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ASSIGNMENT SOLUTIONS GUIDE (2021)

MTTM-11: TOURISM PLANNING AND DEVELOPMENT
Disclaimer/Special Note: These are just the sample of the Answers/Solutions to some of the Questions
given in the Assignments. These Sample Answers/Solutions are prepared by Private
Teacher/Tutors/Authors for the help and guidance of the student to get an idea of how he/she can

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answer the Questions given the Assignments. We do not claim 100% accuracy of these sample
answers as these are based on the knowledge and capability of Private Teacher/Tutor. Sample

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answers may be seen as the Guide/Help for the reference to prepare the answers of the Questions
given in the assignment. As these solutions and answers are prepared by the private teacher/tutor so
the chances of error or mistake cannot be denied. Any Omission or Error is highly regretted though
every care has been taken while preparing these Sample Answers/Solutions. Please consult your own

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Teacher/Tutor before you prepare a Particular Answer and for up-to-date and exact information, data

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and solution. Student should must read and refer the official study material provided by the
university.
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Q1. Discuss that levels and types of Tourism Planning.
Ans. Levels and types of Tourism Planning: Tourism should be planned as one element in a
comprehensive manner. More commonly, however, tourism planning is done independently without
recognising it as an integrated sector. Tourism plans are, thus, prepared at various levels. Each of
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these levels focuses on a different degree of specificity. Although, not always possible to achieve,
planning should be done in a sequence from general to specific. This is because general levels provide
the framework and guidance for preparing specific plans. In the following Sub-sections we discuss
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the various levels of tourism planning.

International Level: This level of planning is concerned mostly with:
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• international transportation services,

• the flow and tour programming of tourists among different countries,
• development of major attraction features and facilities in nearby countries, and
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• multi country marketing strategies and promotion programmes.

Some limited tourism planning, marketing and co-operative activities generally take place at the
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international level through organisations such as the WTO (World Tourism Organisation) and it’s
regional commissions, the International Civil Aviation Organisation (ICAO), some other United
Nations agencies and their regional commissions, the International Air Transport Association (IATA),
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the Pacific Asia Travel Association (PATA), the Caribbean Tourism Organisation (CTO), the Tourism
Council of the South Pacific (TCSP), the Sub-Committee on Tourism (SCDT) of the Association of
South-East Asian Nations (ASEAN), the Tourism Coordination Unit (TCU) of the South African
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Development Coordination Conference (SADCC) and the tourism committee of the Organisation for
Economic Cooperation and Development (OECD). However, the major general purpose global
tourism organisation is the WTO, an inter governmental organisation. The WTO has been designated
by the United Nations as the executing agency for United Nations sponsored tourism related projects.
The international planning level is rather weak because it depends on the cooperation of individual
countries. However, it is nonetheless important for special function activities and is receiving
encouragement from international agencies through their sponsorship of regional tourism projects.
National Level: The national level of tourism planning is what takes place within a country at the
behest of it’s government. However, an ideal situation in this would be to involve the private sector,
public sector and also public opinion. The national level of tourism planning is focused on several
elements like:

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• Defining tourism objectives

• Tourism policy
• A physical structure plan including identification of major tourist attractions, designation of
tourism development regions, international access points and the internal transportation
network of facilities and services
• Establishing service standards for various components of tourism industry
• The general amount, types and quality level of accommodation and other tourist facilities and
services required

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• Establishing tourism information systems
• The major tour routes in the country and their regional connections
• Tourism organisational structures, taxation, legislation and investment policies

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• Tourism marketing: research, strategies and promotion programmes
• Human resource development, education and training programmes
• Facility development and design standards
• Socio-cultural, environmental and economic considerations and impact analysis
• National level implementation techniques, including long term and short term development

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strategies and project programming

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• Research to understand tourism impacts.
Regional Level: The regional level of tourism planning is for one region of a country. This can be a
state, a province or a tourist circuit (like a group of islands, special areas like the Buddhist circuit, etc).
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However, regional plans are formulated within the broader framework of the national tourism policy
and plan, provided it exists in a country. At the same time absence of a national level plan should not
come in the way of regional planning. Regional planning focuses on the elements of:
• Regional policy
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• Regional access and the internal transportation network of facilities and services
• Type and location of tourist attractions
• Location of tourism development areas including resort areas
• Amount, type and location of tourist accommodation and other tourist facilities and services
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• Regional level environmental, socio-cultural and economic considerations and impact

analyses;
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• Regional level education and training programmes

• Marketing strategies and promotion programmes
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• Organisational structures, legislations, taxations, regulations and investment policies

• Implementation techniques including project programming and regional regulations.
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Tourist facility development and design standards may also be accounted for at this level of planning.
The regional level of tourism planning is, of course, more specific than the national level, although the
degree of specificity at both levels depends on the size of the country or region. For a small country,
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the national plan may be at the same level of detail as regional plan in a larger country. Moreover,
small countries may not need both national and regional planning. Much of regional planning is done
for administrative regions. However, it should be based where possible, on logical tourism
development regions. This should be regardless of whether these coincide with administrative
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boundaries or not.
Destination Level: In some countries or regions, there is need for sub-regional or local level planning.
This is more specific than the regional level planning. This level of planning is also called
destination/zonal planning. For planning purposes, a destination zone is defined as a geographic area
containing critical mass of development that satisfies traveller objectives. A critical mass of tourism
development implies a large and diverse enough amount of attractions and services to meet the needs
and desires of several travel market segments. For example, a destination that contains attractions for
both business and leisure markets would be most successful. The components of a destination plan
will depend on the situation of the destination. However, it would include tourist attraction features,
general location and services, access to the destination, its internal transportation network, other

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infrastructure considerations and relevant institutional factors. The role of local bodies is becoming
increasingly important for this level of planning.
Site Level: The most popular planning today is at the site level, i.e., individual property
development. All three sectors businesses, non-profit organisations and government agencies have
increasingly employed professionals to plan and design their properties. Gradually, professional
forms of architecture, engineering and planning have found opportunities in the tourism field.
Owners of lands have increasingly engaged the services of professionals to plan a wide range of
facilities, services and attractions. Perhaps the most popular approach is by the larger firms bringing

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together several specialists depending upon the need of the project. For example, some projects
require design and 42 planning teams that include historians, golf course specialists and exhibit
experts, as well as the traditional design specialists.

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The demand for resorts and other specific attractions has generated the need for new forms of
cooperation and guidelines between the decision makers and the designers/planners at the site level
for tourism development.

Q2. Discuss in detail the goals for tourism development.

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Ans. Experience has demonstrated that for betterment of tourism there are atleast four planning goals

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which form the components of development:
• Enhanced visitor satisfaction
• Improved Economy and Business Sector
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• Protected Resource Assets
• Community and Area Integration
Enhanced Visitor Satisfaction: Tourism begins with the desires of travellers to travel and ends with
their satisfactions desired from such travel. But, as we all know, complicated characteristics of
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modern tourism tend to reduce these satisfactions from the desired possible level. Planning should
not only attempt to eliminate all problems that come in the way of visitor satisfaction but also provide
the positive mechanism whereby land acquisition, design, development and management have the
greatest chance of providing user satisfactions. In this sense, planning aims at both, user problem
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solving as well as user problem avoiding. Planning should provide a check on inter relationships of
development to make sure that the participant’s desires, habits, wishes and needs are satisfied to the
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extent that physical development and management can do so. The worth of the planned development
is not to be judged by the satisfaction of the owner or the planner but of the visitor. This standard
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demands a user-oriented planning policy. Therefore, one major goal of collaborative tourism
planning is the provision of user satisfactions. However, caution should be taken that this goal is not
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stretched to the level where the local residents and resources get adversely affected.
Improved Economy and Business Sectors: Planning purposes, one must take note of the factors that
influence tourism’s success. Such factors as geographical relationship to markets, attractions and
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attractiveness, resources for development, and involvement of all sectors need to be examined for
their potential in developing tourism. Planning, thus, should address itself to the provision of positive
rewards to those who identify, design, develop, and manage areas for tourism. In other words,
cooperation, collaboration and coordination must foster, not destroy, individual creativity and
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innovation in development to meet new needs. It must be socially responsible. Private enterprise
should be guided into locations and programmes in which it can be more and more successful. Public
agencies should be guided into locations and programmes that meet their special governmental
mandates and yet are compatible with commercial enterprise and non-profit organisations.
Protecting Resource Assets: Tourists have always sought destinations with attractive scenery,
protected wildlife and historic and archaeological sites. All of these require environmental protection.
This is more so if they are to serve as sustainable attractions as desired by visitors. 48 Yet, tourism
business for a long time was seldom planned for resource protection. Every player in this field was
out to exploit the resources. It was only when many destinations started loosing as attractions a
realisation came that both, tourism economy and visitor satisfaction depend upon the absolute

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necessity of stopping resource degradation. This called for a change in attitudes and policies of
tourism businesses, government agencies and non-profit organisations involved in developing
tourism.
Hence, it is essential for all types and levels of tourism planning to incorporate the new commitment
of resource protection as a goal. Resources have to be treated and managed as permanent assets.
Community and Area Integration: Many communities and regions view tourism as an elite activity
and a separate social layer is simply added to a community. Engaging in tourism from this viewpoint
can be disappointing. Such an approach fails to integrate tourism into the social and economic life of

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the community. The aim of the overall plan should include increased work opportunities, high
quality of life and sufficient public and private services. The official plan should be reviewed and
renewed periodically. All local authorities and organisations should be involved in discussions on

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issues that need changes before any revisions are made.
An important goal of tourism planning, thus, is integrating tourism with the cultural, social and
economic life of communities and areas.
These four goals – enhanced visitor satisfaction, better business, resource protection and community
integration should be the motivating force for all stakeholders in tourism planning.

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Q3. Write short notes on:
(a) Tourist Attractions
(b) Theme Parks
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Ans. (a) Tourist Attractions: In order to survey and evaluate tourist attractions, it is important to
understand the types of tourist attractions that should be considered in planning tourism. At the same
time one must also know how these attractions can be categorised for the purpose of analysis.
Historically speaking, some type of attractions were recognised many-many years ago. They are
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especially evidenced by the Roman tourist excursions to the monuments of Egypt and elsewhere in
the Mediterranean region, and their development of coastal resorts and mineral water spas. A warm
survey climate was also recognised as being desirable at that time. Although landscape gardens were
appreciated, the concept of natural beauty as an attraction was reinforced by the designation and
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development of national parks in the USA in the mid 19th Century. With the advent of mass tourism,
especially since World War II, the different types and number of attractions have greatly increased,
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and the process is still on.

Based on certain logic, tourist attractions can be categorised in various ways. Gunn (1988), for
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example, organised them into touring circuit attractions, i.e., short-stay and longer-stay (focused)
attractions. However, the most common classification is:
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• Natural attractions that are based on features of the natural environment,

• Cultural attractions that are based on man’s activities,
• Special type of attractions that are artificially created.
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Of late, tourism developers have created a host of activities and these have become major attractions.
Adventure sports, cruises, events, sports, health, etc. are certain areas around whic h these activities
are designed. Hence, besides the natural or cultural attractions destinations are becoming popular
because of activity based attractions also. For example, Lakshdweep islands today are not only a
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natural attraction but they attract tourist for snorkelling – an activity that has been added.
(b) Theme Parks: As a relatively modern concept of developing tourist attractions, theme parks,
according to Ady Milman, “aim to create an atmosphere of another place or time, and usually
concentrate on one 70 dominant theme.” All facilities and services are designed around that theme
including infrastructure, landscaping and costumes, etc. Hence, a theme park is an extensive, usually
commercial, leisure park that may extend over many-many hectares of land. It normally includes
several theme areas of indoor and outdoor presentations or displays, activities, and amusements with
animation. Added to these are well-developed catering, retail, and other visitor services. Themes may
be-historical, geographical/ environmental, social, technological or futuristic, and of other types. They
are decided upon to stimulate, educate, and entertain the visitors. Infrastructure costs are high and

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often accommodation and other tourist facilities are also provided in such parks. Based on leisure
activities, theme parks are considered a part of the amusement business.
The national or regional tourism plan identifies whether a theme park is appropriate for an area and,
if so, what type and size is suitable. In the absence of such national/regional planning, a special
feasibility study for a proposed park has to be conducted. This study examines the market potential,
determines the appropriate type, size, and location of the park, and analyses its costs, revenues and
financial feasibility. An accessible, large and undeveloped site is required for the park its elf, and
often adjacent undeveloped land is also needed for development of related facilities such as

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accommodation and other tourist facilities and perhaps for housing employees. The infrastructure of
road, rail, or air access and provision for water supply, electric power, sewage and solid waste
disposal, and telecommunications must be examined. Similarly, the park features have also to be

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planned. After development, sophisticated marketing, a high level of management, and good quality
physical maintenance of the facilities are essential features for incorporation in the plan.
Theme park planning must be co-ordinated with planning of the region in which the park is located
so that lands outside but near the park are developed in an integrated manner. The land use control
measures need to be applied here. Large theme parks can generate considerable development in their

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regions. However, if not regulated, it can also result in harmful land use and environmental

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problems. Walt Disney World’s Magic Kingdom in Florida, U.S., Alton Towers, Stradforshire, U.K.,
Lotte World, Seoul, South Korea, etc. are some examples of successful theme park planning.
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Q4. Explain the role of economic planning in tourism development. How can you strengthen
economic cross-sectoral linkages to enhance economic benefits?
Ans. Tourism development planning is sasses for orderly change. Development in any shape or form
means change. At the same time reacting to change is more or less an exercise in damage control.
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Planning, although not avoiding conflict over change, can certainly reduce the level of animosity and
disarray associated with a system. Planning, then, should be viewed in the context of anticipating
change and be concerned with the future implications of current decisions. A tourism development
plan is an outline of future events and their potential impacts. Unplanned development or short term
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planning which does not anticipate the future will surely lead to confusion. It can also create a
division of people, organisations and institutions that must be in agreement for quality development
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in tourism.
Tourism unlike other economic activities is still researching for an industrial definition. One of the
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problems in trying to define a phenomenon like tourism is the structural foundation on which it seats.
On any visit, a tourist may utilize the reserves of a hotel, restaurant, transportation company, retail
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shopping outlets, private or public altercations, and a host of other related service vendors. Each
separate business, agency, or bureau providing tourists services is allied with respective organisation.
Tourism development planning, to be effective, requires co-operation between all service providers.
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The fact that they may have different missions of operational objectives makes the task more difficult.
Effective planning requires recognition of the complicity involved in touristic activity. It establishes a
process where the need of each service provider is recoiled with the needs of all others and the host
community.
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Every segment of tourism is related to every other segment in one way or the other. Hence, tourism
cannot be planned without understanding the inter-relationships among the several components of
the supply side, especially when they relate to market demand. Keeping this information in view this
Unit discusses the demand-supply match considerations in
Tourism planning can be viewed as a form of economic development planning that is directed
towards tourism-related objectives. Examples of tourism planning include:
• A plan to increase the foreign exchange earnings of a nation by encouraging the growth of
tourism.
• A plan to improve local employment through tourism industry.

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The plans listed above generally involve public resources and objectives, such as the creation of land
use controls, the construction of a network of highways, and the provision of affordable housing to
residents. Consequently, this planning is done by the government. Private sector planning activities
generally occur at the investment level with specialists in various aspects of product development,
building, finance, marketing, management and operations providing technical information and
expertise to the planning process.
Tourism development works best when it is fully integrated into the economic base of an area. When
it is only one of the groups of industrial activities, the economy will be diversified and less susceptible

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to major economic fluctuations. For example, if tourism declines because of a shortage of fuel for
transportation, a tourism dependent community will be harder hit than one which also has an
agricultural or manufacturing base. Thus, for these communities economic planning becomes

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essential.
Tourism facilities and services have to be planned to match the demand for such facilities and
services. Excess capacity is wasteful. Inadequate capacity leads to customer dissatisfaction. The
problem is one of matching the arrivals with services. Even when well matched, it is almost
impossible to avoid delays in attending to customers while some facilities and servers remain idle.

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When a server is busy, any arrival during this period has to wait, thus a waiting line gets formed.

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There are several techniques that can be applied to enhance the economic benefits of tourism. These
should be incorporated into the planning process so that possible problems are prevented or reduced
before they occur. In the initial tourism development of an area application of these measures can be
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commenced, realising that considerable time may be required to fully implement them, depending on
the local situation and especially on the general level of economic development of the area. Some of
the common approaches are highlighted in the following Sub-sections.
Strengthening Economic Cross-Sectoral Linkages: Basic to the enhancement of economic benefits is
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making optimum use of goods and services produced within the country, region, and community as
inputs to tourism, that is, increasing the local value addition to tourism. This reduces the leakage
factor of money spent (often valuable foreign exchange at the national level) to purchase imported
goods and services. In some areas, such as resource-limited island economies, it may be necessary to
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import a considerable amount of items used in tourism. This situation is justifiable because tourism
still brings substantial benefits that otherwise would not exist. However, opportunities for import
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substitution and increasing tourist expenditures should be explored in any environment.

Cross-sectoral linkages between tourism and agriculture and fisheries can often be strengthened
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through improving local production of food items – vegetables, fruits, diary products, meat, poultry,
fish, and other seafood – used in tourist restaurants. It may be necessary to modify existing or
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develop new types of food items for the 22 tourist market in terms of variety and quality. Production
and marketing must be integrated to ensure that a reliable supply of the items is available when and
where needed. In some places, where suitable soils are limited or the climate is not suitable,
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hydroponic farming can be economically viable compared to the cost of imported food items.
Similarly, aquaculture techniques are also used to increase seafood production. There may also be
scope to include more of the local cuisine, based on locally produced food items on the tourist menu.
It should not necessarily be assumed that tourists only want to eat food to which they are
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accustomed. In certain cases local cuisine itself is a tourist attraction.

Other opportunities for using locally produced goods exist in the incorporation of local building
materials in the construction of tourist facilities and in the manufacture of furnishings and supplies
for hotels and other facilities. Facilities and furnishings should be designed to make use of local
materials if they are available and suitable. For example, locally made furniture, ceramics and
dishware, and textiles can be designed for hotel rooms, lobbies, and restaurants. This, in fact may
make these places more interesting for tourists if local styles are incorporated. Tour buses and other
tourist transportation can perhaps be manufactured or at least assembled locally. Expanding
handicraft production is also a technique that can be used to increase local input of materials as well

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as labour in tourism, as has been referred to previously. Local handicrafts can be used as décor in
hotels and other tourist facilities.
Many of these local goods and services developed or improved for tourism are also often marketable
and may have potential for direct export. This further improves the economy and, at the national
level, increases foreign exchange earnings.

Q5. Discuss the environmental planning process in Tourism. Elaborate on the socio-cultural
benefits the tourism can bring.

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Ans. The best way to avoid negative environmental impacts and reinforce positive impacts is to plan
tourism properly, i.e., using the environmental planning approach before development. This planning
must take place at all levels – national, regional, local and site specific areas for hotels, resorts and

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tourist attraction features.
Environmental planning follows the same process which is used for development planning, but more
emphasis is placed on considerations of the physical environment and socio-cultural requirements.
The process involves the steps outlined below:
i) Establishing Development Objectives: The general objectives of developing tourism must be

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decided as a basis for planning. These must necessarily be preliminary until they are determined as

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realistically compatible with one other. Environmentally oriented objectives in a regional plan, for
example, often include developing tourism in such a manner that no serious negative impact results,
and using tourism as a means of achieving conservation objectives such as preservation of cultural
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monuments or development of national parks, etc.
ii) Survey of the Existing Situation: This survey includes all aspects of the existing situation,
particularly the detailed characteristics of the environment. For example in a beach resort area, the
survey would include the climatic and weather patterns of rainfall, temperatures, humidity, sunshine
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and winds; land and underwater topography; extent and quality of the beach, beach erosion; near
shore water current flows, etc.
There is now an increasing awareness of environmental auditing but it is by no means a general
practice. The audit has its origins in manufacturing industry where the technique was developed to
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measure a company’s compliance with environmental regulations and controls. The European Union
uses the following definition in this regard:
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“A management tool comprising a systematic, documented and periodic evaluation of how well
organisations, management and equipment are performing with the aim of safeguarding the
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environment by facilitating management control of environmental practices.”

Few tourism companies in the developing countries have adopted this practice although some hotels
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in India have done so. Few tour operators have also taken note of this.
It may be that as governments become more concerned about the environmental issues, legislation
will be used to enforce standards. There is no single approach to environmental auditing. The
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methodology selected will depend very much on the nature of tourism business and the location of
the activity. Some countries such as Singapore, have very high standards of environmental legislation
and control, whereas others have none.
iii) Analysis: The planning process includes several types of inter-related analysis such as socio-
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economic impact of tourism development; types of tourist attractions to be developed; type and
extent of transportation facilities and services required. The physical environmental characteristics are
analysed to determine the carrying capacity of the area, the levels of tourism development and how
best the development can fit into the environment. From the environmental standpoint, one of the
most important analytical techniques is determination of the carrying capacity of the planning area.
Carrying capacity analysis is a basic technique now commencing to be widely used in tourism and
recreational planning. It is done to systematically determine the upper limits of development and
visitor use and optimum utilisation of tourism resources.
As defined by Mathieson and Wall (1982), carrying capacity “is the maximum number of people who
can use a site without an unacceptable alteration in the physical environment and without an

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unacceptable decline in the quality of experience gained by visitors”. To this definition should be
added, without an unacceptable adverse impact on the society, economy and culture of the tourism
area. Establishing carrying capacities is based on the concept of maintaining a level, of development
and use, that will not result in environmental or socio -cultural deterioration or be perceived by
tourists as depreciating their enjoyment and appreciation of the area. Carrying capacity analysis
provides an essential guideline to be used in formulating a tourism plan at any level.
The socio-cultural considerations involved in tourism planning: There can be both positive and
negative socio-cultural impacts resulting from tourism. This depends on the type and intensity of the

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tourism developed as well as the characteristics of the host society. Whether impacts are considered
positive or negative depends, in part, on the objective criteria (such as income earned) and also on the
perceptions of the host community. It is also possible that different community groups have varying

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reactions to their tourism development, with no consensus reached by the whole community.
There are some generally accepted socio -economic policies and impact control measures that are
being applied with some successful results in various places in the world. These are applied to
prevent the negative socio-cultural impacts in future or mitigating the existing ones. Reinforcing
positive impacts is the other side of these measures.

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Tourism can be used as a technique of cultural conservation and revitalisation. However, for

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achieving this, it should be based to the extent possible on the cultural resources of an area. By proper
planning and policy, tourism can be deliberately used to help justify and financially support:
• the preservation of archaeological and historic sites,
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• conservation and even expansion of traditional dances, music, drama, arts and handicrafts
unique to the area,
• development of museums and cultural centres, and organisation of cultural events.
As per the World Tourism Organisation’s publication on National and Regional Tourism Planning
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(1994), tourism, if well planned, developed and managed in a socially responsible manner, can bring
several types of socio-cultural benefits. These include the following:
(i) Improves the living standards of people and helps pay for improvements to community
facility and services, if the economic benefits of tourism are well distributed.
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(ii) Conserves the cultural heritage of an area which otherwise might be lost as a result of
general development taking place.
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(iii) Helps develop and maintain museums, theatres and other cultural facilities. These are in
part supported by tourism but are also enjoyed by residents. Many major museums and
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theatres in the world receive much financial support from the admission fee paid by
tourists.
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(iv) Reinforces or even renews a sense of pride by residents in their culture when they observe
tourists appreciating it. This is especially true of some traditional societies which are
undergoing rapid change and loosing their sense of cultural and self confidence.
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(v) Provides opportunity for cross-cultural exchange between tourists and residents who learn
about and come to respect, one another’s cultures. This exchange can best be achieved
through certain forms of tourism-educational and other types of special interest tours;
village tourism; home visit programmes etc., whereby tourists can arrange to visit local
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families.

Q6. Explain the need for global and local level planning in Tourism.
Ans. Needs for Global Level Planning: The WTO projections tourist arrivals world over will touch
1800 millions by the year 2020 whereas tourist receipts will touch US$ 2000 billion. However, this
movement of tourists is not going to be even. Even today these are intra-regional and inter-
continental variations. Most of this movement is confined to Europe and America with the South-East
Asian region showing some growth.

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Already there is intense competition among nations and destinations to increase their market share in
this regard. At the same time, there also is the need to cooperate at an international level. In 1975, at
Helsinki, 35 nations agreed to:
• Encourage increased tourism on both group and individual basis,
• Conduct detailed studies on tourism,
• Endeavour, where possible, to ensure that the development of tourism does not injure the
artistic, historic and cultural heritage in the respective countries,
• Facilitate wider travel by their citizens for personal and professional reasons,

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• Endeavour gradually to lower, where necessary, the fees for visas and official travel
documents,
• Increase, on the basis of appropriate agreements or arrangements, cooperation in the

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development of tourism, in particular, by considering bilaterally, possible ways to increase
information relating to travel and other questions of mutual interest, and
• Promote visits to their respective countries.
This was not the first time that tourism figured as an agenda at international level. The League of
Nations had defined foreign tourists in 1937; The International Union of Official Travel Organisation

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(a predecessor to WTO) represented tourism interests and the United Nations Conference on

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International Travel and Tourism (Rome 1963) plus the formation of WTO in 1975 were landmarks in
the areas of international cooperation in tourism. However, all efforts in this regard have resulted in
the form of guidelines for nations to follow. A crucial question to be addressed at this stage is why a
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global policy or plan is required for tourism? Well the answer is a mix of varied factors like:
• international transportation (air, sea, rail, road),
• facilitation requirements (visa, emigration, health, etc.),
• sustainable development,
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• conservation and preservation of world heritage,

• consumer awareness,
• tourist safety,
• tourism taxation,
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• quality assurance in service,

• sharing of tourism information,
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• establishing linkages,
• conflict resolution,
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• enacting tourism related laws,

• protecting host population interests,
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• mitigating negative impacts,

• increasing friendship and cultural exchanges,
• research and training, and
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• code of conduct for tourism industry, etc.

Further, a global policy framework can also help remove obstacles in tourist flows. Policies and plans
devised at the national/region/local levels have to be broadly compatible with international levels
because external factors have an impact on individual destinations.
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Need for local level Planning: There is a face to face contact between the host/residents and the
tourist. So planning at the local level entails a different process. Given below are certain requirements
for local level planning:
(i) Resource Analysis: One of the basic requirements for all localities embarking on tourism
development efforts is to be aware of the resources available to attract tourists to an area
before undertaking any efforts. Too often, local development efforts focus on bringing
tourists into an area before understanding why anyone would want to come. Resource
analysis or inventory preparation, thus, is the basic pre-requisite for local level planning.
(ii) Community Awareness: Local residents do not often understand the economic benefits
from tourism, especially if they are not on the receiving end of the tourist expenditures.

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Instead, they tend to focus more on the negative impacts resulting from congestion and
overcrowding, inflation and other ills related to hosting function. Community tourism
development specialists recommend periodic awareness programmes to instruct local
residents of the benefits of tourism. Failure to do so can result in a loss of tourism market
share, as guest-host relations turn from a positive experience to one of open resentment.
(iii) Opportunity Recognition: One of the most difficult things is to recognize the tourism
possibilities in their own area. Too often, communities overlook even some of the
spectacular attractions available to them. There appears a feeling that if it exists in your

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backyard, then it must not be a notable attraction. Attractions that are not easily
recognizable such as ethnic or sociocultural resources, receive even less attention. At the
same time what might be identified may not have a market, hence, proper identification of

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attractions is crucial.
(iv) Tourist Profiles: Concurrent with attraction inventory assessment, a visitor profile
assessment should be undertaken. Current tourists can reveal a great deal of information
about not only the quality of present attractions, but of services present or lacking and the
need for additional attractions. Tourists profile will also reveal the quality of guests coming

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to the area and whether the residents want these kinds of tourists or not.

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(v) Use Zones: Zoning is a concept that is understood and applied, although loosely,
throughout the world. Basically, it is a technique to designate a specific area for a specific
activity.
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Q7. Discuss in detail the framework for strategic planning in destinations.
Ans. Strategic planning emerged, firms/organizations, institutions assumed that whatever occurred in
the past would continue in the future. A stable environment significantly reduced the need for
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analysis of future trends. Radical changes in the competitive market were far and few and change was
not unforeseen. This situation changed after World War II. The historical freedom of a capitalistic
society, an entrepreneurial spirit, effective communications channel, multiple social classes and
materialism led to the search for new products and services and hence more competition. This
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required the ability to forecast future wants of targeted markets and hence the need for research and
planning for future, i.e., strategic planning. Businesses quickly found that the standardized process of
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updating last year’s plan and turning it on for supervisory approval was no longer enough.
Something more was needed.
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The Mission : Tourism in Small States

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Analysis of the internal National economic Analysis of the external environment

environment objectives and social and
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• Visitor facilities provision • Tourism generating countries

environment policies profile
• Infrastructure,
social/cultural profile of • Tourism trends
the state • Competition/demand
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• Natural/ecological system • World economic situation

• Current tourism activity

Issues/concerns/constraints/potential
• Environmental, socio-cultural, Economics-political, Marketing

Tourism Development and Strategic

Alternative Strategic
Promotional policies/criteria choice
strategies/options evaluation
and goals

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Framework for Strategic Planning in Destinations: Generally, most successful organizations achieve
their industry positions by some means of planning. In the short term, many hospitality/tourism
sector decisions are made in the heat of the moment based on customer’s needs. This is a necessary
activity as often hospitality/tourism products and services do not have the luxury of time to prepare a
detailed plan. But, on the other hand, decisions regarding the future of a destination/site/ travel firm
require and demand adequate planning. One of the advantages of a formal planning system is that it
forces management to routinely analyze critical aspects of a firm’s/destination’s competitive
environment, consequently reducing the number of strategic decisions made without a strategic plan

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or strategic thinking. Change and adaptation in modern business is good, but change without
structured thinking can be dangerous. Voltaire’s statement that “no problem can stand the assault of
sustained thinking” is very right in this context. Unfortunately, the importance of strategic planning

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in many tourism organisations is realised only after a crisis. This also holds true for destination as
well as national level planning.
The traditional strategic planning model is derived from a SWOT analysis (analysis of strengths,
weaknesses, opportunities, and threats). It is based on the belief that the ‘heart’ of strategy
formulation involves defining the ‘fit’ between internal and external factors. Strategy is developed

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subsequent to identifying the:

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• threats and opportunities arising from external uncontrollable environments (i.e., market,
competitive, economic, socio-cultural, technological, political, ecological) and
• strengths and weakness of the tourism organisation, the natural and cultural resources and
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the communities and businesses providing the tourism experience.

Q8. With the help of examples, explain the relationship between political stability and tourism.
Ans. Political Stability: The extent of political stability of an area and the popular perception of
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political stability, whether realistic or not, by the potential tourist markets is a significant factor in
attracting tourists. Several areas experienced much reduced tourism during the 1970’s and 1980’s
because of political disturbances. Similarly, many other places had decreased tourist arrivals because
of concern by potential tourists about being affected by political disturbances even though there were
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not any problems at those particular destinations. A pattern of tourist actions in particular areas can
also be a deterrent to tourist travel in those places. At the same time, tourists may be reluctant to use
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particular types of transportation that have experienced terrorism. Therefore, a completely different
type of planning is required in this situation. What is required is clear market planning and a
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complete overhauling of the image of that destination.

Another important consideration is the extent of public safety in the country or region and especially
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in the tourism areas. A high level of crime such as murder, rape and theft will be a deterrent to 32
attracting tourists. On the contrary an area that is known to be safe with an efficient and honest police
force will have an advantage in promoting itself. This is one area where effective planning at the
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governmental level can attract tourists in sizeable numbers. Government protection in the form of
enactment of consumer protection laws in the area of tourism is another aspects that has a bearing on
tourism.
Tourism: Tourism is a diffused and complex activity, consisting of a variety of elements. These may
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be developed in different contexts by a broad spectrum of developers like attractions, infrastructure,

etc. These elements are then consumed by tourists who exhibit a diversity of demands. However,
there is always a gap between supply and demand. This demand-supply gap is bridged by using
multiple resources (natural, financial, manpower, etc) which are specific to tourism. However,
tourism development involves not only tourists and developers but also affects other sectors of
society. It is directly related to economy in general and may have an impact on the environment at
large. Problems may arise and costs are increased when the different tourism sectors do not develop
harmoniously or when the objectives of different developers are in contradiction. Carried to an
extreme, uncontrolled growth of tourism can destroy the very base on which it is constructed. Thus,
what is of critical importance is integrated tourism planning. Proper planning of the physical, legal,

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promotion, finance, economic, market, management, social and environmental aspects will help
deliver the benefits of tourism development. Good planning ensures desired results and works in a
systematic manner to achieve success.
This Unit deals with the growth and development of tourism planning. Planning is perhaps the most
neglected aspect of the industry, particularly in the developing countries. Since, tourism is
undergoing continuous changes due to technological advances, changing trends and informed
consumers, it has created a need for efficient planning and management.

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Q9. Mention the components of tourism system. Discuss the need for market supply match in
tourism planning.
Ans. The functioning of the core components from the supply side is greatly influenced by many

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external factors. These factors may include organisation, leadership, finance, labour,
entrepreneurship, community, competition, governmental policies, natural and cultural resources,
etc.
Planning should not be concerned solely with the core components only, because they may be subject
to outside influences than those inside there own control. The external factors listed above influence

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the nature of tourism development.

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A brief examination of these may help in understanding some complicated issues of tourism which
are critical to plan the proper functioning of the tourism system:
(i) Natural Resources: Natural resources can be the single greatest cause of travel to a
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destination. Topography (mountains, glaciers, desserts, etc.), vegetation, wild life (nature
centres, jungles, etc.) and climate and weather features of a place greatly influence the
planning and development of tourism.
It need not be explained to tourism students as to why there is a vigorous need to
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champion for natural resource protection. Tourism sponsors and developers in order for
tourism system to function the best, must incorporate the protection of natural resources in
the plans.
(ii) Cultural Resources: In recent years, several travel market segments have increasing ly
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sought destinations with abundant cultural resources. This category of resource base, as
you have learnt in earlier units, includes prehistoric sites, historic sites, places of ethnicity,
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folklore and education, places for performing arts, museums, and galleries, and sites
important for religion and entertainment.
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(iii) Entrepreneurship: Tourism is dynamic, entrepreneurs are needed who visualise

opportunities for new developments and also creative ways of managing existing supply
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components. The abilit y to see an opportunity, to obtain the needed finances, to obtain the
proper location and sites, to engage designers to create physical settings, and to gather the
human resources needed to manage the infrastructure and services is important for tourism
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development. For industrialised nations, entrepreneurship is an intrinsic phenomenon. But

in developing and undeveloped countries it is a major handicap that increases the difficulty
of creating and expanding tourism.
(iv) Finance: Capital is the single most important requirement for any development including
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tourism. But the ease of obtaining capital for tourism varies greatly. Public and private
lenders are often sceptical and have an image of tourism that is not always positive. Also,
the fact is that tourism takes more capital than is popularly believed. Investors are more
likely to support projects that demonstrate sound feasibility. Planners need to take this into
account.
(v) Human Resources: The availability of adequately trained workers in an area can have
considerable influence on tourism development. The labour capacity of an area has much to
do with tourism development. The view that untrained can perform all tasks needed in
tourism is a misconception. HRD is vital to tourism planning.

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(vi) Community: A much more important factor influencing tourism development is how the
community / residents perceive tourism in their area. While the business sector may favour
growth locals may oppose it on grounds of increased social or environmental problems and
other negative impacts. Political, environmental, religious, cultural, ethnic and other groups
in an area can make or break the proper functioning of the tourism system.
Without doubt, as tourism development research and experience broadens, more influential factors
will be discovered. Any planning for tourism must take into account the core of the tourism
functional system and the many factors influencing it.

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Market supply match in tourism planning manufacturing industry, the best product to manufacture
is the one preferred by market. This holds true for a service industry like tourism also. No doubt there
can be exceptions in this regard when a unique tourism product is made and a demand is created. But

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this also happens as the service provider knows that the tourist is looking for something different. Let
us look at the factors that are important for the demand-supply match.
Travel Markets: For a tourism planner or say for any planner the thing most desired is forecasting.
Forecasting is defined as the art of predicting the occurrence of events before they actually take place.
It is one of the most difficult things to accomplish. The uncertainties of travel increase because of

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changes in taste, policies, currency rate, etc. Hence, projections become less reliable. Because planners,

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developers and promoters are in constant need for forecasting, the concept continues to occupy an
important place in market evaluation for planning. How many tourists may come? What type of
tourists? What would be their transportation and accommodation needs? etc. are some questions that
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need to be addressed in order to go for marketing planning and understanding the tourism markets.
Uysal and Crompton (1985) have provided helpful descriptions of qualitative and quantitative
approaches to tourism forecasting of demand. Under qualitative approaches, three methods used by
experts are described. Traditional approaches include review of survey reports to observe consistent
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trends and changes. The Delphi method is an iterative type of research inquiry using opinio n of
knowledgeable experts. It consists of several iterations by a panel that responds to specific questions
about trends. This method relies heavily on the extent of expertise of the panel members and the
influence of the leader. It is a useful tool, especially when used alongside other methods of
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predictions. A judgement aided model (JAM) uses a panel in face to face contact and debates to gain
consensus on several scenarios of the future.
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Among the quantitative approaches, Usyal and Crompton describe three kinds. Time series studies
are often statistical measures repeated year after year. Gravity and Trip generation models assure that
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the number of visits from each origin is inflamed by factors like distance and population. Gravity
method is criticised on the basis of not reflecting price or shrinking of distance perception:
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Multivariate regression models allow the use of many variables in predicting travel. Income,
population, travel cost, international context, and other variables can be used in this context. An
understanding of travel markets is essential for planning tourism to any area or destination.
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Market Segmentation
Market segmentation has been defined by Pride as “the process of dividing a total clientele into
groups consisting of people who have relatively similar service needs ”.
Planners of tourism development can segment the market by demography, psychography, travel
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expenditure, type of activity undertaken (special interest, pilgrimage, etc.).

Planners and developers (public and private) must have current information on travel market
characteristics in order to understand why, where and what development is most appropriate.
Market segmentation not only helps in designing tourism products but also helps the planners to
decide which segment should be targeted. Different segments have different requirements.
Matching Supply with the Market
In order to satisfy the market demand, a nation, region, or community must be able to provide a
variety of attractions and services on the supply side. The planning function for tourism should strive
for a balance between demand (market) and supply (development). This requires an understanding
of market characteristics and trends as well as the process of planning development to meet market

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needs. Over supply can create huge losses where as under supply leads to under utilisation of
resources. Hence, the need for matching supply with demand.

Q10. What is Strategic Planning? Discuss in detail the importance of Tourism Planning.
Ans. Planning within the tourism industry takes place at both the micro and the macro levels. The
micro level involves such planning that specific operators undertake when determining the feasibility
of their business activity. To a large extent, this is strategic planning of a corporate nature and is
basically similar to corporate planning in other industries. Let us first study what corporate planning

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9 involves. Corporate planning models generally follow a common structure. One such strategic
planning model has been synthesised by Hoffman and Schniederjans (1990).
International Strategic Management

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Stakeholders Analysis

Mission Statement

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Internal Analysis of

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Firm’s Distinctive Competencies

External Analysis of the

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International Environment

Goal Formulation
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Formulation of Strategic Alternatives

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Evaluation
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Implementations
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Strategic Control
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This model is based on the goal of matching an organisation’s strength with the market opportunities
presented by a changing external environment. It was designed to provide growth alternatives for
lodging corporations. Like all strategic planning activities, this also seeks to highlight strengths and
safeguard the uncertainties of external threats. This kind of planning needs to be applied to tourism
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organisations, already existing as well as developing ones, to achieve market sustainability.

Importance of Tourism Planning: The need and importance of tourism planning is now being
recognized by tourism developers in many countries. Earlier, planning was very simplistically
confined to the issues of accessibility (surface and air transport), accommodation and attractions. It
was believed that if a destination had these three inputs, tourism would see an automatic progression.
The result of making available these three A’s (Accessibility, Accommodation and Attractions) to the
consumers without taking the overall view into consideration resulted in mass tourism. This ravaged
many destinations completely. The most notable example being Caribbean and some destinations in
the Mediterranean region. In India, too, 6 this has become a serious threat to tourism development.

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Many destinations have faced the negative social and environmental consequences of unplanned
tourism growth. However, unlike the west, where remedial actions have resulted in planned and
controlled growth, India still has to implement the planning ideas in a comprehensive manner.
In a nutshell, the maximum benefits from tourism and optimal utilization of the tourism industry can
only occur if it is backed by proper planning and management.
Planning is the backbone for any and every project, be it the manufacturing or the service sector.
Tourism is no exception and like every other industry a carefully planned growth will yield better

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results in tourism also. The question as to why tourism planning is necessary has multiple answers,
some of which can be understood as follows:
• Modern tourism it still a relatively new type of activity in many areas, and some governments

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and the private sector have little or no experience in how to properly develop it. A tourism
plan and development programme can provide guidelines in those areas for developing this
sector.
• Tourism is a complicated, multi-sectoral, and fragmented activity, involving other sectors

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such as agriculture, fisheries and manufacturing, historic, park and recreation features,

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various community facilities and services, and transportation and other infrastructure.
Planning and project development coordination are particularly necessary to ensure that all
these elements are developed in an integrated manner to serve tourism as well as the general
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needs in a society.
• Much of tourism is essentially selling a product of an experience comprised of visitor use of
certain facilities and services. There must be a careful matching of the tourist markets and
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products through the planning process. But this matching should be without compromising
environmental and socio-cultural objectives in meeting market demands.
• Tourism can bring various direct and indirect economic benefits that can best be optimized
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through careful and integrated planning. Without planning, these benefits may not be fully
realized. On the contrary, economic problems can arise.
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• Tourism can generate various socio-cultural benefits or problems. Planning can be used as a
process for optimizing the benefits and preventing or lessening the problems. It can also be
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used for determining what is the best tourism development policy to preclude socio-cultural
problems and to utilize tourism as a means to achieve cultural conservation objectives.
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• The development of tourist attractions, facilities, and infrastructure and tourist movements
generally has positive and negative impacts on the physical environment. Careful planning is
required to determine the optimum type and level of tourism that will not result in
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environmental degradation. Through planning on can utilize tourism as a means to achieve

environmental conservation objectives.
• There is much justifiable concern expressed today about development of any type, including
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tourism, being sustainable. The right type of planning can ensure that the natural and cultural
resources for tourism are indefinitely maintained and not destroyed or degraded in the
process of development.
• Like any type of modern development, forms of tourism change somewhat through time,
based on changing market trends and other circumstances. Planning can be used to upgrade
and revitalize existing outmoded or badly developed tourism areas. Through the planning
process, new tourism areas can be planned to allow for future flexibility of development.
• Tourism requires development of human resources with particular skills and capabilities.
Hence, there must be appropriate education and training. Satisfying these manpower needs

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requires careful planning and programming and, in many cases, developing specialized
training facilities.
• Achieving controlled tourism development requires special organizational structures,
marketing strategies and promotion programmes, legislation and regulations, and fiscal
measures. The comprehensive and integrated planning process can be related closely to
tourism policy and development.
• Planning provides a rational basis for development staging and project programming. These

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are important for both the public and private sectors in their investment planning.
The identification of trends in tourism and a concern with factors shaping future events and
developments are two significant features that have emerged in tourism planning in recent years. Not

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only are they able to maximize returns and maintain existing resources, they are also able to retain
their competitiveness in an ever changing industry. Planning, thus, has to remain as a centre-stage,
ongoing and flexible activity if both the destinations as well as the tourism industry have to survive in
the international market place.

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