particular ecosystems (e.g., coastal areas, parks and protected areas, or mountainous regions).

– Site-specific indicators that are developed uniquely for the particular site. These indicators reflect important factors of the site. Which may not be adequately covered by the core and supplementary eco-system-specific indicator sets, but are nonetheless needed for management of theparticular site.





Core Indicators of Sustainable Tourism

Indicator Specific Measures

Site Protection Category of site protection according to IUCNa 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 ControlExistence of environmental review procedure or formal controlsover 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 ProcessExistence of organized regional plan for tourist destination region(including tourism component)

Critical Ecosystems Number of rare/endangered speciesConsumerSatisfaction

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 Indicesb 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 sectorcumulative stresses)

Attractivity Qualitative measure of those site attributes that make it

attractive 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 indicators composing these indices require on-site direction from an appropriately trained and experienced observer. In the future, based on the experiences 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 Industry Associations 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 and water.

• Experience the friendliness of our people and the welcoming spirit of our communities. Help us to preserve these attributes by respecting our traditions, customs, and local regulations.

• Avoid activities which threaten wildlife or plant populations, or which may be potentially damaging to our natural environment.

• Select tourism products and services that demonstrate social, cultural, and environmental sensitivity.





Common Features of All Codes

the need to make an overall commitment to the physical and human environment, to accept responsibility for environmental damage and take corrective action where necessary, and to promote and reward outstanding environmental performance;

the need to develop policies and strategies that take account of land-use planning regulations and the need to protect some areas from further development;

the need to develop management policies that enhance beneficial and minimize adverse impacts on the environment; and

the need to cooperate with other firms, sectors and countries.





• Recognize the role and scope of travel research

• Learn the travel research process

• Study secondary data and how it can be used

• Understand the methods of collecting primary data

• Know who does travel research

Learning Objectives

Chapter 18: Travel and Tourism Research

Part Five: Essentials of Tourism Research and Marketing



1. To delineate significant problems

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

3. To reduce waste

4. 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 analysis

3. Conduct an informal investigation

4. Develop a formal research design

5. Collect the data

6. Tabulate and analyze

7. Interpret

8. Write the report

9. Follow up

The Travel Research Process





Sources of Information Secondary 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 the

value of information obtained from secondary data

sources:

1. The organizations supplying the data

2. The authority under which the data was gathered

3. Freedom from bias

4. Adequacy from the sample

5. The nature for the unit in which the data are

expressed

6. Accuracy of the data

7. Pertinency to the problem

8. 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





• Become familiar with the marketing mix and be able to formulate the best mix for a particular travel product.

• Appreciate the importance of the relationship between the marketing concept and product planning and development.

• Understand the vital relationship between pricing and marketing.

• Know about distribution systems and how this marketing principle can best be applied to a variety of travel products.

• Be able to do market segmentation to plan a marketing program for the business you are most interested in.

• Understand the principles of branding and examine their applicability to destination branding.

Learning Objectives

Chapter 19: Tourism Marketing




Marketing Mix

The marketing mix is composed of every factor that influences the marketing effort.

1. Timing

2. Brands

3. Packaging

4. Pricing

5. Channels of distribution

6.Product

7.Image

8.Advertising

9.Selling

10. Public relations





Product Life Cycle





Factors that InfluencePrice Policies

1. Product quality

2. Product distinctiveness

3. Extent of the competition

4. Method of distribution

5. Character of the market

6. Cost of the product and service

7.Cost of distribution

8.Margin of profit desired

9.Seasonality

10.Special promotional prices

11.Psychological considerations





Price Skimming

Skimming is appropriate when the product or service has the following characteristics:

• Price inelasticity

• No close substitutes

• High promotion elasticity

• Distinct market segments based on price





Penetration Pricing

• High price elasticity

• Economies of scales

• An easy fit of the product into consumer purchasing patterns

Penetration pricing is appropriate when the following factors are present:





Selection of Channels of Distribution

Channels of distribution are selected by:

1. Analyzing the product

2. Determining the nature and extent of the market

3. Analyzing the channels by sales

4. Determining the cooperation you can expect from the channel

5. Determining the assistance you will have to give to the channel

6. Determining the number outlets outlets to be used





Promotion

In order to sell the product it isnecessary to:

1. Attract attention

2. Create interest

3. Create a desire

4. Get action





Typical Bases for Market Segmentation

• Geographic

• Demographic

• Socio-economic

• Psychographic

• Behavior patterns

• Consumption patterns

• Consumer predispositions





• Examine forecasts concerning the growth of international tourism.

• Identify the major global forces which are shaping the tourism of tomorrow.

• Understand the impacts, both positive and negative, which these forces are likely to have on tourism markets and on the ability of destinations to respond to the demands of these markets.

• Highlight the powerful and positive impact that the environmental movement has had, and will increasingly have, 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 2020

Europe 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





Forces Impacting The Future of Tourism

• Economic • A decline in the mega-nation-rise of the city

state • Political• Socio-environmental awareness• Technology• Emergence of the knowledge based society• Demographic shifts• Shifting value systems• Diversity within a homogeneous world• Quest for stability and security• Pressures for mass migration• Change from a service to an experience

economy• Evolution of leisure time• Competition for leisure time





WTO – Tourism to the Year 2020

The 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 industrialized

countries leading to SouthNorth 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 and

consequent 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 social

structures to be recognized in their own rights

Socio-Environmental Awareness boosted public awareness of socio-cultural and environmental

issues greater media reporting on major global problems (e.g. reducing

water 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 personally

engage the customer

Marketing use of electronic technology to identify and communicate with

market segments and niches





Economic

New Realities New Horizons

Many high-quality public facilities and attractions that have traditionally been supported and/or subsidized by governments will come under serious funding pressures.

Market competition will prove a powerful force in keeping the costs of travel under control, thus keep accessible to a large percentage of the population.

I t will become more difficult to justify and to publicly finance large-scale “megaprojects” or “megamonuments,” some of that have become major, symbolic tourism attractions. As well, supporting infrastructure, such as roads and airports, will be more difficult to finance.

There will be new opportunities for innovative financing approaches for megaprojects and megadevelopments that enjoy the support of the residents of a destination (e.g., community bonds).

Rise of the City State


Large countries will find it less desirable and less productive to undertake general awareness-type promotion; budgets for such promotions will decline.

Those highly focused destinations that have high visibility, good access, an attractive product, and which can develop a distinctive image will dominate the market.

Smaller destinations having no particularly unique characteristics will find it even more difficult to compete with higher-profile centers.

Strategic alliances and reciprocal agreements between city-states that complement one another will grow in importance.

Nations/economic communities may become much more demanding in terms of visitor entry requirements as they perceive that “tourists” risk transforming themselves into refugees or defacto immigrants.

Diverse, multicultural societies brought about through immigration will create increased demand for travel as people exchange visits with families and friends.

Destination residents may become increasingly less tolerant of “visibly” or “linguistically” different visitors whom they see as posing a threat as a potential immigrant.

Ethnic groups in tourism generating countries will have the opportunity to develop, educational/cultural travel experiences for their compatriots. Such experiences could involve both pre-travel and travel experiences.





The Move to Branding of Destinations


Destinations will have the ability to identify and differentiate themselves more effectively.

Destinations cannot be modified like other consumer products when it is found the existing brand is viewed negatively.

The value in creating unique brands will increase dramatically.

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

Smaller destinations having no particularly unique characteristics will find it even more difficult to compete with higher-profile centers.

Strategic alliances and reciprocal agreements between city-states that complement one another will grow in importance.

Nations/economic communities may become much more demanding in terms of visitor entry requirements as they perceive that “tourists” risk transforming themselves into refugees or defacto immigrants.

Diverse, multicultural societies brought about through immigration will create increased demand for travel as people exchange visits with families and friends.

Political


The tourism planning and development process will be increasingly constrained and slowed by the need for meaningful public involvement and input.

Implementation of approved development plans will be easier as “surprises” will be minimized and as broader agreement results from public involvement.

I t will be more difficult for individual operators to proceed with nonconforming developments— sometimes at the risk of inhibiting innovation.

The formulation of “resident responsive visions” of local/regional tourism will provide more commitment to tourism and greater coherency in the tourism product/experience provided by a destination.

Environmental


Virtually all future tourism development will be constrained by the need for environmental sensitivity.

Conservation, preservation, and restoration present new themes for the design of tourism experiences. Regions that are presently undeveloped or in a natural state have a unique opportunity to provide an attractive experience to visitors.

The non-economic costs of tourism will need to be factored into development decisions. The costs of development, using nontraditional accounting frameworks, will increase, thus forcing higher prices on the travel experience.

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





Technology


The rapid evolution of technology makes the investment in hardware, software, and training more than many tourism firms can afford.

Certain sectors of tourism are finding technology to be a cost-effective means for marketing to small niche markets; other larger sectors are proving highly successful in utilizing technology to actually close sales.

Much of the human resource base of the tourism industry is ill-equipped and thus ill-disposed toward the widespread adoption of technology. At least passive resistance may be encountered at all levels.

Because of the present low level of penetration of technology on tourism, there is much potential for significant gains on performance and productivity both in terms of facility design and service delivery.

Introducing technology without losing the warmth 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 to increase if managers and staff are to select and implement technology-based improvements in an effective manner (EIESP, 1991).

The Knowledge-Based Society


Modem technology is increasingly attempting to provide alternatives to physical travel. Teleconferencing is finally gaining wider acceptance; virtual interface technology purports to provide the travel experience without travel.

Travelers will increasingly want to truly experience and understand a destination. As a result, they will be interested in spending more time in a region and interfacing with residents in more meaningful ways.

Knowledge-based employees tend to work in sanitized, controlled environments. As such, they may shun travel experiences that are physically challenging, moderately uncomfortable, or culturally threatening.

Travelers of the future will be increasingly receptive to technologies and services that facilitate travel while reducing costs and minimizing the need for menial and/or demeaning labor.

Demographic Shifts


The aging of travelers from traditional tourism-generating countries will cause demands for new experiences and new facilities. As a consequence, existing tourism plant may become economically obsolete.

For the next 20 years, residents of developed nations in the 45–65 age category will increase substantially. These individuals will have the time, the discretionary income, and the desire to travel.

Increasingly diverse lifestyles will make market segmentation increasingly important. However, the tailoring of “designer vacations” will make it harder to standardize the tourism product, and thus to control costs.

Firms that can read, anticipate, and respond to the specific needs/desires of high quality niche or “special interest” markets in innovative ways will have great opportunities for success.



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