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