Tourism industry

This topic will assist you in developing an understanding of the many aspects of the tourism industry, and an appreciation of its place in the global and local economies.

This topic is used in:

• International tourism

Learning support and certification

Formal learning support and certification services for this topic is offered by:

• Otago Polytechnic - Department of Business, Travel and Tourism

Introduction

Tourism is one of the world's fastest growing industries as well as the major source of foreign exchange earning and employment for many developing countries.

World tourism demand continues to exceed expectations, showing resilience against extraneous factors. According to the UNWTO World Tourism Barometer, released (November 2006):

• In the first eight months of 2006 international tourist arrivals totalled 578 million worldwide (+4.5%), up from 553 million in the same period of 2005, a year which saw an all-time record of 806 million people travelling internationally.
• Growth is expected to continue in 2007 at a pace of around 4% worldwide.

Tourism is vital to the well being of many countries, because of the income generated by the consumption of goods and services by tourists, the taxes levied on businesses in the tourism industry and the opportunity for employment and economic advancement by working in the industry.

What defines tourism

and what makes an ordinary travelling person a tourist.

The concept of tourism refers to the broad framework that identifies tourism’s essential characteristics and distinguishes tourism from similar, often related but different phenomena.

The two terms ‘travel’ and ‘tourism’ can be used in isolation or together to describe three concepts:

• The movement of people
• A sector of the economy or an industry
• A brad system of interacting relationships of people, their needs to travel outside their communities and services that attempt to respond to these needs by supplying products

The World Tourism Organisation (WTO) cited these definitions of tourism:

• International Tourism: Consists of inbound tourism, visits to a country by non-residents, and outbound tourism, residents of a country visiting another country
• Internal Tourism: Residents of a country visiting their own country
• Domestic Tourism: Internal tourism plus inbound tourism (the tourism market of accommodation facilities and attractions within a country)
• National Tourism: Internal tourism plus outbound tourism (the resident tourism market for travel agents and airlines.

According to the WTO tourists are people who: “travel to and stay in places outside their usual environment for not more then one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited.”

Devised by WTO was endorsed by the UN Statistical Commission in 1993 following an International Government Conference held in Ottawa, Canada in 1991.

Before people can experience tourism they usually need at least:

1. disposable income, ie. money to spend on non-essentials
2. leisure time
3. tourism infrastructure, such as transport and accommodation.
4. Other factors such as health and motivation to travel are also important.

As a service industry, tourism has numerous tangible and intangible elements. Major tangible elements include transportation, accommodation, and other components of the hospitality industry. Major intangible elements relate to the purpose or motivation for becoming a tourist, such as rest, relaxation, the opportunity to meet new people and experience other cultures, or simply to do something different and have an adventure.

Following is a range of aspects to do with the tourism industry. Please feel free to expand the dot points with your own findings and research.

Structure and organisation

The tourism industry is based on many different components and interrelated parts. For example, transport, accommodation, attractions, activities, marketing and government regulation. Many businesses span more than one sector and the impacts in one part of the tourism industry have significant implications for other sectors.

The tourism industry includes:

1. those sectors which enable the tourist to travel to and from the destination (for example travel agents, airlines, bus companies, tour operators and rental car companies)
2. those sectors which are part of the product at the destination (for example, accommodation, facilities and attractions)
3. the human component of tourism (the labour force)
4. public sector or government agencies, regional tourism organisations, professional associations and industry training organisations.

((Figure 4.1 P94 – Tourism,Principles,Practices, philosophies))

International Organisations

World Tourism Organisation (UNWTO) is the most widely recognised and the leading international organisation in travel and tourism today. It is a specialised agency of the United Nations. It serves as a global forum for tourism policy and a practical source of tourism know-how. With its headquarters in Madrid, Spain the World Tourism Organisation plays a central and decisive role in promoting development of responsible, sustainable and universally accessible tourism, with the aim of contributing to economic development, international understanding, peace prosperity and universal respect for and observance of human rights and fundamental freedoms.

Its membership includes 150 countries and territories and more than 450 affiliate members representing local governments, tourism associations, educational institutes and private sector companies including airlines, hotels and tour operators.

Other international organisations which have a specialised interest in tourism include the International Civil Aviation Organisation (ICAO) which is a specialised agency of the United Nations and is concerned with the development of international civil aviation, and the International Governmental Maritime Consultative Organisation (IMCO) which is an inter-governmental organisation concerned with co-operation in sea transport.

The International Air Transport Association (IATA) is an association of airlines concerned with the development and regulation of the air transportation industry. Members comprise of approximately 80% of the world’s international airlines.

Regional International Organisations

The Pacific Asia Travel Association (PATA) is a mix governmental and non-governmental bodies that work together to promote tourism industry professionalism in the Asia and Pacific area. http://www.pata.org

European Civil Aviation Conference (ECAC) this is a regional organisation with a specialised interest in tourism and concerned with co-operation and co-ordination of European airlines. www.ecac-ceac.org

European Travel Commission is a strategic alliance that provides for the collaboration between thirty-three European national tourism organisations. The commission’s goal is to attract customers from overseas markets to come to Europe through promotional campaigns and industry trade shows. www.visiteurope.com

National Organisations

Public (government) sector

The major reason for government involvement in tourism is concerned with the welfare of their citizens and the overall welfare of their country. This relates to areas such as economic stability, protection of natural resources, national security, public health and employment. Tourism activity can occur in all of these areas so governments are concerned that it is regulated and directed so as to ensure maximum benefit for the country and the negative factors are minimised.

The degree of control differs between each country. State organisations in the former Soviet Union had almost total control of tourism from the formation of policy to running the only travel agency Intourist, airline Aeroflot and over 40000 rooms.

The only remaining countries that still control tourism completely so that independent travel is impossible are North Korea and Turkmenistan.

In capitalist countries, the mix of private-sector and public-sector involvement in tourism varies considerably between each country.

The United Nations Conference on International Travel and Tourism in Rome in 1963 adopted the following resolution:

The Conference considers that it is incumbent on governments to stimulate and co-ordinate national tourist activities, convinced that this task can, in the main, be carried out through the medium of national tourist organisations.

Virtually every country in the world has a national body responsible for tourism. It can be part of a ministry, a constituted part of a government department or an organisation with a separate legal status. Generally the role of a NTO will be to ensure appropriate development and promotion of a nation as a tourism destination. This can include the following functions:

• research
• information and promotion within the country
• overseas promotional activities
• international relations
• development of tourist areas
• overall tourism policy and promotion
• in supporting key tourism interests in a time of financial crisis

A list of NTO’s worldwide is found at http://www.towd.com For example:

• Canadian Tourism Commission
• Tourism New Zealand
• Japan National Tourist Organisation

Local Authorities

Below the National Tourism Organisations, in most countries, there is often a complex web of organisations which complement the work of the NTO at the regional and local level. For example, Tourism Dunedin is a local tourist information service under the national tourism office for New Zealand. Their activities are often a scaled-down version of the NTO’s work at a regional level; they often implement national policy and pursue integrated activities with the NTO providing guidance.

((Presentation ‘Key elements of Tourism’ to be inserted here))

Direct elements of the Tourism Industry - Those areas of the tourism industry which come into direct contact with tourists

• Sales
• Accommodation
• Transport
• Activities
• Attractions
• Ancillary Services

Indirect elements of the Tourism Industry - Often called support sectors. Those parts of the tourism industry which may not come into direct contact with tourists, but without the rest of the industry could not function.

• Infrastructure
• Roads
• Airports
• Communications
• Public Toilets
• Signs
• Manufacturing
• Building Industry
• Electricity
• Water supply
• Sewerage and waste disposal

Direct Elements

Transportation

Water Transportation

http://flickr.com/photos/nmarshall42/86195286/ Transport by water can be an attraction in itself whether you are travelling on a cruise ship in the Mediterranean or on a ferry between Wellington and Picton. Travelling by water has never been more popular as tourists seek to avoid the frustrations of air travel with its airport delays, congestion and the lack of comfort in the air (unless travelling first class!). Cruising has undergone a revival and all forms of recreational pursuits on the water including yachting and jet boating have expanded to fulfil this demand.

Air

Advances in aviation technology has meant that travel by air is now relatively safe, economical, quick and reasonably comfortable. The development of the jet airliner after World War 11 to the first jumbo jet, the Boeing 747 in 1970 led to rapid falls in seat cost per passenger kilometre. The advances have continued with the Airbus ‘super jumbo’ A380 a double-decker aircraft seating between 550-800 passengers enters service in late 2007 with Singapore Airlines operating the aircraft on the London -Singapore – Sydney route.

http://en.wikipedia.org/wiki/Image:Airbus_A380_cross_section.svg A380 cabin cross section showing economy class seating

There are two basic type of air transport operation:

1. Scheduled services
2. Charter services

Scheduled services operate on defined routes, domestic or international, for which licences have been granted by the governments concerned. The airline must operate on the basis of their timetable regardless of the passenger loading.

Fully state owned carriers such as Singapore Airlines and the Emirates are known as the national flag-carriers. Even when the carrier has been privatised as in the case of British Airways the airline is still seen as the national flag carrier. Air New Zealand was privatised but after the 9/11 disaster 80 per cent of the carrier was returned into public ownership. Air transport is very important to the national economy of a country and a government will often assist in times of crisis.

Low Cost Airlines LCA’s or LCLF (low cost low fare) carriers has been a major development in scheduled services in the last decade. A total of 80 million people travelled on European no-frills carriers in 2004 up from 47 million in 2003. These airlines create a cost-competitive advantage by using some of the following means:

• operate from secondary airports which have lower landing fees and are less congested allowing quicker turnarounds and more flights
• operate on high density, short-haul routes with one class of seating
• charge passengers for food, drink and entertainment
• sell only via the Internet
• tickets are inflexible – generally non-refundable
• not operating frequent flying programmes and keeping airport passenger services to a minimum

Charter services do not operate according to a published timetable and so do not have to operate with uneconomical loadings. They are not advertised or promoted by the airlines themselves as they are usually charted by intermediaries – usually tour operators. Many charter flights are sold as part of a package holiday in which the price paid includes flights, accommodation and other services.. Such packages are frequently cheaper than regular schedule airline fares. Furthermore charter airlines frequently operate on routes, or to airports, where there is no scheduled service. Much of the traffic through small and medium sized airports in the United Kingdom consists of charter flights, and the survival of these airports often depends on the airline landing fees they get from the charter companies.

Although charter airlines typically carry passengers who have booked individually or as small groups to beach resorts, historic towns, or cities where a cruise ship is awaiting them, sometimes an aircraft will be chartered by a single group such as members of a company, a sports team, or to travel to a major event.

Many airlines operating regular scheduled services (i.e., for which tickets are sold directly to passengers) have set up charter divisions, though these have not always proved competitive with the specialist charter . In New Zealand, Freedom Air was established by the Mount Cook Group in response to the competition from the charter airline, Kiwi Air (went in to voluntary liquidation in 1996). Freedom Air now operates as a scheduled airline from smaller airports eg Dunedin and Hamilton. The economics of charter flights demand that the flights should operate on the basis of near 100% seat occupancy.

Land Transportation

Land transportation can be used for travelling from home to a host destination, within the destination and between the host destinations.

Motorcars

Tourists can use privately owned cars for independent and flexible holidays both domestic and international. They can take day excursions or longer trips. The explosion in private car ownership has changed the tourism industry by establishing a need for motels, bed and breakfasts, home stays, roadside cafes and car ferry services particularly in Europe.

The car rental business is divided into two categories, the large international companies e.g. Hertz, Avis, Budget and the small, locally based companies. The larger companies will have contracts with airports and railways maintaining a desk at the location for easier collection of vehicles, links with airlines and hotels, (some large hotel chains offering desk space in their reception area) and access to their business through a computer reservation system (CRS) and website.

Rail

Rail travel has declined in popularity because of the rise in ownership of private vehicles, the advent of jet aircraft and the failure of rail operators around the world to adapt to changing tourists needs. The Orient Express (www.orient-expresstrains.com), the Trans-Siberian Railway and the Tranz Alpine railway (www.tranzscenic.co.nz) are all well known for their sight seeing appeal and are attractions in their own right. Rail can provide efficient links between airports and city centres and can carry large numbers of passengers and luggage. E.g. London, Frankfurt, Paris and Rome. Trains often have an advantage over coach travel as they are a lot faster. Inter-city express services operate in Britain, Europe, U.S.A. and Japan. For rail travel within a city, tourists tend to travel by underground trains such as the ‘Tube’ in London, Le Metro in Paris and the ‘Bart’ in San Francisco, Hong Kong, Singapore, Rome and Prague also have their own underground rail systems. Tickets offering unlimited travel by train, marketed to inbound tourists and only sold prior to departure, have boosted sales of rail travel. These included Eurailpasses in Europe and Britrail pass in Britain.

Campervans

These are becoming increasingly popular both in New Zealand and overseas especially in the USA where more than 25 million Americans make use of them each year. While not cheap to hire, they have the advantage of flexibility and independence providing both transportation and accommodation.

Coach

Coach operations can be categorised as follows:

• express coach services, domestic and international
• private hire services
• tour and excursion operations
• transfer services

Greyhound in the USA is one of the most famous inter city express coach operators but must compete with budget airlines and AMTRAK rail services for its customers. In New Zealand, the Intercity bus service operates between major cities. Coaches can be hired by groups to travel to special events e.g. Millbrook concerts or for educational purposes e.g. tourism students educational tours. Escorted package tours are the most visible use of coaches in the travel industry where there is a combination of accommodation, sightseeing by coach and transportation between cities. E.g. Trafalgar Tours, Contiki Tours. The majority of coaching holidays are booked by the over-45s. City sightseeing tours for half-day or full-day are usually undertaken by coaches or mini-buses. They can be specialised coaches such as London’s double-decker buses or open-decked used in Auckland.

Transfers from airports to hotels are often by provided coach transportation especially when the distance makes the cost of travelling by taxi prohibitive. Some accommodation providers will also provide complimentary transfers by mini-coach or they will be included in the cost of the package holiday.

Accommodation

The accommodation sector provides an enormous variety of accommodation types to suit a wide range of visitors. Accommodation ranges from luxury 5 star hotels which provide facilities and services such as 24 hour room service, gyms, swimming pools etc. to camping grounds where the visitor is provided with a patch of ground on which to pitch a tent. Classification of different types of accommodation is very difficult as they can mean something different in another country. In the USA, the meaning for an ‘inn’ is hotel or motel style accommodation usually operated by a chain e.g. Holiday Inns. In Britain, and ‘inn’ would describe pub-style accommodation offering bed and breakfast style accommodation.

Grading Systems

There are many grading systems recognised by visitors and the accommodation industry. Grading Systems are used to encourage and ensure a consistency of quality.

Systems may be administered by public organisations or privately by organisations such as accommodation chains and franchises. The most recognisable of these grading systems is the “star” system where individual accommodation is rated depending on its levels of service, cleanliness, décor and facilities. For instance most people recognise that a 5 star hotel will have excellent service, be exceptionally clean and tidy with housekeeping staff on call 24 hours, have up to date, luxurious décor and have a wide range of facilities on offer. A 3 star hotel on the other hand will have fewer facilities, less luxurious décor and more limited service, e.g. a limited 24 hour room service menu instead of the entire restaurant menu.

While this “star” system is recognised internationally it is not administered at an international level, but rather at a national or in some cases regional level. This leads to inconsistencies as to what the star grades actually mean. Many national tourism organisations are now actively developing standardised grading systems and encouraging accommodation providers to allow their accommodation to be graded.

The benefits of this are:

1. Visitors can easily choose accommodation which will suit their needs and budget, while being assured of quality.
2. Accommodation providers have a clear understanding as to what standards are expected of them.
3. Accommodation providers can use their rating on their promotional material.
4. As more accommodation businesses join the grading scheme the over all quality of a destinations accommodation improves.
5. This gives visitors an overall impression of the destination as one of quality.

http://www.qualmark.co.nz/images/qualmark_animated.gif NZ Qualmark

New Zealand uses the Qualmark model to grade its accommodation. This model is recognised internationally and uses a Qualmark star grading of 1 to 5. Accommodation is rated by type:

• Hotel
• Backpacker
• Holiday home
• Holiday park
• Student accommodation
• Self contained & serviced
• Exclusive

In the United Kingdom, accommodation is graded according to stars, diamonds or crowns. In the USA a 5 star hotel would be graded as ‘deluxe’ then to ‘first class’ to ‘superior’ and the minimum grading would be ‘tourist’ or ‘budget’.

Activities and Attractions

All destinations require features that will attract tourists to come and see and experience these activities and attractions. They can range from physical features; beauty of the mountains to the quality of a beach to activities such as jet boating down a river or shopping and entertainment.

Attractions can be categorised as either natural which includes mountains, geothermal areas, forests or constructed attractions which must be created and maintained. Examples of constructed attractions are amusement parks, museums and art galleries, wildlife parks, events, staged entertainment, cultural exhibitions, gardens and historical buildings.

Sales

Also known as the travel sector, sales involves the distribution of tourism products to the consumer through retail travel agents, tour operators and wholesalers. As already demonstrated the tourism product is diverse and includes transport, attractions/activities, accommodation and ancillary services. The sales sector is especially important in tourism because the customer and the service are geographically separated. For example, a customer in Brisbane may purchase the bulk of their Central Otago skiing holiday at home, before they leave, including: air tickets, transfers, hire car, hotel accommodation and ski passes.

The tourism product can be sold in a variety of ways:

1.The customer purchases directly from the supplier (principal) Many companies such as Air New Zealand are encouraging their customers to do this, especially for domestic flights. The growth in internet use and the ease of gaining information and booking via the web means more and more visitors are choosing to book tourism products themselves.

Advantages for the supplier are more profit as no commission has to be paid to intermediary, save time and reduce possibility of mistakes and supplier maintains control of sale e.g. a hotel could offer an upgrade to a suite to promote future business with customer. Disadvantages would be increased cost to supplier in establishing an office to promote their product and can antagonise intermediaries

2.The customer accesses the supplier through an intermediary Intermediaries include retail travel agents, conference planners and information offices (I-Site in New Zealand). Sometimes organisations usually considered to fall within the other sectors may also act as intermediaries e.g. a hotel booking guests into an activity and taking payment, or a tour company booking clients into accommodation. Intermediaries usually gain a commission of between 10 and 20% for making bookings.

An intermediary will provide a service that adds value for the traveller. For example, a travel agent may negotiate with an airline for special rates or conditions, or they may offer value in other ways such as providing specialised knowledge or a greater range of choices for itinerary planning. Travel agents may specialise in particular destinations, modes of travel or provide services for niche market segments.

3.The customer accesses the supplier through two intermediaries. Travel agents will often use wholesalers to book products for their clients. Wholesalers negotiate with suppliers and sell products such as all-inclusive tours. Many retail travel agencies have wholesaling arms e.g. the retail travel agency chain House of Travel has the wholesale arm Travel Plan.

Wholesale tour operators put together tours combining transport, accommodation, activities and in the case of fully inclusive tours ancillary services such as food etc. These tours are usually sold via a travel agent. Some tour operators do deal directly with the public i.e. Contiki.

The travel agents role is different to other retailers because they do not purchase a product for resale to their customers.

Commission

Travel agents and tour operators can earn their income from commission paid by the service provider they are representing, and not by the purchaser. Airlines are reducing the levels of commission they currently pay to agents making it necessary to sell more to make larger amounts of commission these days.

Examples of commission rates to travel agents include 5-9% on international air tickets, 10% for a tour package, cruise or accommodation (this can be more depending on the preferred status held with the supplier), and 33% for travel insurance.

With the current changes to the commission system such as a single capped fee, direct booking over the phone or internet and e-ticketing, agents are working harder to make their commission. The focus on selling domestic fares is lower as there is very little to be made on these bookings now days and more concentration is taking place on the add-ons to the international flights.

Some travel agencies also generate income from bureau de change or traveller’s cheque operations. Traditionally, this has been a significant source of income for some major travel chains such as Thomas Cook and American Express. However, with electronic banking, direct booking and the introduction of the Euro, their income is also decreasing. It represents a saving for the consumers who are benefiting by saving on commission.

Insert diagram – Principles of Tourism – P254

==Ancillary Services== – (Support services)

Food and Beverage

One of the most important experiences while on holiday for a lot of travellers is the consumption of food and beverage, enhanced when the food and drink in question is exceptional and/or exotic which is often the case on holidays abroad.

Countries with well-established reputations for their food and drink have ensured that these attractions are promoted prominently in their tourism campaigns. Tours are now from New Zealand offering tuition in French cooking and the many food and wine festivals around the world attract both domestic and international tourists.

One of the most famous Festivals is Oktoberfest, held annually in Munich, Germany for 2 weeks. The Speights brewery tour in Dunedin is world renowned with tourists having to book in advance.

Research conducted by Tourism New Zealand has shown that ‘Interactive Travellers’ to New Zealand are especially interested in experiencing the country’s local food and wine.

The dominance in the UK and around the world of transnational corporations such as McDonalds, KFC and Burger King has changed the eating habits of travellers. The more unadventurous of tourists can now be comfortable eating food similar to the food at home. Research conducted by Tourism New Zealand has shown that ‘Interactive Travellers’ to New Zealand are especially interested in experiencing the country’s local food and wine.

Shopping

Shopping can be both an attraction and a basic facility which tourists will expect at a destination. This can include souvenir shopping or purchasing basic necessities such as shampoo. Products which identify with a destination are always popular. In New Zealand, anything to do with the kiwi is sold in huge numbers in Hawaii its pineapples and macadamia nuts.

Insurance

Insurance is a very important aspect of a tourist’s travel arrangements. Most policies will cover the following:

• medical care and hospitalisation
• personal accident
• cancellation/curtailment of holiday
• delayed departure
• baggage loss
• money loss
• personal liability

The traveller must ensure that medical coverage is sufficient to meet their needs particular in countries where hospital care is very expensive. In the USA, costs in excess of $1 million are not uncommon for serious illnesses.

Foreign Transactions

The cost of an international trip can be substantial and often difficult to estimate in advance. Several factors can influence this with the key one being fluctuating exchange rates. Local taxes and tipping may be add-ons to prices that were not anticipated in advance. It is also important to consider the relative cost of living between countries and how that contributes to the travellers perceptions of value.

An example of cost of living in countries would be those who want to travel to Scandinavia. The cost of living is very high especially when buying food. In somewhere like Bali the cost of living is not as high – food and souvenirs are much cheaper but it must also be remembered that tourists help to boost the economy. Hence, after the bombing in Bali in 2003 the economy took a dive until tourists deemed it safe to travel there again.

International travellers have an increasing number of ways they can pay for goods and services while in a foreign country. These include:

• Taking cash from home. However, this may lead to theft or loss, and some countries have restrictions on the import or export of their currencies.
• Taking traveller’s cheques. Used widely around the world, traveller’s cheques provide security with compensation for theft and loss. Standard premium charge of 1%.
• Arrange for the advance transfer of funds to a foreign bank.
• Use travel vouchers provided by travel intermediaries. Tour, transport, accommodation or meals may be purchased in advance.
• Use a credit card to purchase goods and services or for cash advances. Fees may apply and if there is a delay between purchase transaction and debit of the holder’s account, currency exchange fluctuations may alter the amount of the purchase.
• Use an eftpos card to access money/make purchases. The card needs to have the internationally recognised symbol on the back of it and then funds are accessed direct from bank account and are available from ATM machines 24 hours a day.

Commission Charges

The standard commission charged is 1.5% which can be a relatively small amount if the traveller is not purchasing much. Therefore, there is a minimum charge which is passed on to the client of $5.00 if the 1.5% commission is less than $5.00. This discourages people from only exchanging small amounts of traveller’s cheques over the counter.

Currency Codes

Currency codes are three letter standard abbreviations which identify the currency of the country. Eg. NZD = New Zealand Dollars, GBP = Great British Pounds The introduction of the EURO has reduced the number of foreign currencies now used in Europe and makes it easier for the traveller when carrying traveller’s cheques, for instance.

Currency Exchange Rates

International transactions require buyers and sellers to deal in foreign currencies. The price of one currency in terms of another is called the exchange rate. Currency exchange rates are usually floating and values fluctuate depending on supply and demand in the global marketplace. Fluctuation, either appreciation or depreciation, depends on a number of economic and political considerations. If a country, for example, suffers a war or terrorist attack then it becomes politically unstable and people will not go there. If it is not receiving large numbers of tourists anymore then the economy suffers and the value of the currency will drop.

Changes in exchange rates are usually small in the short term, but over a period of weeks or months, trends can result in substantial differences. Changes in some currencies can have knock-on effects for others too. For example, the value of the New Zealand dollar is linked to the US dollar and the Japanese Yen.

International travellers have an increasingly wide range of ways in which they can now pay for their goods and services abroad. These can include:

• Traveller’s cheques - which are still widely used as they are readily available and recognised throughout the world and offer the security of replacement if lost or stolen.
• Both credit card and cash card usage are increasing but it is recommended that travellers also take an assortment of notes and travellers cheques in case of card theft.

Tourist publications and information

Traditionally this information has been in the form of brochures but the Internet is now an increasingly important source of information for tourists and for tourism operators. Availability of current information for tourists is vitally important e.g. weather, local transportation, attractions etc. Travel Guides such as the Lonely Planet series are immensely popular and continue to be updated and extended each year. Some guidebooks are now taking the form of travel blogs and wikis such as wikipedia and wikitravel. Podcasts proove to be very useful as the audio information can be downloaded over the Internet to a computer then transferred automatically to a portable audio player. Virgin Atlantic was one of the first companies to offer this service when they launched a guide to New York. The key benefit is that it is free, can be instantaneously updated and quick and easy to use while on the move.

i-SITE offices in New Zealand have a vital role in providing information on local and national visitor attractions and activities, accommodation and transport. They are operated and funded by local councils e.g. Dunedin City Council.

Entertainment

This category includes cinemas, theatres, nightclubs, bars, casinos and shows. Many tourists will look for entertainment and expect these facilities to be available especially in cities. If it is not available, this is reflected highly in visitor’s surveys as a reason for dissatisfaction.

Brief History of Travel & Tourism Through The Ages

http://farm1.static.flickr.com/31/54114053_f4951e0457_m.jpg

Travel tourist - Originating from the French word “travail’ meaning to labour or toil. Tourist is today defined as a person travelling for pleasure

The Earliest Travel & Tourism

• Business travel (3000BC)
• Trading
• Matters of state
• Military purposes
• Leisure
• Egyptians visiting pyramids (1500BC)
• Religion - Pilgrimage (4th C AD) and other sacred ceremonies
• Pleasure
• Curiosity
• Sport - Olympic Games (776BC), Polo & jousting (Persia), Swimming (Egypt), Winter sports holiday (1901)

Spa (Bath)

File:Wallyg-300681098.jpg

A photo of the Great Bath, taken by Wallyg while visiting the Roman Baths Museum in Somerset, United Kingdom

• First used by the Romans
• Later developed 1897 to The Terrace (at left)
• Fashionable venue for social and rehabilitating needs
• The Grand Tour
• Renaissance – rebirth
• Travel for educational experience
• Early 17th century

19th Century

• Technological developments
• Railways
• Steamships
• Capital investment
• Hotel chains and corporations
• Casinos – escape from middle class morality of Victorian England
• Outdoor Activities
• Beach bathing
• Sun tan status symbol of health and wealth
• Mobile holidays
• Bicycle
• Motoring
• Walking

Early 20th Century

• Airline Industry
• Shipping lines
• Private Motor Cars

1960’s, 1970’s, 1980’s

• Changing social patterns
• Annual holiday taking
• Special interest holidays
• Increasing prosperity and declining inflation
• Domestic and international travel

1990’s

• Failing economy
• Decline in airline travel
• Unrest
• Wars (Gulf War 1991)
• Civil unrest (Fiji)
• Terrorism

New Millennium

• Promise of golden era for tourism
• Terrorism
• September 11, 2001
• War
• Invasion of Iraq (2003)

2007 onwards - Issues - Negatives

• Global warming
• World resources - Oil
• War\coups
• Terrorism

2007 onwards - Issues positive

• Increased prosperity
• Emerging Industrial Nations – China
• Developments in Transportation
• Hypersonic jet
• Cruise Ships\Communities
• Development in Technology
• Virtual tourism

Impacts of Tourism

Economic

• International tourism receipts regarded as exports
• Expenditure by nationals abroad as imports
• Tourism leading source of foreign exchange for 38% of countries worldwide
• Contributes approximately 4.2% to the world’s Gross Domestic Product
• 78 million jobs within the industry-3.1% of total world employment
• Tourism can increase government revenue through payment of taxes by tourists eg departure tax, GST, visa fees
• Multiplier effect – more tourist dollar is spent and respent within the economy less the amount leaving in form of leakage

Economic - summary

• Major economic impact on developing countries/underdeveloped regions within country
• Foreign exchange earnings critically important to developing nations-require high level imports
• Increase standard of living creating employment and provision of facilities

Positive Environmental Impacts

• Formation parks and reserves to protect environmental sites
• Educate local community – plaques,leaflets
• Increased environmental awareness-physical improvement to landscape
• Protection of wildlife funded through tourism ventures

Negative Environmental Impacts

• Noise pollution
• Water pollution
• Air pollution
• Visual pollution
• Erosion
• Overcrowding
• Damaging wildlife

Positive Social Impacts Tourism is often regarded by the host community as an economic necessity but a social evil (Parkinson 1970)

• Employment
• Wealth creation
• Foreign investment
• Competition
• Improvement in lifestyles

Negative Social Impacts

• Inflation
• Overdependence on tourism
• Competition
• Undesirable activities
• Consumptive behaviour

Support Sectors

Public Sector - Those areas of the tourism industry which are directly controlled or organised by central or local government

Private Sector - Those areas of the tourism industry which are directly controlled or organised by individuals or privately owned companies.

Sectorial Organisations Based on the interests of a particular sector of the industry

• IATA – International Air Transport Association
• ABTA – Association of British Travel Agents
• TAANZ – Travel Agents Association of NZ
• HANZ – Hospitality Association of NZ
• BHA – British Hospitality Association

Destination Organisations - Concerned with developing and/or marketing a specific destination

• PATA – Pacific Asia Travel Association
• ETC – European Travel Commission
• Dunedin Host
• Tourism Dunedin
• British Tourist Authority
• Tourism New Zealand

Tourism Organisations - Concerned with Tourism Activity as a whole, by collecting statistics and research into the tourism phenomenon

• UN WTO – World Tourism Organisation
• WTTC – World Travel and Tourism Council
• British Industries Tourism Advisory Group

Attractions and Activities

Theme and Amusement Parks

• Bakken, Copenhagen opened in 1583 oldest amusement park
• Blackpool Pleasure Beach opened in 1896 most visited tourist site in England
• Walt Disney Corporation’s Disneyland in Anaheim and Disneyworld in Orlando attracts between 13-15 million visitors annually

Historical Buildings

• Stately homes in England number over 6000 and over 800 are open to visitors
• In Dunedin, Olveston offers tours and Larnach Castle can offer tours, accommodation, events, garden walks and restaurant facilities

Wildlife Attractions

• Establishment of zoos goes back to the 18th century – now 900 established zoos
• Safari parks increasingly popular – see animals in wild eg Kruger National Park
• Sealife centres attract crowds although dolphin shows are losing favour

Museums and Art Galleries

• Attracting new tourists through interactive displays and special events e.g. Te Papa holding Lord of the Rings exhibition
• Special exhibitions at Art Galleries

Natural Attractions

• New Zealand’s world renowned e.g. Milford Sound, geothermal activity Rotorua
• National parks world wide – related activities e.g. Yellowstone

Shopping

• Important part of tourism
• Tourist cities London, Paris, Rome, New York popular for quality
• Large malls being developed to attract visitors
• Souvenir shopping

Water Transport

Main categories

• Ocean line voyage shipping
• cruise shipping
• ferries
• inland waterway transportation

Ocean liners

• Port to port basis
• Decline because of reduced cost air transportation and oil increase
• Scheduled sailings limited

Cruising

• 250 cruise ships operate worldwide carrying 10 million passengers
• More than half cruises operate out of US ports and Americans represent 4 out of 5 cruise passengers
• Niche markets for vessels carrying 100-200 passengers
• Fly-cruises – combination of flights to and from port of departure
• Stereotypical cruise passenger – conservative and elderly sitting in deck chairs or hyper-active extrovert middle- aged looking for non-stop entertainment
• Security
• All inclusive
• Social interaction

Ferries

• Short distance – water-borne transport
• Within cities or between countries
• One of the busiest waterways in the world – English Channel

Inland waterways

• Excursion boats such as paddle steamers operate on the Murray River in Australia
• Barge holidays on canals are very popular
• Venice and Bangkok are examples of cities where water transport is both an attraction, and a means of sightseeing

Accommodation

Categories

• Hotels and luxury lodges
• Caravans and campervans
• Motels, Serviced Apartments, timeshares
• Backpacker and youth hostel
• Bed and breakfast
• Homestays, farmstays

Hotels

• Globally sector dominated by small family-owned businesses
• Can be licensed or unlicensed
• Corporate hotel chains
• Resort complexes
• Unique hotels

Caravans and campervans

• Motorhome holidays increasing in popularity both privately owned and leased
• Four million holidaymakers a year are attracted to holiday parks in the UK

Motels, Timeshares, Serviced Apartments

• In New Zealand, motels are self catering apartments. In the rest of the world, they are without cooking facilities.
• Apartments are small flats with full facilities – they can be serviced or non serviced
• Timeshares are apartments owned by individuals but leased out by managers

Backpacker and youth hostel

• Major youth hostel operator worldwide is the YHA
• Numerous privately owned hostels offer similar facilites
• Growing market with independent travellers of all ages

Bed and breakfast, Homestays, farmstays

• Wide variety of style and quality
• Increasing desire by many tourists to ‘meet the people’
• Approximately 11,500 B & B’s in the United Kingdom

Review

Which one of the following describes the desire to leave familiar things and seek new experiences?

Wampam No

Wanderoo No

Wanderlust Correct

Wanderings No

The main attraction of Grand Canyon National Park in the USA is its:

Man-made features No

Natural features Correct

Watersports facilities No

Wintersports facilities No

Activities such as bungee jumping and white water rafting are most likely to be included in which one of the following types of holiday?

Adventure Correct

Expedition No

Exploration No

Safari No

During January to March the Alps in Europe mainly attract people on:

Walking holidays No

Skiing holidays Correct

Sun holidays No

Adventure holidays No

The main reason why tourists go on safari is to:

Experience the great outdoors No

Prevent animals being put in zoos No

See animals in their natural environment Correct

See the countryside in the safety of a group No

The main purpose of national tourist boards is to:

Co-ordinate the work of local tourist information centres No

Promote the country to potential visitors overseas Correct

Provide information to visitors arriving in the country No

Supply tour operators with photographs for their brochures No

Which two of the following would be offered by an in-bound tour operator?

Pre booked accommodation Correct

Transfers Correct

Currency exchange No

Return air tickets No

The term ‘package holiday’ usually refers to holidays which include:

Car hire and meal vouchers No

Entrance fees and souvenirs No

Transport and accommodation Correct

Travel insurance and spending money No

Which one of the following is the term used for holidays when passengers travel by air to the port of embarkation?

Flycruise Correct

Port to port No

Liner service No

Traditional cruise No

The positive economic impact of tourism is likely to be experienced by the national population if income from tourism is:

Distributed within the local economy Correct

Exported to overseas companies No

Reinvested within parent organisations No

Stockpiled within the tourism industry No

‘All inclusive” resort hotels are becoming popular. The main disadvantage to the local area of such developments is

An increase in electricity consumption No

Depletion of wildlife and plant life No

Greater pressure on the emergency services No

Loss of employment in supporting industries (ie restaurants) Correct

Which one of the following best describes the term ‘economical leakage’?

Details of new promotional activities which are given to competitors No

Serious water problems affecting the health of tourists to a region No

The profits from tourism being drained away to benefit other countries Correct

Visitors being attracted to other resorts in the region No

Hotel grading schemes are most likely to give potential visitors an indication of the hotel’s

Facilities Correct

Size No

Price Correct

Location No

One effect of the US dollar weakening against the GB pound is that

British holidaymakers will find the costs in the USA are lower Correct

British holidaymakers will find the costs in the USA are higher’ No

Transatlantic airfares will go up No

Transatlantic airfares will go down No

Which one of the following effects will an increase in visitor numbers have in the UK?

The UK’s balance of payment will improve Correct

The UK’s balance of payment will worsen No

More UK residents will travel overseas Correct

Fewer UK residents will travel overseas No

References

http://www.biodiv.org/programmes/socio-eco/tourism http://www.world-tourism.org/newsroom/Releases/2006/november http://en.wikipedia.org/wiki/Tourism Page, Stephen J and Connell Joanne, (2006) Tourism a modern synthesis, second edition, Thomson Learning, London, UK.