Introduction to

Tourism Industry
CHAPTER 2 : COMPONENTS AND  STRUCTURE OF THE TOURISM
INDUSTRY
 Introduction

 The travel and tourism industry is argued by many as being the largest industry in
the world.
 It is, therefore, no surprise that the structure of the tourism industry is quite
complex, involving many components of tourism.
 With many different types of tourism and types of businesses operating within the
tourism industry, the structure of the tourism industry is made up of many
different segments and components.
Structure of Tourism Industry 
 Structure of the tourism industry

 The structure of the industry is made up of several components of tourism and

involves many different stakeholders.
 These components are all interrelated in one way of another. The components of
tourism make up the entire tourism system.
 There are several integral components of tourism. Without these components, the
tourism industry would struggle to function.
 This was demonstrated, for example, during the Coronavirus pandemic, which
halted air travel around the world. 
 Travel services are a vital component of tourism and without these services being
operational, the tourism industry struggled to survive.
 There are six major components of tourism, each with their own sub-components. 
 These are: tourist boards, travel services, accommodation services, conferences and events,
attractions and tourism services.
 Structure of tourism: International
1) International organizations
 Most tourist boards focus on promoting tourism in a particular area, city or country. 
 There are, however, some organizations which aim to promote tourism across more than one
country.
 Whilst these organization often have many functions other than tourism, they will also play a role
in the promotion of tourism in particular parts of the world. 
 This could include United Nation , UNESCO and ASEAN 
United Nations(UN)

 The United Nations is an international organization founded in 1945.  It is

currently made up of 193 Member States( country).  
 The mission and work of the United Nations are guided by the purposes and
principles contained in its founding Charter.
 United Nations Headquarters in New York City.
 United Nations can take action on the issues confronting humanity in such as
peace and security, climate change, sustainable development, human rights,
disarmament, terrorism, humanitarian and health emergencies, gender equality,
governance, food production, and more.
United Nations World Tourism
Organizations(UNWTO)
 The World Tourism Organization (UNWTO) is the United Nations specialized
agency entrusted with the promotion of responsible, sustainable and universally
accessible tourism.
 It is the leading international organization in the field of tourism, which promotes
tourism as a driver of economic growth, inclusive development and
environmental sustainability and offers the sector leadership and support in
advancing knowledge and tourism policies worldwide.
UNESCO

 The United Nations Educational, Scientific and Cultural

Organization (UNESCO)is a specialised agency of the United Nation (UN)
aimed at promoting world peace and security through international cooperation in
education, the sciences, and culture.
 It pursues this objective through five major
program areas: education, sciences, social, culture and communication
 Headquarters in Paris, France.
UNESCO Sites in Malaysia

Cultural 
 Archaeological Heritage of the Lenggong Valley (2012)
 Melaka and George Town, Historic Cities of the Straits of Malacca (2008)

Natural 
 Gunung Mulu National Park (2000)
 Kinabalu Park (2000)
ASEAN 

 The Association of Southeast Asian Nations is a regional intergovernmental

organization comprising ten countries in Southeast Asia, which promotes intergovernmental
cooperation and facilitates economic, political, security, military, educational,
and sociocultural integration among its members and other countries in Asia.
  A major partner of Shanghai Cooperation Organization, ASEAN maintains a global network of
alliances and dialogue partners.
 Asia Continent 

 Asia, the world’s largest and most diverse continent.

 Asia has both the highest and the lowest points on the surface of Earth, has the longest coastline
of any continent, is subject overall to the world’s widest climatic extremes, and, consequently,
produces the most varied forms of vegetation and animal life on Earth
 Asia is bounded by the Arctic Ocean to the north, the Pacific Ocean to the east, the Indian
Ocean to the south and the Atlantic Ocean to the west.
 The tallest peak in the world, Mount Everest, which reaches an elevation
of 29,035 feet (8,850 meters) the lowest place on Earth’s land surface, the Dead
Sea, about 1,410 feet (430 meters) below sea level  are all located in Asia.
 Asia’s coastline is about 39,000 miles (62,800 km) in lengths. (Gulf of Thailand
and Bay of Bengals)
Country in Asia Continent( Refer to Table
2.0)

 Asia consist of 48 countries.

 Divided by 4 subregion which
are Eastern Asia , South
Asia ,South-Eastern Asia and
Central Asia
2) National tourist boards
 A national tourist board is a national organization whose aim is to promote tourism across the
country.
 There are usually several management bodies that are involved with a national tourist board. 
 They are essential stakeholders who determine many aspects of tourism in the country, such as
budgets, taxation and regulations.
 Said management bodies include the parliament, the tourist board, an auditing committee and the
Prime Minister, President or Head of State.
 The national tourist board is funded from tourist taxes, membership fees, Government funding
and other sources.
 Examples : Ministry of Tourism Malaysia
 Examples of national tourist boards that refers to their to by their ‘campaign title’
include Malaysia Truly Asia , Dubai 2020 – The Future Starts Here and Amazing
Thailand.
 Ministry of Tourism Malaysia

 The Ministry of Tourism, Arts and Culture(Kementerian Pelancongan, Seni

dan Budaya) abbreviated MOTAC, is a ministry of the Government of
Malaysia that is responsible
for tourism, culture, archives( arkib), library, museum, heritage, arts, theatre, hand
icraft, visual arts, convention, exhibitions, Islamic tourism and craft.
 The Minister of Tourism, Arts and Culture administers his functions through the
Ministry of Tourism, Arts and Culture and a range of other government agencies.
 Its headquarters is in Percint 5 ,Putrajaya.
3) Tourist Information Centre
 A tourist information Centre is the place where tourists can go for advice and help with regards to
all matters related to tourism in the area.
 In the tourist information Centre (TIC) you will find staff who are knowledgeable about the local
area.
 There will often be a range of printed and digital information for you, including leaflets, maps,
coupons and guidebooks.
 Sometimes there will be virtual tourism facilities.
 Tourist information canters have been an important component of tourism
throughout the history of travel and tourism, however, they are coming under
increasing pressure as a result of information that is available online. 
 Most major tourist areas will have a tourist information Centre. These are usually
centrally located.
 Tourist information Centre are funded by the local Government.
 Malaysia Tourism Centre ( MATIC)

 The Malaysia Tourism Centre (MaTiC) is located in building in Kuala Lumpur,

which is both an architectural and historical landmark
 To make Malaysia Tourism Centre (MaTiC) as a world-class one-stop tourist
Centre for foreign and local tourists through the offering of services and facilities
such as tourist information counters, modern and equipped halls, meeting rooms
and event venues, E-portal terminals and facilities, cultural activities, handicraft
Centre and other tourism related services.
Component of Tourism 
Components of tourism: Transport services

 The relationship between transport and tourism is strong.

 According to the most commonly accepted definitions of tourism, a person must travel away
from their home environment for at least one night in order to be a tourist 
 Based on this fact, therefore, transport is an integral component of tourism. 
 Without transport, people cannot reach their intended destination.
 There are a range of different transport types. 
 The most common and popular methods of transport that make up the structure of the tourism
industry, however, are: air, road, train and water.
Travel by air

 Travel by air has grown exponentially in the past few decades. 

 With the introduction of low cost airlines and deregulation, the competitive market has been a
tourist’s paradise.
 New routes opening up has introduced tourists to areas that they may never have been able to
reach before and low prices have resulted in more of us taking more trips abroad using air travel
as our means of transportation.
 Travel by air is an essential component of tourism and this was demonstrated during
the Coronavirus epidemic. 
 During this time most air traffic was halted, which had a devastating impact of the tourism
industry world-wide.
Travel by road

 Travel by road is also a core component of tourism, particularly for domestic tourism.

 Travel by road is more popular in some countries than others. This largely depends on
accessibility options (i.e. what is accessible by road), distances required and road conditions.
 In destinations where travel by road is popular, there are often many car hire or rental companies.
Travel by train

 Travel by train is very popular in destinations that have good rail networks in infrastructure.
 In some parts of the world, such as China and Japan, there are world-class high-speed railways
that can be more efficient than flying.
 In other parts of the world, the rail journey is part of the tourism experience.
 In Europe you can buy an affordable interrail pass, which allows you to travel throughout Europe
using the rail system.
Travel by water

 Travel by water is also an important component of tourism.

 The structure of the tourism industry includes cruises, ferries and leisure boats, among other
types of travel by water.
 Travel by water can vary considerably in price and can include anything from a round the world
cruise to a short long tail ride in Thailand.
Components of tourism: Accommodation services

 Accommodation services make up an important part of the structure of the tourism industry.
 Whilst accommodation services were traditionally focussed mainly around the hotel industry,
nowadays accommodation options for tourists are much more varied.
 This adds an additional layer of complexity to the structure of the tourism industry.
Hotels chains

 There are many hotel chains that operate throughout the tourism industry and that are a key
component of tourism.
 Multinational corporations have expanded throughout the tourism industry with key players
being hotel chains such as Marriott, Shangri-La, Hilton and Holiday Inn.
Hostels and budget accommodation

 Hostels and budget accommodation options are popular with budget travelers and backpackers.
 There are a range of hostels found throughout the world. These are particularly popular in
destinations where accommodation is expensive, such as London, New York and Singapore.
 The Youth Hostel Association (YHA) and Hosteling International are popular hostel providers
that are found across the UK and overseas.
Holiday parks and campsites

 Camping is also an important component of tourism.

 There are camp sites situated throughout the world ranging from safari camps to glamping
(glamorous camping).
Homestays
 Homestays have become an increasingly prominent component of tourism.
 The sharing economy has seen the growth and introduction of many types of accommodations
into the travel and tourism sector that did not exist before.
 The most popular of these is Airbnb, where people rent out a room or an entire property to
tourists.
Accommodation innovations

 In recent years consumers have been demanding new and unusual experiences more than ever.
 In response to this, we have seen many accommodation innovations emerge throughout the
world.
 From staying in an ice hotel in Finland, to sleeping in a hammock in Borneo to a night in a
haunted castle in Wales, there are many different types of accommodation options that can make
your holiday a little bit more exciting.
Components of tourism: Conferences and events

 Conferences and events make up a significant part of the structure of the tourism industry.
 Conferences, which often come under business tourism, come in all shapes and sizes around the
world.
 From a small academic gathering to a large-scale summit involving national leaders from around
the world, conferences are an important component of tourism.
 Likewise, the event sector is also a significant part of the tourism industry.
 Examples of major conferences and events around the world
 There are many major conferences and events that take place around the world every year. Here
are a few of the list :
A) World Travel Market
 The World Travel Market (WTM) is held in London each November. This is a large event that is
held at the Excel venue.
 WTM provides travel industry experts with the opportunity to showcase their work, learn more
about the industry and to network.
B) Football World Cup
 The vast majority of people are familiar with the Football World Cup.
 The Football World Cup is held every four years in a different location.
 The Football World Cup attracts millions of tourists from all over the world. 
C) Songkran Festivals
 Songkran is the Thai New Year's national holiday.
 Songkran is on the 13 April every year, but the holiday period extends from 14 to
15 April. 
Components of Tourism : Attractions 

Natural attractions
 Natural attractions are just as it says on the tin – natural. In other words, they are attractions that
have not been made by man.
 Natural attractions are found all over the world and vary in size and scope. There is even a
definitive list of the seven natural wonders of the world.
Built attractions
 Built attractions also make up an important part of the structure of the tourism industry.
 There are many built attractions throughout the world. Some attractions are built for the purpose
of tourism, such as theme parks, gallery, shopping malls ,museums archive ect.
Components of tourism: Tourism services

 Tourism services are an essential component of tourism. Without many tourism services, the
tourism industry would fail to adequately function.
A) Tour operators
 A tour operator is the individual or organization who puts together a trip.
 Typically, a tour operator would package together essential elements including accommodation,
transport and transfer.
 They would then sell this package to the tourists.
 However, tour operators are becoming fewer in recent years.
 Consumers are now far more Internet savvy and are more capable of researching the individual
elements of their holiday and booking this independently.
B) Travel agents
 Traditionally, a travel agent would sell the product that the tour operator has produced i.e. the
package holiday.
 While travel agents have and continue to sell individual holiday components, they have
historically been most commonly used by tourists who wish to book a package holiday.
 In today’s society, there is far less scope for travel agents than there used to be.