Concepts and Importance of Tourism Industry

The word Travel derived from the French word Travail All Tourism involves Travel; but not all Travel involves Tourism

CONCEPT OF TOURISM
Tourism is the sum of the phenomena and relationships arising from the travel and stay of non-residents, in so far as they do not lead to permanent residence and are not connected with any earning activity

Features of Tourism
Temporary movement of people Journey and Stay (24 hrs to 6 Months) Takes place outside the normal place of residence and work Visit for purposes other than taking up permanent residence or employment

Another Definition of Tourism

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.

Six Categories of Tourism

1. Ethnic Tourism 2. Cultural Tourism

3. Historical Tourism
4. Environmental Tourism 5. Recreational Tourism 6. Business Tourism

NATURE OF TOURISM
Leiper Model

Departing travellers

Traveller Generating Region

Transit route Region

Tourist Destination Region

Returning travellers

Overview of Attractions
Attractions
Cultural Attractions Historical Sites Archeological Sites Architecture Cuisine Monuments Flora Industrial Sites Fauna Museums Sports Events Trade Shows Corporate Hiking Natural Attractions Landscape Events Recreation Entertainment Attractions Theme Parks Amusement Parks

MegaEvents Community Events Festivals Religious Events

Sightseeing

Seascape

Golf

Parks

Swimming Casinos

Mountains

Tennis Cinemas

Biking Snow Sports

Shopping Facilities
Performing Arts Centers Sports Complexes

Ethnic
Concerts Theatre

Coasts

Islands

Disciplinary inputs to the tourism field

Sociology Tourism Studies Sociolog y of Tourism Parks and Recreation

Characteristics of the Hospitality and Tourism Industry

According to World Travel and Tourism Council:

Tourism Industry

Employer of 7.8 Percent of the Global workforce

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

5.5 million new Jobs per year Until 2010

10.6 percent Of World GDP

Integrated Model Of Tourism

Society & Culture Destinations

EXTERNAL ENVIRONMENT

TOURISM SERVICES SUPPLIERS

Economy Accomodations Travel Agents

TOURISM PROMOTERS

Tour Operators
TRAVELERS

Attractions/ Entertainment Politics

Tourist Boards Direct Marketing

Meeting Planners

Food & Beverag e

Environment

Transportation

Technology

Tourism system
Demand side of tourism Population

Supply side of tourism Transportation Attractions & resources Services Information (promotion & interpretation)

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

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

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 account for: *Over twice the output at $7.0 trillion *More jobs --- 260 million employees Growth depends on enlightened government policy

Share of world: GDP Employment

% of Total
(2000)

11.0 8.0

Exports
Capital Investment

7.9
9.4

A powerful engine for generating jobs and wealth

403.3
Millions

129.0 27.6
Africa Americas

111.9 20.6
EAP Europe Middle East

6.4
South Asia

South Asia 1% Africa 4%

M iddle East 3% Slice 7 0%

Americas 18% Europe 58%

EAP 16%

Source: World Tourism Organization (WTO)

South Asia 1% Africa 2%

M iddle East 2% Slice 7 0%

Europe 49% Americas 29%

EAP 17%
Source: World Tourism Organization (WTO)

Average Receipts Per Arrival 2000

1200

1000

800

US $

600

400

200

0 World Africa Americas EAP Europe Middle East South Asia

Source: World Tourism Organization (WTO)

Average Length of Stay in the Country

Country India Canada Brazil France Hong Kong/China Days 31.2 5.22 13.00 7.31 3.38

Japan Malaysia
Singapore(1997) Spain Thailand

8.80 5.50
2.60 12.9 8.4

Worlds Top 10 Tourism Earners

Intl. Tourism Receipts (US $ billion) 2001

1. United States
2. Spain 3. France 4. Italy

72.3
32.9 29.6 25.9

5. China
6. Germany 7. United Kingdom 8. Austria 9. Canada 10. Greece

17.8
17.2 15.9 12.0 10.7 (2000) 9.2 (2000)

Benefits of Tourism - Economic

Provides employment opportunities Generates foreign exchange Increases Incomes Increases GNP 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

Can be built on existing infrastructure

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

Benefits of Tourism - Social

Broadens educational and cultural horizons Improves quality of life - higher incomes and improved standards of living Justifies environmental protection and improvement Provides tourist and recreational facilities that may be used by a local population

Benefits of Tourism - Cultural

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, socio-cultural 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

Disadvantages of Tourism - Economic

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 - Social

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

1,800,000

1,600,000

1,400,000

1,200,000

1,000,000 TOTAL INDIANS

TOTAL FORIEGNERS
800,000

600,000

400,000

200,000

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

Steps for Marketing & Promotion

1. Identify tourism product 2. Identify visitor market groups

3. Determine market position

4. Write market statement

5. Identify & implement suitable promotion & interpretation strategies

Step 1. Identifying the tourism product

Conduct an inventory Attractions Resources Services Facilities & infrastructure What is unique about the product?

How is the product different from that of

competitors?

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

Step 2. Identifying visitor markets (segments)

2. What are the interests and needs of visitors?

demographics visitor/resident input observations l

l l l l l l l

Group composition Origin (location of residence) Age Gender Education level Income level Visitor interests Visitor needs

Step 2. Identifying visitor markets (segments)

How is each market segment anticipated to

change in the future?

Existing Growth Potential

Step 3. Market position

A brief paragraph that states how your area or community is situated with regard to visitor market groups, travel routes, competing tourism destinations, attractions, & resources.

Step 4. Market statement

A short statement or slogan which summarizes the market position.

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, etc Web sites Word-of-mouth advertising

Promotion & the five phases of the tourism experience

Anticipation & planning Traveling to site Activities at site Traveling to home Recollection

India - A Civilization Alive

Heritage Site Cultural Attractions Beaches / Benchmarks Health And Wellness - Yoga & Ayurveda Shopping Indian Cuisine New Experience - Meditation, Naturopathy

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

World Travel & Tourism - The Future

Formula to Calculate Number of Hotel Rooms Required

R =TxPxL SxN
where T = number of tourists P = percentage staying in hotels N = 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 year in business L = average length of stay

Example
T = 1,560,000 visitors P = 98% L = 9 days N = 1.69 0 = 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 need R = 22,306/.70 = 31,866 rooms