The word Travel derived from the French word

‘Travail’

All Tourism involves Travel; but not all Travel

involves Tourism
 CONCEPT OF TOURISM
Tourism is the sum of the phenomena and relationships
arising from the travel and stay of non-residents, in so
far as they do not lead to permanent residence and are
not connected with any earning activity
Hunziker and Krapf (A tourism research professor at University of
St. Gallen, Switzerland)
Definition according to UNWTO
• "Tourism comprises the activities of persons
traveling to and staying in places outside their
usual environment for not more than one
consecutive year for leisure, business and
other purposes."
 Features of Tourism
• Temporary movement of people
• Takes place outside the normal place of
residence and work
• Visit for purposes other than taking up
permanent residence or employment
 Difference between Tourism and
Travel
Tourism is different from travel. But, in order for tourism to happen, there
must be a displacement: an individual has to travel, using any type of means of
transportation But all travel is not tourism.

Three criteria are used simultaneously in order to characterize a trip as

belonging to tourism. The displacement must be such that;
• It involves a displacement outside the usual environment
• Type of purpose: the travel must occur for any purpose different from being
remunerated from within the place visited: the previous limits, where
tourism was restricted to recreation and visiting family and friends are now
expanded to include a vast array of purposes;
• Duration: only a maximal duration is mentioned, not a minimal. Tourism
displacement can be with or without an overnight stay.
Every traveller is a ‘potential’ tourist and is upto the managers of
the industry to tap this ‘potential’ and convert the traveller into
an ‘actual’ tourist. Some of the characteristics that distinguish
tourism from travel are:

Tourism is:
• Temporary, to distinguish it from the permanent travel of the
tramp and nomad
• Voluntary, to distinguish it from the forced travel of the exile
and refugee
• Round up, to distinguish it from the one-way journey of the
migrant
• Relatively long, to distinguish it from the recurrent trips of the
holiday house owner
 Visitor
• A visitor is a traveller taking a trip to a main
destination outside his/her usual
environment, for less than a year, for any main
purpose (business, leisure or other personal
purpose) other than to be employed by a
resident entity in the country or place visited.
 The term includes two types of visitors:
1. Tourist (Overnight visitor) – A visitor (domestic,
inbound or outbound) is classified as a tourist, if
his/her trip includes an overnight stay. The purpose
of whose journey can be classified under one of the
following heads:
a) Leisure (recreation, holiday, health, study, religion
and sport)
b) Business, family, mission, meeting.
2. Excursionist (Same day visitor)—is a temporary
visitor staying for a period of less than 24 hours in
the country visited. (Including travellers on the
cruises).
 Business visitor
• A business visitor is a visitor whose main
purpose for a tourism trip corresponds to the
business and professional category.
 Country of reference
The country of reference refers to the country for which
the measurement is done.
• The term “country” can be transposed to a different
geographical level using the term “place” instead
(either a region, municipality or other subnational
geographic location);
 Country of residence
• The country of residence of a household is
determined according to the centre of
predominant economic interest of its members.

• If a person resides (or intends to reside) for more

than one year in a given country and has there
his/her centre of economic interest (for example,
where the predominant amount of time is
spent), he/she is considered as a resident of this
country.
Forms of tourism / Classification
of tourism
 Domestic tourism
• Comprises the activities of a resident visitor
within the country of reference, either as part
of a domestic tourism trip or part of an
outbound tourism trip.
 Internal tourism
• Internal tourism comprises domestic tourism
plus inbound tourism, that is to say, the
activities of resident and non-resident visitors
within the country of reference as part of
domestic or international tourism trips.
 International tourism
• International tourism comprises inbound
tourism plus outbound tourism, that is to say,
the activities of resident visitors outside the
country of reference, either as part of
domestic or outbound tourism trips and the
activities of non-resident visitors within the
country of reference on inbound tourism trips.
Tourism Regions of the world (by UNWTO)
EAST ASIA
& PACIFIC
MIDDLE
AFRICA EAST

UNWTO
regions

AMERICAS SOUTH
ASIA

EUROPE
 Tourism Industry
• Tourism Industry comprises of many sectors or
sub – industries such as hospitality industry,
transport industry, attractions and
entertainment.
Constituents of Tourism Industry
• (Main) Transport, Accommodations,
Entertainment, Travel agents & Tour
operators, Guides, Tourism Organisations
• (Sub) Shops, emporiums, art & craft, local
transport, banks, media, communication, etc,
 Components of Tourism

• 5 A’s or 6 A’s or 8 A’s

 Tourism Product
• A tourism product can be defined as the sum of the physical
and psychological satisfaction it provides to tourists during
their travelling en route to the destination. The tourist product
focuses on facilities and services designed to meet the needs
of the tourist.
• It can be seen as a composite product, as the sum total of a
country’s tourist attractions, transport, and accommodation
and of entertainment which result in customer satisfaction.
Each of the components of a tourist product is supplied by
individual providers of services like hotel companies, airlines,
travel agencies, etc.
• The tourist product can be analysed in terms of Components.
CHARACTERISTICS OF TOURISM PRODUCT
1) Intangible
2) Psychological
3) Highly Perishable
4) Composite Product
5) Unstable Demand
6) Fixed supply in the short run
7) Absence of ownership
8) Heterogeneous
9) Risky
10) Marketable
 Six Categories of Tourism
• VFR
• 1. Ethnic Tourism
• SIT
• 2. Cultural Tourism • Health / medical
• Sports
• 3. Historical Tourism
• Religious
• 4. Environmental • Space
Tourism • Adventure
• 5. Recreational • Rural
Tourism

• 6. Business Tourism /
MICE
 The tourism system
Leiper Model

Departing travellers

Traveller Tourist
Generating Transit route Region Destination
Region Region

Returning travellers
 Overview
of
Attractions
Disciplinary
inputs to the
tourism field
Characteristics of the Hospitality and
Tourism Industry
 According to World
Travel and Tourism Tourism
Council: Industry

Employer of 7.8 5.5 million new

24/h, 7 days/w,
Percent of the Jobs per year
52 weeks/year
Global workforce Until 2010

10.6 percent
Of
World GDP
Integrated Model
EXTERNAL
Of Tourism ENVIRONMENT

TOURISM
SERVICES
Society & SUPPLIERS Economy
Culture

TOURISM Accomo-
Destinations PROMOTERS dations
Travel
Tour
Agents
Operators
TRAVELERS

Meeting
Tourist Planners
Boards Food &
Attractions/ Direct Beverag
Entertainment Marketing e Environ-
Politics ment

Transportation

Technology
 Tourism system

Demand side of tourism

 Population

Supply side of tourism

 Transportation
 Attractions & resources
 Services
 Information (promotion & interpretation)
 Travel and Tourism ---
World’s Largest Industry

• In 2001 it is estimated to account for some:

•$3.5 trillion of Economic Activity
•207 million jobs
• In 2011 it accounted for :
•$7.0 trillion of Economic Activity
•260 million jobs
Share of world: % of Total
(2000)
GDP 11.0

Employment 8.0

Exports 7.9

Capital Investment 9.4

A powerful engine for generating jobs and wealth

 403.3
Millions

129.0
111.9

27.6 20.6 6.4

Africa Americas EAP Europe Middle South Asia
East
 South Asia M iddle East
1% 3%
Slice 7
Africa 0%
4%

Americas
18%
Europe
58%

EAP
16%

Source: World Tourism Organization (WTO)

 South Asia M iddle East
1% 2%
Slice 7
Africa
0%
2%

Europe
49%
Americas
29%

EAP
17%

Source: World Tourism Organization (WTO)

Average Receipts Per Arrival 2000

1200

1000

800

600
US $

400

200

0
World Africa Americas EAP Europe Middle East South Asia

Source: World Tourism Organization (WTO)

Average Length of Stay in the Country

Country Days

India 31.2
Canada 5.22
Brazil 13.00
France 7.31
Hong Kong/China 3.38
Japan 8.80
Malaysia 5.50
Singapore(1997) 2.60
Spain 12.9
Thailand 8.4
World’s Top 10 Tourism Earners
Intl. Tourism Receipts (US $
billion) 2001
1. United States 72.3
2. Spain 32.9
3. France 29.6
4. Italy 25.9
5. China 17.8
6. Germany 17.2
7. United Kingdom 15.9
8. Austria 12.0
9. Canada 10.7 (2000)
10. Greece 9.2 (2000)
 Benefits of Tourism - Economic
• Provides employment • Can be developed with
opportunities local products and
resources
• Generates foreign
exchange • Diversifies the
economy
• Increases Incomes
• Tends to be compatible
• Increases GNP with other economic
• Can be built on activities
existing infrastructure • Spreads development
• Develops an • High multiplier impact
infrastructure that will
also help stimulate • Increases
local commerce and governmental
industry revenues
 Benefits of Tourism - Social

• Broadens educational and cultural horizons

• Improves quality of life - higher incomes and
improved standards of living
• Justifies environmental protection and
improvement
• Provides tourist and recreational facilities
that may be used by a local population
 Benefits of Tourism - Cultural
• Reinforces preservation of heritage and tradition
• Visitor interest in local culture provides
employment for artists, musicians and other
performing artists enhancing cultural heritage
• Breaks down language barriers, socio-cultural
barriers, class barriers, racial barriers, political
barriers, and religious barriers
• Creates a favorable worldwide image for a
destination
• Promotes a global community
• Promotes international understanding and peace
Disadvantages of Tourism - Economic

• Develops excess demand

• Results in high leakage
• Creates difficulties of seasonality
• Causes inflation
• Can result in unbalanced economic
development
• Increases vulnerability to economic and
political changes
 Disadvantages of Tourism - Social
• Creates social problems
• Degrades the natural physical environment and
creates pollution
• Degrades the cultural environment
• Threatens family structure
• Commercializes culture, religion, and the arts
• Creates misunderstanding
• Creates conflicts in the host society
• Contributes to disease, economic fluctuation, and
transportation problems
 Steps for
Marketing & Promotion

1. Identify tourism product

2. Identify visitor market groups
3. Determine market position
4. Write market statement
5. Identify & implement suitable promotion &
interpretation strategies
 Step 1. Identifying the tourism product

 Conduct an inventory
 Attractions
 Resources
 Services
 Facilities & infrastructure

 What is unique about the product?

 How is the product different from that of

competitors?
Step 2. Identifying visitor markets (segments)

1. What are the demographics of visitors?

 Group composition
 Origin (location of residence)
 Age
 Gender
 Education level
 Income level
Step 2. Identifying visitor markets (segments)

2. What are the interests and needs of visitors?

 demographics
 visitor/resident input
 observations l Group composition
l Origin (location of residence)
l Age
l Gender
l Education level
l Income level
l Visitor interests
l Visitor needs
Step 2. Identifying visitor markets (segments)

 How is each market segment anticipated to

change in the future?
 Existing
 Growth

 Potential
 Step 3. Market position

A brief paragraph that states how your area or

community is situated with regard to visitor
market groups, travel routes, competing
tourism destinations, attractions, & resources.
 Step 4. Market statement

A short statement or slogan which

summarizes the market position.
 Step 5. Types of promotion

 Tourism guidebooks
 Videos

 FAM (familiarization) tours

 Motorcoach tours

 Trade show exhibits

 Media press releases (e.g., newspapers, radio)

 Advertisements in magazines, other guides, etc…

 Web sites

 Word-of-mouth advertising
 Promotion & the five phases of the tourism
experience

 Anticipation & planning

 Traveling to site

 Activities at site

 Traveling to home

 Recollection
India - “ A Civilization Alive”

Heritage Site

Cultural Attractions

Beaches / Benchmarks

Health And Wellness - Yoga & Ayurveda

Shopping

Indian Cuisine

New Experience - Meditation, Naturopathy

India - Business Opportunity
5th largest Economy (PPP) High Growth - 250 Middle Class

Huge Outbound Market - Growth

Huge Infrastructure Investment Opportunities

100% FDI Permitted

Investment Facilitation System

Union Government

State Government
Single Window System
World Travel & Tourism
- The Future
 Formula to Calculate Number
of Hotel Rooms Required
R =TxPxL
SxN
where
T = number of tourists Example
P = percentage staying in hotels
N = total number of guest T = 1,560,000 visitors
nights/number of P = 98%
guests L = 9 days
N = 1.69
R = room demand per
0 = 70 %
nights/number S = 365 days
O = hotel occupancy used for  R = 1,560,000 x .98 x 9
estimating; 365 x 1.69
divide number of rooms
needed at 100% R = 22,306 (rooms needed
occupancy by estimated at 100% occupancy)
occupancy at 70 % occupancy need
R = 22,306/.70 = 31,866
S = number of days per year rooms
in business
L = average length of stay
Assignment Topics
 Tourism administration in India
 Growth of travel through ages