Chapter 6 Tourism Policy and Organizations

Learning Objectives

Identify the reasons for government involvement and the roles of government in tourism. Describe the elements of a tourism policy model and how they are used to form a tourism policy for a destination. Explain the roles of global tourism organizations, including the WTO. Explain the roles of multi-country regional organizations. Explain the roles of national tourism organizations. Explain the roles of state, provincial, and territorial government tourism organizations. Explain the roles of regional and local tourism organizations.

Overview
Reasons for government involvement in tourism Government roles in tourism Tourism policy formulation Tourism organizations

Reasons for government involvement in tourism

Political reasons
Travel across national boundary--entry and exit-overseas destination approved by CNTA. Enhance the national and international image.

Environmental reasons
Carrying capacity-sustainable development

Economic reasons
Japan trade surplus in 1980s-encourage outbound trips-balance of payment.

Government roles in tourism

Coordination
Among many government bodies concerned with different aspects of tourism. Among government agencies at different levels. Among the government, the private sectors and nonprofit organizations.

Tourism policy-setting Tourism planning Tourism legislation and regulation

The number of paid vacation days Policies on passports and visas

Government roles in tourism

Tourism infrastructure development Tourism operations

National and state park system, historic sites, state-owned airlines

Tourism development stimulation and control Tourism marketing and research Tourism training and education

Tourism policy formulation

Destination Area Needs
Economic Social Cultural Environmental

Tourism Goals
Economic Government operations Human resource development Market development Resource protection and conservation Social and cultural

External
Climate Economy Energy Market

Constraints Internal
Availability of investment Availability of land Local resident use Manpower availability Quality of attractions and facilities

Tourism Objectives
Tourism policy
Programs Strategies Priorities actions

Tourism Model Policy

Tourism Organizations

World & National Travel Industry Associations State and Provincial Travel Industry Associations

World & National Government Tourism Offices

State and Provincial Government Tourism Offices

Local & Regional Tourism Assoc iations/ Convention & Visitor Bureaus

Local & City Government Tourism Departments

Tourism Organizations
Tourism organizations can be viewed in the following ways: 1. Geographically: Global organizations
Multi-country regional organizations National tourism organizations State, provincial organizations Regional tourism organizations Local tourism organizations

2. By ownership: government, quasi-government, or private. 3. By function: suppliers, marketers, development, consultants,

educators, publishers, professional associations .

4. By industry: transportation, travel agencies, tour wholesalers,

lodging, attractions, and recreation.

5. By motive: profit and nonprofit.

Global Organizations
World Tourism Organization (WTO)
Most widely recognized organization in tourism Serves as a global forum Transfers tourism know-how Produces statistics and market research Develops tourism human resources Works to facilitate travel Promotes sustainability Creates special projects WTO Web site http://www.world-tourism.org

The World Tourism organization

The World Tourism Organization is the most widely recognized and leading international organization in the field of travel and tourism today. Its membership includes 138 countries and territories and more than 350 affiliate members. And the headquarters is in Madrid. History
Its beginnings is the International Union of Official Tourist Publicity Organization, set up in 1925 in the Hague. Then it was renamed the International Union for Official Tourism Organizations after World War II and moved to Geneva. IUOTO was renamed the world tourism organization,and its first General Assembly was held in Madrid in May 1975.

Activities
1)The transfer of Tourism knowhow to development countries is a major task .Here WTO contributes decades of experience in tourism to the sustainable development goals of nations throughout the world. 2)WTO is well known for its statistics and market research. Research is the one of its most important contributions. 3)Human resource development is another WTO goal.WTO sets standards for tourism education. 4)WTO attempts to facilitate world travel through reduction of government measures for international travel as well as standardization of requirements for passports, visas,and so forth. 5)They are also involve in regional promotion projects.For example, the Silk Road and the Slave Route projects.

Financial Support
WTO is primarily financed by members contributions. Full members pay an annual quota calculated according to the lever of economic development and the importance of tourism in each country. Association members pay a fixed annual contribution of U.S.20000dollars and affiliate members pay U.S.1700dollars a year.

Global Organizations
World Travel and Tourism Council
Some goals of WTTC are: 1. Work with governments to make tourism a strategic economic development and employment priority. 2. Move toward open and competitive markets. 3. Pursue sustainable development.

4. Eliminate barriers to growth in the industry.

Wed site http://www.wttc.org

World Travel and Tourism Council

It is a global coalition of the top 100 chief executive officers from all sectors of the industry. These include accommodations, catering, cruises, entertainment, recreation, transportation.
It was established in 1990, WTTC is led by a 15member executive committee. It meets twice a year and reports to an annual meeting of all members. Day-to-day operations are carried out by the President and a small staff based in London, Brussels, and Washington,D.C. WTTC has done more to create awareness of the economic importance of tourism than any other organizations. WTTC works with government to make tourism a strategic economic development and employment priority, pursue sustainable development. WTTC does many researches and proposes for an international standard Satellite Accounting System.

Global Organizations
International Civil Aviation Organization
ICAO was established in 1944.
It is an organization of governments joined to promote civil aviation on a worldwide scale.

The ICAO Web site is http://www.icao.int

Global Organizations
International

Air Transport Association

It is the global organization for all the international air carriers. Its principle function is to facilitate the movement of person and goods from everywhere to everywhere.

IATA is a valuable information source on the world airline industry. Their market research helps the industry develop its strategic and marketing plans. IATAs mission is to represent and serve the world airline industry.
The IATA Web site is at http://www.iata.org

Multi-country Regional Organizations

Organization for Economic Cooperation and Development, Paris, France.
Mostly

European membership, but the United States, Canada, Japan and Australia are also members.

http://www.oecd.org

Pacific Asia Travel Association (PATA)

Represents

nations in Asia and the Pacific.

http://www.pata.org

Pacific

Asia

Travel

Association

The PATA represents countries in the Pacific and Asia that have united to achieve a common goal, namely, excellence in travel and tourism growth in this vast region.
Its work has been to promote tourism through programs of research, development, education, and marketing. PATA has gained a reputation for outstanding accomplish among similar world organizations.

Developmental Organizations
Examples:
World Bank United Nations Development Program Asian Development Bank

National Organizations

Office of Travel and Tourism Industries (OTTI)

International Trade Administration, U.S. Department of Commerce Research and Policy Mission statement: OTTI is dedicated to helping US businesses gain access to and compete in the global market place. http://tinet.ita.doc.gov

Travel Industry Association of America (TIA)

leading private tourism organization in U.S. Represents the whole U.S. travel industry Promotes and facilitates increased travel to and within the U.S. http://www.tia.org and http://www.seeamerica.org

Canadian Tourism Commission (CTC)

Public-private partnership Plans, directs, manages, and implements programs to generate and promote tourism in Canada. http://www.CanadaTourism.com

China National tourism Administration (CNTA)

Other Tourism Organizations

Convention and Visitor Bureaus (CVBs)
* Not-for-profit umbrella organizations that represent a city or urban area in the solicitation an servicing of all types of travelers to that city or area, whether they visit for business, pleasure, or both. (membership)

International Association of Convention and Visitor Bureaus (IACVB)

Most city CVBs belong to this organization. http://www.iacvb.org

CNTA Management System

National level tourism administration bureau. (NTO) China National Tourism Administration CNTA Province and municipality level tourism administration bureau. eg.Tianjin City or county level tourism administration bureau.

Organizational Structure Of CNTA

Chairman
Vice chairman

General Administration Office

Planning and Financial Department

Marketing & Communications Department

Policy and Legal Department

Human Resources Department

Industry Management Department

New York office

Los Angeles office

London office

Paris office

Frank -fruit office

Zurich office

Marid office

Tokyo office

Osaka office

Singa -pore office

Sydney office

Toronto office

Asia Tourism Exchange Center Limited Hong Kong

Chinas Tourism Policies

Policy serves politics. The change of national tourism policy, to some extent, reflects changes in the countrys political and economic systems. National tourism policy in China has experienced two major changes, namely, tourism serving politics, and tourism serving the economy.

Chinas Tourism Policies

Recognition: from a diplomatic activity to an industry of importance. Politics only. 1949-1978. Tourism was treated as people-to-people diplomacy, seeking no economic returns. Politics plus economics. 1978-1985. Eg. Discriminatory pricing policies. Economics over politics. In 1986, the national government declared tourism to be a comprehensive economic activity with the direct purpose of earning foreign exchange. Since 1998 tourism was considered as a new growth point of the national economy and most provinces have made tourism one of the pillar industries in their local economic development planning.

Chinas Tourism Policies

Administration: from micromanagement and control to macromanagement and service. From 1949 to the mid-1960s, travel to China by overseas Chinese was treated as a foreign affairs activity and was controlled by the office of Overseas Chinese Affairs under the State of Council. All aspects of tourism were tightly controlled by the national government. CNTA was set up in 1981 with the rapid growth of tourism in the late 1970s. It became Chinas national tourism organization (NTO), and concentrated on the macromanagement of the tourism industry.

Chinas Tourism Policies

Priority: from inbound only to both international and domestic travel. The mode of China tourism development is quite different from that in most of the development countries. Inbound tourism domestic tourism outbound tourism

Chinas Tourism Policies

Business: from monopoly to standardization in tourism business operations. Travel agency: from three magnates (CITS, CTS,CYTS) to 7000 travel services (international and domestic categories) in 1999. Hotels: There are 203 hotels and 76,192 bed spaces in 1978; 7035 hotels with 889,430 rooms in 1999, 61% of rooms were state owned while 15.8% were owned , partly or wholly, owned by overseas investors.

Chinas Tourism Policies

Actions: from a product-oriented to a market-oriented mode, from a sellers market to a buyers market. In the late1970s and early 1980s,Chinas tourism was a sellers market. China exercised a product-oriented management policy and showed little interest in marketing or market research. From 1986 to 1990, CNTAs promotional budget was only US$1.4million per year, and this included the operating cost of its overseas offices. After 1989, the sellers market was replaced by a buyers market. China realized the importance of the tourism market. By 1991, CNTAs promotional budget increased to US$3.2 million, representing more than a 100 percent increase compared to 1990. Between 1991 and 1993, CNTA actively engaged in tourism promotion, and the promotion budget doubled from US$3.2 million to 6.4 million.

Major tourism policies and regulations implemented in China since 1978

Year 1979 Policy and Regulation Introduction of foreign investment Target Area Initially in the hotel but expanding to travel agency sector Investment in tourism industry Travel agencies Status of Implementation Successfully implemented

1984 1985

Five together Provisional Regulation on the Administration of Travel Agencies Regulations on the Star Standard and StarRating of Tourist Hotels of Peoples republic of China Development of State-level Resorts

Successfully implemented Not well implemented; replaced by the Regulation on the Administration of Travel Agencies in 1996. Successfully implemented

1988

Hotels

1992

Tourist attractions

Successfully implemented

1993

Provisional methods on the Administration of Hotel Management Companies

Provisional Regulations on the Administration of Quality Service Guarantee Funds of Travel Agencies Regulation on the Administration of Tour Guides

Hotels

Successfully implemented

1995

Travel agencies service quality and customer satisfaction

Successfully implemented but with resistance at the initial stage

1996

Travel agencies qualification and licensing of tour guides

Successfully implemented

1996

Regulation on the Administration of Travel Agencies

Travel agencies

Successfully implemented

The Five Together policy decision allows tourism administrations, individual government agencies, local governments, collectives, and individual persons to invest in the tourism industry

Assignment

Each group is required to select an organization or a tourism related policy/regulation, make an analysis and do a 10 to 15 minutes presentation next week.