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Tourism Industry Presentation Module.pdf
- 1. Introduction to Tourism Industry Englishfor Tourism Industry
- 2. Introduction • Tourism isone of the world’s fastest growing industries and a major foreign exchange and employment generation for many countries. • It is one of the most remarkable economic and social phenomena.
- 3. What Is Tourism? •The world ‘tour’ is derived from the Latin word tornus, meaning ‘a tool for making a circle’. Tourism may be defined as the movement of the people from their normal place of residence to another place ( with the intention to return) for a minimum period of twenty-four hours to the maximum of six months for the sole purpose of leisure and pleasure. • According to WTO (1993) ”Tourism encompasses the activities of persons traveling and staying in places outside their usual environment for not more than one consecutive year for leisure, business, and other purposes.” • The Rome conference on tourism in 1963 defined tourism as ‘ a visit to a country other than one’s own or where one usually resides and works’. This definition, however, did not take into account domestic tourism, which has become an important money-spinner and job generator for the hospitality industry. • The UNWTO defines tourists as ‘ people who travel to and stay in place outside their usual environment for not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited’. • September 27 is celebrated as world tourism every year. This date was chosen as on that day in 1970, the Statutes of UNWTO were adopted. •
- 4. Brief History • Travelis as old as mankind on the earth. The man at the beginning of his existence roamed about the surface of the earth in the search of food, shelter, securi9es, and be:er habitat. • About 5000 years ago, changes in climate, dwindling food and shelter condi9ons hos9le invaders made the people leave their homes to seek refuge elsewhere. Perhaps, this leads to the development of commerce, trade, and industry. • The growth of efficient transport and the assistance and safety which the people could travel. • By the end of the 15th century, Italy had become the intellectual and cultural center of Europe. • During the 16th Century, travel come to be considered as an essen9al part of the educa9on of every young Englishman (Grand Tour). • Industrial Revolu9on in 18 and 19 century created more middle-class who travelled for pleasure. • Essen9ally, with the development of jet travel, communica9on, new technology, tourism, and travel became the world’s largest and fastest growing industry. • Travel and tourism, recently has emerged as a dominant economic force on the global scene accoun9ng for more than 12% of total world trade and growing at the rate of 8 percent annuals.
- 5. Types of Tourism 1.International tourism •Inbound. This refers to tourists of outside origin entering a particular country. When people travel outside their host/native country to another country, then it is called inbound tourism for that country where he/she is traveling. •Outbound. This refers to tourists traveling from the country of their origin to another country. When tourists travel a foreign region, then it is outbound tourism for his own country because he/she is going outside their country. 2. Domestic tourism The tourism activity of the people within their own country
- 6. Forms of Tourism •Tourism has various forms on the basis of purpose of visit and alternative forms. These are further divided into many types according to their nature. • Some most important forms of tourism are following as: Adventure Tourism Bicycle Tours Beach Tourism Cultural Tourism Ecotourism Geo-tourism Industrial Tourism Medical Tourism Religious Tourism Rural Tourism Sex Tourism Space Tourism Sports Tourism Sustainable Tourism Virtual Tourism War Tourism Wildlife Tourism
- 8. Classification of Tourism 1.Recreational: Recreational or leisure tourism takes a person away from the routine of everyday life. In this case, people spend their leisure time at the hills, seas, beaches etc. 2. Cultural: Cultural tourism satisfies the cultural and intellectual curiosity and involves visits to ancient monuments, places of historical or religious importance, etc. 3. Sports/Adventure: Trips have taken by people with a view to playing golf, skiing and hiking, fall within this category. 4. Health: Under this category, people travel for medical, treatment or visit places where there are curative possibilities, for example, hot springs, spa yoga, etc. 5. Convention Tourism: It is becoming an increasingly important component of travel. People travel within a country or overseas to attend conventions relating to their business, profession or interest. 6. Incentive Tourism: Holiday trips are offered as incentives by major companies to dealers and salesmen who achieve high targets in sales. This is a new and expanding phenomenon in tourism, These are in lieu of cash incentives or gifts, Today incentive tourism is a 3 billion dollar business in the USA alone.
- 9. Nature of Tourism •It is a service-based industry. • It is a dynamic sector. • It can be described in term of supply and demand. • Tourists from core genera9ng markets are iden9fied as the demand side • Supply side includes all facili9es, programmes, a?rac9on, and land uses designed and managed for the visitors • Tourism planning should strive for a balance between demands and supply. • This requires an understanding not only of market characteris9cs and trends but also of the planning process to meet the market needs.
- 10. Planning Supply • Variousmodes of transportation and other tourism-related infrastructure. • Accomodation. • Tourist information. • Marketing and promotion. • The community of communities within the visitor’s destination area. • The political and institutional frameworks for enabling tourism.
- 11. Importance of Tourism •Employment Generating It creates a large number of jobs among direct services providers (such as hotel, restaurants, travel agencies, tour operators, guide and tour escorts, etc.) and among indirect services providers (such as suppliers to the hotels and restaurants, supplementary accommodation, etc.) • Infrastructure Development Tourism spurs infrastructure development. In order to become an important commercial or pleasure destination, any location would require all the necessary infrastructure, like good connectivity via rail, road, and air transport, adequate accommodation, restaurants, a well-developed telecommunication network, and, medical facilities, among others. • Foreign Exchange The people who travel to other countries spend a large amount of money on accommodation, transportation, sightseeing, shopping etc. Thus, an inbound tourist is an important source of foreign exchange for any country.
- 12. Impact of Tourism EconomicSocial Cultural Environmental Benefits Costs Benefits Costs Benefits Costs Benefits Costs • Generates local employment • Stimulates profitable domestic tour-related industries. • Generates foreign exchange for the country and injects capital and money into the local economy. • Helps to diversify the local economy. • Improves infrastructure. • Increases tax revenues from. • Higher demand created by tourism activity may increase the price of land, housing and a range of commodities necessary for daily life. • Demands on health services provision and police service increase during the tourist seasons at the expense of the local tax base. • Enhances economic diversification through tourism. • Provides Recreational and cultural facilities local communities as well as visitors. • Develops and enhances public space. • Enhances local community’s esteem and provides cross- cultural understanding. • Possible inability of local amenities and institutions to meet service demands. • Without proper planning, it increases litter, vandalism, and crime. • Overcrowding and traffic congestion. • Disrupts traditional community ways of life. • Changes community structure and culture to meet tourism demands. • Enhances local cultural awareness. • Generates revenue to fund the preservation of archaeological sites, historic buildings, and districts. • May share of cultural knowledge and experience to revive local traditions and crafts. • Youth begin to emulate the speech and attire of tourists. • Historic sites can be damaged through tourism development and pressures. • There can be long- term damage to cultural traditions and the erosion of cultural values, resulting in cultural change beyond a level acceptable to the host destination. • Creates parks, nature preserves, ecological preservation.. • Improves waste management. • Increases awareness and concern for the environment. • A negative change in the physical integrity of the area. • Rapid development, over-development, and overcrowding can forever change the physical environment and ecosystems of an area. • Degradation of parks and preserves.
- 13. Industries Related ToTourism • Transporta)on It is the movement of people and goods from one place to another. A well-developed transport industry, as well as infrastructure, is integral to the success of any travel and tourism enterprise. • Hotels Hotels are the commercial establishment that provides accommoda=on, meals, and other guest services. In travel and tourism industry, the hotel industry plays a very significant role, as all tourists need a place to stay at their des=na=ons, and require many more services and facili=es to suit their specific needs and tastes. • Restaurants Restaurants are retail establishments that serve prepared food and beverages to customers. In the travel and tourism industry, restaurants and other food and beverage outlets are very important as tourists like to experiment with local cuisines of the places they are visi=ng. • Retail and Shopping The retail industry is very important as tourists shop for their day to day necessaries as well as look for souvenirs. In the recent years, some ci=es in the world have been promoted as shopping des=na=ons to aDract people with a penchant for shopping by offering various products, such as garments, electronic goods, jewellery, and an=ques.
- 14. Industries Related ToTourism • Travel Agencies A travel agency is a retailing business that sells travel related products and services, particularly package tours, to customers on the behalf of suppliers such as airlines, car rentals, cruise liners, hotels, railways, and sightseeing. Travel agencies play a very important role as they plan out the itinerary of their clients and make the necessary arrangements for their travel, stay, and sightseeing, besides facilitating their passport, visa, etc. • Tour Operators A tour operator assembles the various elements of a tour. It typically combines tour and travel components to create a holiday. Tour operators play an important role in the travel and tourism industry. • Tourist Destinations A tourist attraction is a place of interest for tourists, typically for its inherent or exhibited cultural value, historical significance, nature or build beauty or amusement opportunities. These are the basic fundamentals of the tourism industry.
- 15. Industries Related ToTourism • Cultural Industries Cultural or creative industries are responsible for the creation, production, and distribution of goods and services that are cultural in nature and usually protected by intellectual property rights. As tourists like to visit places of cultural significance and soak in the culture of the area, the cultural industry is very important to travel and tourism. • Leisure, Recreation, and Sport Leisure or free time is a period of a time spent out of work and essential domestic activity. Recreation or fun is spending time in a manner designed for healing refreshment of body or mind. While leisure is more like a form of entertainment or rest, recreation requires active participation in a refreshing and diverting manner.
- 16. Tourism Products • Atourism/tourist product can be defined as the sum of the physical and psychological satisfaction it provides to tourists, during their traveling and temporary stay and on the way to the destinations. • A tourism product includes five main components such as physical plant, services, hospitality, freedom of choice, and a sense of involvement.
- 17. Characteristics Of TourismProducts 1. Intangible: Tourism is an intangible product means tourism is such kind of product which can not be touched or seen and there is no transfer of ownership, But the facili:es are available for specified :me and for a specified use. For e.g. a room in the hotel is available for a specified :me. 2. Psychological: The main mo:ve to purchase tourism product is to sa:sfy the psychological need a@er using the product, by geAng experience while interac:ng with a new environment. And experiences also mo:vate others to purchase that product. 3. Highly Perishable: Tourism product is highly perishable in nature means one can not store the product for a long :me. Produc:on and consump:on take place while a tourist is available. If the product remains unused, the chances are lost i.e. if tourists do not purchase it. A travel agent or tourism operator who sells a tourism product cannot store it. Produc:on can only take place if the customer is actually present. And once consump:on begins, it cannot be stopped, interrupted or modified. If the product remains unused, the chances are lost i.e. if tourists do not visit a par:cular place, the opportunity at that :me is lost. It is due to tourism reason that heavy discount is offered by hotels and transport genera:ng organiza:ons during the offseason.
- 18. Characteris*cs Of TourismProducts 4. Composite Product: Tourist product is a combination of different products. It has not a single entity in itself. In the experience of a visit to a particular place, various service providers contribute like transportation The tourist product cannot be provided by a single enterprise, unlike a manufactured product. 5.Unstable Demand: Tourism demand is influenced by seasonal, economic, political and others factors. There are certain times of the year which see a greater demand than others. At these times there is a greater strain on services like hotel bookings, employment, and the transport system, etc.
- 19. Tourism Marketing • Itinvolves activities that direct the flow of goods & services from producer to consumer, from tourism suppliers to tourists. • The 4 main Ps are product, price, place, promotion • Focus of marketing is on the consumer • 4 Ps must satisfy the motivations, needs, & expectations (MNEs) of market target.
- 20. The Four P’s 1.Product All products & services provided by the sectors i.e. a bus ride across town to an ocean cruise around the world 2. Price Cost of product or service to consumer. 3. Place Any marketplace (anywhere buyers & sellers meet to exchange goods & services for), where the buyer and provider are brought together by a seller i.e. travel agency, ticket counter, telephone line. 4. Promotion: The ways in which sellers create consumer interest by advertising their products on TV, radio, newspapers, magazines, internet and other media.