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UNIT I

Tourism Concept & perspective: Tourism- Meaning and Definition, Changing facets of Tourism, Different
perspectives on the study of Tourism Importance of Managerial and Economic Perspective, Definitions:
Visitor, Tourist Excursionist, Incoming Tourist ,Outgoing Tourist
Travel

Travel comprises all journeys from one place to another. It includes all journeys made by people who enter
a country for leisure, to work, reside, study or who just pass through a country without stopping.

Tourism

(a) Tourism means the temporary short-term movement of people to destinations outside the places
where they normally live and work, as well as their activities during their stay at these destinations. (All
tourism should have some travel, but not all travel is tourism.)

(b) Tourism comprises the activities of persons travelling to and staying in places outside their usual
environment for less than a year and whose main purpose of travel is other than the exercise of an activity
remunerated from within the place visited. The term "usual environment" is intended to exclude trips
within the area of usual residence and frequent and regular trips between the domicile and the workplace
and other community trips of a routine character.

Purposes of visit:

Business

Leisure / holiday

Study

Sports

Cultural

Religion

Health

Others

Definitions of "Traveler", "Tourist"

Travellers - Any person who is taking a trip within or outside his/her own country of residence irrespective
of the purpose of travel, means of transport used, even though he/she may be travelling on foot.

Tourist - A tourist is a person who travels to destinations outside his/her residence and working place, and
stays for at least 24 hours, for the purpose of leisure or business.

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Same-day visitor or Excursionist - An excursionist is a person who temporarily visits a destination and stays
for less than 24 hours, for the purpose of leisure or business, but not for transit. Examples:

1. A Canadian resident takes a short trip to the USA without staying overnight.

2. A Malaysian resident takes a short trip to Singapore without staying overnight.

World Tourism Organization's (UNWTO) Definitions of "Tourist"

The International Conference on Travel and Tourism Statistics convened by the World Tourism
Organization (UNWTO) in Ottawa, Canada in 1991 reviewed, updated, and expanded on the work of earlier
international groups. The Ottawa Conference made some fundamental recommendations on definitions of
tourism, travellers, and tourists. The United Nations Statistical Commission adopted UNWTO's
recommendations on tourism statistics on March 1993.
a) Tourists: Visitors who spend at least one night in the country visited

b) Crew members: Foreign air or ship crews docked or in lay over and who used the accommodation
establishments of the country visited

c) Excursionists: Visitors who do not spend at least one night in the country visited although they might
visit the country during one day or more and return to their ship or train to sleep.

d) Cruise passengers: Normally included in excursionists. Separate classification of these visitors is


nevertheless preferable.

e) Day visitors: Visitors who come and leave the same day.

f) Crews: Crews who are not residents of the country visited and who stay in the country for the day.

g) Members of armed forces: When they travel from their country of origin to the duty station and vice
versa.

h) Transit passengers: Who do not leave the transit area of the airport or the port in certain countries,
transit may involve a stay of one day or more. In this case they should be included in the visitor statistics.
In India we see the origin of the concept of Tourism in Sanskrit Literature. It has given us three terms
derived from the root word “Atana” which means going out and accordingly we have the terms:
I. Tirthatana – It means going out and visiting places of religious merit.
II. Paryatana - It means going out for pleasure and knowledge.
III. Deshatana - It means going out of the country primarily for economic gains.

In simple terms Tourism is the act of travel for the purposes of leisure, pleasure or business, and the
provision of services for this act. There are two important components that make up tourism: 1. The
practice of travelling for pleasure. 2. The business of providing tours and services for persons travelling.
Here we are discussing the features of the=-‗above two components The following are required, to make
travel possible: (Component 1)
I. Discretionary income, i.e. money to spend on non-essentials
II. Time in which to do so.
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III. Infrastructure in the form of accommodation facilities and means of transport.

Individually, sufficient health is also a condition, and of course the inclination to travel. Furthermore, in
some countries there are legal restrictions on travelling, especially abroad. Communist states restrict
foreign travel only to "trustworthy" citizens. The United States prohibits its citizens from travelling to some
countries, for example, Cuba.

There are four basic services to be provided for Tourists: (Component 2)


I. Travel Arrangements
II. Board and Lodging
III. Food
IV. Entertainment

In the above paragraphs we have discussed the basic meaning of tourism and the features of the
components of Tourism. Now we will talk about the definitions of the term tourism. There have been a
number of attempts to define tourism since the beginning of the twentieth century. Tourism comprises the
activities of persons travelling to and staying in places outside their usual environment for not more than
one consecutive year for leisure, business and other purposes.
The term ―usual environment‖ is intended to exclude trips within the place of residence, trip to the usual
place of work or education and daily shopping and other local day-to-day activities
The threshold of twelve months is intended to exclude long-term migration.
For the distance travelled there is no consensus. It varies from at least 40 kms to at least 160kms away
from home one way for any purpose other than commuting to work.

Five main characteristics of tourism may be identified from the definition


I. Tourism arises from a movement of people to, and their stay in, various destinations.
II. There are two elements in all tourism: the journey to the destination and the stay including activities at
the destination.
III. 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.
IV. 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.
V. Destinations are visited for purposes other than taking up permanent residence or employment
remunerated from within the places visited.

As per WTO definition, Tourism can be classified into the following forms
I. Inbound tourism: Visits to a country by non-resident of that country - for example, when A American
citizen, Mr. Sam comes to India to see the Taj Mahal, he is an inbound tourist for India.
II. Outbound tourism: Visits by the residents of a country to another country - ,for example when an Indian
citizen, Mr. Ram goes to America to see Hollywood , he is an outbound tourist for India.
III. Domestic tourism: It involves travelling by the residents of the given country within their own country -,
for example, when Mr. Anil a resident of Delhi goes to see the Taj Mahal in Agra he is a domestic Indian
Tourist.
IV. Internal tourism: It comprises of domestic tourism and inbound tourism.
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V. International tourism: It comprises of inbound tourism and outbound tourism

CHANGING FACETS OF TOURISM:

From the very inception of life, travel has fascinated man. Travel and tourism have been important social
activities of human beings from time immemorial. The urge to explore new places within one’s own country
or outside and seek a change of environment & experience has been experienced from ancient times.
Tourism is one of the world‘s most rapidly growing industries. Much of its growth is due to higher
disposable incomes, increased leisure time and falling costs of travel. As airports become more enjoyable
places to pass through, as travel agency services become increasingly automated, and as tourists find it
easier to get information on places they want to visit, tourism grows.
The Internet has fuelled the growth of the travel industry by providing on line booking facilities. It has also
provided people with the power to explore destinations and cultures from their home personal computers
and make informed choices before finalizing travel plans. With its immense information resources, the
Internet allows tourists to scrutinize hotels, check weather forecasts, read up on local food and even talk to
other tourists around the world about their travel experiences for a chosen destination.
This new trend has made the tourism job very challenging. The holiday makers want a good rate of return
on their investment. They are to be lured with value additions and improved customer service. This also
put emphasis on the regular flow of manpower with specific skills at the appropriate levels to match and
cater to global standards. The success of the hospitality industry comes from provision of quality rooms,
food, service and ambience. There is no doubt that fitness has increasingly become a larger part of
everyone‘s life. And business and leisure travelers alike look to maintain their fitness goals while away from
home. Awareness should be created about the environment and education. A collective effort and co-
operation with powerful networking are the need of the hour. People should be acting as the watchdogs of
the society as far as environmental issues are concerned.
Eco-tourists are a growing community and tourism promotions have to adopt such eco-practices which
could fit this growing community. Another growing trend in the tourism scene is the Incentive Market and
the scope of the destination to attract conferences and convention traffic. Here the prospects are better
for those destinations where state of the art infrastructure has been developed along with a safe and clean
image.
Tourism today is much more than just developing products. It is more about quality, insightful thinking and
ability to have global information about technology, partners, contacts and responding quickly to global
and regional trends. The fundamental task before tourism promotion is to facilitate integration of the
various components in the tourism trade as active participants in the nation‘s social and cultural life. There
is a long road ahead. All must work towards a society where people can work and participate as equal
partners. Tourism should be a vehicle for international cooperation and understanding of the various
civilizations and a harbinger of peace. From the foregoing we can see how fast the face of tourism is
changing and how challenging the job of travel agencies is now.

There is therefore a need for proper training of the personnel working in the industry through thorough
and a detailed study of the subject A unified approach to the subject is also needed since at present people
from different fields have been studying tourism from different perspectives

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
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geographer feels that it is the climate, landscape or physical attributes which draw the tourist to a
destination, for example; if a person from Delhi goes to Shimla in the summer he does so because of the
cooler climate which he cannot get in Delhi
2. Sociological Perspective - 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
behaviour of individuals or groups of people and the impact of tourism on society.
3. Historical Perspective - from an historian‘s perspective tourism is a study of the factors instrumental in
the initiation of tourism to a particular destination, the order of happenings leading to tourism
development, 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 all know that a
lot of tourists visit Taj Mahal in Agra but a historian would be interested in studying the factors that bring
the tourist there, e.g. the architecture, the story behind the monument, or something else that draws
them there.
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 organisations 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 a contributor 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.

THE IMPORTANCE OF MANAGERIAL AND ECONOMIC PERSPECTIVES TO THE STUDY OF TOURISM:


Now due to higher disposable incomes, increased leisure time and falling cost of travel, the Tourism
industry has shown a very high growth and since tourism is a service industry it comprises of a number of
tangible and intangible components. The tangible elements include transport systems - air, rail, road,
water and now, space; hospitality services - accommodation, food and beverage, tours, souvenirs; and
related services such as banking, insurance and safety and security. The intangible elements include: rest
and relaxation, culture, escape, adventure, new and different experiences.
As there are number of bodies involved the need arises for a management of services related to this
industry and so the study of Tourism acquires a great practical necessity and usefulness. Tourism industry
is very fast growing and this industry involves activities and interests of Transport Undertakings, Owners of
Tourist Sites and Attractions, Various tourist Service Providers at the tourist destinations and Central and
Local Government, etc. Each of these serves both the resident population and the tourists and their
management must reconcile the needs of tourists with the needs of the resident population. So it becomes
important to study tourism from the perspective of Management, since the management of various bodies
in this industry is invaded.
Economic Impacts of Tourism
Businesses and public organizations are increasingly interested in the economic impacts of tourism at
national, state, and local levels. One regularly hears claims that tourism supports X jobs in an area or that a
festival or special event generated Y million dollars in sales or income in a community. ―Multiplier effects‖
are often cited to capture secondary effects of tourism spending and show the wide range of sectors in a
community that may benefit from tourism.
Tourism activity also involves economic costs, including the direct costs incurred by tourism businesses,
government costs for infrastructure to better serve tourists, as well as congestion and related costs borne
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by individuals in the community. Community decisions over tourism often involve debates between
industry proponents touting tourism‘s economic impacts (benefits) and detractors emphasizing tourism‘s
costs. Sound decisions rest on a balanced and objective assessment of both benefits and costs and an
understanding of who benefits from tourism and who pays for it. Tourism‘s economic impacts are
therefore an important consideration in state, regional and community planning and economic
development. Economic impacts are also important factors in marketing and management decisions.
Communities therefore need to understand the relative importance of tourism to their region, including
tourism‘s contribution to economic activity in the area.
A variety of methods, ranging from pure guesswork to complex mathematical models, are used to estimate
tourism‘s economic impacts. Studies vary extensively in quality and accuracy, as well as which aspects of
tourism are included. Technical reports often are filled with economic terms and methods that non-
economists do not understand.
TYPES OF ECONOMIC ANALYSIS
Economic impact analysis -- What is the contribution of tourism activity to the economy of the region? An
economic impact analysis traces the flows of spending associated with tourism activity in a region to
identify changes in sales, tax revenues, income, and jobs due to tourism activity. The principal methods
here are visitor spending surveys, analysis of secondary data from government economic statistics,
economic base models, input-output models and multipliers. (Frechtling 1994a)
Fiscal impact analysis – Will government revenues from tourism activity from taxes, direct fees, and other
sources cover the added costs for infrastructure and government services? Fiscal impact analysis identifies
changes in demands for government utilities and services resulting from some action and estimates the
revenues and costs to local government to provide these services (Burchell and Listokin1978).
Financial analysis – Can we make a profit from this activity? A financial analysis determines whether a
business will generate sufficient revenues to cover its costs and make a reasonable profit. It generally
includes a short-term analysis of the availability and costs of start-up capital as well as a longer-range
analysis of debt service, operating costs and revenues. A financial analysis for a private business is
analogous to a fiscal impact analysis for a local government unit.
Demand analysis – How will the number or types of tourists to the area change due to changes in prices,
promotion, competition, quality and quantity of facilities, or other demand shifters? A demand analysis
estimates or predicts the number and/or types of visitors to an area via a use estimation, forecasting or
demand model. The number of visitors or sales is generally predicted based on judgement (Delphi
method), historic trends (time series methods), or using a model that captures how visits or spending
varies with key demand determinants (structural models) such as population size, distance to markets,
income levels, and measures of quality & competition (Walsh 1986, Johnson and Thomas 1992).
Benefit Cost analysis (B/C) – Which alternative policy will generate the highest net benefit to society over
time? A B/C analysis estimates the relative economic efficiency of alternative policies by comparing
benefits and costs over time. B/C analysis identifies the most efficient policies from the perspective of
societal welfare, generally including both monetary and non-monetary values. B/C analysis makes use of a
wide range of methods for estimating values of non-market goods and services, such as the travel cost
method and contingent valuation method.
The current state of the Travel & Tourism industry
Travel & Tourism, one of the world‘s largest industries, outperformed the global economy in 2012 and
grew faster than many other notable industries such as manufacturing, financial services, communications
and retail. According to the World Travel & Tourism Council‘s (WTTC) economic research, in 2012, Travel &
Tourism grew its total contribution to GDP by 3% to US$6.6 trillion in GDP (a rise of US$500 billion year-on-
year) and increased its number of jobs by five million to 260 million. For the first time, one in every 11 jobs
in the world is now supported by Travel & Tourism.
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WTTC is predicting the Travel & Tourism industry will expand its total contribution to GDP by 3.2% in 2013,
faster than the 2.4% predicted for global economic growth. The industry is expected to support nearly 266
million jobs this year and again outperform many other industries.

The importance of Travel & Tourism as a tool for economic development and job creation is clear.
However, this growth will not happen magically - and less restrictive visa regimes and a reduction in
punitive taxation policies would help the industry contribute even more to broader economic development
and would meet the clear and rising demand for international travel. Whilst it‘s recognised that countries
have genuine concerns about safety and border sovereignty, there are many ways in which governments
can support more efficient travel without compromising national security.

In May 2012, WTTC and the World Tourism Organization (UNWTO) engaged in a study on the impact of
visa facilitation on job creation across the G20 countries, which provided the data needed to press the
arguments for action. The findings showed that of the 656 million international tourists who visited G20
countries in 2011, 110 million needed a visa, while millions more were deterred from traveling by the cost,
waiting time and difficulty of obtaining a visa. The joint research highlighted that the facilitation of tourist
visas to G20 countries from some of their fastest growing source markets could generate an additional US$
270 billion in international tourism receipts and create more than five million additional jobs in the G20
economies by 2015. It also showed that visa facilitation has historically increased international tourist
arrivals of affected markets by 5-25% following the implementation of policy changes.

All countries need to realise that the potential for developing their economies through Travel & Tourism
can take place alongside their needs for border security. Concerted action from countries like India, China,
the UK, US and Russia would start a domino effect of removing these constraints worldwide. Facilitating
visas for tourists, particularly from some of the world‘s fastest growing source markets such as the BRICs,
could stimulate demand, spending and ultimately create millions of new jobs in the G20 economies.

WTTC campaigns for Governments to implement policies, which support the growth of Travel & Tourism
through the creation of a competitive business environment. Despite challenges to economic growth, the
Travel & Tourism industry is still expected to be one of the world's fastest growing sectors. But it must
have clear support from governments, if its full potential to create jobs, increase exports and stimulate
investment is to be realised. In fact, the impetus lies with Governments to ensure that their policies
specifically pave the way for companies to offer services to consumers without burdensome bureaucracy.

WTTC believes that the most appropriate way to reap the enormous economic and social benefit that
Travel & Tourism brings is to develop sensible policies in the fields of liberalising Air Services Agreements
to create open skies between countries and within regional bloc, repatriation of finance and a reduction in
red tape.

Sustainability is also a big issue for the Travel & Tourism industry. Over the past two decades, the industry
has made significant steps towards improving environmental impact and community engagement but
these approaches now need to be incorporated into core business models. To achieve this, the industry
has to make itself accountable and measure and openly report the impacts of its operations. This also
requires investment in new research and development. WTTC - together with the International Tourism
Partnership and a working group of industry members – has launched the Hotel Carbon Measurement
Index (HCMI) and a growing number of hotels are now using it to report their carbon emissions but this
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industry-led approach needs to spread further. Last but not least, work needs to be done to attract people
to work in the industry to ensure that Travel & Tourism has the necessary talent to make positive
contributions to the economy and society in the future.

The subject of WTTC‘s forthcoming Global Summit in Abu Dhabi (9-10 April) is ―A Time for Leadership‖.
The Summit will explore the implications of our dramatically changing world economy and growing
population on the Travel & Tourism industry. Four months after the world celebrated its one billionth
international traveller, it will examine what we need to do collectively to prepare for the next one billion
tourists.

There is no disputing that the Travel & Tourism industry is a vital driver of the world‘s economy. However,
everyone working in the industry needs to play their part in communicating that message. Our messages
need to coalesce and we need to state our case in terms, which make governments and world leaders sit
up and listen. We call on all sectors of our industry to come together to do this with ―One Voice‖. About
WTTC The World Travel & Tourism Council is the global authority on the economic and social contribution
of Travel & Tourism. It promotes sustainable growth for the industry, working with governments and
international institutions to create jobs, to drive exports and to generate prosperity. For more than 20
years, the World Travel & Tourism Council has been the voice of this industry globally. Members are the
Chairs, Presidents and Chief Executives of the world‘s leading, private sector Travel & Tourism businesses.
These Members bring specialist knowledge to guide government policy and decision-making, raising
awareness of the importance of the industry as an economic generator of prosperity.

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