Unit 1

Introduction, Tourism Concept, Nature and Characteristics, Types of Tourism and Tourist, Benefits and
Costs of Tourism, Basic components of tourism, Motivation and Decision-making behavior of tourists,
cross country features of tourists.

Background

Tourism is a composite of activities, services, and industries that delivers a travel experience;
transportation, accommodation, eating, drinking establishments, shops, entertainment, activity
facilities, and other hospitality services available for individuals or groups that are travelling away from
home. It encompasses all providers of visitors and visitors related services. Tourism is the entire world
industry of travel, hotels, transportation and all other components that, including promotion, serve the
needs and wants of travelers. Finally tourism is the sum total of tourist expenditures with the borders of
a nation or a political subdivision or a transportation-centered economic area of nearby states or
nations.

 The earning from tourism is very much helpful for economic development of a
country.
  For our country which is underdeveloped it is the most important source for
maximizing Foreign exchange earnings.
 It contributes the most to increase Gross National Income.
 It also provides incentives to protect and promote the environmental and heritage
of the destinations
 It generates financial means to safeguard nature, heritages sites, and monuments
through establishment of wildlife preservers, restoration of historical sites, and
preservation of environment.
 It also promotes culture, norms, values, and indigenous traditions.
Travel is the most common activity for most people. It includes any journey from one place to another,
over short or long distance from and one’s work during leisure and for any purpose using any mode of
transport by air, land or sea. We can say that all travel is not tourism.

Tourism can be domestic or international, and international tourism has both incoming and outgoing
implications on a country's balance of payments. Today, tourism is a major source of income for many
countries, and affects the economy of both the source and host countries, in some cases being of vital
importance

CONCEPT----Meaning of tourism
The word “TOURIST “is believed to have been stemmed from Latin word “TORNUS” which means a tool
for describing a circle or a TURNER’s WHEEL. In the sense of the word of origin, tourist is a person who
undertakes a circular trip ultimately comes back to the place from where he/she sets his/her journey.

ORIGIN

As late 1643 the term was first put to use for describing persons travelling from place to place, affecting
an excursion, performing a journey and during the course of that visiting a number of place in a region
or in an order. In the early 17th and 18th century the English, the Germans and others travelling a Grand
Tour of the continent came to be recognized as a tourist. Around 19th century the term ‘Tourist” took
on the connotation of one who makes a tour or tours. Particularly one who undertakes this for
recreation or one who travels for pleasure motive and with interest.

According to the Dictionaries Universal, the term dates back to year 1876 which characterized a tourist
as a person who makes journey for the sake of curiosity for the fun of travelling, or a just to tell others
that he has travelled.
Tourism is related to travelling and travelling is naturally a human character. Man needs change and
travel provides that change. Travel has fascinated human beings. Man has been travelling throughout
the ages. During that time travel was there but ‘Tourism’ was not there. Because travel was undertaken
for the purpose of pleasure and their motive was not to seek holiday from the routine work. The basic
concept of ‘pleasure at leisure’ was not present. When people learnt to differentiate between work and
leisure the tourism industry started. When business agencies were developed to sell travel related
services the tourism industry started. Travelling is a human character but tourism is a new phenomenon.

Tourism is related to broader economic and social issues including commoditization and globalization of
culture, hospitality, friendship, pleasure, and place and its attractions. Within this realm, tourism is
regarded as experience industry where travel experience is sold as a commodity just like other
households, recreation-oriented products.

UNITED STATES:- The Western Council for travel Research in 1963 employed the term ‘VISITOR’ and
defined a VISIT as occurring every time a visitor entered an area under study. The travel scope survey of
travel Industry Association of America (TIA) research department defines a person travelling 50miles
(ONE WAY) or more away from home or staying overnight, regardless of distance. Trips are included
regardless of purpose, excluding only crews, students, military personnel on active duty and commuters.

UNITED KINGDOM:- The United Kingdom Tourism Survey (UKTS) ,It measures all trips away from home
lasting one night or more, these include 1. Trips taken by residents for holiday 2. Visits to friends and
relatives (No holiday), or 3. Trips taken for business, conferences, and most other purposes. UKTS
distinguishes between holiday trips of short (one to three nights) and long (four-plus nights) duration.

AUSTRALIA:- In supporting the use of the WTO definition, the Australian Bureau of Statistics notes
tourist as a person visiting a location at least 40km from his usual place of residence, for a period of at
least 24hours and not exceeding 12months.

Tourism is studied and understood from different perspectives.

We can define tourism with some perspectives which are discussed below:-

a. The Tourist: - The tourist seeks various psychic and physical experiences and satisfaction. The nature
of these will largely vary with the destination chosen and the activities enjoyed.

b. Service provider business people: - Business people see tourism as an opportunity to make a profit
by supplying the goods and services that the tourist markets demands.

c. The Government of the host country: - Politicians view tourism as wealth factor in the economy .The
perspective is related to the incomes their citizen can earn from their business. They also consider the
foreign exchange receipts from international tourism as a wealth to nation. The government can play an
important role in tourism policy, development, promotion and implementation.
d. The Host Community:- Local people usually see tourism as a cultural and employment factor of
importance to this group.eg;-is the effect of the interaction between large number of international
visitors and residents

e. Tourism as a social system:- This approach studies tourism from social perspectives. Although
tourism is an individual experience, it is usually shared with other people. A tourist is a person from
another culture. She/he does not belong to the visiting society. They come in contact with local people
and social institution. It is a cultural interaction. The socialization process may be short and informal to
intense interpersonal interaction. Friendship may be formed or conflicts may be created

f. Tourism as geographical phenomenon: - Tourism is studied as a relation between two places –origin
to destination. Travel from the origin to a destination is an inherent and distinctive characteristic of
tourism. For participation in tourism, a person must travel certain distance from his/her normal place
of residence. Tourism is of HERE and THERE nature.

DIFFERENT PERSPECTIVES ON THE STUDY OF TOURISM

1. Geographical Perspective

- from a geographer’s perspective the main concern of tourism is to look into aspects like the
geographical location of a place, the climate, the landscape, the environment, the physical planning and
the changes in these emerging from provisioning of tourism facilities and amenities. A geographer feels
that it is the climate, landscape or physical attributes which draw the tourist to a destination,

2 Sociological Perspectives

- From a sociologist’s perspective Tourism is a social activity; it is about interaction between different
communities—hosts and guests—and encounter between different cultures. This approach studies
social classes, habits and customs of both hosts and guests in terms of tourism behavior of individuals or
groups of people and the impact of tourism on society.

3. Historical Perspective

- from an historian’s perspective tourism is study of the factors instrumental in the initiation of tourism
to a particular destination, the order of happenings leading to tourismdevelopment, the reasons for
happening of the occurrences in that order, beneficiaries of the tourist activity and an untimely
and premature identification of negative effects. For example we allknow that a lot of tourists visit Taj
Mahal in Agra but a historian would be interested in studying the factors that bring the tourist.

4. Managerial Perspective

- from the management perspective tourism is an industry, and therefore needs managerial skills in
order to be properly managed. As the industry grows we see continuous changes in various
organizations and services linked with the industry, the tourism products and so on so this approach
concentrates on management activities such as planning, research, pricing, marketing, control etc.
as vital to the operation of a tourist establishment.

5. Economic Perspective

– From an economist’s perspective tourism is a major source of foreign exchange earnings, a generator
of personal and corporate incomes, a creator of employment and acontributor to government earnings.
It is a dominant global activity surpassing even trade in oil and manufactured goods. Economists study
the effects of tourism industry on the economy. This is a two-way process

According to HERMANN V. SCHULLARD in 1910

“The sum total of operators, mainly of an economic nature, which is directly relate to the entry, stay
and movement of foreigners inside and outside a certain country, city, or region.”

According to SWISS PROFESSOR HUNZIKER AND KRAMPF in 1942

“Tourism is the totality of the relationship and phenomenon arising from the travel and stay of
stranger, provided does not imply the establishment of a permanent residence and is not connected
with a remunerative activity.”

According to UNITED NATION WORLD TOURISM ORGANIZATION (UNWTO) in 1994

“Tourism is defined as the activities of persons travelling to and staying in place outside their usual
environment for not more than one consecutive year, for leisure, business and other purposes.”

According to The Tourism Society In Britain in 1976

“Tourism is the short-term movement of people to destinations outside the place where they
normally live and work and their activities during the stay at these destinations, it includes movement
for all purpose, as well as day visitors and excursions”

Five main characteristics of tourism may be identified from the definition

 Tourism arises from a movement of people to, and their stay in, various destinations.
 There are two elements in all tourism: the journey to the destination and the stay including
activities at the destination.
 The journey and the stay take place outside the usual place of residence and work, so that
tourism gives rise to activities, which are distinct from those of the resident and the working
population of the places, through which the tourist travels and in which they stay.
 The movement to destinations is of temporary, short-term character, with the intention of
returning to the usual environment within a few days, weeks or months.
  Destinations are visited for purposes other than taking up permanent residence or
employment remunerated from within the places visited

The Definition incorporates the following three basic criteria.

1. A distance criterion that the person has travelled to a place outside his usual environment.
2. A time criterion that the person does not stay at the place visited for more than one consecutive year.

3. An activity criterion that the purpose of travel should be leisure, business and other but not migration
and employment.

The usual environment of a person is defined as the geographical area in the direct locality of his/her
home, place of work or study, and other place frequently visited. The distance criterion excludes all trips
within the place of residence and its locality, including the place of work and education. The time and
activity criteria exclude all travels for work and migration.

Today tourism is being christened as “3G” industry (Get them in, Get them money and get them out),
Clean industry, smokeless industry, complex industry, service industry, leisure industry, hospitality
industry, largest industry, sex industry, seasonal industry---------(Kunwar,2010)

Economic Definition

Australian Department of Tourism & Recreation (1975) defines tourism as an identifiable nationally
important industry, which involves a wide cross section of component activities including the provision
of transportation, accommodation, recreation, food, and related services. This definition mainly focuses
on the economic aspect of tourism. However, as tourism is becoming a multidisciplinary subject, the
limitation of this definition is clear.

Technical Definition

Technical definitions provide instruments for particular statistical, legislative, and industrial purposes. As
tourism is a data-intensive industry, statistics thus become very important. The most widely accepted
technical definition of tourism is proposed by the United Nations in 1963, in which, a “visitor” describes
a person who visited a country other than his/her usual place of residence, for any reason other than
taking up a remunerated job from within the country visited. However, this definition only included
international tourists, while ‘visitors’ today include both international and domestic ones. Therefore,
this definition is not complete.

Holistic Definition

Holistic definitions attempt to embrace “the whole” essence of a subject. According to Hunziker and
Kraph (in Burkart and Medik 1974), tourism is the sum of the phenomena and relationships arising from
the travel and stay of non-residents. This definition seems to embrace all the essence of tourism.
However, it is vague as criticized by Leiper (1979) because this definition cannot help decide what kind
of phenomena should or should not be regarded as tourism. The phrase “sum of phenomena and
relationships” does not indicate methodical applications or extensions. A review on the definitions of
tourism shows that there is no clear and widely accepted definition of the term, and people are still not
entirely clear about what the components of tourism are.

Determining factors of tourism

 Industrial development: It has been noticed that more people travel industrially developed
places while less visit industrially undeveloped places. The industrial development increases the
per capita income and provides leisure as paid holiday.
 Wealth of the society: Money is the pre-condition to travel. Travelling is easier for the rich. So it
has been noticed that more people travel from rich and wealthy countries.
 Development of holiday: It has been remarked that many people travel from Europe because
their society has accepted the need and importance of holiday and hence, tourism.
 Geographical situations: A country or place surrounded by rich countries or areas receives more
tourists than that in remote area. For e.g. more people visit Phewa Lake than Rara Lake in Nepal
etc.
 Economic Stability: Tourists prefer economic stability in their own country and the country they
are going to visit.
 Transportation facility: It is the pre-condition for travelling. The tourist spot with good transport
facility will receive many tourists. For e.g. Rara Lake at Far western Nepal receives fewer tourists
than Phewa Lake.
 Religious Places: Visiting religious places, pilgrimages etc have been one of the most important
motives of people to travel.
 Natural Beauty: Tourists prefer to visit naturally beautiful places. For e.g. our country Nepal etc.
 Accommodation and Better facilities: Better accommodation and facilities increase the no. of
tourists.
 Environment of place of Visit: It is well known fact that tourists prefer to visit clan, nice,
pollution-free and peaceful places.
 Accessibility: A region having less or easy formalities receives higher no. of tourists. For e.g.
Bhutan is not accessible to many people etc.
 Political Stability: No tourist likes to get involved in political problems of a country he/she is
visiting.
 Man-made Environments: Man-made environments draw the attraction of many tourists.
 Peace: None likes to visit in war-time and violent places.
 Hospitality/ Friendliness: Tourists like to visit more to the places where people are friendly or
hospitable.
 Recreational Centers: Many countries have developed the recreational centers to attract many
tourists.
 Special Events: By organizing special events like sports, visit year etc, many countries are
increasing the no. of tourists.
  Weather/ Season: Certain time of year, during better season, the no. of tourists visiting a
country will be optimum.

Differences between
Traveler Traveler is generic in the sense that it is relevant to any form of movement of a person
irrespective of the distance travelled. The terms refers to a person travelling from place to
place without any consideration of his motive, duration of stay, remunerative activity
involved or not return to the place of origin.
Visitor
A visitor is also a traveler who finally travels and again comes to a place of origin.

Tourist A tourist is a visitor who is motivated to travel outside his place of origin for recreation,
pleasure, sports, business and family matters etc and stays for at least 24 hours at place of
visit. It implies that, all tourists are travelers for all visitors are not tourist.
Excursionist An excursionist is a visitor who stays at a destination of place visit less than 24 hours.
However, we can say that he is a traveler and a visitor.
Transit Visitor A transit visitor is someone who halts his journey for some hours until his next arrangement is
confirmed.

Importance of tourismIn modern age tourism has become a fundamental activity of

human being. Governments of all countries are involved in the development of this sector. Tourism is
considered to be the superior activities of modern man. Realizing the importance of this sector the 21st
general assembly of united nation declared the year 1967 as Tourism Year. It suggested that every
country along with its people and government should encourage and praise this activity.
It has become a medium of economic measurement of a country. it is considered an important source of
economic balance of our country. It creates economic and resource and promotes international
understanding. It teaches to respect different religion, beliefs, traditions, and customs, at the same
footings. It inspires and cultural harmony and tries to create peaceful relationship among the nations of the
world.

Beside above given importance we can also discuss some other importance of it which is enlisted below:-

 Educational importance: - While travelling all tourist are student whatever the purpose is he is
observing new places, experiencing new environmental things, gaining knowledge, researches,
tradition, custom etc of the place visited. Tourism widens his/her thinking.

 Cultural Importance: - Tourism promotes cultural exchange among nations. Cultural attraction lures
the tourist for tourism activities. Art, craft, architecture, historical monuments, festivals, tradition,
culture etc.

 Political importance: - Head of states, Head of government, ambassadors, diplomats, leaders of

political parties often go visiting other countries officially or unofficially can be considered as political
tourism. This helps in promotion of mutual understanding.
 Social Importance:- Social interaction among the people and tourist which helps in learning of habits,
custom, tradition etc while he/she return to the respective countries.

 Environmental importance: - Tourism has close relationship with environment which is naturally gifted.
It includes different mountains, lakes, rivers, peaks, parks, wildlife etc.
 Economic Importance: - Job creation. Nearly about 10% of jobs are provided by the same sector. GDP,
NI (national Income), Balance of trade etc is its perspective.
Conclusion

We can say thus, tourism may be defined as the processes, activities, and outcomes arising from the
relationship and the interaction among tourist, tourism suppliers, host government, host communities,
and surrounding environments that are involved in the attracting and hosting of visitors.

Features of Travel and Tourism Industry

Perishability:- Perishability is one of the most important characteristics of the tourism industry. The
products/services in the tourism and travel industry are consumed as they are produced. Hotel rooms
and cable car seats cannot be warehoused for futures sales. When a hotel room is not booked tonight,
you cannot take ‘tonight’ and sell it tomorrow. Once the train left the station, unused capacity cannot
be sold afterwards – provided that it was no time-traveling train.

As an uncertainty in customer demand leverages this issue, hotels and travel agencies tend to overbook
available rooms and seats. Finding an alternative product for the customer and living with the
consequences of overbooking is statistically more economical.

Inconsistency: - Products of the tourism industry always differ. Even the same hotel room in the same
week with the same weather can be perceived differently due to the mood of the chef. It is always
about the experience that the customer makes. Rational product attributes like price, nights of stay, and
additional services can only be compared to a minor degree. It is challenging to deal with the customer
perception of the product (the perceived quality) as it is highly affected by numerous uninfluenced able
aspects such as weather, construction sites, other customers etc. Hence, the product is very inconsistent
and cannot be standardized

Investment and immobility: - Talking about hotels and other accommodations there is usually a big
capital lockup in the assets. Hotels have furniture, restaurants, TV-sets, laundry-service, pools, and
saunas etc. – invested capital that has to pay off.

And that’s not all – all those investments are attached to one locality which means that those tourism
companies are to a huge extent dependent on the attractiveness of the region, the country, its
surroundings and so forth.

Inseparability: - Most travel products are first sold and the produced and consumed at the same time.
This is an aspect which clearly sets tourism apart from tangible products. When you buy a new computer
it is produced and shipped before you see it on the website or at the retailer’s premise. The
consumption of that computer – using it – takes place after purchase at your home. You cannot take the
hotel room home – only the small bottles of shampoo and toothpaste. And you cannot enjoy the alpine
sleigh ride in your living room. Tourism products can only be consumed at the supplier’s premise.

Intangibility:-Tourism products are intangible. A night in a hotel, a day in a ski-resort, the calm flight
with the nice attendant, and the smiling tour-guide taking you to the peak of an alpine mountain – all
this cannot be touched. Tourism is all about the time spent and the experience made. The products sold
by tourism companies both can’t be reproduced and reused. Nor can the feeling of consumption be
captured to its full extent. There are merely attempts with photographs and video cameras. Probably
everybody was already in the situation where you showed your holiday pictures to your family or friends
and said “Well, it looked better when I was there. The picture cannot really reproduce the sentiment)…
Tourism is a subjective picture planted into the customers’ minds.

Heterogeneity. - This means that every service performance is unique to each customer.

Seasonality and demand fluctuations:- It is a characteristic of most leisure tourism markets that
demand fluctuates greatly between seasons of the year. As a result, the occupancies in many tourism
businesses increase to 90 to 100 per cent in the high season but drops to 30 per cent or less in the low
season. In addition, seasonal closure of many leisure tourism businesses is common as well. These
demand variations in tourism is more important because of perishability. That is why, generating
demand when there is less demand, is always the major preoccupation for marketing managers.

Interdependence of tourism products: - The fortunes of tourism attractions in a destination are linked.
Since a vacationer chooses attractions at a destination together with the products of accommodation,
transport, catering etc., all organizations should function in coordination.

High fixed costs of service operations: - In the travel and tourism industry, it is generally the case that
the operations have high fixed costs and relatively low variable costs. This fact focuses all service
operators’ attention on the need to generate extra demand. Since most large scale businesses are
obliged to operate on a very narrow margin between total cost and total revenue because of intense
competition, plus or minus one percentage point in average load factors makes the difference between
profit and loss.

More use of emotional appeals in promotions: - Because of the intangible nature of services, customers
tend to make more use of emotional appeals when they buy. It is not enough to talk about the number
of guest rooms etc., it must be given a distinctive personality to the product.

Basic components of tourism

 Seven As of Tourism • Awareness • Activities • Amenities • Ability • Affinity • Actors • Acts

1. Attractions: - Attraction is any element and object that attracts people to travel. It motivates people
to leave regular job and participate in travel and become tourist. Attractions are those elements which
determine the choice of the tourist to visit one destination. Attractions are often the lure for tourist to
travel to a destination. Accommodations, transport and restaurants are considered ancillary services
and in most cases are not the primary motivations for travel. Attractions can be either packaged into a
tour or sold as a standalone product. They are quiet varied. Some are free while others are not. Some
are government owned while some are commercial. It is considered as the most important basic
component of tourism. Attraction means anything that creates a desire in any person to travel in a
specific tourist destination or attraction. Locale is another basic component of tourism. The locale may
be used to include the holiday destination and what it offers to the tourist. The holiday destination may
offer natural attractions. It is considered as the most important basic component of tourism.

Heritage attraction:- such as historic sites and pre-historic and archeological sites, inspires to learn more
about contemporary and long-Vanished civilization.

Recreation attraction:-Maintains and provide access to indoor and outdoor facilities where people can
participate in sports and other recreational activities, E.g. swimming pools, ice skating, golf course,
bicycle paths etc.

Commercial attraction:-are retail operating dealing in gifts, handcrafted goods, art, souvenirs that
attracts tourists. Recent surveys have showed that shopping is the number one activity participated in
by both domestic and international visitors.
2. Accessibility:- Accessibility means reach ability to the place of destination through various means of
transportation. Transportation should be regular, comfortable, economical and safe. Various means of
transportation are like airlines, railways, road and water. People travel to the places nearer and easily
reachable though other destination farther may offer better things. More people of Europe prefer to go
to Austria to view mountains whereas Himalayan countries offer far better experiences. So, nearer to
the tourist generating countries, more chances of getting tourists to the destination. On the other hand,
destination near to the transportation hub has greater advantages. For example, being near to
Singapore (a big air traffic hub), Bali has advantage of getting lots of tourists.

3. Accommodation:- This means that tourists have a place to stay upon reaching the destination and a
way to get food. Much like accessibility, accommodation also needs to be economical, safe and
comfortable. The type of accommodation also varies according to the location. It is a place where
tourists can find food and shelter provided. They can feel comfortable if the place can be affordable
from their pocket. By this place they decide their living duration according to the facility they have
provided. There are various types of accommodation from a seven star deluxe hotel to a normal budget
class hotel.

It plays a central role in tourism. Every tourist needs a place to stay and relax. Tourist looks for clean,
hygienic, and well maintained accommodation with a comfortable bed, cleanliness, and sanitary
facilities with adequate hot and cold water supply. A wide range of accommodation options exists at
most destinations ranging from tourist lodges to five star deluxe hotels.
4. Amenities:-The meaning of amenities in tourism is the services that need for tourist during their visit
in destination. They include public toilet, signage, retail shopping, restaurant and cafes, visitor centers,
telecommunication and emergency services. It refers to the facilities available at the destinations which
help in meeting the needs and want of tourists. Tourist amenities include food and beverage facilities,
drinking water, good communication network, local transport, automatic teller machine (ATM), proper
garbage and sewage disposal system, medical facilities etc. Electricity supply with minimum power cuts
and adequate water supply are crucial facilities which must be available at any destinations.

5. Activities:- People take a break because they want t o see and to do different things. Some like an
active holiday and would like to go for water sports, fishing, natural trails etc. While some would rather
just sit back and relax. A number of activities may be available at the destination to suit various age
groups and social backgrounds. Tourist may be attracted to a destination for any one or more of the
above activities or attraction located there.

6. Affordability:-It is very important component for tourist at any destinations. Tourist should be able to
afford the trip in terms of transport costs, accommodation charges, entrance fees at attractions and the
number of days, which need to be spent for travel and stay, i.e. they should be able to afford the holiday
in terms of time and money.

In addition to this, there are certain elements which are also crucial to tourism.

Affinity. -----It refers to the better relationship or sound relation between tourist and host country.

Administration-----Different organization involve in the tourism organization and governing bodies.

Actors---Leaders, directors, decision makers, planners of tourism industry.

Agents---National, international agents, middleman’s.

Geographical components of tourism:- Tourism is not simply defined as an ‘industry’ but also as a
‘system’. The system required structure and the environment. The Structure of the tourism system has
been conceptualized from different perspectives. Leiper’s model 1979 tells all about the tourist from
home of tourist to the attraction they are going to visit. This system incorporates three intimate
components.
 Tourist generation region where tourist origin,
 Tourist destination region which may have certain services with distinct attractive features that
attract tourists and
 Transit routes which allow tourists to ‘flow’ through the system

Tourism supply component can be classified in four categories: According to (Sons, 2006), there are four
major tourism components which can be classified as follows:

1) Natural Resource
2) Built environment
3) Operating Sector
 4) Organization

Natural resources and environment comes under attraction; which includes the physiographic and
climate with people’s intervention, industry, residence and visitors. Built environment comes under both
accommodation and attraction which further include Culture Superstructure, Infrastructure,
Governance, Information and Technology. Operating sector also known spirit of hospitality comes under
all three component accessibility, accommodation and attraction which includes adventure,

Types of Tourism
TOURIMS TYPOLOGY

Tourism is travel for pleasure; also the theory and practice of touring, the business of attracting,
accommodating, and entertaining tourists, and the business of operating tours. Tourism may be
international, or within the traveler's country. The World Tourism Organization defines tourism more
generally, in terms which go "beyond the common perception of tourism as being limited to holiday
activity only ", as people "traveling to and staying in places outside their usual environment for not more
than one consecutive year for leisure, business and other purposes".

Tourism can be domestic or international, and international tourism has both incoming and outgoing
implications on a country's balance of payments. Today, tourism is a major source of income for many
countries, and affects the economy of both the source and host countries, in some cases being of vital
importance.

The Tourism Typologies are:-

1. Responsible tourism:- Tourism that maximizes the benefits to local communities, minimizes negative
social or environmental impacts, and helps local people conserve fragile cultures, habitats and species.

Responsible tourism complies with the principles of social and economic justice and exerts full respect
towards the environment and its cultures. It recognizes the centrality of the local host
community and its right to act as a protagonist in developing a sustainable and responsible
tourism. Responsible tourism actuates to foster a positive interaction between the tourist industry, the
local communities and the travelers”, defined by AITR‘s members in 2005.

Responsible Tourism is about “making better places for people to live in and better places for people to
visit.” Responsible Tourism requires that operators, hoteliers, governments, local people and tourists
take responsibility, take action to make tourism more sustainable.

The Cape Town Declaration recognizes that Responsible Tourism takes a variety of forms, it is
characterized by travel and tourism which:

 Minimizes negative economic, environmental and social impacts;

 Generates greater economic benefits for local people and enhances the well-being of host
communities, improves working conditions and access to the industry;
 Involves local people in decisions that affect their lives and life changes;
 Makes positive contributions to the conservation of natural and cultural heritage, to the
maintenance of the world’s diversity;
 Provides more enjoyable experiences for tourists through more meaningful connections with
local people, and a greater understanding of local cultural, social and environmental issues;
 Provide access for people with disabilities and the disadvantaged;
 Is culturally sensitive, engenders respect between tourists and hosts, and builds local pride and
confidence.

2. Sustainable tourism: - Is the concept of visiting a place as a tourist and trying to make only a
positive impact on the environment, society and economy. Sustainable tourism is sensitive to these
dangers and seeks to protect tourist destinations, and to protect tourism as an industry. Sustainable
tourists can reduce the impact of tourism in many ways:

 Informing themselves of the culture, politics, and economy of the communities visited.
 Anticipating and respecting local cultures, expectations and assumptions.
 Supporting the integrity of local cultures by favoring businesses which conserve cultural heritage
and traditional values.
 Supporting local economies by purchasing local goods and participating with small, local
businesses.
 Conserving resources by seeking out businesses that are environmentally conscious, and by
using the least possible amount of non-renewable resources.

3. Ecotourism: - It is one of the most popular alternative forms. It advocates believe that it engenders a
sense of need for environmental protection among local population once the later realize conservation
does not mean loss of economic opportunity. Tourists of this kind enjoy traveling to natural areas. They
will minimize their impact on the environment as well as protect the natural resources during their
travel. Therefore, eco-tourism is characterized as a force for conservation and preservation of nature.
For eco-tourism, the managing authority of wildlife areas (e.g. national parks) will spend most of the
income from tourists (e.g. entrance fees and donations, etc.) on the conservation work in the area. In
some areas, the authority may offer tour guides to educate tourists and modify their behavior so that
they will cause less impact on the environment.

4. Pro-poor tourism: Tourism that results in increased net benefit for the poor people. Pro-poor
tourism, which seeks to help the poorest people in developing countries, has been receiving increasing
attention by those involved in development; the issue has been addressed through small-scale projects
in local communities and through attempts by Ministries of Tourism to attract large numbers of tourists.

5. Recreational Tourism: - It is often associated with sand, sea, sun and sex and is usually promoted by
beautiful colors picture that makes you want to be there on the ski slopes, the palm fringed beaches,
sunning in deck chair that attracts tourist who want to relax or commune with nature.

Recreation is an activity of leisure, leisure being discretionary time. The "need to do something for
recreation" is an essential element of human biology and psychology. Recreational activities are
often done for enjoyment, amusement, or pleasure and are considered to be "fun".

Outdoor recreation activities have been defined as those activities that:

 are undertaken outside the confines of buildings (ie, in the outdoors); and
 can be undertaken without the existence of any built facility or infrastructure; and
 may require large areas of land, water and/or air; and
 may require outdoor areas of predominantly unmodified natural landscape.

6. The Environmental Tourism:- It is often ancillary to ethnic tourism attracting tourist elites to remote
areas such as Nepal Himalayan regions to experience a truly alien scene. This type of tourism is primarily
geographic so that they can gain firsthand experience of man-land relationship.

7. Cultural Tourism:- Cultural tourism is related to the transmission of knowledge and ideas of the
destination area or host community. As tourists are curious about different kinds of experiences and
cultures in various parts of the world, they travel to learn and experience the culture of a tourist
destination. This becomes the prime motivational force for their travel. This kind of tourist likes to visit
different types of cultural attractions, ranging from concrete attractions such as museums and
monuments, cultural performances to other cultural manifestations, such as the consumption of the
way of life of certain cultures.
Cultural Tourism (or culture tourism) is the subset of tourism concerned with a country or
region's culture, specifically the lifestyle of the people in those geographical areas, the history of those
people, their art, architecture, religion(s), and other elements that helped shape their way of life.
Cultural tourism includes tourism in urban areas, particularly historic or large cities and their cultural
facilities such as museums and theatres. It can also include tourism in rural areas showcasing the
traditions of indigenous cultural communities (i.e. festivals, rituals), and their values and lifestyle.

Cultural tourism has been defined as 'the movement of persons to cultural attractions away from their
normal place of residence, with the intention to gather new information and experiences to satisfy their
cultural needs'. These cultural needs can include the solidification of one's own cultural identity, by
observing the exotic "other".

8. Study Tourism:- Students travel to overseas learning or training centers, such as universities, for short
or vacation courses. There is an increasing number of local study tours ranging from half-a-day to a
week.

9. Religious Tourism: - People are motivated by their religious beliefs. The demand for this kind of
tourism is quite stable. The destinations of religious pilgrimages usually have a long tradition, such as
Muslims to Mecca and Christians to Jerusalem. It is also known as pilgrimage or spiritual tourism. The
evolution of tourism could also be attributed to journeys undertaken since the ancient time to place
considered as holy. It is journey undertaken for the sake of worship and or to pay respect to a site of
special religious significance. Many people when living under conditions of stress turn to spirituality. The
Eastern world is considered to be very spiritual with many of the new age Gurus and their hermitages.
This takes the form of another tourism product, that is, spiritual tourism. Tourists visit places to attend
spiritual discourses and meditation workshops. For example, The Osho Foundation, Art of Living
Foundation which have centre’s all over the world, Buddhist Monasteries and Ashrams

10. Sports Tourism:-Today’s sports tourism is considered as one of the most wanted leisure experiences.
Sports and travel share a symbiotic relation, whereby people are attracted to a particular destination for
active or passive participation. Many tourists travel for sports. They may: - participate in sports, such as
skiing or mountaineering; - watch sports, such as attending the Olympic Games or World Cup Soccer. For
example, the International Rugby-Sevens Competition in Hong Kong attracts both sport players and
spectators.
13. Adventure tourism is another type of tourism that is catered for those who want to do more than
just visit regular tourist sites. These kinds of trips involve challenging activities like rock climbing,
mountain climbing and wild water rafting. It is more challenging because it takes the tourist into regions
which are less frequently visited and may not have easy access. These regions may offer minimal
facilities and comforts. It is a package of recreation, enjoyment, education, and the thrills of
participating in an adventure. Young people are more attracted to this form of travel because of the
excitement and risk involved. The forms of adventure tourisms can be on land, water, airborne etc.

14. Mass Tourism :- Is a form of tourism that involves tens of thousands of people going to the same
resort often at the same time of year. It is the most popular form of tourism as it is often the cheapest
way to holiday, and is often sold as a package deal.
15. Special Interest tourism:- Special interest tourism has evolved from a search for new avenues, which
are likely to attract and add value to conventional tourism. The tourism industry has a felt the need to
expand the destination experience beyond pleasure tourism and give the tourism a completely unique
experience in an area, which is of special interest to the tourist. The special interest tourist looks for the
unusual and not for the routine itineraries, which include attraction, which cater to the needs of the
mass tourist. It can be defined as people travelling to a particular destination with the purpose of
fulfilling a particular interest, which can be pursued only at that destination. The term ‘special interest
tourism’ has traditionally been used for those forms of tourism which focus on activities which attract a
small number of highly dedicated visitors. These may be relatively unusual hobbies or activities which
are practiced by only a few people. Learning, enjoying and partaking in something unique lets us expand
our capabilities as well as increasing our level of understanding of a particular subject or location. That’s
why special interest holidays are ideal for those of us who prefer to spend our hard earned time off
doing something worthwhile and meaningful in order to replenish our mind, body and soul.

16. Rural Tourism:- Tourist nowadays are shifting their interest of travel to see new destinations to
explore and experience the destinations and have first-hand knowledge of local people, their cuisine and
actual way of living. Any form of tourism that showcases the rural life, art, culture and heritage at
rural locations, thereby, benefiting the local community economically and socially as well as enabling
interaction between the tourists and the locals for amore enriching tourism experience an be termed as
rural tourism. It is multifaceted and may entail farm/agricultural tourism, cultural tourism, nature
tourism, adventure tourism, and eco- tourism. The stresses of urban lifestyles have lead to this counter-
urbanization approach to tourism. There are various factors that have lead to this changing trend
towards rural tourism like increasing levels of awareness, growing interest in heritage and culture and
improved accessibility and environmental consciousness, Tourists like to visit villages to experience and
live a relaxed and healthy lifestyle.

17. Ethnic Tourism: - it Involves travel for the purpose of observing the cultural expressions of lifestyles
and customs of the indigenous and exotic people. This type of tourism focuses directly on the local
people. It involves direct intimate contact with the authentic culture of the indigenous people. The
tourist visits local homes, observe, and participates in their traditional rituals, ceremonies, dances,
festivals etc. This type of tourism is also referred to as a combination of cultures and nature tourism.
Ethnic tourism is "travel motivated by search for the first hand, authentic and sometimes intimate
contact with people whose ethnic and /or cultural background is different from the tourists". Ethnic
tourists are driven by the desire to see something different where curiosity is the ultimate factor. The
travelers choose to experience firsthand practices of another culture, and may involve performances,
presentations and attractions portraying or presented by indigenous communities. In a broader
perspective, it includes cultural, heritage, anthropological, tribal, village and similar forms of tourism.
Ethnic tourism, if properly planned and managed, can be promoted as sustainable form of tourism and
can be utilized as a tool for the preservation and conservation of culture and heritage as well as poverty
alleviation.

18. Educational tourism is developed because of the growing popularity of teaching and learning of
knowledge and the enhancing of technical competency outside of classroom environment. Educational
tourism describes the event in which people travel across international borders to acquire intellectual
services. In educational tourism, the main focus of the tour or leisure activity includes visiting another
country to learn about the culture, study tours, or to work and apply skills learned inside the classroom
in a different environment, such as in the International Practicum Training Program. The motivations for
this type of tourism activity includes cultural altruism, language learning desire, image of host country,
Job prospects, political instability, quality, reputation, language of instruction, safety and level of
discrimination.

TOURIST TYPOLOGY
The word tour is derived from the Latin word “Tornate” and the Greek, “Tornos” which means circle. A
tourist is a person who does the act of tour and to different places, mostly target for various places
within the country of outside the country for enjoyments, education purpose, and scenario views and
for pleasure during their leisure period.

In other ways, a tourist is the temporary traveler travelling in search of pleasure from the novelty and
change experienced during their trip. Tourist as a visitors stay at least 24 hours but no longer than one
year in a country where they visit for pleasure, holiday sports, recreation and also came for business,
visiting friend etc.

Characteristics of Tourist

Characteristic of tourist refers to the nature and identifications of tourist. As tourist behavior is judged
by age, sex, culture, nationality, religion etc. their reasons describes the character of tourist. Here are
some character of tourist below:

 Visitors should spend at least on one night in the country visited.

 He is a guest but distant guest.
 His activities should be of economic in nature.
 Must not involve in any employment or earning purpose.
 A tourist as a person is who travel and stay in a different destination.
 He may be a domestic or international tourist.
 The movement should take place outside the usual environment or away from the home.

According to MR. Valen .L. Smith “A tourist is a temporally leisured person who visits different places.”

In short,

 Tourist is that visitor who seeks to visit different places away from their home for a change.
 Tourist must undertake tour during leisure for pleasure.
 Activities of the tourist must vary from that of the locals.
 Tourist is those people who are able to receive the tourist activities/amenities and should have
an ability to pay for the target trip.
  Tourist is those who should spend a minimum of 24 hours and not more than 24 hours in the
destination visited and should not exceed 1 year.
 Tourist is an important mass of people who generate economy of a country

VALENE SMITH classification of tourist

1. Explorers: - This type of tourists arranges their trips alone. They try to go somewhere unusual, but still
look for comfortable sleeping places and reliable means of transportation. They retain some of the basic
routines and comforts of their native way of life. They try to mix with the people they visit and also try
to speak their language. The explorers dare to leave their “environmental bubble” more readily than the
organized mass tourists and individual mass tourists, but they are still careful about their ventures.

o arrange their trips alone

o go somewhere unusual
o look for comfortable accommodation and reliable transportation
o hang on to some of the basic routines and comforts of their native way of life
o try to mix with local people and speak their language
o Have the courage to leave their “environmental bubble” .

2. Elite Tourist

 Willing to spend a great deal of money on a vacation.

 Elite tourists usually will pay for the best accommodations and food.
 They may also like going to interesting locations.
 Elite are the group of people in the community, who are very rich, powerful and have a lot of
influence.
 Tourist of such types move from one place to another for the pleasure and entertainment they
want to maintain their influence at the destinations also elite and individually motivated
tourists.
 This tourist seeks for traditional culture and visit exotic places.

3. Off beat: - Offbeat tourist is that tourist where the desire is to get away from the crowds or enhance
the excitement of their vacation by doing something beyond the norm. These types of tourists include
those who visit to see the funerals, trekking in Himalayan reason, hiking etc.

4. Unusual Tourist: - They visit with irregular activities such as physical danger or isolation. The group
tends to be interested in the prehistoric culture but is much happier with the “safe” launch box and
bottled water which they have brought from their home. This tourist approaches the strong links
between visitor expectations, motivations and the structure of destination areas.

5. Mass tourist: - A tourist who visits in large number in tourism industry than it is called as a mass
tourist. As they visit different places for pleasure, enjoyments. These types of tourist are from middle-
class income and values, and the impact of absolute numbers is high.
6. Drifter: - This type of tourists goes further away from the “environmental bubble” and from the
habituated ways of life in their home countries. They keep away from any kind of connection with the
tourism establishment, such as hotels and tour coaches. The drifters have no fixed itinerary or
timetable. They tend to make their trips wholly on their own, live with the local people and often take
odd-jobs to keep themselves going. They try to live the way the locals live, and to share their houses,
food, and habits.

o go further away from the “environmental bubble”

o keep away from the habituated ways of life in home countries
o no fixed itinerary
o plan trips wholly on their own
o live with local people

7. Incipient mass:- Tourist visit places for different activities wherein these types, tourist visits in a small
group who share the same kind of services from host country but payment is made separate by the
visitors.

GRAY (1970) classification of tourist

6. Wanderlust:- It is defined as the desire to exchange the known for the unknown. People’s motivation
to travel is to go from facilities environment to unfamiliar. To leave things, place to go and see different
palaces, people and culture or architecture of the past.

 May visit several countries

 More interest in foreign travel
 Travel is an essential component throughout the visit
 Usually have an interest in educational programs
 Interested in artificial physical attributes (Climate is unimportant)
 Searches for different cultures, institutions, and authentic cuisine.

7. Sun lust:- Sun lust in tourism refers to adventure travelers. Their activities are conducted outdoors.
They enjoy the sun and the sand. The motivation factors may be further elaborated as the following; -
physical motive, pleasure, relaxation, rest, recreation, health, participation in sports, festival
participation etc.

 Usually visit only one country at a time.

 More interest in domestic travel
 Travel is a major component after ones’ arrival at the destination.
 More interested either in rest and relaxation or being extremely active
 More interested in nature-made attributes (climate is important)
 Seeks domestic amenities and lodging facilities.

DORDEN (1979) classification of tourist

8. Budget Tourist:-

9. Adventure Tourist:- Adventure travel is a type of niche tourism, involving exploration of travel in an
“unusual, interesting, remote, or wilderness destination.”. Travelers are highly engaged in involvement
with activities that include perceived (and possibly actual) risk, and potentially requiring specialized skills
and physical effort. Adventure travel may be any tourist activity that includes the following three
components: a physical activity, a cultural exchange and connection with nature.

10. Homebody Tourist: - One whose interests center on the home, A person who likes to stay at home,
especially one who is perceived as unadventurous.

11. Vacationer: - A vacation holiday is a leave of absence from a regular occupation, or a specific trip or
journey, usually for the purpose of recreation or tourism. People often take a vacation during
specific holiday observances, or for specific festivals or celebration. Vacations are often spent
with friends or family. A person may take a longer break from work, such as a time off, gap year,
or career break.

Plog (1977) classification of tourist

12. Psychocentric:- Psychocentrics are more conservatively oriented. They tend to be shy and non-
adventuresome. They prefer to return to familiar travel destinations where they can relax and know
what types of food and activity to expect. Psychocentrics prefer to drive to destinations, stay in typical
tourist accommodations, and eat at family-type restaurants. When arranging a package tour,
psychocentrics would prefer a heavily structured itinerary so that they know what to expect. Safety and
security are very important to this group. • Conservative, inhibited and unadventurous • return to
familiar destinations • want to relax • expect the type of food and activity • prefer heavily structured
itinerary • safety and security are important

13. Allocentric:- An allocentric tourist is a person who seeks new experiences and adventure in a variety
of activities. This person is outgoing and self-confident in behavior. An allocentric person prefers to fly
and to explore new and unusual areas before others do so. Allocentrics enjoy meeting people from
foreign or different cultures. They prefer good hotels and food, but not necessarily modern or chain-
type hotels. For a tour package, an allocentric would like to have the basics such as transportation and
hotels, but not committed to a structured itinerary. They would rather have the freedom to explore an
area, make their own arrangements and choose a variety of activities and tourist attractions.

o seek new experiences and adventure

o outgoing and self-confident
o enjoy meeting people from different cultures
o explore an area
o make own travel arrangements
o choose activities and tourist attractions
14 Mid-centric Type:- There is a large number of people falling between the allocentric and the
psychocentric types of tourists. This type of tourists is called mid-centrics. Mid-centric tourists are not
particularly adventurous, but they are open to new experience. Individual within such segment tend to
view a travel experience as a means to relax and get pleasure.

COHEN (1972) classification of tourist

14. Recreational Tourist:- Recreation is an activity of leisure, leisure being discretionary time. The "need
to do something for recreation" is an essential element of human biology and psychology. Recreational
activities are often done for enjoyment, amusement, or pleasure and are considered to be "fun".

15. Experimental Tourist: - Experiential tourist is an outgrowth of a global movement

toward experiential learning, whereby people create meaning through direct experience.

16. Diversionary Tourist:- The diversionary tourist also can be related to the experiential tourist, who
tries to find fulfillment in someone else's center.

17. Organized Mass Tourist • least adventurous • spend most of their time in their comfortable
“environmental bubble” throughout their trip • the itinerary is decided in advance • attractions are
guided and well fixed • tourists have no decision on their trip

18.Full-time drifters:-

Outward oriented: The “adventurer” the original individual drifter.

Inward oriented: The “Itinerant Hippie” the travelling dropout, on his way to some drug sanctuary in
Europe or Asia or drifting aimlessly from one hippie's community to another.

19. Part time drifters

Outward oriented: The mass drifter usually the college youth, who spends a limited amount of time to
see the world, meet people and “have experienced”, but tends to attach to the drifter tourist
establishment of cheap lodgings and eating places and cut-rate fare.

Inward oriented: In this the youth who associates with the “hippies” or other drop outs, and models
their behavior in these roles, but remains marginal to the hippies' subculture. They frequently visits the
pop discotheques and boutiques, dresses in style, “visits the “hippies” communities for short periods of
time , but after completing his trip he returns back to his ordinary places.

20- Individual Mass Tourist:- This type of tourists is similar to the organized mass tourist, except that
the tour is not entirely fixed. The tourist has a certain amount of control over his/her time and itinerary,
and is not bound to a group. However, all the major arrangements are still made through a tour agency.
The tour does not bring them much further afield than the organized mass tourists do. They are still
confined by their “environmental bubble”.

Benefits and cost of Tourism

Tourism brings both economic and non economic benefits and costs to the host communities. As tourist
travel across various places and spends on stay, food and other services, the different impacts on the
destinations are obvious. The impacts may be both positive and negative. Most government and private
enterprises are in favor of increasing the economic benefits of tourism by adding more tourism activities
in an effort to lengthen and improve tourists’ stay. Some impacts are direct and some other is indirect.
The direct impacts are clear and everyone can feel and visualize. It takes time to see the indirect
impacts. The impact in terms of benefit and cost can be analyzed from the economic, socio-cultural,
environmental perspectives.

The impact of tourism is the outcome of tourism development in an area, state, region or country. The
impact can be either positive or negative depending on the nature of tourism development at a
particular destination. The bright side of tourism is development, poverty eradication, and employment
generation, whereas the negative side is displacement effect, demonstration effect, carrying capacity
issues, air pollution, and contamination of water, and safety security issues. Any development can result
in the socio-economic, cultural and environmental conditions.

The impact can be negative or positive but government machineries should take all possible measures to
offset the negative impact by evolving remedial measures. Tourism is a double-edged sword. On one
hand, it contributes to the welfare of society and on the other hand, it produces a negative impact.
However, tourism is promoted because of its positive outcomes in the economy.

Environmental Society
POSITIVE

(TOURISM)

NEGATIVE
Culture Economy

POSITIVE IMPACTS NEGATIVE IMPACTS

1. Contribution to income and standard of living 1. Hikes price of goods and services.

2. Improves local economy 2. Increases price of land and housing.

3. Generates employment opportunities 3. Makes a cost of living very high.

4. Improves investments, development, and 4. Throws the door opens for migrant labor.
infrastructure spending
5. Increases requirement of additional infrastructures-
5. Increases tax revenues water, power, fuel, and medicinal facilities.

6. Improves public utilities infrastructure. 6. Increase road maintenance and transportation

system costs.
7. Improve transport transportation
 7. Create high risk and under –or unemployment issues
8. Increase opportunities for shopping due to seasonal nature of the tourism business.

9. Induces direct, indirect, and induced spending 8. Throws a challenge for local community to compete
in the community. with the outsiders for the purchase of land at a higher
value.
10. Creates new business opportunities.
9. Increases of leakages of profits by non-local owners.

10. Promotes the practice of low wages.

(Figure Shows the Positive and negative effects of tourism in the host country)

For instance, it creates employment opportunities in terms of additional jobs. These types of jobs in the
industry range from low-wage entry level to high paying professional positions in management and
technical fields. With additional jobs being created, the standard of living of the people improves
phenomenally. Ideal tourism planning aims at extension of social and economic well being of the people
that would ultimately instill fellow feeling and universal brotherhood. The diversification of economic
activities of tourism develops a sense of self-reliance as far as their daily expenditures are concerned. As
tourism business keep growing, supplementary opportunities are generated for investment in terms of
facilities and amenities in and around the locality of the destinations.

Tourism is powerful instrument to induce vast development of public utilities such as portable drinking
water, sewerage system, footpaths, lighting, parking, public restrooms etc. These facilities not only
provide comfort and recreation for tourist but also for the local inhabitants. Similarly, tourism supports
massive improvements in transport infrastructure facilitating in building and repairing roads, airports,
public transportation, and non-traditional transportation. One more goal of tourism is to bring in new
buyers in the retail mix that can boarder opportunities for shopping and souvenirs.

Development of new tourism destinations and their facilities can create new entrepreneurial
opportunities and scope for jobs that further aid in generating more income tax revenues for the
government. The tourism business often creates a significant number of low-paying jobs at minimum
wages or less. These jobs are often seasonal and temporary in nature that causes under-employment or
unemployment during off- season.

Economic Impacts of Tourism

POSITIVE NEGATIVE

Employment Pressure on
resources
Generation

Inflation
Regional

Development
 Balance of Displacement

Payment Effect

Tourism induced activities

Balance of payment: - It is a record of all the transactions between a particular country and other
country during a specific period of time. It is the difference between the amount of exports and imports,
including all financial exports and imports in terms of US dollars. A negative balance of payment implies
that payments are more than the receipts. It is used as an indicator of economic and political stability.
When a country has a consistence positive balance of payments, this could mean that there is significant
foreign investment within the country. It also mean that the country does not spend much in importing
goods and services. Balance of payment includes the trade balance and foreign investments.

The balance of trade is difference between the monetary value of exports and imports in an economy
over a certain period. Since monetary approach emphasizes on money demand and money supply as
determinants of balance of payments, we can calculate (TB) as follows:-

Y = C+I+G+(X-M) Where, Y= Gross national product, C= Consumer expenditure, I= Investments,

G= Government expenditure, X= Exports, M=Imports.

Inflation: - It is the rise in the general level of price over time. It may also refer to a rise in the prices of a
specific set of goods and services. In either case, it is measured as the percentage rate of change of price
index. High rates of inflation are caused be high rates of growth of money supply. It determines the
variation of moderate rates of inflation. Changes in inflation are sometimes attributed to fluctuations in
real demand of goods and services. Sometimes, it occurs due to the supply of money or demand for
money.

Displacement Effect: - Displacement refers to the physical dispossession of people from their lands. The
meaning of displacement is ‘removal of a thing from its place or putting it out of place’. Displacement,
dislocation, exclusion, replacement are frequently used in the contemporary business scenario. It
includes gross loss of access, restrictions on livelihood opportunities and scope for future income of the
local populations.

Employment:- Tourism industry has tremendous capacity to generate both direct, indirect and induced
employment. Since it is highly labor intensive industry and many jobs involve low skill work, it is
beneficial to the vulnerable and unemployed sectors of the local community as formal education and
prior work experience are not mandatory. Jobs created through tourism are spread across many sector
of the economy such as hospitality sector, transport sector, retail sector, manufacturing sector, travel
and tour operation, etc.Hotels, restaurants, other transport operators, tourist offices, travel agent,
guides, tour operators etc, provides direct employment to people of different levels in the
organizational structures. Indirect employment through tourism includes all ancillary service providers
such as florists, taxi drivers, electricians, plumbers, furnishers, etc.

Economic Benefits Economic Costs

 Helps diversify and stabilize the local  Tourism development of infrastructure

economy. (airports, roads, etc.) can cost the local
 Provides governments with extra tax government a great deal of money.
revenues  May inflate property values and prices of
each year through accommodation and goods and services.
restaurant taxes, airport taxes, sales  Leakages:
taxes,  If outside interests own the tourism
park entrance fees, employee income tax development, most of the economic
etc.. benefits will leave the community.
 Creates local jobs and business  Considerable amount of foreign exchange
opportunities. These include those jobs revenues leaks back out of the
directly related to tourism (hotel and tour destination countries for tourism-related
services) and those that indirectly support imports.
tourism (such as food production and Tourist multiplier effect
housing construction).  Employment tends to be seasonal.
 The multiplier effect: Workers may be laid off in the winter
 Brings new money into the economy. season.
Tourist money is returned to the local Tourism seasonality
economy as it is spent over and over  Many jobs in the tourism industry are
again. poorly paid. This is a particular problem
 Helps attract additional businesses and in LEDCs where the local workforce lacks
services to support the tourist industry. the skills to fill the better paid
Tourist multiplier effect management positions.
 Is labour-intensive.  Tourist numbers can be adversely
 Earns valuable foreign exchange. affected by events beyond the control of
the destination e.g. terrorism, economic
recession. This is a big problem in LEDC
countries dependent on tourism.
Tourism dependency
 Tourism follows a "product life cycle",
with a final stage of decline, where the
destination no longer offers new
attractions for the tourist, and the quality
has diminished with the rise of
competition and tourist saturation.

 Socio-Cultural impacts of Tourism
Although the tourist is a temporary visitor as a destination, he/she leaves behind lasting impacts on the
host community. The demonstrations effect in terms of language, clothing, and behavior pattern, often
leave their lasting marks in underdeveloped and developing countries. Tourist involves social interaction
between the tourist and the residents or host. This interaction may bring about a change in the norms
and values of a society, the prevailing dress code and trends in general. Social impacts are visible sooner
than cultural impacts. Along with the social interaction, tourism brings people from different cultural
backgrounds together and results in the cultural exchange. Cultural impacts refer to long term changes
in arts and crafts, religion and rituals, community structures, etc. Socio-cultural impacts of tourism are
inter-related and result from the interaction between two distinct groups of individuals----the tourist
and the residents. The impact tourism will have on society varies from destination to destination and
depends on the nature of tourism, attitude of the hosts, background of the tourist, and the strengths
and weaknesses of the destinations. The figure below shows the negative impacts of tourism on
society:-

Negative Socio-Cultural impacts

Local
language use

Dis-respect of local custom Health issues Drug Abuse

Disruption of lifestyle Rural urban migration Alcoholism

Crime generation

Positive Socio-Cultural impacts

Develops entrepreneurship Revives arts and crafts Creates economic

multiplier

Preserves Heritages

Revives vernacular languages Develops facilities and infrastructures

Helps national and international integration by breaking down

linguistic barriers
It is an outcome of the guest-host relationship where residents who perceive the tourists as superior
beings, try to cope their behaviors. The demonstration effect in most visible in the younger generations
who may be discontented with their own lifestyle and try to emulate the tourist. This is seen in dressing
up like the tourists- casual attire, flowery shirts, couple of cameras hanging around the neck, sun
glasses, comfortable footwear, floppy hats, etc. and discarding the traditional outfits.

The socio-cultural impacts of tourism described here are the effects on host communities of direct and
indirect relations with tourists, and of interaction with the tourism industry. For a variety of reasons,
host communities often are the weaker party in interactions with their guest and service providers,
leveraging any influence they might have. These influence are not always apparent, as they are difficult
to measure, depend in value judgment and are often indirect or hard to identify.

The impacts arise when tourism brings about changes in the value systems and behavior and thereby
threatens indigenous identity. Furthermore, changes often occur in community structure, family
relationships, collective traditional life styles, ceremonies and mortality. But tourism also generate
positive impacts as it can serve as a supportive force for peace, foster pride in cultural traditions and
help avoid urban relocation by creating local jobs. As often happens when different cultures meet, socio-
cultural impacts are ambiguous; the same objectively described impacts are seen as beneficial by some
groups, and are perceived as negative- or as having negative aspects- by other stakeholders.

Tourism can cause change or loss of local identity and values, brought about by several closely related
influences:-- (-VE Impacts)

Commodification:- Tourism can turn local cultures into commodities when religious rituals, traditional
ethnic rites and festivals are reduced and sanitized to conform to tourist expectations, resulting in what
has been called "reconstructed ethnicity." Once a destination is sold as a tourism product, and the
tourism demand for souvenirs, arts, entertainment and other commodities begins to exert influence,
basic changes in human values may occur. Holy sites and objects may not be respected when they are
perceived as goods to trade.

Standardization:-Destinations risk standardization in the process of satisfying tourists' desires for

familiar facilities. While landscape, accommodation, food and drinks, etc., must meet the tourists' desire
for the new and unfamiliar, they must at the same time not be too new or strange because few tourists
are actually looking for completely new things. Tourists often look for recognizable facilities in an
unfamiliar environment, like well-known fast-food restaurants and hotel chains.

Loss of authenticity and staged authenticity:- Adapting cultural expressions and manifestations to the
tastes of tourists or even performing shows as if they were "real life" constitutes "staged authenticity".
As long as tourists just want a glimpse of the local atmosphere, a quick glance at local life, without any
knowledge or even interest, staging will be inevitable.

Adaptation to tourist demands:-Tourists want souvenirs, arts, crafts, and cultural manifestations, and
in many tourist destinations, craftsmen have responded to the growing demand, and have made
changes in design of their products to bring them more in line with the new customers' tastes. While the
interest shown by tourists also contributes to the sense of self-worth of the artists, and helps conserve a
cultural tradition, cultural erosion may occur due to the co modification of cultural goods.
Irritation due to tourist behavior:-Tourists often, out of ignorance or carelessness, fail to respect local
customs and moral values. When they do, they can bring about irritation and stereotyping. They take a
quick snapshot and are gone, and by so acting invade the local peoples' lives.

Job level friction:- In developing countries especially, many jobs occupied by local people in the tourist
industry are at a lower level, such as housemaids, waiters, gardeners and other practical work, while
higher-paying and more prestigious managerial jobs go to foreigners or "urbanized" nationals. Due to a
lack of professional training, as well as to the influence of hotel or restaurant chains at the destination,
people with the know-how needed to perform higher level jobs are often attracted from other
countries. This may cause friction and irritation and increases the gap between the cultures. Even in
cases where tourism "works", in the sense that it improves local economies and the earning power of
local individuals, it cannot solve all local social or economic problems. Sometimes it substitutes new
problems for old ones.

Resource use conflicts:- Such as competition between tourism and local populations for the use of
prime resources like water and energy because of scarce supply. Stress to local communities can also
result from environmental degradation and increased infrastructure costs for the local community - for
example, higher taxes to pay for improvements to the water supply or sanitation facilities.

Cultural deterioration:-Damage to cultural resources may arise from damage, littering, pilferage and
illegal removal of cultural heritage items. A common problem at archaeological sites in countries such as
Egypt, Colombia, Mexico and Peru is that poorly paid guards supplement their income by selling artifacts
to tourists. Furthermore, degradation of cultural sites may occur when historic sites and buildings are
unprotected and the traditionally built environment is replaced or virtually disappears.

Conflicts with traditional land-uses:- Especially in intensely exploited areas such as coastal zones, which
are popular for their beaches and islands. Conflicts arise when the choice has to be made between
development of the land for tourist facilities or infrastructure and local traditional land-use. The
indigenous population of such destinations is frequently the loser in the contest for these resources as
the economic value which tourism brings often counts for more.

As an example of how local people can suffer from tourism development, in coastal areas construction
of shoreline hotels and tourist faculties often cuts off access for the locals to traditional fishing ground
and even recreational use of the areas.

Crime-generation:- Crime rates typically increase with the growth and urbanization of an area, and
growth of mass tourism is often accompanied by increased crime. The presence of a large number of
tourists with a lot of money to spend, and often carrying valuables such as cameras and jewelry,
increases the attraction for criminals and brings with it activities like robbery and drug dealing. Security
agents, often armed with machine guns, stand guard nearby in full sight, and face aggressive reactions
from locals who are often their neighbors when they go home. Tourism can also drive the development
of gambling, which may cause negative changes in social behavior.
Child-labor:- ILO studies show that many jobs in the tourism sector have working and employment
conditions that leave much to be desired: long hours, unstable employment, low pay, little training and
poor chances for qualification. In addition, recent developments in the travel and tourism trade
(liberalization, competition, concentration, drop in travel fares, growth of subcontracting) and
introduction of new technologies seem to reinforce the trend towards more precarious, flexible
employment conditions. For many such jobs young children are recruited, as they are cheap and flexible
employees.

Prostitution and sex tourism: - The commercial sexual exploitation of children and young women has
paralleled the growth of tourism in many parts of the world. Though tourism is not the cause of sexual
exploitation, it provides easy access to it. Tourism also brings consumerism to many parts of the world
previously denied access to luxury commodities and services. The lure of this easy money has caused
many young people, including children, to trade their bodies in exchange for T-shirts, personal stereos,
bikes and even air tickets out of the country. In other situations children are trafficked into the brothels
on the margins of the tourist areas and sold into sex slavery, very rarely earning enough money to
escape.

Positive Impacts (Socio-Cultural)

Tourism can contribute to positive developments, not just negative impacts. It has the potential to
promote social development through employment creation, income redistribution and poverty
alleviation. Other potential positive impacts of tourism include:

Tourism as a force for peace:- Traveling brings people into contact with each other and, as tourism has
an educational element, it can foster understanding between peoples and cultures and provide cultural
exchange between hosts and guests. Because of this, the chances increase for people to develop mutual
sympathy and understanding and to reduce their prejudices. For example, jobs provided by tourism in
Belfast, Northern Ireland, are expected to help demobilize paramilitary groups as the peace process is
put in place. In the end, sympathy and understanding can lead to a decrease of tension in the world and
thus contribute to peace.

Strengthening communities:-Tourism can add to the vitality of communities in many ways. One
example is that events and festivals of which local residents have been the primary participants and
spectators are often.
The jobs created by tourism can act as a vital incentive to reduce emigration from rural areas. Local
people can also increase their influence on tourism development, as well as improve their job and
earnings prospects, through tourism-related professional training and development of business and
organizational skills.

Facilities developed for tourism can benefit residents:-As tourism supports the creation of community
facilities and services that otherwise might not have been developed, it can bring higher living standards
to a destination. Benefits can include upgraded infrastructure, health and transport improvements, new
sport and recreational facilities, restaurants, and public spaces as well as an influx of better-quality
commodities and food.

Revaluation of culture and traditions:- Tourism can boost the preservation and transmission of cultural
and historical traditions, which often contributes to the conservation and sustainable management of
natural resources, the protection of local heritage, and a renaissance of indigenous cultures, cultural arts
and crafts.

Tourism encourages civic involvement and pride:- Tourism also helps raise local awareness of the
financial value of natural and cultural sites and can stimulate a feeling of pride in local and national
heritage and interest in its conservation. More broadly, the involvement of local communities in tourism
development and operation appears to be an important condition for the conservation and sustainable
use of biodiversity.

These are some positive consequences of tourism that can arise only when tourism is practiced and
developed in a sustainable and appropriate way. Involving the local population is essential. A community
involved in planning and implementation of tourism has a more positive attitude, is more supportive
and has a better chance to make a profit from tourism than a population passively ruled - or overrun -
by tourism. One of the core elements of sustainable tourism development is community development,
which is a process and a capacity to make decisions that consider the long-term economy, ecology and
equity of all communities.
 Social Cost Social Benefits
 May attract visitors whose lifestyles and  Brings in outside dollars to support
ideas conflict with the community's. An community facilities and services that
example may be the visitors' use of drugs otherwise might not be developed.
and alcohol.  Encourages civic involvement and pride.
 May change individual behaviour and  Provides cultural exchange between hosts
family relationships. and guests.
 May lead to an increase in sexually  Encourages the preservation and
transmitted diseases. celebration of local festivals and cultural
 Loss of traditional values and culture events.
through imitation of visitor behaviour or  Facilities and infrastructure developed for
cultural diffusion resulting from normal, tourism can also benefit residents.
everyday interaction.  Encourages the learning of new languages
 May create crowding and congestion. and skills.
 May compete with residents for available  Tourism related funds have contributed
services, facilities, and existing recreation towards schools being built in some areas.
opportunities.
 May result in harassment of visitors
perceived to be wealthy and an increase
in crime.
 Can involve violations of human rights.
People have been displaced from their
land and beaches have been reserved for
hotel guests while access is barred to
local people.
Preservation of culture and tradition
Culture is an important factor in everyone's life. It's the foundation to a prosperous lifetime. In order to
keep it alive, doing your part to preserve it is extremely necessary.

1. Love your country and its culture and tradition followed since ancient time.
2. Try to protect the cultural and traditional functions and festivals, rites and rituals.
3. Organize more and more cultural and traditional functions so that it is known to the upcoming
new generations.
4. Do programmes, art gallery, stage performances, in national and international level to make it
more known to large no of people around the world?
5. Publicize the article about the most important facts and history that speaks about reality in
newspaper and also in electronic media.
6. Add more and more to the syllabus from the school level so that the new generation are more
active to preserve it.
7. Try not to imitate the foreign culture and tradition.
8. Different clubs, Ngo and stakeholders of the community should run awareness programs to
motivate people to promote their culture and tradition.
9. Publish journals, books, articles related to countries culture and tradition.
 10. Language. Speak your mother language. People from your country will respect you. Also, you
have a chance of getting a high-paying job because of your language skills, and your parents will
be very proud of you. Another benefit of being able to speak your mother language is that when
you go outside, nobody will be able to eavesdrop on your private conversation.
11. Learn about your Religion. Religion is the most vital key factor in any culture. It brings you inner
peace. Going to a mosque, synagogue, church, or temple is a great way to keep your cultural
spirit alive. Read your holy book. Try to understand it by buying books with footnotes in them.
See how your culture relates to your religion. You will find that they both have a few things in
common.
12. Festivals. Attending your country's national festivals helps you see more of tradition. It also
helps you make new friends. If you live in a foreign country, having a gathering with your ethnic
community is a fabulous idea.

Environmental Cost and Benefits

The environmental is a powerful resource for tourism as it plays a major role in attracting tourist to the
destination. Tourism causes both positive and negative impacts and impacts are greater if the
environment is underdeveloped and fragile. It was only in the mid 1960’s after the growths of mass
tourism that people realize that nature is an exhaustible resource and tourism and related activities
leave their mark on the environment.

Before we study the impact, let us understand the meaning of the term ‘Environment’. When we refer
to the environment we generally mean the natural or physical features of a landscape. This includes the
four divisions that our planet earth has been divided into namely, Atmosphere, biosphere, lithosphere,
and hydrosphere. Each of these spheres has their own distinctive characteristics, supports various life
forms, and is conductive for all life to survive and grow on our planet. The environment thus functions as
a live system an any major disturbance in any one sphere will have a profound effect on the disturbance
the delicate balance of the ecosystem.

Tourism Environment
 From the tourism perspective, the tourism environment comprises of the following:-

1. Natural Environment
a) Beaches
b) Water Bodies- lakes, rivers, and oceans
c) Hill stations
d) Caves
e) Forests
f) Wildlife
2. Built Environment
a) Accommodation and built facilities
b) Transport infrastructures
c) Dams and reservoirs
d) Theme parks

3. Natural resources
a) Air
b) Water
c) Climate-temperature, rainfall, snow, glaciers

Environmental Benefits Environmental Costs

 Fosters conservation and preservation of  May threaten specific natural resources

natural, cultural and historical resources. such as beaches and coral reefs or
 Encourages community beautification and historical sites.
revitalization.  May increase litter, noise, and pollution.
 Could be considered a clean industry.  Brings increased competition for limited
resources such as water and land,
resulting in land degradation, loss of
wildlife habitats and deterioration of
scenery. Tourism seasonality
 Directly contributes to sewage and solid
waste pollution.
 Emissions generated by forms of
transport are one of the main
environmental problems of tourism.

Negative Environmental Impacts

Environmental Pollutions :- The largest negative impacts of tourism is pollution of air, water bodies,
land surface, and noise pollution in areas of tourism activity. This pollution is mainly caused by various
modes of transportation and construction of tourism accommodations.
Transport pollution is caused by an increase in road and air traffic. This also results in noise pollution,
especially if airports are located in the heart of the city, aircrafts produce noise toxic nitrogen oxide
during take-off and landing. Water and water based sports and water transportation are major cause of
oil spills.

Architectural pollution of the natural landscape because of haphazard construction of hotels, resorts,
and conferences centers and other high rise unsightly concrete structures also gives rise to visual
pollution.

Depletion of Natural Resources: - Natural forest resources are lost through deforestation, when forest
land is used for development of buildings for tourism or when trees are felled for fuel and camp fires.
Careless behavior by tourists like throwing lightened cigarette stubs or not extinguishing campfires can
cause forest fires. Many local earn their livelihood through medicinal plants and herbs collected from
forests. Deforestation deprives them of their activity. Scare natural resources, such as water are often
affected in areas where swimming pools and golf courses need to be maintained.

Land Erosion:- Mass tourism and reckless behavior on the part of the tourist often result in this problem
which is seen mainly on the nature trails, hill stations, and coastal areas. Deforestation for construction
of new facilities or to clear vast stretches of land on hill slopes for sports and construction of lodges is
one of the major causes of erosion of the rich soil cover. Construction of hotels and other tourist
facilities on the beach can erode sand dunes and effect marine life. Removal of forest cover is a common
cause for landslides in hilly areas.

Loss of Natural Habitats:- Indigenous plants and animals may lose their natural habitats by damage
resulting from tourism activities. Animals in jungles are not used to the noise of vehicles or passengers
and may get stressed out by the disturbance caused by insensitive tourists on safari tours. Presence of a
large number of visitors may affect the food habits and breeding of animals and also can change the
behavior of them. Marine creatures and coral reefs get damaged by propellers of boats.

Fires used to clear forests for land use have triggered an ecological disaster with poisonous smog of
South- East Asia. The heavy air pollution has resulted in respiratory track and skin problems in people
residing in the near regions.

Traffic Congestion: - This is a common problem encouraged at many destinations due to a large number
of tourist vehicles ranging from cars to tourist coaches and caravans. Vehicle parked in a haphazard
manners or narrow roads and no parking zones can affect the beauty of scenic drives and popular
destinations creating traffic jams, inconvenience to both local and tourists, damage to roads and
pavements/footpaths and an increase in road accidents as well as air pollutions.

Garbage Trails:- Garbage is a common cause of land and water pollution and the presence of
improperly disposed waste at any destination is not only aesthetically unappealing but also damages the
plants and animals in that area. Non-Biodegradable waste can alter the soil and attracts animals into
tourist areas. The use of oceans to dispose untreated sewage from tourist’s accommodation on the
beach or from cruise liners is a major problem which environmentalists are aware of and laws to enforce
clean oceans are being practiced in some areas.

Positive Environmental Impacts

Protection and preservation of environment; - Tourism can significantly contribute to environmental
protection, conservation and restoration of biological diversity and sustainable use of natural resources.
Because of their attractiveness, pristine sites and natural areas are identified as valuable and the need
to keep the attraction alive can lead to creation of national parks and wildlife parks.

Environmental awareness raising: - Tourism has the potential to increase public appreciation of the
environment and to spread awareness of environmental problems when it brings people into closer
contact with nature and the environment. This confrontation may heighten awareness of the value of
nature and lead to environmentally conscious behavior and activities to preserve the environment.

Improved environmental management and planning:-Sound environmental management of tourism

facilities and especially hotels can increase the benefits to natural areas. But this requires careful
planning for controlled development, based on analysis of the environmental resources of the area.
Planning helps to make choices between conflicting uses, or to find ways to make them compatible. By
planning early for tourism development, damaging and expensive mistakes can be prevented, avoiding
the gradual deterioration of environmental assets significant to tourism.

Contributions to government revenues: - Some governments collect money in more far-reaching and
indirect ways that are not linked to specific parks or conservation areas. User fees, income taxes, taxes
on sales or rental of recreation equipment, and license fees for activities such as hunting and fishing can
provide governments with the funds needed to manage natural resources. Such funds can be used for
overall conservation programs and activities, such as park ranger salaries and park maintenance.

Direct financial contributions:-Tourism can contribute directly to the conservation of sensitive areas and
habitat. Revenue from park-entrance fees and similar sources can be allocated specifically to pay for the
protection and management of environmentally sensitive areas. Special fees for park operations or
conservation activities can be collected from tourists or tour operators.

Regulatory measures:-Regulatory measures help offset negative impacts; for instance, controls on the
number of tourist activities and movement of visitors within protected areas can limit impacts on the
ecosystem and help maintain the integrity and vitality of the site. Such limits can also reduce the
negative impacts on resources.

Limits should be established after an in-depth analysis of the maximum sustainable visitor capacity. This
strategy is being used in the Galapagos Islands, where the number of ships allowed to cruise this remote
archipelago is limited, and only designated islands can be visited, ensuring visitors have little impact on
the sensitive environment and animal habitats.

Motivation and Decision-making behavior of tourists

Motivation Introduction: - Motivation is an important travel determinant to influence the behavior of
tourists at the time of selection of destinations and services. The primary objective of motivation is to
understand the concepts of human needs. Theory of motivations focuses on identifying diverse needs
that are defined and analyzed from several aspects of human life. Identifying travel needs is a major
function of tourism mediators, as it is people centered industry. It is an industry giving maximum
importance of human behavior and motivation. Thus, the study of motivation is immensely useful to
help tourism organizations examine tourists travel needs.

Here is a simple question:- Why do people travel?:- People generally travel to meet their individuals
need or the needs of other. Most studies have been conducted to find the underlying meaning of
motivation, more importantly travel motivation. All these studies have made an attempt to explain
‘NEEDS” as a driver or force that arouses interest and stimulates one to take action.

What factors particularly influence tourists to select specific holiday destinations? Why is one service
provider preferred over another? Finally why does a tourist choose a particular destination over
another?

These distinct questions are very fundamental to those who are involved in the tourism business directly
and indirectly. It is also quite significant for tourism intermediaries and practitioners to understand
consumer motivation in order to offer other services accordingly. Here we study the travel behavior and
motivation with special description on travel needs, typology of travel motivation, travel decision
making process and hierarchy of travel needs to help understand the dynamics of travel motivation in
the tourism business.

Need for travel: - Relaxation, renovation, adventure and knowledge:- The nature of travelling is to
provide relaxation and mental renovation. Travelling is also a medium for enrichment of knowledge.
Some prefer to relax on vacations while other prefers exiting adventure activities. Curiosity motivates an
individual to attempt various activities. Similarly knowledge of travel motivations and its association
with destination selection plays a critical role in predicting future travel pattern. Thus, tourism is a
human activity that is solely driven by motivational forces.

Need for Travel:- Internal and External forces:- Motivation is a combination of internal and external
forces, including psychological or biological needs and wants that stimulates, direct, and assimilate a
person behavior and activity. Most importantly, Abraham Maslow’s Theory of Human Motivation is a
pioneering work that included tension-reducing and arousal-seeking motives. Both lead to satisfy the
needs and wants for travel at different times and situations.

Need for Travel: - Basic needs and higher Needs:-The basic need for travel is based on physiological
factors that consist of hunger, thirst, rest, and safety and security. Similarly, the needs for belongingness
and love include social relationships, affection, bondage, fellow feeling and friendship as basic needs. On
the other hand, higher needs for travel which comprises self-steem and self- actualization mostly
motivate people to travel in order to be recognized in society. It also includes personal satisfaction
which arises from undertaking expensive travel to exotic places.

Need for travel:-A Necessity:- while tourism and travel was regarded as fulfilling people’s higher needs
in the Grand Tour Era, subsequently, luxury has become a necessity. Example:- alternative health care
and medical tourism.

Need for Travel:- Visiting Friends and Relatives:- At times people undertake travel solely for meeting
friends and relatives and may plan their visit around nearby places of tourist interest. For instance, if the
purpose of travel is motivation VFR, the core psychological motivation may be a need for love and
belongingness. Never the less, the basic desire is to meet and renew family relationship.

PUSH FACTORS PULL FACTORS

(Internal motivation: - Escape, rest Decision for Destination’s attractiveness, attractions,

and relaxation, prestige, health Travel facilities, amenities and services.
and fitness, adventure and social
interaction, and family and
excitement.

PUSH AND PULL FACTORS FOR TRAVEL DECISION

Dann (1997 and 1981), explained the concept of push and pull factors as two key forces in travel
motivation.” Push “factors indicate that tourists are pushed to travel by internal forces and “Pull”
factors signify that tourists are pulled by external factors. Thus, pull and push as two factors arouse
interest to travel to places that can offer best experience and satisfaction.

Uysal and Hagan (1993), explained that individuals are pushed by personal motivation variables and
pulled or attracted by destination attributes.

Crompton(1979), outlined that the push motivations are related to the tourists desire, whereas pull
motivations are aaociate with the destination attributes.

Krippendrof(1987), found that tourists are motivated by ‘going away from rather than going toward
something’ and tourist motivation is self oriented

Factors Influencing Tourist Buying

Tourist buying is influenced by many factors. These can be divided into two broad categories: - External/
Environmental and Internal/ Individual. Both influence the tourists through the buying process.

External or Environmental Factors:- All the factors beyond the individual, such as groups, culture, and
marketing efforts, influence the buying. These impact the reaction of the buyer to the marketing stimuli.
Whether a tourist will eat local food or his/her own food, travel alone or with group, travel to familiar
places or new ones, are all influenced by these factors. The total effect of all these factors can be quite
complex.

a. Group:- A tourist belongs to a large number of groups, mainly family, friends, social, and work. The
numbers of social and friendship groups can be many. All these can inform, suggest, and persuade about
travel choice. But at a particular time, the impact of the group acting as the reference group to the
choice maker will be most. Any group can be the reference group if the decision-maker shares its values
and is impacted strongly by it. The influence of different groups depends on the social set-up of a place.
The family may have a stronger influence on Asian than on people from the western world. The
involvement of a person with social and work groups too affects the reference power of these groups.

b. Culture:- Culture is the sum total of living at a place. It guides the human reactions to external stimuli
through learned ways and often finds expression in the rituals, symbols, practices, language, religion,
and so on. It gets reflected in use of leisure time and travel behavior too. The marketers can customize
packages if they understand the effects of culture on travel choice and practices.

C. Marketing initiatives:- It influence the tourists to a large extent. The range of these initiatives is
broad, including development of tour services, transferring information to the buyers, promotion,
facilitating purchases, and monitoring post purchase. Promotional initiatives in particular focus on
assisting the tourist through the buying stages. Brand names and image is used as a tourist appeal. E.g.
Discounts, seasonal offers, customer schemes, etc.

Internal/Individual Factors:- A tourist is both an individual and a group members. The psychology os an
individual tourist decides the reaction to external forces. Therefore common and undifferentiated
marketing initiatives may not be successful for all the tourists. For example, some tourist may take
information from friends, other newspapers, or internet and so on. It all depends on the personal
comfort level with a source of belief in the value of information therein. Many psychological processes,
such as perception, personality, learning, attitudes, and motivation add to the behavior of an individual

a. Perception:- It is the process of receiving stimuli from the environment and processing it to provide a
meaning. Due to the nature of tourism services, all tourism is perception. Tourist visits a place believing
it to be good based only on information. No prior experience is possible. Post visit, new perception may
be formed that are transferred to other tourist again as information. Perception makes tourism
information intensive and gives opportunity to the marketers to supply suitable information at the right
time.

b. Personality:- How a person relates to the environment forms a personality. The important
personality traits for tourist are desire to see new places and meet people. Both these traits can be of
different degree. As a result, some tourist travels familiar destinations and other to unfamiliar ones.
Allocentric, psychocentrics, etc as an example.

c. Motivation:- Discussed Above

D. learning:- learning is deliberate and non-deliberate acquisition of new knowledge that brings
relatively permanent change in behavior. All behaviors including travel are learned. Tourism learning is
about purchase and consumption. Tourism habits can be acquired from friends, or from television
shows etc.

e. Attitudes:- Attitudes are a settled way of thinking or feeling towards something. People have general
attitudes that are transferred to the evaluation of destinations. Attitude provides a backdrop against
which additional information is seen.
 THE BUYING DECISION PROCESS OF TOURIST/TOURISM

NEED ARROUSAL RECOGNITION OF THE LEVEL OF INVOLVEMENT

NEED

EVALUATION OF ALTERNATIVE
IDENTIFICATION OF ALTERNATIVE

DECISION CHOICE PURCHASE ACTION

POST_PURCHASE BEHAVIOR
Tourist as a consumer follows the step by step process called the tourist decision making process. Before
further discussion note these three important points:-

a. First, the act of purchasing is only one stage in the decision process, which was really
initiated several steps earlier.
b. Second, not all consumer decision making leads to an actual purchase. The consumer
can end the process at any time.
c. Finally, not all purchase decision proceeds through all the stages of the process. All the
positive response will not lead to travel and every travel is not termed as tourism.

Introduction

Markets consist of buyers who differ in one or more respects. They may differ in
their wants, resources, geographical locations, attitudes and buying practices. It is
therefore necessary for a marketer to segment his/her market.

Meaning of Market Segmentation

The process of grouping customers in markets with some heterogeneity into

smaller, more similar or homogeneous segments. The identification of target
customers groups in which customer groups in which customers are aggregated
into groups with similar requirements and buying characteristics.

Market segment – A group of individuals, groups or organizations sharing one or

more similar characteristics that cause them to have relatively similar product
needs and buying characteristics.

Benefits of Market Segmentation

There are a number of reasons organizations undertake segmentation

Products are designed to be responsive to the needs of the marketplace. –
segmenting markets facilitates a better understanding of customer’s needs, wants
and other characteristics. The sharper focus that segmentation offers, allows those
personal, situational and behavioral factors that characterize customers in a
particular segment can be considered. By being closely in touch with segments,
marketers can respond quickly to even the slight changes in what target customers
want. i.e by monitoring the trends towards healthier eating and lifestyles, Mc
Donald’s was able to respond by respond by introducing a wider range of salads
and healthy eating options – including grilled chicken, fruit and yoghurt on to its
menus.

Increase profits – different consumer segments react in contrasting ways to

prices, some are far less price sensitive than others. Segmentation allows an
organization to gain from the best price it can in every segment, effectively raising
the average price and increasing profitability.

Effective Resource Allocation - organizations are more capable of making

products that customers want and can afford.

There is product differentiation – Various products are made to meet the needs
of each customer segment.

Requirements of Good Market Segments

In addition to having different needs, for segments to be practical they should be

evaluated against the following criteria:

Identifiable -The marketer should be able to identify which consumers are

members of a particular market segment. The consumers in the segment should
respond in the same way to a particular marketing mix. There must be some
common characteristics that the consumers have.
Measurable - The characteristics that are common to the groups of consumers
should be measured in terms of size, purchasing power and other characteristics.
Substantial -The segment should be large enough to generate sales volume that
ensures profitability; otherwise it will not be economical to design a unique
marketing mix for it. Is the market worth the effort?
Accessible: the segments must be reachable through communication and
distribution channels.
Durable: the segments should be relatively stable to minimize the cost of frequent
changes.
Responsive - Market segments must be defined in their willingness to purchase a
product in response to variations in the marketing mix.
Compatible with corporate image -The market must be compatible with the
firm’s objectives and corporate image.
A good market segmentation will result in segment members that are internally
homogenous and externally heterogeneous; that is, as similar as possible within the
segment, and as different as possible between segments.

Variables / Bases for Segmenting Consumer Markets

The following variables are commonly used to segment consumer markets.

1) Geographic segmentation -This calls for dividing the market into

different geographical units such as Nations, States, Regions – West,
North, Central, South, e.t.c.

- Countries, Cities or Neighborhoods

Attention should be paid to variations in geographical needs and

preferences.
 Geographical segmentation assists the seller to position retail outlets in
most appropriate locations as well as simply identifying the needs on the
basis of the consumers own location.

2) Demographic segmentation -This consists of dividing the market

into groups on the basis of demographic variables such as:- Age, sex,
family size, family life cycle, income, education, occupation, religion, race
and nationality.

These variables are the most popular for distinguishing customer groups
because,

- Consumers’ wants and preferences are closely related to

them.

- They are easier to measure than most other types of

variables.

a) Age -Consumer needs and wants change with age. Hence the
market should be segmented as young, old, e.t.c.

b) Gender -This can be employed to segment such markets for

clothes deodorants, lotions, magazines, e.t.c. Thus the markets can be
for either men or women, male or female

c) Family life cycle (FLC) -The product needs for a household vary
according to marital status and the present ages of children. Thus family
life cycle can be divided into:-

- Single,

- Young, married with no children,

- Young, married with young children,

- Older married with children, e.t.c.

 d) Income -Marketers can segment the market according to the
distribution of income e.g. under 1000 shillings per month, 2000/=,
4000/= per month, e.t.c.

e) Occupation -Variables include; bankers, teachers, farmers,

clerks, students, housewives, secretaries, e.t.c. A marketer can choose
to specialize in the needs of one occupation group.

f) Education - Some primary education, Some high school

education, College education

- University education e.t.c.

g) Religion - e.g. Muslims, Christianse.t.c.

h) Race - e.g. white, black e.t.c.

i. Nationality – e.g. Asians, Africans e.t.c.

ii. Social class -Social class has a strong influence on

people’s preferences,

Marketers designing products and/or services for specific social

classes build in those features that appeal to the target social class.

i) Ethnic groups

j) Generation - Consumer is profoundly influenced by the

generation in which it grows up. This influences one’s inclination to
Music, politics, e.t.c.

3) Psychographic segmentation -Psychographics are psychological

profiles of different consumers developed from research, sometimes
referred to as A.I.O. (Attitudes, interests and opinion profiles)

In psychographic segmentation, buyers are divided into different groups on

the basis of their:- Motives, Lifestyle and/or Personality characteristics.
 People within the same demographic group can exhibit very different
psychographic profiles.

Consumers can thus be sub-divided on the basis of the following

psychographic variables.

i. Lifestyle -Consumers’ lifestyles are derived from

their activities, interests and opinions. Each life style group is
influenced by different marketing mixes.

ii. Personality -Type of personality groups may include;

- Authoritarian

- Ambitious

- Assertive

- Self-confident

- Prestige conscious

- Extrovert/Introvert

4) Behavioral segmentation -Buyers are divided into groups in the basis

of their,

Knowledge, Attitude, Use or Response to a product.

In this respect, behavioral variables that are used to segment consumer

markets include:-

i) Occasions benefits -Buyers can be distinguished according to

occasions when they

- Purchase a product or

- Use a product
 E.g. Occasions when public transport is used mostly.
Occasion segmentation can help firms expand product usage.

ii) Benefits -Buyers are classified according to different benefits

they seek from the product. Variables here include:-

- Economy (Low price)

- Medical (Decay prevention)

- Bright teeth

- Good taste,e.t.c. for toothpaste.

Benefit segmentation requires determination of:-

- The major benefits that people seek from the product

- The kind of people who look for such benefit

- The major brands that deliver each benefit.

iii) User status -Many markets can be segmented into

- Non-users.

- Ex-users,

- Potential users,

- First time users and

- Regular users of a product

All these people require different marketing approaches.

iv) Usage rate -Markets can be segmented into

- Light,

- Medium and

- Heavy user group of products.

 v) Loyalty status -A market can be segmented by customer loyalty
patterns.

According to the loyalty status, the buyers can be divided into:-

- Hard core loyals – Consumers who buy one brand all the time

- Soft core loyals – Consumers who are loyal to two or three

brands

- Shifting loyals – Consumers who shift from favoring one

brand to another.

- Switchers – Consumers who show no loyalty to any brand

A company should

- Study the characteristics of its hard-core customers e.g.

whether middle class, larger families, e.t.c.

- By studying soft-core loyals, the company can pinpoint

which brands are most competitive with its own.

- By looking at customers who are shifting away from its

brands, a company can learn about its marketing weaknesses.

- The company should be aware that what appears to be

brand loyalty purchase may reflect.

§ Habits,

§ Indifference,

§ A low price or

§ Non-availability of other brands.

 vi) Buyer readiness stage -At any given time, people are in different
stages of readiness to buy a product;

- Some people are aware,

- Some are informed,

- Some are interested,

- Some are desirous of buying,

- Some intend to buy.

All these make a big difference in designing the marketing

programme.

vii) Attitude -People in a market can be classified according to their

degree of enthusiasm for a product.

Five attitude classes can be distinguished e.g.

- Enthusiastic,

- Positive,

- Indifferent,

- Negative and

- Hostile.

viii) Volume segmentation -Involves grouping businesses by size and

Purchase patterns

Cross country features of tourists.

Tourism is considered as one sector that shall propel growth, contribute foreign exchange,
enhance employability and result in community development. The most important dimension of tourism
is the cultural exchange among various nationalities that visit the country and the cross cultural
interface that shall pave way for universal peace and harmony. As on one hand tourism is seen as an
economic option and on the other side the greater social and human effect. It is a fact that many nations
world wide have realized the importance of thereby extending their full support in the form of subsides
and putting forth the government support mechanism to this flamboyant sector

Tourism helps promote universal understanding and peace. By touring different countries people get
acquainted with different social customs and rituals; this shall create a strong bond of relationship with
local community and creates a sense of affinity among different nationals of the world—an essential
prerequisite for universal peace. This also helps eliminate the physical boundaries among different
countries and helps promote business and trade for balanced development.

CONCLUSION
Tourism industry is the one that deals with the tourists as consumers, the money spent by them, and the
resources rendering various goods and services which facilitate the composition of the
tourism product. This industry has been named as a ‘smokeless industry’ because unlike other industries
it is invisible and non-polluting. The tourism industry is an extraordinarily complex integration of many
industries spread over many sectors. Tourism is an umbrella industry containing a set of inter-related
business participants. For example, industries like Transport (Air, water and surface), Accommodation
(Hotels, Motels, and Supplementary Accommodations), and Travel Companies, (Tour Operators/ Travel
Agents), Recreation and Entertainment Institutions, Handicrafts business, etc and the provision of the
many goods and services demanded by tourists. Interestingly, most of the component industries also get
related to varied commercial and non-commercial activities over and above providing their services to
the tourists.
 Unit 2

Concept of products, Characteristics of tourism products, Types of tourism products, Distribution of

tourism products.

Definition of Tourism Products

When tourist decides to travel to particular destinations, they look forward to a pleasurable experience
in terms of a safe and comfortable journey, good accommodation and meals, interesting attractions and
leisure activities. These are the expectations or products, which the tourist is willing to spend money for.
All these are components of the tourism product. Before we define ‘tourism product’ let us understand
the meaning of ‘product’.

A product in general can be a thing, a person, an event, etc. Which satisfies the needs of the person
purchasing the product? The product which is offered to the consumer must have some need satisfying
qualities. This product can be exchanged for some value. The value is of importance for mutual
satisfaction for both (producer) as well as the receiver (Consumer) of the product. The product is always
characterized by ‘Pull factor’ and it motivates the consumer to purchase it as it has the ability to satisfy a
need of the consumer. Thus, a product is anything that can be offered to the market for attention,
acquisition, or consumption and is capable of satisfying a need or want.

The tourism industry is a service industry and provides products which are nothing but services. The
service product refers to an activity or a set of activities that a marketer offers to perform, resulting in
satisfaction of a need of the customer or the target market. Products which fulfill or satisfy the
customers’ leisure, pleasure, or business needs at places other than their own place of residence are
known as tourism product.

A TOURISM PRODUCT CAN BE EITHER A TANGIBLE ITEM, FOR EXAMPLE, A COMFORTABLE SEAT IN AN
AIRCRAFT OR THE FOOD SERVED IN A RESTURANT OR AN INTANGIBLE ITEM, FOR EXAMPLE, THE
QUALITY OF SERVICES PROVIDED BY A CRUISE LINER OR SCENIC BEAUTY AT A HILL RESORT. In general, in
almost all the cases, the tourism product is a combination of both tangible and intangible items. This
combination of different components results in giving the tourist the total travel experience and
satisfaction.

The product in tourism industry is the complete experience of the tourist from the time of tourist leaves
home till he/she returns back. The product may be defined as the ‘sum total of physical and
psychological satisfaction it provides to the buyers’.

In the tourism industry, the basic raw materials used in the formulation of a tourism product are the
country’s natural beauty, its climate, history, culture, and the people. The other essential elements are
the existing facilities or the infrastructure, which are necessary for the stay to be comfortable and it
includes water supply, electricity, roads, transport, communication, services and other ancillary services.

Thus we can understand that the tourist/tourism product is the sum total of a country’s tourist
attraction, transport system, hospitality, entertainment, and infrastructure which is offered to the
tourist, and if well designed and developed, will result in consumer satisfaction.

Itinerary: tourism product

A travel itinerary is a schedule of events relating to planned travel, generally including destinations to be
visited at specified times and means of transportation to move between those destinations. For
example, both the plan of a business trip and the route of a road trip, or the proposed outline of one,
would be travel itineraries.
The construction of a travel itinerary may be assisted by the use of travel literature, including travel
journals and diaries, a guide book containing information for visitors or tourists about the destination, or
a trip planner website dedicated to helping the users plan their trips.

Different types of itinerary

1.Tour conductor's/Manager's itinerary will have all the details that are on the tourist's itinerary, but it
will also have the minutest details like details of travel arrangements, contact name and numbers of the
people associated with the tour plan, other tour related formalities, etc.

2.. Tour Escort's itinerary is a detailed one giving step-by-step information of the tour including the time
taken to travel, modes of transport taken, accommodation details, sightseeing details, any tickets
needed, list of other essential things to carry on the tour like water, food, brochures etc, essential
contact name and numbers required on tour etc.’

Elements of Itinerary

Itinerary is not an element. It is made of different elements combined together. A hotel, transport, an
attraction is not tourism they are the basic elements of tourism. So, every itinerary has following
elements.

1. Tour Program

The main and most important element of an itinerary is a tour program. The tour program consists of
different activities. The programs are related to the travel or movement, stay and involve in different
activities.
2. Timetable
Another major component of itinerary is the timetable of the tour program. Time table is the
explanation of when to do what. In an itinerary, the tour program must be supported by a
timetable.
3. Duration
Tangible goods are measured in weight, length etc. but intangible services are sold on the basis
 of duration. So, tourism as service, an itinerary must explain the duration of the service that is
the length of each activity, total tour.
4. Destination
Tourism is related to travel and travel is related to destination. The destinations are the places
to be visited. An itinerary should mention the starting point and the destination to be visited.
5. 4 As.
Every itinerary should have 4 A, they are attraction, accessibility, accommodation, and
amenities. Attraction is anything which attracts travelers to visit. Itinerary should mention what
is the main attraction of the program. Then mention how to reach there, that is accessibility. It
can be drive, fly, trek, raft etc. Next important feature is to mention where to stay. It can
be hotel, camp, lodge etc. Finally every itinerary should mention service elements like what they
enjoy, see, visit etc

Points To Be Considered While Preparing Itinerary

An itinerary is the main sales item of a travel agency. It is the sales product of an agency. An itinerary
should be able to transform the intangible character of the tourism product into tangible item. So, one
should be very sensitive while preparing itinerary because it reflects the image of an agency.
Following points should be considered while preparing an itinerary:

1. Duration of tour

While preparing itinerary one must consider the allocation of time and duration of the tour- how many
days in one country and how many days or hours in one place of interest.

2. Interest

Itinerary should be based on interest of the tourist. It must be interesting and attractive. A ready-made
itinerary must be capable of attracting maximum number of tourists and easily salable, and should be
competitive. Every activity of an itinerary should be interesting and total tour should be interesting.
Every market has special interests and itinerary should try to focus on the

3. Season

Certain places are more interesting in one season than another. Certain activities are possible only at a
certain time of the year and more beautiful at a certain time of the day. Tourism is a seasonable
business so one should consider the seasons when one destination activity is better than other.

4. Budget

Itinerary is based on the budget too. For example, accommodation in big cities could be in five star
hotels. In the same way trekking in Himalayas region is more expensive than trekking is hills. The same
trek can be organized as tea-house or fully organized trek. Budget varies with different activities
involved in the itinerary. The prepared itinerary must be competitive in the market. It must justify the
time value and dollar value of the tour.

5. Possible to express in monetary terms

Every itinerary must be possible to be expressed in terms of cost. Every item, element, activity
mentioned in it should be possible to be evaluated in monetary terms. All service elements mentioned
need to be expressed in cost.

6. Possible to fulfill

Preparing and itinerary is commitment or promise. So, mention only things which can be fulfilled. As an
itinerary is legal document, it involves consumer's right. Every activity and total itinerary must be
possible to fulfill.

Importance of Itinerary
1. Compound Product:
A tourism product is made od 4 As that are Attraction, Accessibility, Accommodation, and Amenities.
Tourism product is formed by two or more than two tourism elements. The joining of the elements is
possible with the help of itinerary. Attraction and transport were there since a long time but no tourism
due to the absence of mixed product. Modern tourism is the result of itineraries.
2. Tangible:
The tourism product that we are selling is an intangible product. Those products are converted into
tangible, invisible into visible by the help of an itinerary as it contains all the information. Thus, the
tourism product produced but the travel agency is the itinerary.
3. Sales-kit:
Buying and selling of the tourism product is difficult because tourism product is intangible. In this
situation, an itinerary is of great help to the salesman as it includes detailed information of the tour,
timetable, special features and events. An itinerary helps salesman for costing purpose. It solves the
problem of sales because the product is intangible and immovable.
4. Point of Sale and Point of Service Delivery:
Itinerary helps as a flow of information between two points.
5. Ownership of the Tourism Product is non-transferable:
A tourism product is intangible and its ownership is non-transferable. Pre-consumption, post-
consumption or transfer of the right to use the service is not allowed. Itinerary is used to solve this
problem which mentions what yo have sold and who bought the services, for which date, under which
conditions, and for how long etc.
6. Legal Document:
An itinerary has to be developed as a legal document. The itinerary is the agreed document between the
buyer and seller. So, it is the proof of the document that one agrees to sell. It helps to settle the legal
disputes.
7. Brand name:
An itinerary helps to brand the tourism product. A travel agency can brand his tour and express his
specialty by developing an itinerary. With the help of special features of the itinerary, we can brand our
tour and separate from the rest of the agencies.
8. Expressing the services in monetary terms:
Tourism is a service industry and the service is difficult to be expressed in monetary items. It is possible
to express service in terms of money only with the help of an itinerary.
9. To manage and operate tour:
Itinerary is necessary to manage and operate the tour. When an itinerary is prepared then we know
when what service is to be provided. The services move smoothly if itinerary is prepared.

Tourism products are nothing but various services offered to the tourists, and falls under the category of
service products (See Fig below):-

The Tourism Product is an amalgamation of a variety of goods and services

Catering

Travel Insurance

Tourist information centre Travel agent and Tour

operator

TOURISM Amenities

Transport PRODUCT

Bank and currency exchange Attractions

Govt and private organizations Visa and passport offices

Tourist information centers

Accommodation

 Tourism product is a series of interrelated services, namely services produced from various
companies (economically), community services (social aspect) and natural service.
  Tourism product is something that can be offered to tourists to visit a tourist destination. The
products which satisfy the leisure, pleasure, religious or business needs at places other than the normal
place of residence are known as tourism products. Tourism products are offered in the market with a
cost. Tourism products are the prime reason for tourist to choose a destination. Tourism product helps
in fetching revenue for the destination.
 Tourism product can also be described as a service that can be enjoyed by tourists starting from
the place of origin, while in a tourist destination and until returning back home. It is supported by natural
and cultural attractions; facilities and services like hotel, transportation; product price, food,
entertainment etc.
 Tourism product consists of a variety of elements which is a package that is not integral to each
other and meets the needs of tourists from leaving his residence to the place of destination and back
again to the place of origin.
When we have to plan a trip during vacations, then we have to choose a place where we can spend our
vacation. The selection of the place will depend upon the attraction that the place possesses; how to
reach there; where to stay and any other activities apart from sightseeing available. A cost is attached to
every component of the trip. Like transportation, accommodation, entry ticket to monument, shopping.

Thus the components of tourism product include:

1. Attractions
2. Services and facilities- Hotels, restaurants, taxi service, metro rail etc
3. Activities- Shopping, Trekking etc

Tourism Resource to Tourism Product

An area may have tourism resources like favorable climate, beautiful scenery, monuments, and
hospitable people. Tourism resources of a place can be converted to tourism product. Every resource of
a place cannot be converted to tourism product. Resources to tourism can encompass a wide variety but
this variety can only be converted to tourism product depending on the following:

a. The interest of the tourist

b. Geographic location of a destination
c. Historical and cultural development of a destination
d. Conservation and Preservation of the attraction
e. Addition of support facilities
f. It has to be offered to the tourist
g. A cost is attached to the tourism product

Characteristics of Tourism Product

Tourism products are mainly service products or services which have several characteristics like
intangibility, perish ability, variability, etc.
For example, in business tourism, conference planning and management is a service offered by large
hotels and convention centers. Fairs and festivals are events which are offered for enjoyment only at a
particular time of the year and these are perishable and variables. In Nepal, cultural attraction in the
form of dances and music can be seen and enjoyed. Other products which tourists consume are like
wildlife, and flora and fauna and natural products.

Absence of ownership Manufactured by many products

Highly
unstable demand

Tourism Product
Perishability Intangibility

Variability Inseparability
1. Intangibility: - Commodities are tangible products which have physical dimensions and attributes
which can be seen, touched or, taste while service products are intangible and cannot be seen, touched,
or measured, but can only be experienced. The tourism product can be anything like a package tour, an
air ticket, or a stay in a hotel. Intangibility means the product cannot be directly seen, tasted, felt, or
heard prior to the purchase and consumption. The only tangible items we get before purchase are the
tickets or receipts for payment we have done. And after the consumption of the product we have
memories of the tour which are intangible.

2. Inseparability: - In case of tourism industry the products are mostly services which cannot be
separated from the person or the company that provides it. The production and consumption of the
product occurs simultaneously and cannot be separated. The tourist has to go to go to the site of
production to utilize the product. For example, the courtesy shown by an airhostess while serving a meal
on board can only be experienced in the aircraft by the passengers and not before or afterwards as the
production and consumption cannot be separated.

3. Peristability:- Any tangible good and product can be manufactured and stored for a certain period of
time and sold or used at a later date. For example, pens can be manufactured, stored in the warehouse
for a few months, and can be sold when there is a demand. However, the service product cannot be
stored in a warehouse and sold at a later date. For example, the airline cannot store 100 unsold seats of
a flight scheduled to depart on 12th march to sell it on 13th march.

4. Variability/ heterogeneity:- In tourism industry, services are rendered by human to humans. These
services have a high level of variability, when producer and consumer interact. The human element
makes standardization of the product a difficult task. The services rendered vary from person to person
and from time to time.

The guides or escorts behavior may not be consistent every single day. Family problems, ill health, or
stress may affect his/her interest in the job, concentration in his/her work and ultimately his/her
performance. Good tidings, minimum personal problems, and an interested audience help in boosting
one’s performance. The waiter in a restaurant will not be uniformly efficient on all days of the week for
similar reasons.

5. Dominant role of Intermediaries:- In all industries, manufacturers play a major role in product
components, design, distribution, promotion, and pricing. This is not the same in the tourism industry.
Sale intermediaries such as tour operators, travel agents, reservation agents, hotel brokers, etc. play a
dominant role. They enjoy a superior position in travel trade. They are ones who decide to a large extent
which services will be sold and to whom. They also decide at what time and which types of services are
to be offered as well as pricing policies and promotion strategies.

6. Manufactured by many producers:- In case of intangible products, one manufacturer produces a

total product. In tourism industry, the tourist product cannot be provided by a single enterprise. Each of
the components of the tourist product is highly specialized and when combined together makes a final
product. The hotel industry produces guest nights or hotel rooms, and airlines fly passengers as their
products. The travel agents products are the bookings done on that day and in case of a museum or an
archeological site, the product is measured on the basis of the number of visitors who visited on the site
on that day.

A tourist product is not an airline seat or a hotel room or ticket to museum or guide services but it is a
combination of all the above sated services manufactured by different producers which makes a
complete product.

7. Highly unstable demand/ Seasonal product:- The demand for tourist products depends on many
factors such as seasons, economy of the destinations, political factors, social factors, etc. Except for the
seasonal factors all other factors can be made favorable. Season is a factor which affects the tourism
industry greatly. Seasonality means the time period when the tourist destination is frequently visited by
tourists which is for a limited period of the year. Almost all tourists’ areas have a short season which is
called peak season which often may be as short as three months. This seasonal usage of the product
creates unemployment and also has an impact on transportation and hospitality services as well as most
other services. Along with unemployment, investments are greatly affected by seasonality.

8. Psychological:-A large component of tourism product is the satisfaction the consumer derives from its
use. A tourist acquires experiences while interacting with the new environment and his experiences help
to attract and motivate potentialcustomers.3)

9. Composite Product:-The tourist product cannot be provided by a single enterprise unlike a

manufactured product. The tourist product covers the complete experience of a visit to a particular
place. And many providers contribute to this experience. For instance, airline supplies seats, a hotel
provides rooms and restaurants, travel agents make bookings for stay and sightseeing, etc.

10. Fixed supply in the short run:-The tourism product unlike a manufactured product cannot be
brought to the consumer; the consumer must go to the product. This requires an in-depth study of
users’ behavior, taste preferences, likes and dislikes so that expectations and realities coincide for the
maximum satisfaction of the consumer. The supply of a tourism product is fixed in the short run and can
only be increased in the long run following increased demand patterns.

11. Heterogeneous:-Tourism is not a homogeneous product since it tends to vary in standard and
quality over time, unlike a T.V set or any other manufactured product. A package tour or even a flight on
an aircraft can’t be consistent at all times. The reason is that this product is a service and services are
people based. Due to this, there is variability in this product. All individuals vary and even the same
individual may not perform the same every time. For instance, all air hostesses cannot provide the same
quality of service and even the same air hostess may not perform uniformly in the morning and evening.
Thus, services cannot bestandardised.9) R

12.Risky:-The risk involved in the use of a tourism product is heightened since it has to be
purchased before its consumption. An element of chance is always present in its consumption. Like, a
show might not be as entertaining as it promises to be or a beach holiday might be disappointing due to
heavy rain.

13. Marketable:- Tourism product is marketed at two levels. At the first level, national and regional
organizations engage in persuading potential tourists to visit the country or a certain region. These
official tourist organizations first create knowledge of its country in tourist –generating markets and
persuade visitors in these markets to visit the country. At the second level, the various individual firms
providing tourist services, market their own components of the total tourist product to persuade
potential tourists to visit that region for which they are responsible

Tourism product from the perspective of Seller, Buyer, and Society.

A product is viewed differently by different participants in marketing. The marketers consists it an offer
in terms of its features. So a tour package for a marketer means duration, itinerary, departure and
arrival points, type of hotel, number and types of meal, insurance, airport tax, and so on. Buyers on the
other hand look for benefits of each feature. Tourist is interested in every benefits and service they need
from departure day to arrival day. Duration of tours for tourists means number of days away from
home, itinerary means what they get to see, type of hotel signifies associated comforts, and inclusive
meals imply number, types, and cost of additional meals and so on. The concept of the marketers and
tourist may not match. Society is the third party as it shares its resources for tourists. Packaged tour to
them may imply mass tourism, pollution, congestion, resource shortage, and so on. A good product
should be able to balance the interests of all parties as in the case of ecotours and sustainable tourism.
 Nature of Tourism Product
The nature of tourism product comprises two different types of travel to the destinations. These
are:-

Non-Discretionary Discretionary

In non-discretionary travel, undertaking travel is a must and the traveler has to travel to a particular
destination and does not have much choice. These are business travelers to attend a conference or a
family travelling to their hometown for a wedding or a funeral, or a student’s flying back to college etc.

Discretionary travel is concerned with the choice; the traveler can select the destination/attraction and
time of travelling, for example, to stay at home and relax, drive to a nearby resort, or fly to Malaysia for
a vacation.

Both these travel segments have different needs and wants. For example, advertisements will affect the
discretionary traveler because of choice.

In both travel, the nature of tourism product is the purchase of intangible services.

Types of Tourism product

Tourism Product Tourism Product

Natural Human-made Symbiotic Event based Site based

A) Classification based on attraction B) Classification based on

destination
Tourism Product
c) Category of Product

Activity based Event based Site based Destination Tourism circuit

based
Packages and programmes

There are three ways in which tourist products can be classified as the figure shown above
 Based on Attractions

A) Natural, Human made, and Symbiotic Tourism product:- Natural tourism products are the
natural attractions found all over the world like beaches, deserts, hills, mountains, climate, flora and
fauna, islands etc. These are nature’s gift to human beings.

Human made products include fairs, cuisine, architecture, monuments, shopping etc. Entrainment
centers in the form of a theme park such as Disneyland, USA or the shopping festival at Dubai etc are
also crated products which offer a wide range of services for pleasure, leisure, or business.

Symbiotic tourism product does not come under natural and human made category. Marine Park, flower
festival, wild life sanctuary, water sports are few example of tourism products which are combinations
of products crated by blending natural attractions and built attraction. The resources are provided by
nature which is converted into the products by humans. But nature remains core attractions and these
are best example of a symbiotic association of nature and humans.

B Event based and Site –based Tourism product:- In an event based product, the event is the core
element in the tourism product, for example, World cup cricket matches, Goa Carnival, are all event-
based tourist products where tourists visit the destinations to attend the event. These events are
seasonal.

In a Site-based tourism product, it is the site which motivates the tourists to visit the place such as Taj
Mahal at agra, river rafting in Trisuli etc.

Based on Category of Product

Here the products are visualized as a continuous whole or as a series ranging from a simple activity
which may constitute the product to an entire circuit. Continuous product based on activity, event, site,
destination, package, and tourism circuit.

Activity Based:- The activity based tourist product centers around the active participation of tourists.
In adventure sports, for example, paragliding, the tourist has to undertake the activity. These activity
based products are related to human-made activity and nature supported activity. Adventure sport is an
example of nature supported activity. Tourists have to visit a souvenir shop to purchase handicrafts
which is an example of human-made activity.

Event Based:- There are many events which attracts tourist. For some events the places are fixed such
as Elephant polo festival in Chitwan, Venue of Olympic games where tourist visits such places as
spectators or as participants.

Site-Based:- Site also offers attractions. These sites are specific. Cable car of manakamana. Beaches of
Goa.etc.
Destination Based:- many cities in the world are themselves a tourist attractions. The city itself may
attract tourist especially they are country capitals or state capitals. For example, Washington DC,
Kathmandu Nepal, etc, which offers plenty of other attractions to the tourist.

Packages and Programmes:- Under this category come the offers which are complimentary and are
offered by service providers. For example, free casino tickets to participants of a conference. These add-
ons increase the attraction of the tourist product. Programmes are add-ons or optional products offered
to customers. They are always provided with core attractions which make the product more effective
and attractive.

No matter how impressive your product is its success relies on customers knowing you exist in the
marketplace. The strength of your presence in the marketplace will be very much dependent on
choosing the most effective distribution channels to reach and then sell to your target markets.

What is distribution?

Distribution is the variety of channels used to extend the promotion and sales of your product.
Distribution channels are the means by which you reach your customers. Efficient product distribution
will facilitate product sales in advance of their actual use. This is particularly valuable if your target
markets include international visitors travelling on a structured prepaid itinerary, or domestic travelers
who prefer to confirm their itineraries prior to travelling. Advance sales give you the advantage of being
able to plan ahead. Smaller operators usually sell directly to customers and do not necessarily use
distributors to sell their product. If this applies to you, consider that by expanding the number of
distribution channels selling your product, you can improve sales and profitability. The establishment of
a business link with distributors does involve some costs. These are usually not upfront costs but they
are incurred after a sale is made. This is commonly known as a commission and is classified as a
distribution cost. The use of a combination of distribution channels to sell your product can contribute
to improved bookings and, ultimately, increased profits. Distribution channels are dependent on target
markets. Your options for distribution include working with distributors, such as wholesalers, or using
promotional material and/or a website to spread the word about your product and generate sales.

Choosing the right distribution channels

Analyzing which distribution channels will be the most profitable to your business is crucial. Ask
yourself: ∙

 How do your target markets currently purchase your type of product and how do you go about
establishing a relationship with these distributors?
 What sort of costs will be incurred by using these particular distributors?
  Are these proposed distributors familiar with your product? If not, what are the costs involved in
developing product familiarity?
 Are these proposed distributors enthusiastic about your product?
 Are they potentially good sales ambassadors?
 Do they handle products provided by your direct competitors?
 What sort of incentive can you offer a distributor to encourage sales of your product, for
example, a sales incentive scheme or “over-ride” commission?

Distribution channels are increasingly regarded as one of the most critical elements in marketing, as
they determine the competitiveness and profitability of organizations. Tourism distribution channels
attract more attention by contemporary researchers and strategists. Their purpose is twofold: to
provide information for prospective tourists and intermediaries as well as to establish a mechanism
which would enable consumers to make, confirm and pay for reservations. ‘‘In tourism, the position of
the distribution sector is much stronger: trade intermediaries (travel agents and tour operators of
course, but also charter brokers, reservation systems and other travel distribution specialists) have a far
greater power to influence and to direct demand than their counterparts in other industries do. Since
they do, in fact, control demand, they also have increased bargaining power in their relations with
suppliers of tourist services and are in a position to influence their pricing, their product policies and
their promotional activities’.’

Functions of the tourism distribution channel

 Identify consumers’ needs, requests and expected experiences.

 Assemble tourism products from different providers according to customer expectations.
 Provision of co-ordinate and seamless tourism products Facilitate the selling process by
reserving and issuing travel documents.
 Reduction of prices by negotiating and pre-purchasing tourism products in bulk.
 Ameliorate inventory management by managing demand and supply.
 Issue and deliver travel documentation, i.e., ticketing, vouchers, etc.
 Assessment of quality of facilities and products
 Assistance in legal requirements for consumers (e.g., visas) and suppliers.
 Facilitate communications between consumers and suppliers especially in multilingual and
multicultural environments.
 Reduce the perceived risk for consumers.
 Provision of information by using leaflets, maps, brochures, video, CDs.
 Consumer’s guidance/advice/consultation.
 Undertake pre- and post- experience marketing research.
 Facilitation of access to often remote tourism products, for both bookings and purchasing.
 Establish a clearing system where each channel member receives payments for their services.
 Spreading the commercial risk involved between channel members.
 Arranging details and ancillary services, such as insurance, visa, currency, etc.
 risk when pre-purchasing tourism products.
 Promotion of particular products or packages, in co-operation with suppliers Promotion of
distressed capacity in low period and at the last minute.
 Complaint handling for both customers and industry.
 Unit 3

Development of Tourism in Nepal

After unification to before down of democracy:

 In 1850, Junga Bahadur Rana visited Egypt, Britain, France and religious places of India
 De-Denial Wright (1877) visited Nepal and wrote the book of history of Nepal
 Bir Shumsher changed foreign policy during this period that facilitated Gorkha Army
Recruitment
 In 1905, Chandra Shumsher invited prince Wales for hunting in Nepal
 In 1908, Chandra Shumsher visited Britain and around 73 magazines published the message of
Nepalese art and culture
 After the unification, Indian, Chinese, British came Nepal for political purposes
 During the period of PNS, country was closed for outsiders, especially for Europeans to preserve
independent and strengthen the unity of country
 During the 104 years of Rana Regime (1846-1950 AD), the growth of tourism was paralyzed

After democracy to till (1951 to till):

 1st hotel established but closed due to lack of tourists

 Mt. Everest Climbing in 1953 AD begun
 1957 Tribhuwan Rajpath was opened and in the same year RNAC was established
 1958 July 4Th ,RNAC operated 1st flight
 1959, Nepal became member of IUOTO and PATA
 1959, tourist info center was established
 1959, civil aviation act was introduced
 1960, Nepal became member of ICAO
 1960, direct air liked to Delhi and Kolkata
 1962, taking statistics started
 1964, government passed tourism rule
 1964, Hotel Shankar and 1965, Hotel Annapurna established
 1966, Hotel Soaltee
 1972, tourism master plan developed with German expertise
 1972, HMITC established with the help ILO/UNSP
 1976, HAN and Tourism Agency
 Feb 23, 1977, Ministry of Tourism
 1977, election of chairperson of world tourism commission for south Asia
 1978, High level tourism co-ordination committee
 1978, 2nd tourism master plan formulated (Lumbini Master Plan)
  1982, National Tourism Promotion Committee formed
 4th priority for tourism in budget of fiscal year 1995/96
 1995, tourism policy approved
 Feb 1997, Nepal tourism Board Act 2057 formulated
 Government declared the year 1998 as year of tourist with slogan “UNY98”
 1999, NTB and Civic Aviation Authority
 1999, NATHM and 3 years later B.H.M (TU) established
 UNDP worked at 7 districts
 2003, NATHM started 3 years BTM and in same year 50th anniversary of Mount Everest
 Now, Nepal is member of UNWTO, PATA, ICAO, IAIA etc
 2006, peace process was signed that helped to develop no. of tourists visiting Nepal

Abstract

Tourism is the movement or travel of people from one place to another; whether it is within their own
country or to other countries, for pleasure, business, pilgrimage and other purpose. The evolution of
tourism dates back to ancient times. In Nepal, tourism, despite having a long history was, developed
since 1950s only. The recent trend of tourists' arrival in Nepal seems satisfactory. However, from the
perspective of tourism based resources and its availability in the country seems rather pessimistic. To
promote tourism sector and its contribution to socio-economic sector of the country, we need to utilize
available resources properly and beneicially. For this, there is need of dynamic and tourism friendly
policy and joint effort of the government and the private sector as well. Introduction Tourism refers to
the movement or journey of human beings from one place to another, whether it is within one's own
country or other countries. It can be for pleasure, business, pilgrimage and other purposes. The
evolution of tourism dates back to ancient times. In Sanskrit literature, there are three terms for
tourism, derived from the root “anta”, which means going or leaving home for some other places.

The three terms are:

1. Paryant - It means going out for pleasure and knowledge.

2. Desant - It means going out of the country prominently for economic gain.
3. Tirthatan – It means going out to places of religious merits.

The literal meaning of these three Sanskrit terms is that tourism denotes going out from house for
pleasure and knowledge, going out of the country for economic gain and going out to places for religious
purposes. Traveling, in the remote past, was mandatory because the very survival and existence of
primitive men depended on it. However, the advent of civilization brought about changes in human
perception and the focus of traveling shifted from one of the necessity to a desire for adventure. Later,
the introduction and development of the modern means of transportation and communication have
contributed to tourism growth by facilitating and augmenting traveling activities. Today, tourism
industry is rapidly growing worldwide and its role is significant in the socio-economic sector of all
countries. Tourism is an important source of foreign exchange earnings, provides employment
opportunities and helps in economic growth of the country. The rapid growth of tourism in the world
started only after the Second World War. The realization for the need of development in almost all
countries, increasing liberalization of foreign exchange and travel restrictions, liberal policy of
governments, the aspiration for international brotherhood, etc., are the main factors contributing for
the rapid growth of tourism. Other factors responsible for the enormous growth of international tourism
are: availability of leisure time with the people, the rapid growth of population, the advent of Jet travel,
the creation of low cost means of transport and communications, low cost hotel and restaurants,
retirement age and increasing life expectancy, desire to know and see the unique life styles, traditions
and cultures of people of different places, rising standard of living and so on. In the developed countries,
tourism agencies are encouraging the people to travel by providing schemes of incentive travel.
Agencies also provide credit plans to the people for traveling on installment basis as, “fly now pay later”
arrangement. All these developments have led to the expansion of international tourism movement
during the last few decades. Regarding the modern concept, tourism is a relatively recent phenomenon
in Nepal. Although the influx of visitors for different purposes was there from very early times.

The study of the influx of foreign visitors to Nepal or the development of tourism in Nepal can be
classified in the following three stages:

a. Historical Review of Tourism in Ancient Nepal.

b. Tourism after Unification of Nepal.
c. Tourism after 1950.

1. Historical Review of Tourism in Ancient Nepal.

Tourists have arrived in some form or the other from time immemorial in Nepal. In this context, first of
all, it is pertinent to illustrate a legend. As far as the legend goes, ‘Manjushree’ had made the valley it for
human habitation by cutting the Chovar Hill of Kathmandu Valley with his sword and thereby letting the
water low out from within the valley. Although Manjushree is said to have come either from India or
China, yet he is regarded as the first tourist ever visiting Nepal.

During the early historical era too, famous visitors have been recorded as having visited Nepal. It has
been illustrated in the chronicle that Gautam Buddha visited Nepal during the reign of Jitedasti, the
seventh Kirat King, who stayed in the western part, near Swayambhu.

The Great King of ancient India, Ashok too had visited Nepal. King Ashok visited Lumbini, the birth place
of Lord Buddha, and built the Ashok Pillar there. He then came to Kathmandu valley and built similar
pillars in different places.

In Nepalese history, the Lichchhavi period is regarded very significant from the tourism viewpoint. The
Lichchhavi period started in 400 A.D. and there had been enormous progress of art and culture in the
country during that period. In particular, architecture, paintings and sculpture were tremendously
developed, while famous palaces like Kailashkut Bhawan, Managriha and Bhadradhiwas Bhawan etc.,
were also built during that period. The way in which art and culture were developing in Nepal during
that period inspired the Chinese travelers to come to Nepal and write about Nepal.
The marriage relations between Princess Bhrikuti, daughter of King Amshuvarma, and Srong-sten
Gampo, the king of the northern state Lhasa (present Tibetan Autonomous Region of China) in 592 A.D.
gave rise to the establishment of special relations between the two countries. As a result, it was natural
for the people of these countries to travel from one country to the other. Thereafter, Nepal was
developed as the only route for a long period to visit China via Lhasa and travel from China to India via
Lhasa. This led to the increase in arrivals of foreigners in Nepal.

Famous Chinese traveler, Huien-Tsang, started the journey to India in 629. According to historical
evidence, after meeting King Harsabardhan of India, he returned to China via Nepal in 643 A.D. During
his journey to Nepal, Huien-Tsang also visited Lumbini. The then Emperor of China is said to have sent
his imperial envoys to India via Nepal in an attempt to strengthen the relations with King Harsabardhan
of India.

For example, in 643 A.D., Chinese envoy Li-Yi-Piao, came to Nepal via Lhasa and then visited India .
Another Chinese envoy, Wang Hiuentse, frequently used to travel to and fro Nepal with his companions
during 643-657 A.D. when he was envoy to India. Buddhism preachers had visited Nepal during
Lichchhavi period i.e. Shantarakshit in 742 A.D, Padma Sambhav in 474 A.D, Kamalsheel in 760 A.D,
Atisha Dipankar in 1040 A.D and Milarepa in 1010 A.D.

Along with the reign of the Mallas people from the western countries began coming to Nepal with an
aim to spread and publicize Christianity. First of all Jao- Cabrall, a Portuguese, had entered Nepal via
Bhutan with an aim to spread Christianity. Later, many Fathers came to Nepal with similar aims.

Since 1737 A.D, King Jaya Prakash Malla provided written permission to Christians for the settlement
and spreading of Christianity in Kantipur .

The Malla period too is of great signiicance in the Nepalese history. The Mallas ruled over Nepal from
around 750-1480 A.D. A plethora of magnificent pagodas, palaces and houses reflect the richness of art
and architecture during the Malla period. The Lichchhavis and the Mallas brought about total
transformation in the life style of the people. The existing customs of the diverse ethnic groups and the
various festivals celebrated round the year have their roots in the Lichchhavi and the Malla periods.
Against this background, foreign tourists are found to have been attracted and visited Nepal from time
immemorial. During those days, foreign tourists visiting Nepal were Chinese, Tibetan and Indians and
they used to visit Nepal especially with religious and commercial motives.

Nepal was a famous pilgrimage for both the Chinese and Indians. The Chinese and Tibetan religious
groups used to visit Lumbini, the birth place of Lord Buddha, while the Indian religious people used to
visit holy places like 58 Pashupati Nath, Baraha Kshetra, Muktinath, Gosainkunda, etc. Similarly,
Nepalese traders used to go to Lhasa for business purposes and the Tibetan traders too are found to
have come to Nepal in connection with their business activities. Thus, religious and trading sectors are
found to have contributed significantly to the development of tourism in Nepal.

2. Tourism after Unification of Nepal

King Prithvinarayan Shah uniied the scattered principalities into bigger Nepal in 1767 A.D.(1825 B.S.),
thus, giving a new dimension to travel and tourism in the country’s perspective. In the history of tourism
development of Nepal, the visit of Captain Kirk Patric Mission in 1792 to Nepal also seems important.
Although Kirk Patrick had come to Nepal as a military official to collect facts about Nepal, his book about
Nepal “An Account of the Kingdom of Nepal” helped to introduce Nepal to outsiders. After the treaty of
Sugauli between the Nepal Government and the British East India Company in 1816 A.D., a British
Resident, Dr. Wallich, was appointed in Kathmandu for developing Nepal’s relationship with British
India.

After this there were regular visits of British nationalities in Kathmandu. Rana Prime Minister Jung
Bahadur’s visit to Britain in 1850-51 A.D. brought the mysterious and fascinating Kingdom of Nepal into
the limelight in Europe. During that time, several botanists and naturalists including Sir Brian Hodgson
FRS, and Sir Joseph Hooker FRS had visited Nepal. Renowned European personalities like Silva Levy
during the reign of Prime Minister Bir Shumshere and Percival London, during the reign of Prime
Minister Chandra Shumsher had visited Nepal.

Similarly, King George V and the Prince of Wales came to Nepal for hunting tigers in the terai forests in
1911 and 1921 respectively. The earliest published record on foreign visitors to Nepal is found in
Percival London’s book ‘Nepal’, (Volume 11, Page 299 305) where 153 Europeans mostly British are
listed to have visited Kathmandu in a period of 44 years from 1881 to 1925. Despite these
developments, the Rana autocracy isolated Nepal from external influence for a hundred and four years.
During that period, Nepal was a ‘forbidden land’ for foreigners except for the small traders and Indian
pilgrims.

Tourism in Nepal......... Tourism After 1950

After the advent of democracy in 1950, Nepal started to develop the different aspects of her social,
economic and political life. Since that time, the door of Nepal has remained open to foreigners with the
desire to visit Nepal in order to develop the tourist industry in the country. The role of mountain tourism
is very significant in the overall tourism sector. In fact, tourism in Nepal began with mountain tourism.
1950s can be considered as the most important period in Nepal’s tourism development.

During the decade, of the world famous 14 over-8000m peaks 7 of the 8 over-8000m peaks in Nepal
were for the first time successfully scaled i.e. Mt. Annapurna I, Mt. Everest, Mt. Cho Oyu, Mt. Makalu,
Mt. Kanchenjunga, Mt. Manaslu, Mt. Lhotse, and Mt. Dhaulagiri in 1960 only.

The first over-8000m peak to be conquered was Annapurna I by Maurice Herzog and Louis Lachenal of
France on June 3, 1950. The world’s highest peak Mount Sagarmatha (Everest) was successfully
ascended by Tenzing Norgay Sherpa of Nepal and Sir Edmund Hillary of New Zealand on May 29, 1953.

The first successful ascent of these two peaks did much to publicize Nepal as a destination to the world.
The first successful ascent of the over-8000m peaks of Nepal led to an exceptional growth in
mountaineering activities. With the granting of membership of the United Nations Organization (UNO)
in 1955, Non aligned Countries’ Group since its very inception and the membership of different
international agencies, it was easy for Nepal to be introduced in the world arena and in the same year,
in 1955 world-renowned Thomas Cook and Sons brought a group of 60 tourists for a Nepal tour. These
events contributed to the gradual influx of foreign tourists in Nepal. Therefore, the need was felt for
conducting tourism related activities in a systematic manner and tourism management became a
necessity during this period, Nepal made concrete efforts to develop tourism. It created necessary
institutional infrastructure needed to promote tourism, beginning from the establishment of the
Tourism Development Board in 1957 culminating to the establishment of Nepal Tourism Board in 1998.
First of all, Tourism Development Board, the body to deal with tourism related works, was established
under the Department of Industry, in 1957. Later, in 1998, the Tourism Board was upgraded to the
Department status, and the Tourism Department came under the Ministry of Construction and
Communications and Transport. In 1959, Nepal joined the membership 60 of International Union of
Official Travel Organization (IUOTO), present name, World Tourism Organization (WTO), and Pacific Area
Travel Association (PATA) in 1963. The number of foreign visitors to Nepal has been increasing at a
rather high yearly rate since the entrance in these international organizations. The main factors for such
substantial increase in the arrival of the tourists were the intensive promotional activities, expansion of
the hotel accommodations, development of modern banking system, the improved transport and
communication facilities, increase in the touristic resorts and facilities and so on. There was no plan and
policy regarding tourism in Nepal till 1950s. For the first time the written study on tourism was made in
late 1950s. In Nepal “General Plan for the Organization of Tourism of Nepal” prepared by French
national, George Lebrec, in 1959, was the first tourism plan, which was prepared with the help of the
French Government. In this plan, Lebrec has recommended to make brochures, posters, postage stamps
depicting the Himalayan peaks and flora and fauna and to use films and documentaries prepared by the
mountaineering expedition for promoting tourism in Nepal and the establishment of separate tourism
offices.

Later, George Lebrec visited Nepal in 1964 and 1966 and presented two reports on tourism entitled
“Report on the Development of Tourism” and “Report on Tourism in Nepal” respectively. In these
reports Lebrec had recommended that tourism in Nepal had stated growing at a faster pace. Later in
1965 Sir Eric Franklin from USA came to Nepal for the supervision of Tourism Department. In 1962, for
the first time the Tourism Department started keeping the statistics of the foreign tourists coming into
Nepal.

In 1967, Tourism Department came under the Ministry of Industry and Commerce. To facilitate and
provide necessary information to the foreign tourists entering Nepal, the Tourism Department
established information centers at Tribhuvan International Airport, Basantpur in Kathmandu,
Bhairahawa, Birgunj, Kakarbhitta and Janakpur. With the loan assistance of the Asian Development
Bank, the tourism Department established the Tourism Infrastructure Development Project, within the
department, in Pokhara, Gorkha and Kathmandu.

Nepal Tourism Development Committee was established in 1969 for formulating the tourist policy as
well as to draw a long term development plan for this sector. This committee is composed of a member
of the Royal Tourism in Nepal with the representatives of the important executing ministries, travel and
hotel industries. Reorganization of this committee was done with 10 members under the Chairmanship
of HRH, Prince Himalaya Bir Bikram Shah, in mid 1971. With the joint effort of UNDP and ILO, Hotel
Management and Tourism Training Centre was established in1972 with a view to produce trained
manpower in tourism sector. This center was renamed as Nepal Academy of Tourism and Hotel
Management (NATHM) in 1999. . Further, plans and policies were also defined for creating conducive
environment for the growth of the tourism sector. In this respect, the notable efforts were the Tourism
Master Plan 1972, Review of the Master Plan 1984, and defining of Tourism Policy in 1995. For the
planned development of tourism in Nepal, Nepal government joined hands with the German
government to prepare the 20-year 'Tourism Master Plan, 1972'. According to the recommendation of
this master plan, a separate Ministry of Tourism was established in 1977 with a view to enhance tourism
properly in the country. The Tourism Ministry was named Tourism and Civil Aviation Ministry in 1991,
and Culture, Tourism and Civil Aviation Ministry in 2000. In between, high level bodies like Tourism
Promotion Committee and Tourism Council were formed to create the necessary paraphernalia. These
activities contributed to generate important market for Nepalese tourism and the industry marched
ahead in a significant manner. The Public-Private Partnership for the development of tourism in Nepal
led to the establishment of the Nepal Tourism Board in 1998. The government decided to dissolve
Tourism Department, in 1999 and its functions were transferred to the Tourism Ministry and Nepal
Tourism Board. Presently, Tourism and Civil Aviation Ministry formulates the tourism related policies
and Nepal Tourism Board does the work of promoting tourism in the country. After a considerable gap
of 13 years, after the “Tourism Policy, 1995”, with a view to timely reform and change the tourism
sector the government brought the second “Tourism Policy, 2008” (2065 B.S), in 2008. The special
features of this new policy include attracting more tourists, marking “Visit Nepal Year” or “Nepal
Tourism Year” in designated years. It also envisages making Nepal an all season destination for tourists.
Later the government declared the 2011 as “Tourism Year 2011” with a view to 62 bring 10, 00,000
tourists in the country. However, in the year 2011 only 7, 35,932 tourists entered the country but due to
this slogan more publicity in the world market took place and many infrastructure developments in the
tourism sector were made.

Evolution-historical-development-of tourism
INTRODUCTION

The trend of travel begins since from the beginning of the human civilization, which gradually becomes a
basis for the evolution of travel and tourism. During the stone age of human civilization people used to
travel for the sake of food, shelter. After passing the several stages of human civilization the traveling
practice of human had achived great significance.
Then the first Olympic was held in Greece in 776 B.C. People started going to watch Olympic
games. Since then it is thought to be the milestone in the history of tourism industry. In medieval period
(12-17 A.D) the Europeans started visiting Rome recognizing it as a birth place of Europe & religious
pilgrimage. In 18th century again, the mode of traveling was changed. Whomever became sick , they
used to travel to SPA to get recovered. It is believed that modern tourism began from SPA. The credit to
word Tourism goes to Thomas Cook, a British citizen. He was the first person to provide package tour in
Europe in 18 century.
Before the industrial revolution, travel was primarily related to trade, commerce and pilgrimage. The
travelers, during those periods were the merchants/traders looking for merchandise & the time was
really suitable for aristocratic, which laid the foundation for the modern tourism. Evolution of tourism
can be really traced through the three phase, which are also regarded as epoch. One of the three phases
is mentioned as below:

1) First Epoch (Period before 1840)

This phase is the period before the industrial revolution, during which period; people basically
traveled from one place to other for the sake of trade, commerce and pilgrimage purpose. Usually,
motivating factor to the place for traveling during this period may be as follows:

a. Travel for trade and commerce: It was the strongest force/ motivating factor throughout the history
that traders/ merchants have traveled for trade with other nations. The invention of money, during 300
B.C was the most significant development, which became a medium for various business dealing and als
used by various accommodations.

b. Travel for seeking knowledge: The urge to explore new lands/ world, to seek knowledge was another
motive of travelers. Some examples of such explorers are: Marco polo, Alexander the Great.

c. Travel for religious purpose: During this period travel for the religious purpose was of significant
importance. The spread of Christianity led to numerous pilgrimage tours in this regard.

2. Second Epoch - The time period between First & second World War

During this period there was a significant development of private motor cars, bus and coaches e.t.c The
following points have a significant role on development of tourism during second epoch:

a) Introduction of Railway Transportation: The introduction of railway transportation had propounded

effect on transport. The first link between Liverpool and Manchester was started in the year 1830. The
birth of organized rail travel and concept of tourism came into existence in the year 1841. The man
behind this idea was Thomas cook, who is also regarded as Father of Modern Tourism. He had organized
a tour of 570 pax at a time by train from Leicester to Loughbourgh. The evolution of railway system
affected the quantity of the accommodations and also the urbanization.
b) Introduction of Steam Engine: During this period, introduction of steam engine by James Watt has a
great contribution on accessing the travel/transportation means. Many big ships were invented which
carried a huge mass of people at a time, where steam engine was used to operate a ship. The shipping
technology played a significant role in the development of travel and trade. The railway transport
contributed in the inland travel where as the ships opened the way for intercontinental travel by
crossing the boundaries via sea. The opening of Suez Canal in 1869 brought a revolution by shortening
the cruise route.

c) Contribution of Thomas Cook: Cook, Thomas (1808-92), was an traveling agent for tourists, born in
England. In 1828 later became an hard worker at tourism industry. Thomas Cook not only regarded as a
father of modern tourism, but is the first person to establish a travel agency and a first travel/tour
agent. After a trip from Leicester to Loughbrough 1843, he took a trip of nearly 300 children, by
chartering a train. From (1848-63) he started a circular trip to Scotland with almost 5000 travelers on a
season. After this he extended his tour agency to various other countries and published Guidebooks,
Periodical Cooks Excursionist & Tourist Advertiser.

Not only this, Mr. Cook's significant idea was for selling excursions or
holidays as a single transaction/ Package. The growth of railways, shipping & hotels etc, however accept
this idea gradually. Mr. Cook was also associated with pleasure travel. The large scale movement of
people to various pleasure spots was an organized idea of Mr. Cook. Cook himself started taking tourist
to different places inside the Europe for their pleasure, and Cook himself arranged accommodation
(Hotels) for tourists to stay where they can spend their holiday trip making independent trips. He also
provided traveling services to the travelers throughout the Europe and provided all necessary Kits of
traveling to the travelers under the British government for many occasions, and arranged the last trip
for British General Charles George Gordon to Sudan in 1884.

d) Industrial Revolution: As industrial revolution gathered its momentum, the cities and their
Population increased. They felt the need of some relief from their work. The increased income helped
them to fulfill their desire. To fulfill the growing demand, a large number of accommodation units and
leisure place had been developed. The people in the industrial countries felt the urge to travel for the
purpose of rest & relaxation. The trend of traveling for pleasure lead to the phenomena of tourism. The
industrial development increased the material wealth and increased number of workers who could offer
to travel.

3. Third Epoch (Period after Second World War)

After second world war, the standard of living of the working and middle people class has been raised.
Tourism became a need in the countries where tourism had been practically unknown. Enormous
expansion of tourism has been seen primarily in the advance & industrial countries, where travel
becomes a part of the life style. Third phase of tourism and development however summarized the
following points:

a) Introduction of Motor Car/ Bus/ Coach: The provision of luxury motor cars, buses, coaches has a
significant on accessing the tourism activities through transportation. The boom in tourist movements in
twenty century & twenty first century linked to the introduced of luxury coaches & private motor cars.

b) Introduction of Paid holiday & Mass tourism: The concept of mass

tourism emerged along with the introduction of paid holidays. During the last quarter of 19th century,
cheap holidays with pay for working class people had been developed, through the paid holiday was
very largely of English origin, developed the inter-wars. The concept really got underway, when ILO
adopted it at their first convention.
 c) Air Transportation: Introduction of civil aviation
has brought revolutionary changes in the history of travel after 1950's, when aircrafts were introduced
for the commercial purpose carrying a mass of people at a time, with tremendous increase in speed,
safety & comfort. It also gave access to the package holiday, which subsequently became a model for
most of the present tourism.

d) Introduction of Jet/ Jumbo Jets: The most dramatic change in mass tourism/ travel to its present level
was the introduction of jet in the year 1958. This mode of travel introduced an entirely new medium of
speed, comfort & efficiency & maximum carrying capacity.

e) Introduction of Inclusive Tour: It is an interesting idea developed during this period. In this type of
tour, all relevant costs are added up and sold in a package. The system of package tour is also
responsible for mass tourism.

f) Introduction of IT: The latest achievement in the field of tourism in 21st century is the application of
information technology for various promotion of any place of product via internet. One can easily
operate a tour or any reservation can be made from one point to the next point of the world through
Internet or Central Reservation System (CRS). Any information can be collected within a single hour. This
indicates that the globalization is accessing speed of travel and tourism with the place of technology.

Unit 4

A travel agency is a business that operates as the intermediary between the travel industry (supplier)
and the traveler (purchaser). Part of the role of the travel agency is to market prepackaged travel tours
and holidays to potential travelers. The agency can further function as a broker between the traveler
and hotels, car rentals, and tour companies (Goeldner & Ritchie, 2003). Travel agencies can be small and
privately owned or part of a larger entity.

A travel agent is the direct point of contact for a traveler who is researching and intending to
purchase packages and experiences through an agency. Travel agents can specialize in certain types of
travel including specific destinations; outdoor adventures; and backpacking, rail, cruise, cycling, or
culinary tours, to name a few. These specializations can help travelers when they require advice about
their trips. Some travel agents operate at a fixed address and others offer services both online and at a
bricks-and-mortar location. Travelers are then able to have face-to-face conversations with their agents
and also reach them by phone or by email. Travel agents usually have a specialized diploma or certificate
in travel agent/travel services (go2HR, 2014).

Today, travelers have the option of researching and booking everything they need online without the
help of a travel agent. As technology and the internet are increasingly being used to market
destinations, people can now choose to book tours with a particular agency or agent, or they can
be fully independent travelers (FITs), creating their own itineraries.

Tour wholesaler
A tour wholesaler can be defined as intermediaries between supplier in the travel industry and
consumers that puts together the services of airlines or other transport carriers, ground service
suppliers and other travel needs into a tour package which is sold through a sales channel, such as a
retail agent, to the public. The tour wholesaler is involved in developing, preparation, marketing and
reservations of inclusive tours and individual travel packages. They provide the retailer with a wide
selection of tours to a large number of destinations at varying costs, for varying duration and in various
seasons. (Lubbe 2000)

Tour wholesaler can be divided into three kinds: (Lubbe 2000)

1. The independent tour wholesaler> combines both transportation and ground services into tours
or packages and sells them through travel agencies to individual or group travellers.
 2. The airline working in close co-operation with tour wholesaler some airlines have wholesaling
divisions that put together tours.
example: British Airlines
3. The retail travel agent who packages tours for its clients some retail travel agents prepare
individual or/and group tours which they market themselves
example: DesigNZ on travel

Tour operator
is a company or person that purchases the different items that make up an inclusive holiday in bulk,
combines them together to produce package holidays and then sells the final products to the public
either directly or through travel agencies. The price of the package is usually lower than when the
customer would have purchased the individual components directly from the supplier.
In the chain of distribution, tour operator can therefore be seen as the wholesaler of the travel industry,
buying from its principles and reselling through its retailers, the travel agencies.
The main distinction between tour wholesaler and tour operator can be seen in the fact that an
operator may actually own the vehicles used on a tour, employ the driver and escort and own some of
the facilities. A wholesaler leaves the operation of the tour to individual suppliers such as the bus or
coach company.
(Lubbe 2000)
Tour operators can be divided into two main kinds:

1. Mass market tour operators

 arrange travel for the majority of holidaymakers travelling on inclusive tours

 They can sell holidays very cheaply because they buy services in volume from the suppliers
 Mass market tour operators produce holiday packages with wide public appeal usually visiting
well-known and highly developed resorts
 A typical product selection might be the following:
o Summer sun (Mediterranean);
o Winter sun (Canary Islands);
o Ski (Three Valley in France);
o Long haul (Florida);
o Short breaks (Rome);

2. Specialist tour operators

 deal with niche products and markets

 focus might be on a particular activity, travel to a geographic area or a certain type of holiday
maker
 Specialist tour operators prefer regular flights to charter flights; try to keep the groups small and
don’t compete with the price

3. Inbound, Outbound, and Receptive Tour Operators

 Tour operators may be inbound, outbound, or receptive:

 Inbound tour operators bring travelers into a country as a group or through individual tour packages
(e.g., a package from China to visit Canada).

 Outbound tour operators work within a country to take travelers to other countries (e.g., a package
from Canada to the United Kingdom).

 Receptive tour operators (RTOs) are not travel agents, and they do not operate the tours. They
represent the various products of tourism suppliers to tour operators in other markets in a business-to-
business (B2B) relationship. Receptive tour operators are key to selling packages to overseas markets
(Destination BC, 2014) and creating awareness around possible product.

Source of Income of a Travel Agency:

COMMISION ON SALE:
COMMISION ON SALE HOTELS AIRLINES TRANSPORT Ticketing Tour package Documentation Travel
insurance

COMMISION ON SERVICE PROVIDER:

COMMISION ON SERVICE PROVIDER Travel agent collects commission from customer

Commission on auxiliary:
Commission on auxiliary Travel insurance Traveller cheque

Short term investment:

Short term investment Real estate Stock market

Profit from sale own tools:

Profit from sale own tools Tour package Itinerary preparation Travel information Car rental
Transportation Guide

Service fee:
Service fee Ticketing (airline, railway, bus) Travel insurance services Passport service charge Document
preparation fees (visa)

Commission from sale:

Commission from sale Transportation (bus, cruise, airlines) Accommodation (hotel, resort. cottage)
foreign exchange Package tool holidays
Tourism sale processes

Reservation

Reservation is to book. It is a process of holding for future use. It is a technique

of holding authority, or right to use in future. Reservation shows a commitment
or promise from the buyer to use in near future.

Need of reservation:

1. Due to the “three basic nature” of tourism. Being service nature its service is
intangible, ownership does not change, so customer wants to have proof what
he has bought and what seller has promised to provide. It serves as a right to
use theservice.by the help of reservation system services agency solves the
problem no storable.
2. Limited capacity of services agency. Such as hotel, airlines, trekking, rafting
etc. have limited capacity of service they can provide. So travel agency must
reserve the space.
3. As a middle man travel agency need authority to sale and reservation system
is an authority to sale
4. It serves as communication system between customer and agencies and
between the services agencies.
5. It is a proof what agency has promise to deliver and what customer has paid
for
6. Service is process and is measure in duration and reservation will help to
quantify the service duration.

Reservation process:

1. Identify the customer- budget, interest, choice, duration, date quality and
quantity
2. Detail information of product and services organization –quality, capacity,
location, and rate, their rule and regulation and 4’as.
3. Agreement to sale/ reserve the service.
4. Need customer agreement to book on their behalf
5. Maintain communication with customer and with service agency
 Modes of reservation:
1. Letters or printed form
2. Telex, fax, email
3. Verbal, telephone, personal contact
4. Computer reservation system

Hotel reservation request:

1. Full name of client. If there are any child mention their age. If it is a group
booking naming list of the group.
2. Nationality
3. Required date and nights
4. Required number of beds and types of beds such as single, double, triple,
extra/ twin bed
5. Clearly mention hotel plan: EP, BB, CP, MAP,AP
6. Full description of arrival and departure (by flight, road, trek and raft).
7. If hotel has to arrange pick-up mention pick-up point, time, airport/ terminal,
station exact flight and flight number, train number an arrival time in detail. In
the same way if the hotel is to provide departure.
8. If you want special services such as special welcome, garden facing room
mountain facing room etc , mention clearly in your RR and confirm the same

Transport reservation:

1. Full name of client. If there are any child mention their age. If it is a group
booking naming list of the group.
2. Nationality
3. Required date
4. Detail list of sightseeing places and detail itinerary.
5. Full description of staff and client pick up point and time.
6. Mention pick-up point, time, airport/ terminal, station exact flight and flight
number, train number an arrival time in detail.
7. Name of the hotel where guest is staying.
8. Name of your agency with official signature

Service order
 1. Full name of client. If there are any child mention their age. If it is a group
booking naming list of the group.
2. Nationality
3. Required date and nights
4. Required number of beds and types of beds such as single, double, triple,
extra/ twin bed
5. Clearly mention hotel plan: EP, BB, CP, MAP,AP any special feature such as
fixed menu/ rate types of meal
6. Full description of arrival and departure (by flight, road, trek and raft).
7. If hotel has to arrange pick-up mention pick-up point, time, airport/ terminal,
station exact flight and flight number, train number an arrival time in detail. In
the same way if the hotel is to provide departure.
8. If you want special services such as special welcome, garden facing room
mountain facing room etc , mention clearly in your RR and confirm the same
9. Method of payment

Arrival transfers

1. Arrival transfer job includes:

a. Meeting guest, receive and welcome. It is to create an environment of acceptance and trust.
b. Handling of the guest baggage.it includes counting and loading on the transport. Claim the
lost and damage baggage.
c. Brief the guest about hotel, hotel plan and culture.
d. Provide transport (no taxi).
e. Accompany with the guest to the hotel.
f. Hand over the guest baggage to the hotel and help them to hotel check in.

Process of arrival transfer:

1. Prepare yourself:
a. You never get a second chance to make a first impression. Your appearance at the airport
should be highly professional. Prove that you and your agency is the best among the others.
b. You should be well groomed
c. You should be in formal uniform.

2. Before going to airport/bus park, station

i. Update the tour file:
-Date of arrival with itinerary
 -Flight detail
-Hotel plan with service vouchers and no of pax
-Client name with booking vouchers
-Re checks the file instruction. Arrange khata, garlands.

ii. Vouchers: Check the service vouchers

iii. Arrange transports

iv. Call the concerned airlines at airport to find out Estimated time of Arrival(ETA)

3. At the airport
a. Be airport at time. You must have time to park a vehicle in a suitable place.
b. You must have your identity.
c. Be ready with office play card/name card/agent card.
d. Identify your client. Do not disturb others guest.
e. Once you recognize your client, let them know about your agency and help them to manage
their baggage.
f. Introduce yourself and exchange greeting. Introduction should be short and clear.
g. Check the no. of baggage. If there is any lost/damaged claim for the same.
h. Welcome / greet as per file instruction.
i. Lead them to the vehicle. Help them to get into the vehicle.
j. Count the baggage and make sure that it is properly loaded.

4. From airport to hotel

a. The client must feel comfortable and must develop trust on you and your capability. Always
remember that communication should be two way.
b. Inform the name of the hotel and how long it takes to get there, location of the hotel, hotel
plan and facilities available in hotel.
c. While driving from airport to hotel provide information.

5. At the hotel.
a. Hand over the number of baggage to the bellboys and lead the clients to the hotel
reception. Brief shortly about your guest and collect registration card. Help the guest to fill
the registration card.
b. Receive the required types and number of rooms and be sure that the client are happy with
their rooms.
c. Brief the guest about programs.
Departure transfers:

The job departure transfer includes

a. Inform and brief guest about the hotel pick up time, flight time and travel documents, and other
related information.
b. Help hotel check out
c. Take care of guest baggage.
d. Provide transport(no taxi)
e. Accompanying with the guest to airport.
f. Help airport check in and farewell.

Departure transfer process

A. A day before
1. Check operation and correspondence file and prepare a note of necessary information such as
name of guest/group, hotel, collection, departure flight and schedule, Estimates Time of
Departure (ETD).
2. Inform the hotel to prepare bill and inform bell boys at what time guest baggage will be collect.
3. Inform transport about pick up time.
4. Finally inform the guest about pick time and about travel document, airport tax and other
formalities.

B. Points to be remember
1. Air ticket
2. Visa/ passport/ and other valid document
3. Airport tax
4. Foreign exchange
5. Collection of payment

C. At the hotel
1. Hotel check out:
a. Hotel check out time:
 Normal hotel check out time is 12 noon.
b. Extra services:
Extra charge such as international calls, laundry bills, medical expenses are not included in
room tariff. Guest will clear the bill directly.
c. Hotel plan:
d. Hotel payment:
e. Refund :

D. Transfer to the airport:

a. Call the airport and find out the ETD(Estimated Time of Departure)
b. Count and collect the guest baggage from the bellboys and load properly
c. Do final checking of the passport and airlines tickets before leaving hotel
d. On the way to airport develop a friendship, motivate, and leaving long lasting impression, so
that guest will re visit
e. Always be on time

E. See off at the hotel:

Count and hand over the baggage to porter. Help them to ticket check in clear in custom and
visa formalities.

Dos and Don’ts

1. Dress :
a. The dress code for men and women is important in Nepali society. It is advised to wear socially
accepted dress. It should not give cultural shock to the host society.
b. A well-dressed person is always respected.

2. Security :
a. Do not expose and show off your property. Carry only amount and equipment you expected to use
b. Lock your bags properly whenever possible.
c. Do not leave bags alone
d. Use hotel security box to store valuable.

3. Shopping and Bargaining

a. Never buy expensive goods in the street with hawkers.
b. Never buy antiques and animal products.
c. If guest to buy khukari, advise them keep in check in baggage, never in hand carry.
d. If guests do want to buy advise them to involve in bargaining. Once price is agreed it should be
purchased.
e. Once a price is agreed upon, it is fixed. Second time bargaining is not accepted.
f. Price of certain items is fixed, such as food and bargaining is not appropriate.

4. Eating:
a. Foreign are not allowed to touch cooked food.
b. While drinking from a container avoid touching your lips to it.
c. Advise guest not to give leftover to host.
d. Do not touch food with left hand.

5. Customs:
a. Do not throw any refuse into a fireplace. Do not show shoe feet to fire.
b. Shoes especially leather should be removed before entering in Nepali kitchen and temple.
c. Leather products such as belts, jacket, shoes, and bags are prohibited in most religious places.
d. Foreigners are not allowed inside Hindu temple.

6. Environmental Protection
a. Never fire wood from the villagers. It will encourage villagers to cut down more tress. Discourage
the use of campfires.
b. Never pollute the mountains water and do not litter the path.
c. Leave the entire campsite with minimum impacts.
d. Never use open toilet.
e. Brings back all the non-bio degradable items at the end of trek.

7. Health guidelines:
a. Drink only boiled water.
b. Eat freshly cooked hot simply food. Avoid reheated food.
c. Wear shoes especially near villages or on popular beaches.
Importance of information and reception:
1. It helps to display the products among the customers.
2. It provides the true and facts information to the customers and creates interest and demand to
purchase the products.
3. It helps for selling of the products and suppliers and increase profits to the producers.
4. It saves the times and money of both buyers and sellers.
5. It helps to solves and settle the future misunderstanding between agents and the customers.
6. It helps to collect feedback and suggestions from the customers.
7. It assists to the producers for making plans and policies in the future.
8. It coordinates closely with the producers, suppliers of tourism products
The different modes of transport are air, water, and land transport, which
include rail, road and off-road transport. Other modes also exist,
including pipelines, cable transport, and space transport. Human-powered
transport and animal-powered transport are sometimes regarded as their own mode,
but these normally also fall into the other categories. In general, transportation is
used for the movement of people, animals, and other things.

Water transport:Water transport is the process of transport a watercraft, such as a

barge, boat, ship or sailboat, over a body of water, such as a sea, ocean, lake, canal or
river. The need for buoyancy unites watercraft, and makes the hull a dominant aspect
of its construction, maintenance and appearance.

Ship transport is primarily used for the carriage of people and non-perishable goods,
generally referred to as cargo.

In the 1800s the first steam ships were developed, using a steam engine to drive a
paddle wheel or propeller to move the ship. The steam was produced using wood or
coal. Now most ships have an engine using a slightly refined type of petroleum
called bunker fuel. Some ships, such as submarines, use nuclear power to produce the
steam. Recreational educational craft still use wind power, while some smaller craft
use internal combustion engines to drive one or more propellers, or in the case of jet
boats, an inboard water jet. In shallow draft areas, hovercraft are propelled by large
pusher-prop fans.

Although slow, modern sea transport is a highly effective method of transporting large
quantities of non-perishable goods. Commercial vessels, nearly 35,000 in number,
carried 7.4 billion tons of cargo in 2007. Transport by water is significantly less costly
than air transport for trans-continental shipping. A cargo ship sailing from a European
port to a US one will typically take 10-12 days based on water currents and other
factors. Sea transport remains the largest carrier of freight in the world.

Although the historic importance of sea travel for passengers has decreased due to the
rise of commercial aviation, it is still very effective for short trips and pleasure
cruises. While slower than air transport, modern sea transport is a highly effective
method of moving large quantities of non-perishable goods. Transport by water is
significantly less costly than transport by air for trans-continental shipping.
Ship transport is often international by nature. It is frequently undertaken for purposes
of commerce, recreation or military objectives. When a cargo is carried by more than
one mode, the transport is termed intermodal or co-modal.

Ships have long been used for warfare, with applications from naval supremacy to
piracy, invasions and bombardment. Aircraft carriers can be used as bases of a wide
variety of military operations.

Ship transport is used for a variety of unpackaged raw materials ranging from
chemicals, petroleum products and bulk cargo such as coal, iron ore, cereals, and
bauxite. So called "general cargo" covers goods that are packaged to some extent in
boxes, cases, pallets, barrels, etc. Since the 1960s containerization has revolutionized
ship transport.

Types of Ships:

Most modern merchant ships can be placed in one of a few categories, such as:

Bulk carriers are cargo ships used to transport bulk cargo items such as ore or food
staples (rice, grain, etc.) and similar cargo. A bulk carrier can be recognized by the
large box-like hatches on its deck, designed to slide outboard for loading. Bulk cargo
can be either dry or wet.

Container ships are cargo ships that carry their entire load in truck-size containers, in
a technique called containerization. They form a common means of commercial
intermodal freight transport. Informally known as "box boats," they carry the majority
of the world's dry cargo. Most container ships are propelled by diesel engines, and
have crews of between 20 and 40 people. They generally have a large accommodation
block at the stern, directly above the engine room.

Tankers are cargo ships for the transport of fluids, such as crude oil, petroleum
products, liquefied petroleum gas, liquefied natural gas and chemicals, also vegetable
oils, wine and other food. The tanker sector comprises one third of the
world tonnage.

Reefer ships are cargo ships typically used to transport perishable commodities
which require temperature-controlled fruits, meat, fish, vegetables, dairy products and
other foodstuffs.
Roll-on/roll-off ships are cargo ships designed to carry wheeled cargo such as
automobiles, trailers or railway carriages. RORO (or ro/ro) vessels have built-in
ramps which allow the cargo to be efficiently "rolled on" and "rolled off" the vessel
when in port. While smaller ferries that operate across rivers and other short distances
still often have built-in ramps, the term RORO is generally reserved for larger ocean-
going vessels.

Ferries are a form of transport, carrying (or ferrying) passengers and sometimes their
vehicles. Ferries are also used to transport freight (in lorries or freight containers) and
even railroad cars. Most ferries operate on regular, frequent, return services. A foot-
passenger ferry with many stops, such as in Venice, is sometimes called a water bus
or water taxi. Ferries form a part of the public transport systems of many waterside
cities and islands, allowing direct transit between points at much lower cost than
bridges or tunnels. Many of the ferries operating in Northern European waters are
ro/ro ships.

Cruise ships are passenger ships used for pleasure voyages, where the voyage itself
and the ship's amenities are considered an essential part of the experience. Cruising
has become a major part of the tourism industry, with millions of passengers each
year.

Cable layer is a deep-sea vessel designed and used to lay underwater cables for
telecommunications, electricity and such.

Air transport:

The aircraft is the second fastest method of transport, after the rocket.
Commercial jets can reach up to 875 kilometres per hour (544 mph), single-engine
aircraft 175 kilometres per hour (109 mph). Aviation is able to quickly transport
people and limited amounts of cargo over longer distances, but the disadvantage is
high costs and energy use.

Air freight has become more common for products of high value; while less than one
percent of world transport by volume is by airline, it amounts to forty percent of the
value. Time has become especially important in regards to principles such
as postponement and just-in-time within the value chain, resulting in a high
willingness to pay for quick delivery of key components or items of high value-to-
weight ratio. In addition to mail, common items send by air include electronics and
fashion clothing.

The majority of aircraft also need an airport with the infrastructure to receive
maintenance, restocking, refueling and for the loading and unloading of crew, cargo
and passengers. While the vast majority of aircraft land and take off on land, some
are capable of takeoff and landing on ice, snow and calm water.

For short distances or in inaccessible places helicopters can be used. The primary
advantages of the helicopter are due to the rotor blades that revolve through the air,
providing lift without requiring the aircraft to move forward. This creates the ability
for the helicopter to take off and land vertically without a runway. For this reason,
helicopters are often used in congested or isolated areas where fixed-wing aircraft
cannot take off or land.

It is estimated that up to 500,000 people are on planes at any time.

Rail transport:

Rail transport is the conveyance of passengers and goods by means of wheeled

vehicles specially designed to run along railways or railroads. Rail transport is part of
the logistics chain, which facilitates international trade and economic growth in most
countries.

Typical railway tracks consist of two parallel rails, normally made of steel, secured
to crossbeams, termed sleepers (UK and Australia) or ties (U.S. & Canada). The
sleepers maintain a constant distance between the two rails; a measurement known as
the "gauge" of the track. Rails provide smooth and hard surfaces on which the wheels
of the train can roll with a minimum of friction.

Railway rolling stock, which is fitted with metal wheels, moves with low frictional
resistance when compared to road vehicles.

Rail transport is an energy-efficient and capital-intensive means of mechanised land

transport and is a component of logistics. Due to the various benefits, rail transport is
a major form of public transport in many countries. In Asia, for example, many
millions use trains as regular transport in India, China, South Korea and Japan. Indian
Railways carries 14 million passengers a day, making it one of the busiest railway
networks in the world. Rail transport is also widespread in European countries. By
comparison, intercity rail transport in the United States is relatively scarce, although a
number of major U.S. cities have heavily-used, local rail-based passenger transport
systems.

The vehicles travelling on the rails, collectively known as rolling stock, are arranged
in a linked series of vehicles called a train, which can include a locomotive if the
vehicles are not individually powered. A locomotive (or "engine") is a powered
vehicle used to haul a train of unpowered vehicles. The locomotive can be powered by
steam, diesel or by electricity supplied by trackside systems. Railed vehicles move
with much less friction than rubber tires on paved roads, making trains more energy
efficient, though not as efficient as ships.

In the USA, individual unpowered vehicles are known as cars. These may be
passenger carrying or used for freight purposes. For passenger-carrying vehicles, the
term carriage or coach is used, while a freight-carrying vehicle is known as a freight
car in the United States and a wagon or truck in Great Britain.

Intercity trains are long-haul services connecting cities. Modern high-speed rail is
capable of speeds up to 350 km/h (220 mph), but this requires specially built track.
Regional and commuter trains feed cities from suburbs and surrounding areas,
while intra-urban transport is performed by high-capacity tramways and rapid transits
(electric passenger railway in an urban area), often making up the backbone of a city's
public transport. Freight trains traditionally used box cars, requiring manual loading
and unloading of the cargo. Since the 1960s, container trains have become the
dominant solution for general freight.

Advantages

 Fast delivery
 Capacity
 Cost effective
 Safe mode of transport
 Reliable

Disadvantages

 Subject to unforeseen delays

 Reliance on rail freight operator's timetable

Road transport:
Road transport or road transportation is transport of passengers or goods using
roads. Disruptions in organized traffic flow can create delays lasting hours.

A road is an identifiable route, way or path between two or more places. Roads are
typically smoothed, paved, or otherwise prepared to allow easy travel; though they
need not be, and historically many roads were simply recognizable routes without any
formal construction or maintenance. In urban areas, roads may pass through a city and
be named as streets.

The most common road vehicle is the automobile; a wheeled passenger vehicle that
carries its own motor/engine. Other users of roads include buses, trucks, motorcycles
and bicycles. As of 2002, there were 590 million automobiles worldwide.

Automobiles offer high flexibility combined with low capacity, and are considered the
main source of noise and air pollution in cities. Buses allow for more efficient travel
at the cost of reduced flexibility.

Road transport by truck is often the initial and final stage of freight transport,
providing door-to-door transport.

Transport on roads can be roughly grouped into two categories: transportation of

goods and transportation of people. In many countries licensing requirements and
safety regulations ensure a separation of the two industries.

The nature of road transportation of goods depends, apart from the degree of
development of the local infrastructure, on the distance the goods are transported by
road, the weight and volume of the individual shipment and the type of goods
transported. For short distances and light, small shipments a van or pickup truck may
be used. For large shipments even if less than a full truckload a truck is
more appropriate. In some countries cargo is transported by road in horse-drawn
carriages, donkey carts or other non-motorized means. Delivery services are
sometimes considered a separate category from cargo transport. In many places fast
food is transported on roads by various types of vehicles. For inner city delivery of
small packages and documents bike couriers are quite common.

Passengers are transported on roads either in individual cars or automobiles or in

public transport by bus/coach. Special means of individual transport by road like
rikshas or velotaxis may also be locally available.

Advantages

 Cost effective
  Fast delivery
 Ideal for short distances, national or mainland Europe
 Ideal for transporting perishables (eg fruit and vegetables)
 Easy to monitor location of goods
 Easy to communicate with driver
 Ideal for sending by courier shortages to customers

Disadvantages

 Transport subject to traffic delays

 Transport subject to breakdown
 Goods susceptible to damage through careless driving
 Bad weather
 Driving regulations can cause delays

Nepal has huge possibilities in the tourism sector. The Himalaya nation is famous
for its natural beauty: the world’s highest peaks, national parks rich in flora and
fauna, snow-fed rivers, exceptional trekking routes, wonderful lakes and
welcoming people. Nepal is rich in its cultural and religious diversity as well.
Possessing eight of the 10 highest mountains in the world, Nepal is a tremendously
attractive location for mountaineers, rock climbers and adventure seekers. Apart
from being an attractive destination for adventure, Nepal’s pleasant climate and
ever welcoming nature of Nepalese show there is a tremendous prospect of tourism
ahead in Nepal.

Cultural/Festival Tourism

The ethnic and cultural diversity of Nepal is unparalleled considering its size in the
world map. There are 125 ethnic groups who speak 123 different languages and
follow more than 10 different religions in the tiny Himalayan nation. Nepal shows
unity in diversity. There are several cultural beliefs and customs of the Himalaya
nation. The many cultural heritage of Nepal included in the world heritage list,
which has become the property of the whole humankind. Likewise, one of the
interesting ways of understanding the beauty and richness of Nepali culture is
through its festivals. Participating in the local festivities gives visitors an insight
into the life of the Nepali people and makes their stay in Nepal more colorful.
Hence, in preserving the large number of cultures and festivals Nepal can promote
the future prospect of tourism in the Himalayas.

Pilgrimage/Spiritual Tourism

Another lucrative area of promoting Nepalese tourism lies in exploring pilgrimage

destinations scattered throughout the nation. Nepal has numerous ancient
pilgrimage sites. The Kathmandu Valley alone houses the famous Pashupatinath
Temple, SwayambhunathStupa and several other pilgrimage sites. Hundreds of
famous temples are located in other parts of the country as well. Some well-known
pilgrimage sites are: BarahChhetra, Janakpur, Tengboche, Manakamana, Lumbini,
Muktinath, Gosainkunda, and Khaptad Ashram in Nepal. Moreover, there is high
potentiality of developing spirituality tourism as the Himalayas have always been
considered the seat of spirituality since ancient times.

Village Tourism

Village Tourism is such a concept that provides the best way to explore the
villages of Nepal. Nepal is a country of villages. Traveling in the villages of Nepal,
a traveler can see the way of life which has not changed even at the advent of
modern science and technology. Promoting the concept like Homestay in Nepal
can transform the economic prosperity of the country. It is in the sense that visitors
within this concept spend a few days living with the local people where they will
be treated as honored family guests. In doing so, the travelers spend a considerable
amount of money in the local area. Besides this, travelers are pretty much
interested to look the simplicity, to taste the local food, and to witness local
cultural practices. Hence, as a country of numerous villages, there lies the huge
potentiality of tourism if village tourism is emphasized properly in Nepal.

City Tourism

Despite Nepal is recognized as a country of villages, there are a couple of cities

that cannot go unnoticed in the eyes of travelers to Nepal. Cities like Kathmandu,
Pokhara, Chitwan and Lumbini have already gained huge popularity in the field of
city tours. Kathmandu valley alone houses seven UNESCO World Cultural
Heritage Sites and offers the best possible chances of witnessing the rich heritage
of Nepal. Likewise, going for Pokhara city tour brings awesome experiences.
Lumbini is world famous in being birth place of Buddha. Furthermore, Chitwan is
a huge refuge for a considerable number of wild lives in Nepal. Thus, promoting
these cities of Nepal itself carries huge prospects of Tourism in Nepal.

Mountain Tourism

Trekking and mountaineering is the heart of tourism in Nepal. Of the world’s 14

highest peaks above 8,000 m, eight of them crown Nepal’s north. The fascination
of scaling these mountain peaks draws the huge crowds of visitors from abroad. If
such adventurous climbing and trekking destinations are properly managed there is
no doubt to take the Nepalese tourism business in the higher scale. In addition to
this, there are a number of mountain regions in Nepal that still needs to be
explored. Most of the travelers in Nepal are very much familiar about the popular
trekking and peak climbing routes. Unlike those popular routes, there is huge
potential to go for exploring virgin territory of the Himalayas in Nepal. If mountain
tourism is comprehensively promoted there is massive potentiality to develop
tourism in Nepal.

Nature Tourism

The wealth of Himalayan flora and fauna and diversity of wilderness has already
made Nepal one of the richest countries in the world in the eyes of global travelers.
The wildlife conservation centers in the alpine regions as well as a considerable
number of national parks in the low land of Nepal have played a tremendous role
to protect endangered as well as well rare species. The tropical jungles of Nepal’s
Terai preserve some of the best wildlife habitats of South Asia. Some of the
wildlife attractions of Nepal’s jungles include the rare one-horned rhinoceros, the
elusive Royal Bengal tiger, snow leopard, red panda and musk deer. The nature
conservation centers house more than 850 species of birds in Nepal. Because of the
existence of the diverse nature of the natural aspects of wildlife and geography,
Nepal can rise up in the field of tourism.
Adventure Tourism

Beyond mountaineering and adventure trekking, Nepal is also popularly associated

with various sorts of adventure world. The traveler can taste the adventure of
Paragliding in the beautiful city of Pokhara. There are high potentialities of going
to Sky Dive, Boating, Fishing, Angling, and Canyoning. To the top of all these
adventures, Bungee Jumping at the gorge of the Bhoti Kosi River gives the
ultimate thrill. Motivating the world travelers towards these adventures, Nepal can
benefit tremendously. Nepal’s natural beauty and perfect geographical locations
are ideal space for seeking huge potentialities of tourism in Nepal.

Sport Tourism

Sport Tourism is a thriving avenue in which Nepal can seek tremendous

potentialities in the field of tourism. Nepal offers some of the finest golf courses in
South Asia with magnificent views of the Himalayas. Likewise, Nepal is also a
suitable destination for rock climbing and mountain biking as the outdoor
adventurous sports. For the most, Nepal boasts some of the best whitewaters in the
world. The river rafting sport in addition to adventure helps to explore the
magnificent vistas of traditional houses on hillsides, terraced paddy fields, deep
gorges, valleys and flat plains of the Himalayan river side of Nepal. Therefore,
sport tourism carries remarkable probability in the field of tourism in Nepal.

MIEC Tourism

Nepal is a naturally attractive place for organizing international standard events

(Meeting, Incentive, Conference, and Exhibition). Different hotels as well as
various convention centers in Kathmandu and Pokhara are famous for providing
par excellent environment and top graded facilities. Both the cities are well
connected with global communication systems, transportation facilities and
security management. The international delegates in Nepal can sip the taste of
spectacular Himalayan vistas while attending at their business. Hence, Nepal
sustains a tremendous possibility of emerging out a top MICE destination.

Agricultural Tourism
Nepal is known as an agricultural country where more than eighty percent of its
people survive from farming. The traditional agriculture system of Nepal too
carries the heavy prospect of creating a new dimension in the field of tourism in
Nepal. Agro-tourism brings international visitors to the countryside and as a result,
they meet lovely and hard working people of the rural area, share a meal with
them, stay in their houses as family guests, and taste their local dishes. Apart from
this, they can enjoy the taste of local products as well. Hence, if Agro tourism is
emphasized in this country, it will bring a huge change in the field of tourism in
Nepal.

Hospitality Tourism

The hospitality sector is important bedrock of promoting Nepal in the international

arena. Despite Nepal’s hotel industry is providing world class hospitality to visitors
it is not the end of the story. Nepal’s remote villagers are well recognized because
of their innocent, friendly, hospitable and ever welcoming behaviors.
Understanding the etiquette of the traditional hospitality of rural parts of Nepal and
receiving them magnificently lure the attention of visitors in Nepal. So, exploring
those hospitable and friendly behaviors of Nepalese in the remote parts of Nepal
can drag the huge crowds of visitors in those regions of Nepal and thereby change
the direction of Nepal tourism.

Tourism as an emerging global phenomenon enhances the world travelers to

explore the wonders of the world. Nepal is also being an integral part of a global
system of tourism cannot escape benefiting from this emerging field. Nepal as a
Himalayan nation has enormous tourism prospects. If many unexplored regions of
Nepal are identified along with popular tourist destinations the Himalayan state can
make remarkable progress in the field of tourism.

Solutions to problems in tourism

The steps should be followed for solving the problems related to tourism is:
1. The number and capacity of domestic and international air services should
be increased.
2. There should be a good provision of transport and communication in tourism
areas.
3. Tourists should be provided with of the things necessary for the tourists in
the markets, banks, and security.
4. Provisions must be made to produce the things necessary for tourism
industry in our own country.
5. There should be the provision of simple and easy access to fulfill the
requirements of tourists.
6. Nepal should be introduced to the world through advertisement for its art,
culture and natural beauty.
7. Cultural and religious places should be well maintained and conserved.
8. Investors should be encouraged for the development of tourism industry.