According to the United Nations World Tourism Organisation (UNWTO), tourism entails the movement of people

to countries or places outside their usual environment for personal or business/professional purposes. These people
are called visitors. Generally speaking, a visitor is classified as a (same-)day visitor if their trip does not include an
overnight stay and a tourist if it does include an overnight stay. The purpose of their trip can be for business, leisure
or personal reasons, other than to be employed by a resident entity in the country or place visited.

If a trip’s main purpose is business/professional, it is often subdivided into two further categories - 'attending
meetings, conferences or congresses, trade fairs and exhibitions' and 'other business and professional purposes'.

Types of tourism
There are three basic forms of tourism: domestic tourism, inbound tourism, and outbound tourism.

Domestic tourism refers to activities of a visitor within their country of residence and outside of their home
(e.g. a Brit visiting other parts of Britain).

Inbound tourism refers to the activities of a visitor from outside of country of residence (e.g. a Spaniard
visiting Britain).

Outbound tourism refers to the activities of a resident visitor outside of their country of residence (e.g. a
Brit visiting an overseas country).

The tourism industry in Britain is primarily a private sector industry, consisting of around 200,000 businesses,
some very large including international hotel groups and airlines, as well as small and medium sized businesses,
industry groups and bodies.

Domestic tourism is the core of businesses revenue (generally at least 80%, particularly outside of London), with
demand peaking during the school holidays, particular Easter and Summer. Dealing with the demands of international
visitors requires specialist knowledge, cultural understanding and investment.

Most UK statistics separate spending and volume of day visitors from overnight tourists. VisitBritain’s statistics and
research reports focus on overseas visitors who come to Britain.

For domestic statistics (ie. data on people from within Britain who visit another location in Britain) get in touch with the
tourism organisations for England, Scotland, Wales, Northern Ireland and London.

What are tourism products?

'Tourism covers a number of different categories including:

 Accommodation, i.e. hotels, bed & breakfasts, guest houses, self-catering/serviced apartments, camping,
caravanning and home stay
 Hospitality, i.e. food and beverage serving services, e.g. pubs, restaurants, cafes, private dining for
groups/conferences
 Transport services, e.g. rail, road, water, air networks and rental
 Guided tours and tourist guides
 Travel agencies and other reservation services, including tour operators and destination management
companies (see travel trade section)
 Cultural services, e.g. museums, attractions
 Sports and recreational activities
 Retail
Economic Impacts of Tourism[edit]
Tourism is considered by many to be the largest industry in the world and the fastest growing. Tourism can
provide many benefits for host communities and countries but there are also negative effects. Impact studies
are carried out with the aim of improving our understanding of the positive and negative impacts of tourism so
that steps can be taken to lessen the negative effects and work at sustainable tourism development. In other
words, sustainable tourism development is concerned with maximising the benefits while minimising the
negative effects.
Tourism is seen by governments as a useful tool for economic development. The economic benefits tourism
may offer include:

 Employment: tourism is a labour intensive industry,

 Entrepreneurial opportunities,
 Generate tax revenues,
 Development in rural regions,
 Foreign exchange generator,
 Tourism promotes other industries, particularly in services sectors of the economy.
Tourism contributes in four major areas of the national economy:

 Income
 Balance of Payments
 Employment
 Regional economic development

Income[edit]
Salaries, interest, rent and profits all contribute to income generation. In the tourism industry, which is labour
intensive, the greatest proportion of income will be derived from salaries paid to the workers both directly
serving tourists or from those benefiting indirectly from tourists’ spending.
Tourism is the main income generator for one-third of the developing nations but is also a major generator in
the Western world. In New Zealand, tourism is of prime importance in areas where there is little other industry
such as in Wanaka and the Bay of Islands. Interest, rent and profits can generate income from loans to
companies building hotels or rental paid to the landowner for a tourism attraction.
Taxation also contributes to income in the form of G.S.T. in New Zealand and V.A.T. in the United Kingdom. In
Fiji, there is an accommodation tax of 3% levied on hotel rooms. Departure taxes are now levied by most
countries and some including the USA also have an arrival tax.
The sum on all incomes is called the national income and the importance to a country’s economy is measured
by looking at the proportion of national income created by tourism. In New Zealand, for the year ended 2004,
tourism contributed $6.2 billion or 4.9% of New Zealand’s total industry contribution the GDP.

Multiplier Effect[edit]
The tourist income multiplier or ‘ripple’ effect accounts for the indirect impact of tourist spending on the
economy. The multiplier is expressed as a ratio between one dollar of tourist spending and the number of times
it is re-spent. For example, a multiplier of 0.72 has been calculated for Fiji. This means that 72 % of each dollar
of original visitor spending is re-spent in the Fijian economy.
Some major weaknesses have been identified in calculating economic multipliers. One particular problem is the
difficulty involved in collecting accurate data of tourist expenditure. Tourism involves a large number of sectors
in the economy and tourists spend their money on extremely diverse goods and services. Also, tourism
comprises many small, owner-operated businesses. It is likely that a number of operators do business
informally, though cash or barter transactions and some transactions are never recorded. Due to the difficulties
in obtaining accurate data on how much money is spent by tourists and the numerous small and informal
businesses in the industry, multiplier ratios can only be approximations.
Leakages[edit]
Determining the economic impact of tourism is more complicated than simply calculating tourist expenditure.
The value of tourist expenditure to the host country is reduced by the value of imported goods and services
required to satisfy the needs of tourists. This is referred to as leakage. If the host country has constraints on its
ability to supply goods and services to tourists, the grater the number of visitors the more imports will be
required and the multiplier ratio will fall. Imports may include materials for construction, petrol, information
technology and even food and water for some small island communities. Leakages explain why only a portion
of the income generated is re-spent in the local economy.

Balance of payments[edit]
International tourists contribute to a receiving country’s balance of payments through money being spent
credited to their balance of payments. A New Zealander spending money in Australia, places a debit on New
Zealand’s and a credit on Australia’s balance of payments. The outflow of New Zealand money being spent
abroad by New Zealanders is an import, while the inflow of foreign tourists’ money spent in New Zealand
counts as an export.
The total value of receipts minus the total payments made during the year represents a country’s balance of
payments of the tourism account.
International tourism is an ‘invisible’ export which helps to balance imports and thus improve the balance of
payments.

Employment[edit]
The UNWTO has estimated that around 260 million people work in jobs directly related to tourism worldwide
and will represent approximately 8.3% of total world employment.
In tourism dependant countries such as the Caribbean, as many as 25% of all jobs are associated with the
tourism industry. An estimated 102,700 full-time employees (or 5.9% of total employment in New Zealand were
actively engaged in producing goods and services for tourists in 1994.
Developments in technology are affecting labour opportunities in employment. Computer reservation systems
are replacing manual systems and as a result fewer agents are working in airlines and hotel chains. The
increasing use of the Internet for reservations has also reduced numbers of travel agencies are airline offices.
Call centres are replacing branches, often situated in low-wage countries like India. The success of the tourism
industry relies on the supply of a skilled labour force to serve the needs of the tourists.

Investment and development[edit]

The level of investment in tourism can determine the success of a region. The investment can be private of
public. Often there is a ‘chicken and egg’ situation where there is an unwillingness to invest until there is a flow
of tourists but the tourists will not come to the region until there is facilities e.g. hotels, restaurants to attract
them.
Often there is a flow on effect and other industries will be attracted to the area to provide services for both
tourists and workers
Another consideration in calculating the economic effects of tourism involves the opportunity costs. Money and
other resources, committed to tourism could have been used for different purposes, providing alternative
benefits for the host community. Labour is a good example. If local workers are employed in tourism then other
industries such as fruit picking or agriculture may suffer. If there is a shortage of skilled labour, workers may be
imported from other countries, resulting in further leakages from the economy. Capital expenditure on
developing tourism-related establishments precludes spending scarce resources on other types of
development with alternative uses. Inflation can be caused by high levels of expenditure by foreign tourists
which increase the prices of food, transportation, and clothing and as in the case of Queenstown, land values,
Social and Environmental Impacts of Tourism[edit]
A cost-benefit analysis for tourism developments should assess the social and environmental impacts as well
as economic effects. Sustainable development means that tourism is designed to fit with the social and natural
environment and not cause the destination to become less desirable for visitors and permanent residents.
Social and environmental can also have the negative impact, for example, tourist that coloring the tree, destroy
the pathway of the forest and so on

2.4 COMMON HOTEL CLASSIFICATIONS 2.4.1 Commercial Hotels Commercial Hotels cater mainly to
business clients and usually offer room service, coffee-shop, dining room, cocktail lounge, laundry and
valet service as well as access to computers and fax services. 2.4.2 Airport Hotels Airport hotels are
located near airports and are a conveniently located to provide any level of service from just a clean
room to room service and they may provide bus or limousine service to the air lines. 2.4.3 Conference
Centers Conference centers are designed to specifically provide meeting space from groups; they
provide all services and equipment necessary to handle conventions. 2.4.4 Economy Hotels Economy
Hotels provide a limited service and are known for clean rooms at low prices meeting just the basic
needs of travelers. 49 2.4.5 Suite or All-Suite Hotels Suite or All-suite hotels are hotels which offer
spacious layout and design. Business people like the setting which provides space to work and entertain
separate from the bedroom. 2.4.6 Residential Hotels Residential hotels used to be very popular. The
typical residential hotel offers long term accommodations. 2.4.7 Casino Hotels Casino hotels are often
quite luxurious. Their main purpose is in support of the gambling operation. Casino hotels often offer
top name entertainment and excellent restaurants. 2.4.8 Resort Hotels Resort hotels are the planned
destination of guests, usually vacationers. This is because resorts are located at the ocean or in the
mountains away from inner cities. Resort hotels may offer any form of entertainment to keep their
guests happy and busy