Concepts and Importance of Tourism Industry

7/29/2019 Concepts and Importance of Tourism Industry

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Concepts and Importance of

Tourism Industry


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The word Travel derived from the French word

Travail

All Tourism involves Travel; but not all Travel

involves Tourism


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CONCEPT OF TOURISM

Tourism is the sum of the

phenomena and relationships

arising from the travel andstay of non-residents, in so far

as they do not lead to

permanent residence and arenot connected with any earning

activity


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Features of Tourism

Temporary movement of people

Journey and Stay (24 hrs to 6 Months)

Takes place outside the normal place ofresidence and work

Visit for purposes other than taking up

permanent residence or employment


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Tourism 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.

Another Definition of Tourism


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Six Categories of Tourism 1. Ethnic Tourism

2. Cultural Tourism

3. Historical Tourism

4. Environmental Tourism

5. Recreational Tourism

6. Business Tourism


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NATURE OF TOURISM

Leiper Model

Transit route RegionTraveller

Generating

Region

Tourist

Destination

Region

Departing travellers

Returning travellers


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Overview of Attractions

Attractions

Historical

Sites

Cultural

Attractions

Natural

Attractions

Events Recreation Entertainment

Attractions

Archeological

Sites

Architecture

Cuisine

Monuments

Industrial

Sites

Museums

Ethnic

Concerts

Theatre

Landscape

Seascape

Parks

Mountains

Flora

Fauna

Coasts

Islands

Mega-

Events

Community

Events

Festivals

Religious

Events

Sports

Events

Trade

Shows

Corporate

Sightseeing

Golf

Swimming

Tennis

Hiking

Biking

Snow

Sports

Theme

Parks

Amusement

Parks

Casinos

Cinemas

ShoppingFacilities

Performing

Arts

Centers

Sports

Complexes


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Tourism Studies

Sociolog

yof

Tourism

Sociology

Parksand

Recreation

Disciplinary inputs to the tourism field


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Characteristics of the Hospitality and

Tourism Industry

According to WorldTravel and TourismCouncil:

Employer of 7.8Percent of the

Global workforce

10.6 percentOf

World GDP

5.5 million newJobs per year

Until 2010

TourismIndustry

24/h, 7 days/w,52 weeks/year


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TRAVELERS

TOURISM

PROMOTERS

TOURISMSERVICES

SUPPLIERS

EXTERNAL

ENVIRONMENT

TourOperators

Tourist

Boards

Meeting

Planners

Travel

Agents

Direct

Marketing

Destinations

Attractions/

Entertainment

Transportation

Food &

Beverag

e

Accomo-

dations

Society &

Culture

Politics

Technology

Environ-ment

Economy

Integrated Model

Of Tourism


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Tourism system

Demand side of tourism

Population

Supply side of tourism Transportation

Attractions & resources

Services

Information (promotion & interpretation)


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Dont Worry Mom & Dad!

You will someday be employed

Projections suggest:

Tourism will remain worlds largest industry

Sales will grow 4.4% per year

Employment in ALL sectors will increase

T l d T i


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Travel and Tourism ---

Worlds Largest Industry

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


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Travel and Tourism Can

Double in Size by 2011

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 accountfor:

*Over twice the output at $7.0 trillion

*More jobs --- 260 million employees Growth depends on enlightened government

policy


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Share of world: % of Total(2000)

GDP 11.0

Employment 8.0

Exports 7.9

Capital Investment 9.4

A powerful engine for generating jobs and wealth


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27.6

129.0111.9

403.3

6.420.6

Africa Americas EAP Europe Middle

East

South Asia

Millions


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Slice 7

0%

Americas

18%

EAP

16%

Europe

58%

Middle East

3%

Africa

4%

South Asia

1%

Source: World Tourism Organization (WTO)


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Slice 7

0%

Americas

29%

EAP

17%

Europe

49%

Middle East

2%

Africa

2%

South Asia

1%



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Average Receipts Per Arrival 2000

0

200

400

600

800

1000

1200

World Africa Americas EAP Europe Middle East South Asia


US$


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Average Length of Stay in the Country

Country

India

Canada

Brazil

France

Hong Kong/China

Japan

Malaysia

Singapore(1997)

Spain

Thailand

Days

31.2

5.22

13.00

7.31

3.38

8.80

5.50

2.60

12.9

8.4


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Worlds Top 10 Tourism Earners

Intl. Tourism Receipts (US $billion) 2001

1. United States 72.3

2. Spain 32.9

3. France 29.6

4. Italy 25.9

5. China 17.8

6. Germany 17.2

7. United Kingdom 15.9

8. Austria 12.09. Canada 10.7 (2000)

10. Greece 9.2 (2000)


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Benefits of Tourism - Economic Can be developed with

local products andresources

Diversifies theeconomy

Tends to be compatiblewith other economicactivities

Spreads development

High multiplier impact

Increasesgovernmentalrevenues

Provides employmentopportunities

Generates foreignexchange

Increases Incomes Increases GNP

Can be built onexisting infrastructure

Develops aninfrastructure that willalso help stimulatelocal commerce andindustry


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Benefits of Tourism - Social Broadens educational and cultural horizons

Improves quality of life - higher incomes and

improved standards of living

Justifies environmental protection andimprovement

Provides tourist and recreational facilities

that may be used by a local population


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Benefits of Tourism - Cultural Reinforces preservation of heritage and tradition

Visitor interest in local culture providesemployment for artists, musicians and otherperforming artists enhancing cultural heritage

Breaks down language barriers, socio-cultural

barriers, class barriers, racial barriers, politicalbarriers, and religious barriers

Creates a favorable worldwide image for adestination

Promotes a global community Promotes international understanding and peace


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Disadvantages of Tourism - Economic Develops excess demand

Results in high leakage

Creates difficulties of seasonality

Causes inflation

Can result in unbalanced economicdevelopment

Increases vulnerability to economic andpolitical changes


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Disadvantages of Tourism - Social Creates social problems

Degrades the natural physical environment andcreates 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, andtransportation problems


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0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

ALP EKLM IDK KASD KLM KNR KOZH KTM MLP PLKD PTA THSR TVPM WYD

TOTAL INDIANS

TOTAL FORIEGNERS

Steps for


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Steps forMarketing & Promotion

1. Identify tourism product

2. Identify visitor market groups3. Determine market position

4. Write market statement

5. Identify & implement suitable promotion &interpretation strategies


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Step 1. Identifying the tourism product

Conduct an inventoryAttractions

Resources

Services

Facilities & infrastructure

What is unique about the product?

How is the product different from that ofcompetitors?


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Step 2. Identifying visitor markets (segments)

1. What are the demographics of visitors?

Group composition

Origin (location of residence)

Age

Gender

Education level

Income level


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2. What are the interests and needs of visitors? demographics

visitor/resident input

observationsl

Group compositionl Origin (location of residence)

l Age

l Gender

l Education level

l Income level

l Visitor interests

l Visitor needs


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How is each market segment anticipated tochange in the future?

Existing

Growth Potential


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Step 3. Market position

A brief paragraph that states how your area or

community is situated with regard to visitormarket groups, travel routes, competing

tourism destinations, attractions, & resources.


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Step 4. Market statement

A short statement or slogan whichsummarizes the market position.


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Step 5. Types of promotion

Tourism guidebooks

Videos

FAM (familiarization) tours Motorcoach tours

Trade show exhibits

Media press releases (e.g., newspapers, radio)

Advertisements in magazines, other guides, etcWeb sites

Word-of-mouth advertising

Promotion & the five phases of the tourism


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Promotion & the five phases of the tourismexperience

Anticipation & planning

Traveling to site

Activities at site

Traveling to home

Recollection


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India - A Civilization Alive

Heritage Site

Cultural Attractions

Beaches / Benchmarks

Health And Wellness - Yoga & Ayurveda

Shopping

Indian Cuisine

New Experience - Meditation, Naturopathy


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India - Business Opportunity

5th largest Economy (PPP) High Growth - 250 Middle Class

Huge Outbound Market - Growth

Huge Infrastructure Investment Opportunities

100% FDI Permitted

Tax Incentives Available

Investment Facilitation System

Union Government

State Government

Single Window System

W ld T l & T i


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World Travel & Tourism- The Future

Formula to Calculate Number


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Formula to Calculate Number

of Hotel Rooms Required

R = T x P x L

S x Nwhere

T = number of tourists

P = percentage staying in hotels

N = 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 l h f

Example

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

365 x 1.69

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

Concepts and Importance of Tourism Industry

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