Introduction To Travel and Tourism

Introduction to Travel and Tourism 2006E.C.
CHAPTER ONE
CONCEPT OF TRAVEL AND TOURISM
1.1. Meaning & Nature of Tourism
Meaning of Tourism
Before we go to define tourism, it is necessary to differentiate among what is meant by leisure,

recreation & tourism.
Leisure: It is most often regarded as the measure of time; the time remaining after work, sleep &
essential house hold or personal chores have been completed. It is the time available for doing as
one chooses or ‘discretionary time’. It is the time that people use to do the things they want to do
rather than the things they have to do. For most People, leisure time includes evenings,
weekends and vacations. People need leisure time in order to add pleasure to their lives and to
refresh their minds and bodies.
Leisure can be thought of as a combined measure of time and attitude of mind to create periods
of time when other obligations are at a minimum.
The increase in the amount of leisure time available is due to a number of factors:-
1. Working hours have been reduced.
2. Now, there is provision of holiday with pay.
3. Life expectancy has increased.
4. Technological developments like washing machines, dishwashers, computers, telephone

internet and automobiles are widely used.
Recreation: It is the wide variety of activity undertaken during leisure time. These activities
may be participatory (like playing sports, sightseeing, hobbies & pastimes) and non
participatory (like watching sports, listening to radio, watching TV, home entertainment and
public entertainment).
Aksum University | Tourism Mgt 1

There is no one universally accepted definition of tourism because of its dynamic aspect and its
multidimensional/multidisciplinary interaction with other activities.
There are 4 different perspectives of tourism.
A. the tourist: seeks different psychic and physical experiences and satisfactions. This largely
determines the destinations chosen and the activities enjoyed.
B. the business providing tourist goods and services
C. the government of the host community/area/: perspectives of the government as a wealth

factor in the economy. E.g. tax
D. the host community: the perspective of tourism by locals as cultural and employment factor.
E.g. The effect of the interaction between tourists and locals. This effect might be beneficial,
harmful/both.
According to the above four perspectives tourism may be defined as “the sum of the
phenomenon and relationships arising from the interaction of tourists business suppliers host
governments and host communities in the process of attracting and hosting these tourists and
other visitors.”(Mc Intosh et.all -1995)-“
Herman V. Scholar, an Austrian Economist, in the year 1910 gave one of the earliest definitions
of tourism. He defined it as” the sum total of the operators mainly of an economic nature, which
directly relates to the entry, stay and movement of foreigners inside and outside a certain
country, city or region.
Professors Hunziker and Krampf (1942) - “Tourism is the totality of the relationship and
phenomena arising from the travel and stay of strangers provided the stay does not imply the
establishment of a permanent residence and is not connected with a remunerated activity”. The
Tourism society in Britain (1976) defined tourism as follows: “Tourism is the temporary short
term movement of people to destinations outside the places where they normally live and work
and their activities during the stay at these destinations”.

Mathieson & Wall in 1982 defined tourism as: “Tourism is the temporary movement to
destinations outside the normal home and work place, the activities undertaken during the stay
and the facilities created to cater to the needs of the tourist”.
Jafari (1997)-“Tourism is the study of man away from his usual habitat, of the industry which
responds to his need and of the impacts that both he and the industry have on the host socio-
cultural, economic and physical environment”.
According to WTO and approved by UN in 1993,”Tourism is the activity of persons traveling

to and staying in places outside their usual environment for not more than one consecutive year
for leisure, business, or any other purpose”.
From the above definitions, one may deduce the following distinct elements of tourism;
1. Involvement of travel by non residents
2. Stay of temporary nature in the area visited, and
3. Stay not connected with ay remunerated activity or an activity involving earnings.
Generally, tourism is regarded as an extreme form of recreation, involving longer time periods,
traveling long distances and often staying overnights. Tourism, as distinct from other forms of
leisure pursuits, requires blocks of time in order to make the journey & stay worthwhile. Tourism
also calls for more money than most other forms of recreation because of the cost of travel,
accommodation, meals & souvenirs.
Tourism represents a particular use of leisure time and a particular form of recreation, but it
does not include neither all use of leisure time nor all forms of recreation. It includes much travel
but not all travel. Putting it differently, all tourism involves travel but all travel is not tourism.
Tourism is one of a range of choices or styles of recreation expressed either through travel or a
temporary short term change of residence. Conceptually, tourism is therefore distinguished in
particular from related concepts of leisure and recreation on the one hand and from travel and
migration on the other.

Nature of Tourism
It is clear from the above definitions that conceptually tourism is dominated by phenomenon
involving dynamic elements, like the movement to various places and some static ones like their
stay in those places. Tourism is generally considered as an industry, an activity, an experience,
an art, a science, a dream machine, a system e.t.c.
Thus, tourism embraces the incidence of a mobile population of travelers, who are strange to the
place they visit and are a distinct element from the resident and working population. Most
importantly, tourism implies the temporary movement of people with an intention to return a few
days, weeks or months. As such, tourism is distinct from migration, which involves the long term
movement of people. Thus, tourism is essentially a pleasure activity in which money earned in
the place of normal residence is spent in the place visited.
Basic characteristics of the tourism industry
 Dominated by private sector enterprises
 Dynamic and entrepreneurial
 Many small and medium sized enterprises
 Serves domestic and international markets
 Thrives on face to face communication
 Makes extensive use of new technology
 Rudimentary management structure
 Vulnerable to external pressures
 Have positive and negative impacts.

1.2. Definition of Traveler, Visitor, Tourist and Excursionist

Travel - the action and activities of people taking trips to place/places outside of their home
communities for any purpose.
-It is a broad term which refers to the movement of people from one point to another.
Traveler - any person on a trip between two or more countries or between two or more localities
within his/ her countries.
Visitor- a person who travels to a country other than that in which he has his usual residence but
outside to the usual environment for a period not exceeding 12 months and whose main purpose
of visit is other than the exercise of an activity remunerated from within the place visited.
Visitors are classified in to two:
A. Same day visitors (excursionists/special tourists/day trippers) - don’t spend at least one
night. They are temporary visitors staying less than 24 hours in the place visited.
B .Tourist- stay for at least one night in the place or country visited. They are temporary visitors
staying at least 24 hours in the place visited.
International visitor
An international visitor is anyone who visits a country that is not his usual place of residence. It
includes (overnight visitor) tourist and (same day visitor) excursionist. The people on holiday,
visiting friends and relatives (VFR), business trip, conference, pilgrimage educational, for
international events-all fall under this definition.
The only people who do not come in this preview are people who get some salary or payments in
the visited; commuters, immigrants, refuges, military men and diplomats.
Domestic visitor
The WTO (1983) recommends the following definition of domestic visitors: The term domestic
visitor describes any person who travels to a place in the same country for not more than one
year and whose purpose of visit is other than following an occupation remunerated from within
the place visited. This definition covers domestic tourists, where an overnight stay is involved
and domestic excursionists where the stay is less than 24 hours.

Definition of Tourist
The raison d’être of the industry is the tourist, so all development and planning must be predicted
on the understanding of who this person is if it is to succeed. The term ‘tourist’ is derived from
the word ‘tour’, meaning according to Webster’s dictionary:
“A journey at which one returns to the starting point; a circular trip usually for Business,
pleasure or education during which various places are visited and for which an itinerary is
usually planned.”
League of Nations in 1937 defined ‘tourist’ in the following way:
“A Tourist is any person visiting a country other than in which he usually resides for a period of
at least 24 hours.”
“Temporary visitor staying at least 24 hours in the country visited and the purpose of his /her
journey can be for leisure, business or VFR (visiting friends and relatives).
Foreign Tourist
League of Nations in the year 1937 gave the definition of foreign tourist as: “Any person visiting
a country, other than that in which he resides, for a period of at least 24 hours.”
Domestic Tourist
It refers to any person traveling within the country where he resides to a place other than his
usual place of residence for at least 24 hours or one night for different purposes.
Regulatory frame work
Influence on demand tourist demand travel supply tourism impacts
Tourism intermediaries
Fig; Model of tourist activity
1.3 Purpose of Travel & Tourism
Although tourism is imagined as only concerned with travel for holidays, it is far from reality.
Based on statistical and analytical purposes, tourism is categorized as leisure tourism, business
tourism and visiting friends and relatives (VFRs).

Leisure tourism is the most common type of tourist activity encompassing holidays and short
breaks for a variety of motives. Discretionary travel undertaken with the intent of satisfying one
or more leisure related things.
Business tourism generally accounts for relatively small proportion of a country’s share of all
tourism activities; its economic importance is often greater than comparable leisure tourism.
Revenue from business tourism is threefold of leisure tourism. It spreads the benefits of tourism
to areas not normally associated with tourist activity. It is best complimentary for leisure tourism
during week days.
VFR is significant, but is often overlooked category of tourism in many developed and
developing nations.
Leisure tourism Business tourism
-Concerned with pleasure and leisure -primarily concerned with business activities
-Takes place in free or leisure time -takes place in working time
-Travelers choose their destination -companies choose
-More flexible in schedule -less flexible
-High price elastic -price inelastic
-More seasonal -less seasonal
Domestic and international tourism
Leisure tourism (discretionary travel) VFRs Business tourism
 Holidays - conferences
 Health and fitness -business meeting
 Sport -exhibitions

 Religion -trade fairs
 Education - training event
 culture -incentive travel
FIG: Classification of tourism and travel based on purpose of travel.
1.4. The Tourism System

The tourism system is an organizing framework of tourism industry dealing with the linkage of
tourism components. The system is suggested by Leiper in 1979 and updated in 1990. There are
3 basic elements of Leiper’s model.
1. Tourists: The tourist is the actor in this system. Tourism, after all, is a human experience
enjoyed, anticipated, and remembered by many as a very important aspect of their lives.
2. Geographical elements:
Leiper outlines 3 geographical elements in his model.
a. Traveler generating region
b. Tourist destination region
c. Transit route
 Traveler generating region: it represents the generating market for tourism, and in a
sense provides the ‘push’ to stimulate and motivate travel. It is here that the tourist searches for
information, makes the booking, and makes the departure.
 Tourist destination region: in many aspects, the tourist destination region represents the
‘sharp end’ of tourism. At the destination the full impact of tourism felt and planning and
management strategies are implemented. ‘The pull to visit’ destinations energizes the whole
tourism system and creates demand for travel in the generating region. It is therefore at the
destination where the most noticeable and dramatic consequences of the system occur.
 The transit route region: it represents not only the short period of travel to reach the
destination; but also the intermediate places, which may be visited enroute. There is always an
interval in a trip when the travelers feel they have left their home region but have not yet.

3. Tourism industry: It is the place where range of businesses and organizations are involved in
delivering the tourism product. The model allows the location of the various industrial sectors to
be identified. For example, travel agents and tour operators are predominantly found in the
traveler generating region, attractions and hospitality industry are found in the destination region,
while the transport industries are located in the transit route region.
1.5 Forms /types of Tourism
Forms of Tourism
Basically, there are three forms of tourism. In relation to a given country (say Ethiopia), the
following forms of tourism can be distinguished :( according to UN)
1. Domestic tourism: It involves residents of Ethiopia traveling only within their country. E.g.
From Gondar to Bahir Dar, or from Addis Ababa to Axum.
2. Inbound tourism: It involves non residents (e.g. Indians, Italians, Germans, British) traveling
in Ethiopia
3. Outbound tourism: It involves Ethiopians (residents) traveling in another country.
E.g. Ethiopians travelling in Japan
These three forms of tourism are combined in many ways and derive the categories of tourism.
The three principal categories of tourism are:
1. International tourism: It consists of inbound tourism and outbound tourism in Ethiopia.
2. National tourism: it consists of domestic tourism and outbound tourism in Ethiopia.
3. Internal tourism: It comprises of domestic and inbound tourism in Ethiopia.
DT
INTERNAL NATIONAL TOURISM
TOURISM IT OT
INTERNATIONAL TOURISM Fig: forms and categories of tourism

Types of Tourism
Tourism attractions determine different types of tourism. On the basis of the purpose, tourism
can be classified as:
 Pleasure Tourism: This is concerned with leisure and rest and to recover physical and
mental stamina and to re-energize. It includes holiday for change, to take rest, to witness folk
dance, songs or to test different cuisines. Pleasure is when you drive happiness or joy after doing
something.
 Cultural Tourism: This is concerned with learning habits, language and customs of the
people in the foreign lands, visiting places rich in historical monuments, ancient civilization or
paying visit to art galleries, museums or to participate in music, art, dance and festivals.
 Sports Tourism: These are two types (1).visiting places to witness sports like Olympics
or world cup foot ball or winter sports, mountain climbing, hunting, fishing etc. (2) Participating
in such sports.
 Conference Tourism: traveling to participate in trade fair, conference, meetings and
exhibitions.
 Social Tourism: It is practiced by masses and rendered possibly by the help of third
party or governments or association by means of holiday with pay and other measures.
 Water Based Tourism: The tourism based on water based activities is called as water
based tourism, such as diving, rafting, sailing, snorkeling, swimming, etc. This type of tourism is
also based on water transportation. E.g. Cruise tourism, Yachting tourism, River tourism.
 Nature Based Tourism: This type of tourism is based on nature related activities. E.g.
Eco tourism, Wild life tourism.
 Adventure Tourism: Here risk, danger, and spirit of adventure are involved. E.g. White
water rafting, Mountain biking, etc
 Mass Tourism: Mass tourism could only have developed with the improvements in
technology, allowing the transport of large numbers of people in a short space of time to places
of leisure interest, so that greater numbers of people could begin to enjoy the benefits of leisure
time.
 Adjectival Tourism: Adjectival tourism refers to the numerous niche or specialty travel
forms of tourism that have emerged over the years, each with its own adjective. Many of these

have come into common use by the tourism industry and academics. Others are emerging
concepts that may or may not gain popular usage. Examples of the more common niche tourism
markets include:
Agri tourism, Culinary tourism, Ecotourism, Medical tourism, Space tourism, War tourism,
Wildlife tourism and others.
 Ethnic Tourism: signifies the tourists’ interests in the customs of the indigenous and
exotic peoples. It involves intimate contacts with the “authentic”-traditional or original-
indigenous culture. The tourists visits the homes of the local people, observes and participates in
their festivals, dances, rituals and other forms of cultural expressions. Tourists’ direct contact
with the local people (first- hand experience with the way of life and cultural artifacts) is very
vital which differentiates it from that of cultural tourism.
 Special interest Tourism: this type of tourism is an optional activity because it is related
to professionals who have the same skill and work. E.g. going to Jerusalem, Mecca.
 Religious Tourism: it is for the purpose of religion. It is also called pilgrimage tourism.
 Historical Tourism: assesses the glories of the past.
 Indigenous Tourism: is a type of tourism conducted to experience indigenous people.
 Soft tourism: a type of tourism that leads to mutual understanding between tourists and
the host community and minimizes negative impacts.
 Rural tourism: tourism involving country side destinations.
1.6. Definitions of some technical terms

Crew-the people who work on a ship, aircraft
Cruise- a journey on a ship for pleasure, especially one that involves visiting a series of places
Folk- folk art, traditions, stories, etc developed by people in a particular region and have become
traditional there.
Rafting- the activity of travelling on a river in a small boat.
Snorkeling- to swim under water using snorkel (a piece of equipment with a tube that fits in
your mouth so that you can breathe while swimming under water.)
Amusement park- a place where people pay money to go on rides/large machines that you ride
on for pleasure and play games to win prizes

Theme park- a large park where people pay to play games and have fun and where all the
entertainment is designed according to one theme
Zoo- a large place where many types of wild animals are kept so that people can see them
Game reserve- a large area of land where wild animals live safely or are hunted in a controlled
way for sport
Youth hostels- Youth hostel means a building that offers clean, moderate, inexpensive shelter to
young people exploring their own country or other country and traveling independently or in
groups for holiday or educational purposes.
Motels – hotels located along the major highways and offers overnight stay for the local motorist
and foreigner traveling by the road. Services provided are parking and garage, accommodation,
restaurant, and some recreational facilities, etc.
Itinerary-is a planned route for a trip.
Trip - a return journey

CHAPTER TWO
HISTORICAL DEVELOPMENT OF TOURISM
The study of tourism would not be complete without a historical perspective. Review of the
history of travel and tourism is important to provide background on tourisms roots to indicate
lessons and relationships that still exist today and to predict the future. People have always
traveled-for different reasons- but tourism as we know it today, as a phenomenon where people
spend their free time and money to travel, ‘explore’ and get to know the world, is only since a
few decades possible for a large groups of people. Most travel was either reserved for the well-
to-do, or simply a means of transportation. The origins of tourism can however traced back to
pre-Egyptian times, when there was a limited amount of travel associated with festivals and
celebrations of religious or spiritual nature. Over times the opportunities for travel has increased
changing its picture from one individual travel to mass tourism.
2.1. Travel in ancient times
Travel in Prehistoric Period
Early humans led hard lives. The main task of man from 32,000 to 10,000 BC was to find food,
water and shelter and in order to do this; one has constantly to be on the move. People traveled
all the time- did not have a fixed place to stay, since they were hunters and gatherers, in search of
food. Their first foot trails later became roads Movement across the land was a dangerous
adventure, which require caution and skill- prehistoric humans had to be on the look-out for
dangerous predators and other competitive tribes. The discovery and control of fire, the use of
tools and the ability to build shelters broadened the travel possibilities. Fire and shelter provided
warmth and safety in different environments and the use of tools made hunting easier. Although
traveling was rigorous and often unsafe, it did not prevent man all over the world. Today humans
occupy all types of land. The only other mammals that have been able to do the same are mice,
bats and rats.
Travel in Neolithic Times
Around 10,000 BC, primitive people started to settle in more permanent areas and formed
agricultural communities. People developed ways to store food, to be consumed at a later date,
and migration was no longer necessary. In this period several innovations were made which
changed the nature of travel.

Around 4,000 BC, sailing ships were built in ancient Egypt and animals (e.g. donkeys, camels)
were domesticated and trained to carry supplies.
Another big development was the invention of the wheel, by the Sumerians around 3,500 BC.
This was also an important landmark which made movement of people to distant lands possible
and reduced the burdens of travel as also distance. At first, oxen were used to pull the two- and
four- wheel carts, but later stronger and quicker horses did the job.
These various developments made it possible to move and transport materials, people, and
military forces and made travel-possibilities larger. One could now travel hundreds of miles,
instead of just a few.
Most early travel in this period was associated with trade and exchange of goods .communities
were able to maintain reliable sources of food and water and this security made the exchange of
surplus food, artifacts, tools and weapons amongst neighboring cultures an interesting option.
This was also the period that means of payments were developed, like jewelry, knives and
eventually coins. These first coins (+/-680 BC) were round in shape and had official imprints on
them, stamped by the issuing government, just like today. Early travel was on foot/on horseback,
but travel by small boat and canoe provided access to the interior of countries.
One traveled mostly for reasons of trade, but also travel for religious and spiritual purposes
came to see the light. While earlier hunters and gatherers traveled to survive, the people of
primitive agricultural communities were able to attend spiritual events and festivals. Members of
the community traveled to shrines, burial grounds and sacred locations.
Travel during the Ancient Civilizations
The civilizations of great powers, long duration and extensive territories were known for their
sophisticated levels of commerce. And as commerce grew, more people become rich and travel
for pleasure become possible for certain groups of people. The societies of Greece, Egypt and
Rome were very powerful and openly encourage travel for pleasure. Travel even contributed to
the success of each of these great empires.
First of all, specializations of labor contributed to the growth of trade and travel. As
communities grew in size, the tasks of the population become more specialized and skilled.
Craftsmanship also meant the division of skills- people needed to exchange goods to service: a
craftsman producing pottery would not have the time to plant and harvest crops for food.
Therefore barter and trade become necessary and this required travel.

The oceans and seas provided major routes of travel- there was a great deal of travelling on the
Mediterranean Sea for example, but also in the Far East, amongst countries like Japan and China.
Also the development of roads made it possible for armies to be transferred, for goods to be
exchanged and messages to be sent over vast distances. The earliest foot- trails become the basis
for extensive road- systems. Specifically the Romans were great road builders. The road systems
enabled quick and effective military movement and this kept the big Roman Empire so powerful
for long period of time. Based on the history and quality of these road systems, we know that
travel was an important part of commerce, government and cultural exchange during the Roman
Empire.
Along the roads there were inns, providing accommodation, food and drinks, stables for animals
and even road maps. The ‘tourist infrastructure’, as we would call it today, was excellent. The
inns even had signposts, indicating what amenities they offered: a square within a square for
example, signified a first class in. We use the same kind of photographs today to indicate the
level of service of a venue.
While military and commercial goals were the main reason for travel, the rich and powerful
people of ancient civilizations also started to travel for pleasure. They had the time to do this,
and they were interests tin having a good time and discovering beautiful places. Another
illustration of the pleasure- seeking Romans is the famous circus games in the colloseum in the
capital city of Rome. These blood- thirsty, sensational events were accessible for rich and poor
alike. From all over the empire, visitors come to see these games and even the wild
animals( lions, elephants, ostriches) and slaves, gladiators and prisoners who were made to
perform and fight each other in the cruel games were transported from far away territories.
The following includes the 7 wonders of ancient world:
 The great pyramid of Egypt-Egypt
 The hanging gardens of Babylon-Babylon(present Iraq)
 The tomb of mausolus at Halicarnassus-present turkey
 The statue of zues -Greece
 The colossus of Rhodes-Greece
 The great light house-Egypt
 The temple of Artemis(temple of Diana)-present turkey

From the wonders of the ancient world, the great pyramid of Egypt is the sole remaining
wonder.
2.2-Travel in the medieval times
The fall of Roman Empire around 400-500 A.D. caused travel - for either trade or pleasure
purposes- to be almost diminished. In middle ages – the dark ages- travel was downright
dangerous. The safety, comforts and services needed for travel were no longer there. There were
banditry on roads, wars were going on and there were going on and there were no
accommodation facilities for regular travelers. Only limited travel for trade and military reasons
remained. The common person spent most of his time working the land in the service of feudal
land owners.
The Roman Catholic Church becomes an important and powerful force in Europe during the
middle ages. The church provided safety and comfort for people in a dangerous world at war and
Catholicism gradually replaced the pagan religions and rituals that still existed. There were still
‘holy days’, but were very solemn and sober. A person’s time was to be spent in a serious
manner, in religious reminiscence of heavenly reward and not in worldly pleasure. The only
major travel activities of this period were the crusades and pilgrimages.
The crusades consisted of a number of military expeditions between 1095and 1291, during which
the Christian church attempted to regain land from the Muslim. Military speaking, the crusades
were not so successful, but it did give large numbers of people: young and old, wealthy and poor,
a chance to travel and experience life beyond the walls of their own town or city.
Pilgrimage-voyages were made for a variety of reasons. Some individuals travelled to religious
places for the forgiveness of their sins, others wished to receive a divine cure for their health
problems. Religion was the main purpose, but adventure, learning and entertainment were also
very much enjoyed. Travel mostly took place on foot or on horseback. People usually travelled
in groups, to be faster against thieves and muggers, and also for comfort and enjoyment.

In the well known ‘Canterbury Tales’, Chaucer describes the atmosphere of a group of pilgrims
on their way to Canterbury. Many services were developed to cater to the needs of the pilgrims.
Inns provided accommodation, food and drinks, even a ‘souvenir-industry’ was developed and
games were organized. Religious artifacts and tourist guide books were sold and there were also
guides available to assist the traveler in understanding the major sacred attractions. By the 13 th
and 14th century, pilgrimage was a mass phenomenon and ‘big businesses for some. Probably the
first ‘package tour’ was an all inclusive tour from Venice to the Holy Land and costs included:
passage, meal, wine, accommodation, donkey rides and bribe money ‘to prevent confiscation of
baggage, delays over red tap or mischief from the camel drivers’.
Eventually, the religious nature of travel becomes less important and people become more
interested in education, the arts and other cultures. Marco Polo made his explorations Asia and
his book was the west’s main source of information about life in the orient. After Marco Polo,
other explorers were inspired to discover more of the world, like Christopher Columbus, who
travelled to the west and ‘found’ America.
Travel in the Renaissance
The Renaissance was a time of enlightenment, change and exploration, which lasted from the
14th to the 17th century. One had great admiration for the way the ancient civilizations had
efficiently organized their societies in the past. The grand Tour of Europe was one of the
manifestations of Upper class travel during this period and can be considered as the beginning of
modern tourism.
At first, the grand Tour was mainly an individual educational experience for the sons of the
English aristocracy- it started in England and had the major cultural cites of Italy as its ultimate
destination. Culture, health, pleasure, career development and art were the main motivations for
travelling. In the early days, the British crown highly valued the Grand Tour and often even paid
for part of it, especially when it concerned future diplomats.
The tour could last as long as 3-4 years; for example: the young traveler could spend a whole
year studying a new language or particular type of literature.
To observe and appreciate natural scenery-mountains, forests, the oceans- for the first time
become an important travel motivation in the late 1700s.

These years of admiring the beauty and splendor of nature, mainly encouraged and
communicated by writers, artists and philosophers, become known as the Romantic Period. In
the past, nature had mainly been experienced as dangerous: for example, to cross the Alps
mountain range was a difficult and fearful undertaking one did not look forward to very much.
By 1800, the Grand Tour had changed considerably: it was no longer exclusively made by
members of the upper class, but also by the middle classes. The lasted approximately 4 months
and pleasure reasons gradually become more important than the educational motives.
Cities along the tour were becoming known for their excellent hotels and services, there were
taverns and inns, offering food and drinks in the rural areas, and there were many servants and
porters available for hire, to assist the ‘tourists’.
Transportation was still not easy. One travelled on foot, horseback, by coach or by boat. Poor
roads and crossing mountains demanded a lot from the traveler and villains and thieves posed a
constant threat. The steam boat and rail roads were still to be invented…
Travel in the Industrial Age
During the industrial age, many countries shifted from being a rural agricultural society to
becoming an urban industrial society. The structure of employment and affluence also changed
and eventually, more and more people were able to travel for health- and pleasure purposes. In
Europe and United states, initially the wealthy travelled to spas, to experience the curative effects
of hot mineral springs. Over time, spas expanded their facilities and become less exclusive and
more accessible to the common traveler. And health reasons gradually become less important:
most people come to entertain themselves and to meet new people.
The most important travel developments during the industrial age were no doubt in the area of
transportation.
The expansion of the coach system was, besides developing the postal service, also very much a
response to the demands of tourism and business travel. By 1770, nearly all cities in England
were connected by coach service, roads had been fairly well developed and there were many
inns, where travellers could eat and rest.
More pleasurable than travelling by coach was to travel by water. Transportation via the oceans
and seas by ship-first sailing ships, later steamships-become well developed in terms of
technology, safety, speed and convenience.

Several European countries were developing trade routes and colonizing land and many people
migrated to new continents in this period: to Africa, North and South America and Asia.
By 1820, there was a regular ferry service across the English cannel and even before that, steam
boats extensively travelled on the rivers of Europe and America. Many rivers were actually the
‘high ways’ of the 18th century.
Ship travel was a necessity to the expanding European powers, which needed to be in touch with
their colonies.
Also during this period, the development of the steam engine made rail roads the symbol of
mass travel by land. In a relative short period of time, many cities in Europe and the United
states were connected by rail and trains become a quick and comfortable means of travel. Many
middle- class citizens in Europe flocked to the sea side resorts by train and as a result of this,
hotels, restaurants, shops and other tourist attractions settled themselves.
Thomas Cook was the first to develop the inclusive group tour, in England. Others had used the
concept before: combining tourist attractions, travel, accommodation and meals- but Cook was
the first to make it into a true business venture that appealed to the public. In 1845 he began
arranging tours as a commercial business, taking school children, women, couples and common
people to places they had not been able to visit before. Cook realized that transportation
companies and accommodations also needed to fill their seats and beds and he negotiated prices
with the owners. He also distributed flyers to advertise his tours. He understood the travel
possibilities of his time: he also saw the need and desire for travel and simply combined supply
and demand. Cook also handled all the matters relating to the tours, such as tickets, time tables,
currency exchange and even published travel guides.
The average ‘guided Cook tour’ was led by Cook himself, or by his son (John Mason Cook) and
by doing this, he developed strong loyalties with his customers. Cook was a true ‘marketer’ as
we would call him today.
The railroads, large safe ships and Cook’s package tours gave millions of middle class people an
opportunity to travel. A world was now open to the middle class that was once only accessible to
the very rich. But tourism requires more than money- it also requires time. And time has always
been scarce for the working class. Only in the 20 th century did free time become a civil right as a
result of the democratic, political developments of those days.

The industrial revolution brought about major changes in the scale and type of tourism
development. The increase in productivity, regular employment, and growing urbanization gave
more people the motivation and opportunity to go on holiday.
2.3- Travel in modern times
A series of important technological, political and social events during the first 50 years of the
20th century finally made tourism a major worldwide business. During the two world wars, travel
was understandably limited, but the desire to travel did seem to increase. Following each of the
two wars, people were anxious to travel. First, mainly by ship and train, later also by automobile
and airplane. Both become reliable means of travel for large groups of people.
The automobile revolutionized travel and tourism across the world. As early as 1903, an
automobile crossed the United States in 52 days and it becomes a landmark reflecting freedom of
choice for the individual traveler. Distance was no longer a huge obstacle for travellers. More
automobile use after the world wars generated the need for more and better roads and
accommodations. Local and national, governments began to expand and improve the quality of
road systems. Holiday camps came to see the light, providing reasonably priced accommodation
and entertainment. These camps were the forerunners of the motels and all inclusive resorts.
Airplanes were at first mainly used during the wars and for limited business travel. Especially in
the United States, air travel becomes a serious means of travel for both citizens and the military.
In only a few decades, the aircraft industry developed very extensively and many types of
airplanes were developed- amongst which the modern ‘jet’- and airline- companies started their
businesses.
Air travel blossomed after the Second World War. Planes become more comfortable and were
fitted with tables, chairs, sleeping berths and food service.
In the 20th century, partly due to the further development of democracy and civil rights for all,
companies and industries granted holidays for their employees. More free time become available
for the masses to travel, relax and be away from work. Throughout the history of Tourism, it has
been the case that the rich were first able to travel, the middle class second and the working class
last. The public only began to travel when paid vacations and holidays become available for all
classes of workers. In late 1800s, a laborer could work as many as 70 hours per week. The 40-
hour work week was not established until 1938.

Mass tourism was generated by another event; the boom of prosperity following World War II.
In the 70s and 80s, tourism grew like never before and it has become an incredibly big business
for many countries.
It is also a vulnerable business however; the oil crisis of the late 70s has affected the volume of
tourism greatly and also economic recessions of later date and acts of terrorism have an
immediate effect on tourism and the many economic areas it involves. This is why in many
countries; the government is actively involved in the development and promotion of tourism and
tourism policies.
As we can see, the history of tourism was formed by a series of social, economic and political
developments, which have moved the industry forward over time. But, we have also looked at
people’s motivations for travelling and we have seen that facilities and attractions need to be
available in order to make tourism possible.
2.4. Reasons for the rapid development of tourism in the twenty-first century
In 2008, there were over 922 million international tourist arrivals, with a growth of 1.9% as
compared to 2007. International tourism receipts grew to US$944 billion (euro 642 billion) in
2008, corresponding to an increase in real terms of 1.8% on 2007.When the export value of
international passenger transport receipts is accounted for, total receipts in 2008 reached a record
of US$1.1 trillion, or over US$3 billion a day. The World Tourism Organization (UNWTO)
forecasts that international tourism will continue growing at the average annual rate of 4 %.
There are different factors which contributed more for this rapid development.
 Increase in income
 Increase in leisure time
 The emancipations of youngsters and the relatively higher wages they posses
 Advance in the transportation industry
 lower fares resulting from deregulation
 Enormous growth in international business
 Improved use of package tours
 Similar climatic and weather conditions in abroad destinations
 Travel as a status of symbol
 Proliferation in MICE (meetings, incentives, conventions and exhibitions) tourism

 Better education has interested large section of the public in tourism

 More and more aggressive publicity
 Increase in ideological pressure groups(cultural, political, scientific, religious e.t.c)
 Increased use of automation in the travel industry. e.g. CRS
 Improved political influence
 Ease access to the international tourism market
 Market prominence and stronger branding of destinations
 Growth of government involvement
 Increase in all inclusive holidays
 Globalization and international participation e.t.c

CHAPTER THREE
An Overview of the Components and Elements of the Tourism Industry
Tourism does not exist in isolation. It has certain basic constituents. In order to understand
tourism systematically, it is necessary to know the various constituents of tourism industry.
Major constituents of tourism industry comprises of the providers of tourist services as under;
1. Attractions (destinations or locals)
2. Accommodation (hospitality)
3. Transportation (accessibility)
4. Intermediaries (amenities)
3.1. Attractions
Attractions of a particular area are the features and related activities of that area which draws the
tourist to visit the area. Attractions are the “main springs” that drive much of humanity to travel.
An attraction is logically anything that has the power to draw visitors to it. Tourist attractions
provide the motivating force for travel, thereby energizing the many components of the tourism
industry. Moreover, an attraction may not be a readily identifiable place or feature, but a visitor’s
overall perception of a destination as an attractive place to visit, distilled from a variety of
sources and images. Some facts about attractions:
a. Underdeveloped attractions are only potential resources and do not become attractions
unless some type of development, especially access takes place so that the attraction can be used
in some way.
b. Attractions relate closely to the travel motivations because the tourist must want to visit
and experience the attractions.
c. The success of particular attractions may change through time as travel motivation and
fashion changes.
Types of Tourist Attractions
Attractions can be divided in to two types: manmade attractions and natural attractions.
Natural attractions-are attractions related to the natural environment.

Climate
 Generally tourists from the colder climate seek warm/sunny, dry climates.
 People from hot/humid may seek cooler climates.
 In many countries, seasonality determines seasonality of tourists.
 Some tourists seek different climate for health reasons.
Landscape beauty, unusual character and unique feature
 Natural landscape beauty and characters such as mountains, rivers, and deserts related to
activities such as sightseeing, trekking, camping, rafting, boating and photography.
 Interesting landscape, agricultural landscape such as terraced rice fields, flowerbeds

related to sightseeing and photography.
Beaches and shoreline: many of the world’s famous resorts are located in beaches. E.g.
 Miami beach (USA) –world’s number 1 beautiful beach
 Kovalum beach (India)-world’s number 2 beautiful beach
Beach tourism is the activities such as sun bathing, swimming, surfing, corals, beach walking,
and shell collection.
Marine environment: includes oceans, lakes, rivers, underwater coral and fish and activities
related to it are swimming, surfing, water skiing, all types of boating, fishing, scuba diving, coral
viewing. Tropical waters are especially important attractions for variety of coral colony’s and
fishes.
Flora and fauna: interesting, representative and sometimes unusual vegetation and animal life
including birds.
 Unique and endangered species to be preserved for scientific purposes. Special feature
types of development are zoos, including safari zoo and botanical gardens.
 Related to activities such as animal and bird watching, sightseeing and photography.
Parks and reserves (officially protected): conservation (preservation and protection) of

important natural environment is essential for both scientific and tourism purposes. Common
approach for conservation is establishment of parks and reserves with careful management and
controlled use of the areas and its resources.
Manmade Attractions: attractions related to culture, entertainment and special manmade

features.
Cultural patterns and lifestyle
 Especially interesting to many tourists as an experience of cultural tourism.
 Includes traditional cultural patterns, lifestyle and customs.
 Includes modern lifestyle, which is different than that of the tourist.
Archaeological and historic sites and monuments
Archaeology is the study of the society’s and people of the past, by examining the remains of
their buildings, tools and other artifacts.
 All types of archaeological or pre-historic sites including marine archaeology and special
features such as industrial archaeology.
 All types of historic buildings, structures and areas including buildings of representative
traditional and historic architecture and building techniques.
 Sites of important historical events such battle fields.
 Monuments to important historical events or people.
The art:
 Includes visual arts of paintings in performing arts of dance, drama and music.
 May be related to their traditional and modern culture.
Museums:

 Are special features which exhibit and explain aspects of history, culture, arts, and
handicrafts technology, natural, historical and other special areas of interest.
 Trends now towards museums, which offer educational, program demonstration and
assuming more attractive in scientific and cultural development.
Sport activities and events:
 These can be of local, national, and international interests.
 Includes both specula and participatory sports. Participatory sports such s snow and water
skiing, tennis, golf, skiing and scuba diving are becoming increasingly popular although
popularity of some specific sports changes as current fashion.
Entertainment:
 Includes modern or traditional dance, drama, films and music.
 Night life, especially night clubs and discos with dancing and music.
 Gambling like casinos.
 Special entertainment including amusement and recreation parks such as Disneyland.
Shopping:
 Usually secondary attractions but in some areas may be primary attractions. E.g. Dubai
Shoppers Paradise(important part of itineraries)
 Important means of tourist area to make money from tourism.
 It includes shopping for locally made clothing, arts and handicrafts, furniture and locally
processed items such as gems and stones.
 Duty free items such as cameras and electronic equipments.
 Antiques
 High fashioned items designed and produced in area.

 Concentrated in certain areas with control and quality and prices of goods for locally
made arts and handicrafts, efficiently marketing often needs to be emphasized.
Dinning and cuisine:
Most people/ tourists require good quality but not necessarily high priced food. Many tourists
like to try local food at least once and some tourists consider good quality food as a major
attraction. High quality restaurants can become important attractions in some areas.
Peter’s Inventory of Tourist Attractions

1. Cultural: Sites and areas of archaeological interest, historical buildings and monuments,
places of historical significance, museum, modern culture political and educational institutions,
religion. E.g. Gondar fort, St.George Church-Lalibela.
2. Traditions: National festivals; arts and handicrafts, music, folklore, native life customs, etc.
E.g. Amharic dance, Meskel festival
3. Scenic: National parks, wild life, flora and fauna, beach resorts, health resorts etc.
4. Entertainment: Participation and viewing sports; amusement and recreation parks,
zoos and oceanariums, cinemas and theatres, night life, cuisine. E.g. World cup football,
Olympics.
5. Other Attractions: Climate, health resorts or spa, unique attractions not found elsewhere
3.2. Accommodation
It is an essential component of tourism, given that any definition of tourism involves a stay away
from home. Accommodation had become psychological base for the tourist during his /her stay
away from home. The feature that distinguishes the WTO definition of a tourist from that of
excursionist is that a tourist must spend at least one night in the destination visited. Assuming
that few people will sleep on the streets or park benches, this definition indicates a role for the
provision of accommodation of all types and descriptions.
Any form of accommodation may be defined as an establishment whose primary business is
providing lodging, food and beverage services.
According to WTO, “tourist accommodation is used to denote the facilities operated for short
term accommodation of the guests, either with or without service, against payment and according
to fixed rates.”

Sometimes simply referred to as ‘hospitality’, this sector provides leisure and business tourists
with somewhere to stay and sustenance while travelling to and staying in their destinations. In
purely economic terms, accommodation and catering is the most significant of all the sectors of
international tourism, since it is the biggest employer and accounts for the largest proportions of
tourists’ expenditure
Accommodation in itself may be an attraction. A large number of tourists visit a particular
destination or town simply because there is a first class luxury hotel or resort which provides
excellent services and facilities. It can range from hotels of international standards like one star
to five star, homes of friends and relatives, to camp grounds and much more.
The divergence of historical, cultural, geographical and political influences throughout the world
has given rise to a wide variety of accommodation types.
A. serviced/self catering- e.g. staying at an inn/in an apartment in a self catering villa.
B. charged/free- e.g. paying for a room in a hotel or staying free of charge with friends.
C. chain/independent- e.g. belonging to a hotel chain such as intercontinental hotels or trading
independently.
D. static/mobile-e.g. a holiday villa or rented camps van.
E. urban/rural-e.g. a city center youth hostel or a forest camping ground.
F. by Purpose of Visit (i.e. for business, for leisure, for VFRs)
Generally, Accommodation is commonly classified under one of the following categories:
1. Serviced or Self Catering- e.g. staying at an inn or in an apartment in a self catering villa
complex. Classifying accommodation as either serviced or self catering is dependent on the
levels of services provided. Serviced accommodation is used when a service is provided along
with an overnight stay, for example meals and housekeeping. E.g. Hotels, Inns, guest houses,
B&B establishments, etc. Self catering or self serviced accommodation consists of
establishments where the tourist is provided with overnight accommodation, but caters for all
other needs independently. E.g. apartments, villas, rented houses, colleges, universities, etc.
The distinction between serviced and self catering accommodation is not always totally clear
since increasing numbers of self catering providers are now supplying a range of services to their
guests. For example it is quite common now for self catering establishments to offer visitors the
option of buying food and ready-to-eat meals.
2. Commercial or Non Commercial Accommodations

Accommodations established with a motive to earn profits only come under the Commercial
Accommodation. An accommodation that has some social purposes and not solely profit only
comes under Quasi or Non Commercial Accommodation. By far, the majority of the world’s
tourist accommodation is provided by commercial companies, although there are examples of
non commercial providers within youth tourism, industrial caterings, health care caterings, old
age homes, orphanages, educational establishments, religious groups and conservation bodies.
Hotels are the most common types of accommodation used by leisure and business tourists
particularly, these travelling internationally.
 Hotels –the legal significance of the term ‘hotel’ as defined in the Hotel Proprietor’s Act
1956 of UK identified it as ‘a place obliged to receive and serve travelers at reasonable prices
without previous contract unless there are reasonable grounds for refusal.’ A hotel is a place
where a bonafide traveler can receive food and shelter, provided where he is in a position to pay
for it and is in a fit condition to be received. A hotel is an establishment that provides paid
lodging, usually on a short term basis. Hotels often provide a number of additional guest services
such as a restaurant, swimming pool, meeting rooms, shopping, etc.
According to the Guinness Book of World Records, the oldest hotel still in operation is the
Hoshi Ryokan, in Awazu, Japan.
Classification of Hotels
Hotels are categorized on the following basis:
1. Location: hotels can be classified according to their location or where they are located/
situated. The following are the type of hotels according to their locations.
A. Downtown hotels/ business hotels-these are hotels situated in the heart of the town.
Generally, people who stay here are those who come for some work in the town or for
marketing. These hotels are also called as city hotels. These hotels have high rates.
B. Sub urban hotels-these types of hotels are situated away from the city or town. The aim
is to keep it away from the hustle and bustle, chaos and confusions of the town. Guests who
choose to stay here are mainly those who want to be away for a few days from the city
environment. These are ideal for budget travellers and meetings. They have moderate cost.
C. Resort hotels-these types of hotels are situated near a sea, river and beach or in the hilly/
mountainous regions. Resort hotels provide recreational facilities to the tourists in an informal
atmosphere. Mainly patronized by vacationers.

D. Motels- these types of hotels are situated on the highways. Travelers mainly use them.
The length of stay in these types of hotels is usually short period.
E. Floatels (boatels) - these are floating hotels and situated on the surface of the water in the
form of boat with house or old ship or luxury cruise liner.
F. Transient hotel or airport hotel-these are situated near the airports. These are generally
dependent on airline passengers, airline crew, etc. It is the usual practice of these hotels to give
package deals and discounts.
2. Sizes of Hotel (number of rooms)- hotels are also classified on the basis of size. The
following are the categories of hotels as per size.
1) A hotel with less than 25 rooms- small hotel
2) A hotel with rooms between 25 to 99-medium hotel
3) A hotel with rooms between 100 to 299-lagre hotel
4) A hotel with more than 299 rooms-very large hotel
3. On the basis of plan-hotels may be classified according to different types of plans. These are:
A. Continental plan or CP- it includes room tariff and continental breakfast. It is normally
practiced by bigger hotels.
B. European plan-EP- it includes only room tariff, rates are not inclusive of meals.
Practiced by all hotels on high demand period.
C. American Plan-AP/Pension Plan/ Full Board-rates include room tariff and all the three
major meals, i.e. breakfast, lunch, dinner.
D. Modified American or MAP/Demi Pension/ Half Board- these include room tariff,
breakfast and any one of the major meals, i.e. either lunch or dinner.
E. Bermuda Plan or BP- these include room tariff and some breakfast.
4. Based on type of clientele-

A. group hotel-caters to groups commonly based on American plan.
B. commercial hotel-caters to business class people mainly based on European plan.
C. family hotel-caters families on vacation commonly based on American plan.
5. Based on length of guest stay-
A. transient hotel- registering for less than one day. E.g. airport hotel

B. residential hotel-when the guest stay for a minimum period of one month and the hotel
signs a detailed lease with the guest.
C. semi-residential hotel-this encompasses the middle of transient and residential hotels.
6. based on facilities offered-
According to this criterion the star rating system is used. The facilities may include centralized
air-conditioning, attached toilet, channel music, shopping arcade, health club, swimming pool,
internet service e.t.c. it can be five star deluxe, five stars, four stars, three stars, two stars, and
one star.
Basic etiquettes of hoteliers
 Personal grooming  Diplomacy
 Good habits  Honesty
 Politeness  Attentiveness
 Patience  General knowledge
 Good communication skill  Sales man ship
Some other types of accommodations include pensions, inns, hostels, tents, dormitory
accommodation, vacation rentals, etc
3.3. Transport Sector
We can define transportation as ‘the means to reach the destination and also the means of
movement at the destination’. This broad definition allows us to distinguish between the
numerous types of transportation services. It also emphasizes the functional element of
transportation services; that is passenger movements from point A to point B. The transportation
sector also include not only the services provided, but also the related infrastructure that supports
the means of travel such as roads, motor ways, ferry terminals, airports, railways e.t.c.
Increasingly, as transport is viewed as part of leisure, the quality of the journey is at least as
important as movement of itself. For some categories of visitors, the trip is therefore seen as an
attraction in itself and certainly as a part of the tourist experience. The view from the coach or
the excitement of flying is both examples of utility of travel. Connectivity is very vital for
tourism development. Modes of transportation like an airplane, motor car, coach, ship, train, or
animals or foot enables a traveler to reach his/ her pre-determined destination.
Choice of the Modes of Transportation

The four modes of transportation are road, rail, air and sea. In general, the choice of the visitor
for the mode of transport is affected by the following;
 Distance and time factor  Comparative prices of service

 Status and comfort  Geographical location and isolation
 Safety and utility  Range of services offered
Elements of Transportation
We can identify 4 basic elements in any transportation system. These are the way, terminal,
carrying unit and motive power. These elements vary for each transportation mode and vehicles.
 The way- the way is the medium of travel used by a transport mode. It may be purely
artificial, such as roads and rail ways, or natural such as air or water. Roads, railways and inland
waterways restrict vehicle to move to a specific pattern, national regulations delineate both sea
and air corridors and routes such that standard operating procedures are applied worldwide to
limit the freedom of these ways. In considering transport modes, the availability of the way is
very important in the case of roads, railways and inland waterways, where substantial investment
would be needed to provide them. In the case of water and air, this is not an issue except for air
traffic control procedures.
 The terminal: it represents the second important element of transport mode, giving
access to the way for the users, or acting as an interchange between different types of way. It is
the furthest point to which the transport system extends. Literally the end of the line. Probably,
the simplest terminal is parking for private cars, while the most complex one is an airport. In
fact, most terminals are becoming integrated transportation points as they can act as interchange
where travelers can transfer between vehicle modes. Airports, for example, can be used as
transfer points between two aircrafts, or between other modes of travelling, such as the car or
train.
The design of the terminal and the amenities they offer depends heavily upon the type of journey
and transportation involved. Although we can observe a general tendency towards the
development of integrated terminals which caters for all potential needs of the travelers, not all
modes need to have sophisticated points as terminals; coaches, for example, can and do operate
from road side locations.

 Carrying units: It is the actual transportation media; the vehicle, which facilitates the
movement. Each way demands a distinct carrying unit; aircraft for the sky, ship for the sea,
vehicles for the roads, and train for rails. The nature of carrying units has been influenced by the
numerous factors, which include travel demand, and the technology employed, as well as the
other elements of the mode such as motive power). In the last few decades, developments have
occurred in the carrying units which are designed towards greater efficiency and consumer
orientation. Flexibility is also important as vehicles increasingly need to be altered easily and
quickly, in order to accommodate changing tourist demand. Executive style coaches with on
board services are an example of the same.
 The motive power: motive power is perhaps the key element in transportation
development. The natural power of horse-drawn carriage and sailing vessels provided the initial
energy for transportation. The exploration of steam power provided the opportunity for
production of steamships and railways, while the internal combustion engine helped the
development of road and air transportation. Finally, the jet propulsion enables air transportation
to be competitively priced and gave aircraft both speed and range.
However, even in the 1900’s a number of activity holidays such as cycling, pony trekking, and
sailing involves human generated motive powers as part of the recreation activity. Motive power
is closely related to a number of issues, such as the capacity and type of carrying unit, demand,
and the desired speed and range of the vehicle. As costs of operation have been modified, the
engine has had to become more fuel-efficient and for safety reasons more reliable.
3.4. Intermediaries (amenities)
In the middle of the 19 th century, an Englishman called Thomas Cook started selling excursions
by train. He put together different services as transport and accommodation and sold them as
package at one inclusive price to the travelers. The providers of these services gave him a
commission on all sales made and in this way the concept of travel agency came in to being.
Thomas Cook is internationally recognized as the founder of the modern travel trade.
The term travel intermediary is given to any individual or organization that makes travel
arrangements on behalf of a third party, providing a link between customers and the suppliers of
travel products and services, as shown below:

Accommodations Attractions
Travel Intermediaries
Destinations Transportation
Customers
Figure: The Position of Travel Intermediaries
The suppliers of travel products and services referred to in the above figure include many firms
that operate in the core sectors of the tourism industry. And include hotels and other
accommodation providers, transport companies, tourist attractions and destination marketing
organizations.
Travel intermediaries liaise directly or indirectly with such suppliers in order to satisfy the needs
of their customers. Most travel intermediaries operate in the commercial world, making a profit
in the services they offer to their clients by charging a fee or taking an agreed proportion of sales
income, known as commission. The two most important intermediaries in the international
tourism industry are travel agents and tour operators.
3.4.1. Travel Agency
A travel agency is an enterprise or business, which is authorized by the main providers of

services to sell such services to the travelling public for which they are paid a fee or commission.
These main suppliers of services are called “industry principals.” These industry principals
include: Airlines/cruise lines, Car hire companies/railways, Hotel groups/restaurants and
entertainment centers and Tour operators.
In the same way that a clothes shop sells products to shoppers, so travel agencies retail their
products to the general public. As the figure above shows, travel agencies are generally acting on
behalf of two parties when they undertake their work. They provide a service to their clients, on
whose behalf they make travel arrangements-they may be either leisure or business travelers;
travelling individually or in group. They also act as the agent for the companies supplying the
travel products. The business relationships between travel agents and principals are generally
strictly controlled by individual agency agreements. Arranging travel for leisure purposes
dominates the work of most travel agencies.
Types of travel agency
A. general travel agencies (full serviced agencies)-are like department stores with wide variety
of products and services.
B. specialized travel agencies-usually located in metropolitan areas, where there is greater

market segmentation and when there are many competing agencies. E.g. ethnic, handicapped,
single e.t.c. The most important functions of a travel agency are:
I. Travel information: a retail travel agent provides necessary travel information to the
general public. The intending tourists come to the office of the travel agent and seek information
regarding their proposed visit. The travel agent should be a very knowledgeable man and should
supply up to date and concrete information relating to travel. He must have a great
communication skill and should be thorough in the art of catching the potential customers.
II. Preparation of itineraries: a tourist journey involves preparation of different types of
itineraries. There are different means of transport with the respective advantage and
disadvantages. A travel agent advises the potential tourist to choose the most convenient course.
III. Liaison with providers of services: a travel agent should maintain a constant contact
with the providers of various services like the transport companies. Hotel managers and
providers of surface transport like motor cars from airport to hotel and for hotel sightseeing, etc.
IV. Ticketing: selling tickets to tourists for different modes of transport like air, rail and sea
is a very important function of travel agents.
V. Provision of foreign currency: Provision of foreign currency to an intending foreign
tourist is an important function of a travel agent. The travel agent will arrange for the purchase of
foreign exchange on behalf of his intending travelers. This facility will save a lot of time and
harassment for the intending tourists.

VI. Insurance: insurance for personal accident risks and risk for loss of baggage is an
important function of a travel agent.
Basic requirements for successful travel agency operations
 Sound knowledge of geography.
 Knowledge of the customs and practices of destinations dealt.
 Information about visa/health checks, permits and foreign currency regulations.
 Knowledge of arithmetic and airlines ticketing procedures and airlines schedules.
 Knowledge about operational management of transportation and accommodation.
 Availability of good communication network.
 Should always be up-to-date with latest information.
3.4.2. Tour operators (tour operating companies)
Unlike travel agents, who sell holidays and a range of other travel products, tour operators
usually assemble the component parts of a holiday, i.e. the means of travel, accommodation,
facilities, transfers, excursions and other services. If we consider that travel agents are the retail
arm of the international tourism industry, then tour operators can be likened to be wholesalers,
since they buy in bulk from the providers of travel services, such as the hoteliers and airlines,
break the bulk in to manageable packages and offer the finished products, the inclusive tour (IT),
for sale via travel agents or direct to the consumer.
Regardless of their size of operation, all tour operating businesses will be involved in similar
activities to achieve their goal of developing and supplying tour products that satisfy clients’.
Types of tour operators (based on their distribution of products and services)
A. whole sale tour operators-buying large amount of products and services and sell them to
travel agents. I.e. tour operators’ travel agents customers
B. directly sells tour operators-buy tourism products in large amount and sells them directly to
customers. I.e. tour operators’ customers.
Key activities of tour operators are as follows:

 Market research  Product development

 Contracting  Sales support

 Marketing  Administration
 Brochure production and distribution  Customer services
 Reservations
Interrelationship of the components of tourism
Although the components of travel industry operate independently and frequently
compete with each other, they are really part of an overall system. Travelers use more than one
component at a time when they travel. For this reason, what affects one component can affect
others. The permanent closing of tourist attractions reduces business for transportation and for
the hospitality business. Likewise the expansion of a particular component increases business for
the other components.
The travel industry has recognized this interrelationship by putting various components together
and selling them as a package. A package might include one or more forms of transportations
and all the other necessary components. Such packages have made travel more convenient and
less expensive.
Geographical Components of Tourism
According to Robinson, the attractions of tourism are, to a very large extent, geographical in
character. He identified the following geographical components of tourism.
1. Accessibility and location-whether a place has coastal or inland position, and ease with
which a given place can be reached.
2. Space- physical space-because there are those who seek the wilderness and solitude.
3. Scenery/landscape- which has aesthetic and recreative value including land forms,
water, vegetation……..
4. Climate- climatic conditions, especially in relation to the amount of sunshine,
temperature and precipitation.
5. Animal life- for bird watching/viewing game in their natural habitat-birds, zoos, game
reserves/ and for sporting purposes such as fishing and hunting.
6. Settlement features
 towns, cities, villages
 historical remains and monuments
 archaeological remains

7. Culture- ways of life, traditions folklore, arts and crafts
CHAPTER FOUR
DETERMINANTS OF TOURISM AND MOTIVATION TO TRAVEL
4.1 THE CONCEPT OF DEMAND FOR TOURISM
Tourism demand can be defined as “the total number of persons who travel, or wish to travel, to
use tourist facilities and services at places away from their places of work and residence”

This definition implies a wide range of influences, in addition to price and income, as
determinants of demand and includes not only those who actually participate in tourism, but also
those who wish to travel, but for some reasons don’t. In other words, the demand for tourism is
made up not only of those who participate, but also of those who do not travel for some reasons.
Vital demand data would include how many visitors arrived; by what means of transportation,
how long they stayed and in what type of accommodation, how much money did they spent e.t.c.
Demand for tourism consists of a number of components:
1. Effective or actual demand comprises the actual number of participants in tourism. This is
the component of demand most commonly and easily measured and bulk of tourist statistics refer
to effective demand.
2. Suppressed demand is made up of that section of population who do not travel for some
reasons. Two elements of suppressed demand can be distinguished.
 Potential demand -refers to those who will travel at some future date if they experience a
change in circumstances. For example, their purchasing power may increase or other social
changes take place or they may receive more holiday entitlement.
 Deferred demand- It is a demand postponed because of the scarcity of the goods and
services (e.g. travel opportunities). It is a demand postponed because of a problem in the
supply environment (the destination visited), such as lack of capacity in accommodation,
adverse weather conditions or perhaps terrorism activity. In other words, both potential
demand and deferred demand may be converted in to effective demand at some future date.
3. Finally, there will always be those who do not wish to travel, constituting a category of ‘No
Demand’.
There are other ways of understanding (viewing) tourism demand:
 Substitution of tourism demand-is when the demand for one activity (say a self catering
holiday) is substituted by another activity (staying in serviced accommodation). This may be
due to a shortage of supply in one activity and an excess of supply in another.

 Redirect of tourism demand-is where the geographical location of demand is changed. For
example, a trip to Ethiopia will be redirected to Kenya because the flight/ the accommodation
in Ethiopia were fully blocked.
 The opening of new tourism service- Lets say, a resort, attraction or accommodation will
have a number of effects:-
a. Redirect demand from similar facilities in the area
b. Substitute demand from other facilities
c. Generate new demand
The first two (a&b) are referred as the “displacement effect”- in other words, demand from other
facilities is displaced to the new one and no extra demand is generated. This can be a problem in
tourism and is an important consideration in appraising the worth of new tourism project.
Demand Indicators
1. Effective Demand
Travel propensity: in tourism, a useful measure of effective demand is travel propensity,

meaning the percentage of population who actually engage in tourism or take up travel. This
measure simply considers the penetration of tourism trips in a population. A high travel
propensity would be expected for developed western economy with a high degree of
urbanization, high income, small house hold sizes, and high level of mobility. Conversely, low
travel propensity would be expected for rural societies with high house hold sizes and low
income. There are two forms of travel propensity:
A. Net travel propensity/NTP/-It refers to the percentage of the population who take at least
one tourism trip in a given period of time. In other words, it is a measure of the penetration of
travel among ‘individuals’ in the population. The suppressed and no demand components will
insure that NTP never approaches 100%, and a figure of 70 and 80% is likely to be the maximum
for developed western economies.

B. Gross Travel Propensity/GTP/-It gives the total number of tourism trips taken as a
percentage of the population. This is a measure of the penetration of ‘trips’, not individual
travelers. Clearly then, as second and third holidays increase in importance, so GTP becomes
more relevant. GTP can exceed 100% and often approaches 200% in some western European
countries, where those participating in tourism take more than one trip away from home.
GTP/NTP=TF
Where, TF refers to Travel Frequency, which means the average number of trips taken by those
participating in tourism during the period in question.
There are a number of factors, which will determine the propensity of a population to travel to
particular destinations. These include:
 Economic distance: it relates to the time and cost involved in traveling from the origin to the
destination area and back. The higher the economic distance, the higher the resistance for that
destination, and consequently, the lower the demand. It follows, conversely, that between any
origin and destination point, if the travel time or the travel cost can be reduced, demand will
increase.
 Cultural distance: it refers to the extent to which the culture of the area from which the
tourist originates differs from the culture of the host region. In general, the greater the
cultural distance, the greater will be the resistance. In some cases, however, the relationship
might be the opposite. For example, the higher the cultural distance between particular
destination and origin areas, the more an allocentric person may wish to travel to that
destination, to experience this extreme difference.
 Cost at the destination: the higher the cost of services at the destination, the higher the
resistance to travel to that destination will be and, therefore, the lower the demand. This
variable captures the familiar inverse relationship between the price of a good or service and
demand.
Broadly, travel propensity for a particular population will increase with characteristics such as:
 Income  Level of urbanization

 Education level  Mobility level
However, it will decrease with characteristics such as;
 Large house hold size  Increasing age  Low income
Generally demand for a destination is directly related to propensity to travel and inversely related
to resistance to travel.
2. Suppressed Demand
While travel has become a popular social phenomenon, there are a number of reasons why
people do not travel extensively, or do not travel at all. The reasons, products of psychological
analysis, are not mean to be ultimate answers as to why people travel where they do. We can,
however, look at the more concrete reasons why those studied did not go on a trip during a
certain period of time. The main reasons why people do not travel can be identified as:
 Travel is an expensive activity- consumers operate within monetary constraints and travel
must compete with other allocations of funds. Costs are principal reasons for staying home,
saying travel is too expensive.
 Lack of time- many people can’t leave their businesses, jobs, or professions for vacation
purposes.
 Physical limitations, such as health- poor health and physical limitations keep many persons
at home.
 Family circumstances, such as care of elders, children studies; parents of young children
often do not travel because of family obligations, and inconveniences traveling with children.
 Lack of interest and awareness (promotion, information, advertisement)-unawareness of

travel destinations that would bring pleasurable satisfaction is a major barrier.
 Government restrictions, such as currency controls, VISA

 Fear and safety-things unknown are often feared, and in travel much is unfamiliar. War,
unrest and negative publicity about an area will create doubt and fear in the mind of the
prospective traveler.
When motivation to travel is sufficiently powerful, the barriers may be overcome, but these
forces may still influence means of travel and destinations selected.
Although travelers may be able to overcome the 1 st four variables listed, tourism marketers need
to modify the 5th barrier-lack of interest. This is a challenge for tourism marketing managers.
Factors Affecting Future Tourism Demand
The growth of international tourism will be influenced by a wide variety of social, economic,
political, cultural and technological factors, the most important of which are discussed below.
1. Demographic trends: The aging of the population in western, industrialized nations (the
majority of tourism generating countries) will have important effects on the nature of demand for
tourism products and services in the future. Changes in the household composition, such as
increased number of one-parent families and couples choosing not to have children or to delay
having children until later in life, will also influence tourism demand.
2. Technological developments: Continuing developments in transportation will reduce travel

times and make the remote regions of the world more accessible to tourists. Airports expansion
will also continue in the future. Technology will influence the way that tourism products are
promoted and sold, for example the viewing of virtual reality stimulations of resort facilities
prior to making a booking and sales via networked computer systems , such as the internet.
3. Emerging economies: The World Bank forecasts that the developing nations of the world,
including the former Soviet states, will achieve economic growth rates around 5% per annum,
compared with only 2.7% in the richer, industrial countries. If this forecasts prove to be correct,
within a generation, china will overtake the USA as the world’s biggest economy and as many as
9 of the top 15 world economies will be from today’s 3rd world nations.
4. Political stability: World regions that have high proportion of countries with stable political
regimes are likely to gain in terms of tourism, at the expense of politically unstable nations.

5. Changing work patterns: Developments such as home working, the growth of short term
contracts and multi-tasking (one person carrying out a number of different job roles) will have
significant effects on the nature of tourism demand, with a continuation of the trend away from
long (4+ nights) holidays to short breaks and leisure pursuits being followed by non-traditional
times, for example the growth of 24 hours city concept.
6. Increased environmental awareness: The rise of green movements of the 1970s and 80s will
continue in the future, with increased demand for tourism products and services that
espouse/promote the principles of sustainable development.
7. Globalization of the industry: Greater deregulation of industry sectors, coupled with the
emergence of a more discerning travelling public, is likely to result in greater choice for
consumers. On the other hand, moves by major players in the international tourism industry to
increase their influence and domination of global markets may reduce consumer choice.
4.2. DETERMINANTS OF TOURISM DEMAND
Before an individual can take part in any type of tourist activity, there are certain core conditions
that must be fulfilled or satisfied which may limit a person’s ability to travel. Determinants of
tourism are the decisive factors which are responsible for the evolution of demand for tourism.
These are concerned with the economic and social factors (i.e. disposable income-the more
affluent members of society are the ones who travel most; standard of living; availability of free
time-an individual must be able to spare the time to be away from home, work, study or other
commitments for the duration of their trips; mobility(with the advancement of modes of
transport, the mobility has increased greatly); cost of travel- in addition to having sufficient
time, an individual must afford the cost of travel; age distribution, pattern of occupation, etc)
and with the influence of providers of tourist services (i.e. railway excursions, bus and coach
operators, hotels holiday camps, package tours, airlines, restaurants, publicity and promotion by
tourist offices, etc), which stimulates the growth and development of tourism. In addition to
these, the political regime of the country i.e., whether or not the government allows its citizens
freedom of movement within their own country and overseas. Besides these, in times of austerity
(strictness), countries may limit the amount of foreign currency its citizens can spend abroad.
The state of health of a perspective tourist is another factor i.e. an ill individual is unable to

undertake a tourist trip. These factors are the determinants for tourism. Determinants of tourism
demand represent the parameters of possibility for the individual.
The most comprehensive list of factors influencing the growth of tourism, however, comes from
Louis Erdi of the Swiss Federal University. The list includes:
1. Greater affluence and more leisure for an increasing number of people, particularly in the
developing countries.
2. The emancipation of the young, and the relatively higher wages they possess (when they
have no family responsibilities), enabling them to travel.
3. Transport facilities, especially air, very much better and cheaper, and then are high rate of car
ownership.
4. An enormous growth in international business, necessitating travel.
5. Package tours allow people, not used to making their own arrangements, to travel with an
easy mind, and are good value because of bulk buying of transport and hotel accommodation
6. Relief from adverse climatic conditions in the home country may be found abroad.
7. Travel has become a status symbol.
8. Conferences and business meetings are proliferating/ increasing.
9. Better education has interested a large section of public in the cultural tourism.
10. World exhibitions and trade fairs have become very popular.
11. Publicity has become more aggressive, whetting the appetite of even the most unwilling to
travel.
12. Ideological pressure groups (political, cultural, scientific, etc.) hold more and more annual
conferences.
Determinants of tourism can be arranged in two levels. On the world scale, those countries with a
high level of economic development and a stable urbanized population are major generators of
tourism demand. The political regime of the country is also relevant here.
On the individual scale, a certain level of discretionary income is required to allow participation
in tourism, and this income, and indeed the type of participation will be influenced by the factors
such as job type, life cycle stage, mobility, level of education attainment and personality. Even
within the developed world, many are unable to participate in tourism for some reasons. Demand

for tourism is therefore not only concentrated in developed western countries but also
predominates among those with high discretionary incomes.
1. The personal view:
Demand at the personal level:-once decision has been taken to travel- the ability to undertake
the trip and the nature of that trip will be influenced by a wide range of interrelated factors.
These can be broadly classified as:
 Life style factors- income, employment, holiday, education attainment and mobility.
Income and employment-the most useful measure of the ability to participate in tourism is
discretionary income; i.e. the income leftover when tax, housing and the basics of life have been
accounted for. A very low discretionary income markedly depresses travel propensity. With a
high discretionary income, travel may reach a peak.
The nature of employment- The nature of employment not only influences travel propensity by
determining income and holiday entitlement, but also it has an effect up on the type of holiday
demanded, as the mechanism of peer and reference group is felt.
Paid holiday entitlement –low levels of Paid holiday entitlement do act as a real constraint upon
the ability to travel, while a high entitlement encourages travel.
Level of education attainment is an important determinant of travel propensity as education

broadens horizons and stimulates desire to travel. Also the better educated an individual, the
higher the awareness of travel opportunities and susceptible to information, media, advertising
and sales promotion.
 Life cycle factors-The age and domestic circumstances of an individual affect the amount
and type of tourism demanded. A useful conceptualization of life cycle is the following. It is
not based on chronological age, but rather looks at the phase in life a person is, in terms of
income and social responsibilities.
I. Childhood- decisions are taken for the child in terms of holiday and paid for by their parents.
However, children do not have a significant influence on their parents’ decisions.

II. Adolescence/young adult- these individuals are very preoccupied with their independence,
socializing and a search for identity. They start to take holidays independent of their parents
around 15 years old and often have little money to spend. Their main concern is to ‘get
away’- the destination is not important.
III. Marriage- before the arrival of children, young couples have a high income and few other
ties, which give the chance to travel frequently. The arrival of children means ‘settling down’
new responsibilities and a change in spending their budget. Holidays become more
organizational than geographical, with domestic tourism, self catering accommodation and
visiting friends and relatives becoming more common.
IV. Empty nest stage- children grow up, reach the adolescence stage and begin to travel
independently. The travel possibilities for the parents increase: they have more time and
money to spend on holidays. People in this stage travel frequently- it is a big and growing
market for the travel industry.
V. Old age- the emergence of early retirement at 55-60 years is creating an active and mobile
group, which is interested in both domestic and international travel. In later retirement, this
group becomes less mobile because of lack of finance, the loss of partner or declining health
and holidays become more hotel based or are not taken any more.
2. The world view:
When individual purchasing patterns and the influence upon them are aggregated at the national
level, it is possible to get a clearer view as to the influence upon global patterns of demand for
tourism. These influence areas are as follows;
 Stage in economic development- a society’s level of economic development is a major

determinant affecting the size and type of tourism demand. The economy influences many
critical and interrelated factors. Tourism is a result of industrialization and the more highly
developed an economy, the greater the level of tourism demand.
 Demographic /population factors- levels of population growth, distribution, development

and density affects travel propensity. The concentration of the population in cities has an

effect on tourism demand, creating a tourism and leisure hinterland around the city.
 Political influences- level of political environment will vary in both democratic to

totalitarian nations. This involvement may be through encouragement in providing ‘social
tourism’ or providing and promoting facilities for tourism. Alternatively, currency controls
may deter people from traveling abroad: these are more common in communist countries.
Government restrictions on travel also include visa and passport controls as well as taxes on
travel. Generally, political instability may prevent domestic and inbound travel.
 Pattern of tourism demand and technological influences-in Europe, international travel is

fairly high as reaching other countries is easy due to their proximity; whilst in the USA, a
range of tourist destinations are available domestically. Technology also acts to increase
access to tourism by lowering the cost or by making product more accessible. Examples here
include development in ‘recreational technologies’, such as wind surfers, durable outdoor
clothing, hill skiing, and off road recreational vehicles.
4.3 MOTIVATIONS FOR TOURISM
Human behavior can be understood by determining the motives, drives or concerns which are
being satisfied by the action, and secondly by the attitudes and information. The classic
dictionary definition of motivation is derived from the word ‘motivate’ which is to cause a
person to act in a certain way; or stimulate interest. There is also a reference to the word ‘motive’
which is concerned with initiating motivation or inducing a person to act. A motive can be
defined as a person’s basic predisposition to reach for or strive towards a particular goal or a
combination of goals. A motive can also be defined as internal forces and external goals and
incentives, that guide, direct and integrate a person’s behavior for future, potential satisfaction.
Therefore, motivation is an interpersonal phenomenon.
When tourism determinants created the conditions, it is necessary to consider why people travel
and wish to become tourist-i.e. what are the motivations for tourism. The question of motivation
is basically the question of why.
Several studies concerning psychology and motivation for tourism have shown that individuals
normally travel for more than one reason. Tourism is the outcome of a combination of motives or

motivators.
Travel motivators can be defined as those factors that create a person’s desire to travel.
Motivators are the internal psychological influences affecting individuals’ choices. Motivations
operate on individuals’ travel choices within the frame work already set by the determinants. The
perspective of a traveler to a destination is usually circumscribed by a number of factors like
time, attitude, family responsibility, finance, education, health and well-being e.t.c.
The prime motive to engage in tourism is to be ‘elsewhere’ and to escape, however temporarily,
from the routine and stress and strains of everyday life. From this prime motivation, two
principal and distinct motivations may stipulate as dominant. These have been described by
Professor Gray as Wander lust and Sun lust.
Wander lust: describes the desire to exchange the known for the unknown or the familiar for the
unfamiliar, to leave things familiar and to go and see different places; people and culture or
architecture of the past, in places famous for their historical monuments and also past
associations. This also involves seeing current fashions. This calls for facilities geared to short
stay visitors and for means of movement at the destination.
Sun lust: on the other hand generates a type of travel which depends on the existence elsewhere
of better amenities and facilities for a specific purpose than are available in the home country of
the traveler. It is prominent with particular activities such as sports and with the search for sun
shine. Sun lust on the other hand requires facilities for a longer stay and for recreation.
Mc Intosh, Goeldner and Ritchie have also researched motivations for travelling. They have
found 4 categories of basic travel motivation:
1. Physical motivators: people traveling because they want to refresh their body and mind, go
on a trip for health purposes, sport or pleasure- to reduce tension. All physical motivations
have one thing in common; i.e. reduction of tension through physical activities.
2. Cultural motivators: people are motivated to travel by the desire to see and know about
other cultures, to find out about the natives of a country and their life styles, folklore, dance,
paintings, religion, music, art and so on.

3. Interpersonal motivators: people go on a trip out of a desire to meet new people, visit
friends or relatives and to seek new and different experiences. Travel is an escape from
routine relationships with friends or neighbors and at the home environment, or it is used for
spiritual purpose.
4. Status and prestige motivators: people travel because they have a desire for continuation in
education and hobbies (personal development). These motivators are seen to be concerned
with the desire for recognition and attention from others, in order to boost the personal ego.
This includes trips related to business, convention, and study e.t.c.
Push / Pull Model of Tourist Motivation
Travel motivations can be two-dimensional or forces which can be categorized as ‘push’ and
‘pull’.
Push factors: Are those socio-psychological constructs of the tourists and their environments
that predispose the individual to travel and help explain the desire to travel. They are origin-
related factors that motivate or create a desire to satisfy a need to travel. Most of the push factors
are intangible desires of the individual traveler. Some of the psychological motivations acting as
push factors may include escape, rest and relaxation, health and fitness, adventure, social
interaction.
Push factors can also be identified by socio-economic variables (income, education, occupation,
etc), demographic variables (age, gender, family structure, size and race/ethnic group, etc) and
attitudes, interests and opinions that the traveler possesses along with knowledge about the
market. The are the variables influencing the traveler’s decision to travel
Understanding what pushes the traveler can be effectively used by destination areas in their
marketing strategies.
Pull factors: are destination attributes that respond to and reinforce push factors of motivations.
They are the attractiveness or ‘drawing power’ of the destination as perceived by the traveler. In
other words, in order for a destination attribute to meaningfully respond to or reinforce the
motivation to travel, it must be perceived and valued by the tourist. Destination attributes can

either be tangible resources (beach, historical sites, recreation facilities, scenic beauty, and snow)
or the perceptions and expectations of the individual (novelty, benefit expectation, marketed
image of destination).
Understanding the implications of push and pull factors can be an advantage for marketers and
researchers of tourist destination areas.
Motivation occurs when an individual wants to satisfy a need. A motive implies an action; an
individual is moved to do something. Motivation theories indicate that an individual constantly
strives to achieve a state of stability-homeostasis. And an individual’s homeostasis is disrupted,
when he or she is made aware of need deficiency. This awareness creates wants. For an
individual to be motivated to satisfy his need, an objective must be present. The individual must
be aware of the products and services and must perceive the purchase of that product or service
having a positive effect on satisfying the need of which he or she is now aware. Then, and only
then an individual is motivated to buy.
Tourism motivations are many and varied. In a widely cited study of tourism motivations,
Crompton (1970) concluded that ‘a break from routine’ was the basic reason for much tourism.
Around this general theme, Crompton, identifies seven motives classified as socio-psychological
and two motives as cultural.
Socio-psychological motives
 Escape from perceived mundane  Prestige

environment
 Regression(less constrained behavior)
 Exploration and evaluation of self
 Enhancement of kinship relations
 Relaxation
 Facilitation of social interaction
Cultural motives

 Novelty  Education
Leiper (1984) distinguishes between recreational leisure, which restores, and creative leisure,
which produces something new. He discussed three functions of recreation as rest, relaxation and
entertainment.
 Rest (which provides recovery from physical or mental fatigue)
 Relaxation(recovery from tension)
 Entertainment (recovery from boredom)
John A Thomas writing in ASTA Travel News lists 18 motivations he believes to be most
important in causing people to travel.
Education and cultural motives
To see how people in other countries live, work and play.
To see particular sights
To get a better understanding of what goes in the news.
To attend special events
Relaxation and pleasure
 To get away from every day routine
 To have a good time
 To achieve some sort of sexual or romantic experience
Ethnic
 To visit places your family came from
 To visit places your family or friends have gone to.
Others

 Weather(for instance to avoid winter)
 Health(sun, dry climate)
 Sports (to swim, ski, fish or sail)
 Economy( inexpensive living)
 Adventure(new areas, people, experiences)
 One’s up man ship
 Conformity(keeping up with the jounces)
 To participate in history (ancient temples and ruins) and current history.
 Sociological motives(get to know the world)
A survey conducted by Pacific Asia Travel Association (PATA), Pacific Visitor Survey, San
Francisco, 1976, revealed 12 most important factors which motivate tourists to visit a place fell
in to three categories:
Most important
 Warm and friendly people
 Comfortable accommodation
 Beautiful scenery
 Reasonable price
Next important
 Attractive ways of life and customs
 Good climate
 Beautiful creations of man

 Outstanding food
Least important
 Good shopping
 Exotic environment
 Historical or family ties
 Exceptional recreational facilities
Generally, tracing the history of travel over centuries, it is quite evident that the main
motives for travel have not changed much. The principal motives continued the same. Only
the scope and intensity have changed.
Barriers of travel
 Cost
 Lack of time
 Health limitations – e.g. poor health, physical limitations.
 Family stage – e.g. family with young children.
 Lack of interest and awareness.
 Fear and safety- war, negative publicity, political unrest e.t.c.
CHAPTER FIVE
MEASUREMENT OF TOURISM AND TOURISM STATISTICS

The faster rate of expansion of both international and domestic tourism is a manifestation of
increasing higher standard of living, more leisure time, technological advances in transportation
and telecommunications systems and better marketing and promotional techniques. Today there
can be a little doubt that tourism has assumed considerable economic and social significance
globally. In approximately 50 years (1950-2000), tourism has become the biggest industry in the
world, in terms of employment figures and sales records. For example, in USA, tourism is one of
the three largest employers. In the year 2000, it had also become the world’s most rapidly
growing industry and there are no indications as yet that tourism will stop growing. For the year
2000, UNWTO estimated the number of international tourist arrivals be 710 million. And in the
year 2020, this number expected to reach 1.5 billion.
International tourism accounts for an estimated 10% of all tourism expenditures, still making it
the biggest export industry in the world. The money foreign tourists spend in a country are
considered as export: tourism brings foreign currency in the country.
5.1 Significance of Measurement of Tourism
Statistics can be defined as a science which deals with the frequency of occurrences of different
kinds of things or different attributes. It can also be defined as a science by which data of various
observations are collected, summarized, and presented.
The statistical measurement of tourism is a relatively recent activity. The need for the systematic
measurement of tourism was felt as the volume of tourist traffic began to reach significant
proportions in the early years of the 20 th century. As the tourist movements grew tremendously,
particularly in the last six decades following WWI, their measurement become very significant
for various purposes.
Without a reliable historical and on going quantitative account of tourism, its development as an
area of study would be severely hampered.
Tourism can only be grasped in all its complexity and its multiple relations with other economic
and social sectors and properly understood, if there is a statistical tool able to measure its
development according to the determinant factors and at the same permit a country comparison
of such development. This is possible only by the use of statistics.
The importance or significance of measurement of tourism may be summarized as follows:

1. For evaluating the magnitude and significance of tourism to a particular

destination. The destination could be a country, a region or a district within a region. The data
collected can be utilized to quantify the role and contribution of tourism to the country’s
economy and to society and for a country also the parts played by tourism in the balance of
payments.
2. For planning and development of physical facilities and for infrastructural
requirements. It is not merely that statistics are useful to know the numbers of tourist arrivals
for a series of consequent years to show whether tourist trade in any particular country is
growing, stagnant or declining; it is important to know the other amenities desired by travelers,
the length of stay, the amount of money they spend, the purchase they make, etc. all this
information is essential for tourism planning. It helps to ensure a high quality of environment in
the main tourism areas as well as developing other areas to relieve congestion. So to assess the
requirements of hotels, airports, roads, and other facilities, the volume and characteristics of
tourist movement have to be determined quantitatively.
3. For marketing and promotion, it is very essential to know the profile of tourists, both
actual and potential. It is only after ascertaining the physiological, psychological and sociological
wants of visitors that an effective marketing campaign can be launched. The marketing arm of
government is also likely to make use of information collected, such as origins of international
visitors
4. For understanding changes in tourist fashions: regular returns of statistics help the
countries to find out about the flow of tourist traffic to various destinations. The flow will
indicate whether a tourist patronizes a beach holiday, winter resort, archaeological sites or any
other area.
5. For legislative and administrative purposes since legislation may apply to certain
activities alone and not to others. This is for a variety of reasons, many of which have nothing
what so ever to do with tourism, such as security, health and immigration control.
The statistics have become an essential factor in obtaining an overall view of the issues that
determine or affect tourism development globally or in particular of a country or a region. The
statistics are the key element in decision making at the most diverse levels, given the increasing
complexity of tourism and the swift change affecting it.
5.2 Categories of Tourist Statistics

The tourist statistics are basically concerned with the estimates of arrivals and departures- more
particularly the former. The statistics of tourists spending during their stay at a destination have
important implications for the country’s economy and its balance of payments account. Tourist
statistics also concerned with the information on the tourist himself. This information is very
crucial to deal the tourist behavior and his characteristics / vital for marketing and development
purpose/
The main categories of tourist statistics (for both domestic and international tourism) are as
follows:
1. Volume statistics
2. Expenditure/value/ statistics
3. Characteristics/visitor profile/ statistics
In this section, we will treat international and domestic tourism measurements separately for
convenience. Certainly, they have much in common.
A. International Tourism Measurement
1. Volume statistics
I. Tourist Arrival/departure Statistics
The most obvious measure of volume is that of the total number of international tourist
arrivals/departures in a given time period. The unit of period could be a month, six months or a
year. Most of the countries, however, consider a year as a unit of period. While counting, it is
normally the number of arrivals, trips or visits and not the number of tourists/individuals. This is
because it is impracticable to allow for those who visit the same destination more than once in
the same period.
It is the events rather than individuals with which the basic statistics of volume are concerned.
Hence, a business man who makes 20 visits to a country will be counted 20 times. Thus, 700
million tourist arrivals in the world in the year 2000 denote 700 million visits/events made by a
somewhat smaller number of individual visitors.
In this method, the number of individuals and trips are related by the following equation:
No. of trips= No. of individuals x Average no. of trips taken per individuals

The equation is general in the sense that it can be applied to any group of tourists. For example,
the number of trips made in total by French tourists to Ethiopia in the year 2008 will be equal to
the product of the number of individuals involved and the average number of trips they made to
Ethiopia.
A disadvantage of this particular measure is that it does not take account of the length of stay,
which is important to most suppliers of the tourism products such as accommodation
establishments though not for passenger transport carriers.
II. Length of stay statistics
A better measure of volume for many purposes is therefore the total tourist nights. The length of
stay is measured in terms of days or a night spent by a tourist at the destination and is normally
expressed as the average length of stay. This also acts as a measure of likely impacts on a tourist
destination. It can be calculated as:
Total tourist nights= No. of tourist trips x average length of stay
Where:
Number of tourist trips represents their arrivals/departures
Average length of stay represent the nights stayed.
Statistics of numbers provide a general indication of the volume of tourist traffic to a particular
destination. The statistics of length of stay on the other hand provide a general indication of the
nature of the traffic, in particular of the extent of transit and terminal visitors and of their demand
for overnight accommodation.
Worked examples:
1. Five Portuguese tourists, namely (Mr. A, B, C, D and, E) have made a visit to Ethiopia in
2008, though the frequency of travel for each individual varies, it was found that the average
number of trips taken per individual was 4. Calculate the total number of trips made by the
tourists.
Given: total number of tourists/individuals=5
Average number of trips taken per individual=4
Required: the total number of trips made by the tourists=?
Solution: No. of trips= No. of individuals x Average no. of trips taken per individual

= 5x4
= 20
2. Assume that the average length of stay of each of the above tourists in Ethiopia is as follows.
Mr. A, stays for 3 days, B for 5 days, C for 2 days, D for 4 days and, E for 2 days. Calculate the
total tourist nights.
Given: total number of trips =20
Average length of stay= the sum of average length of stay for all tourists
Total number of tourists
= 3+5+2+3+2 = 3 nights or days
5
Required: the total tourist nights =?
Solution: Total tourist nights = No. of tourist trips x average length of stay
= 20x3
=60 nights
2. Expenditure (Value) Statistics

Expenditure (value) statistics on the other hand are concerned with measurements of spending by
the tourists at the destination and also on the journey. These statistics are very important as they
measure the value of tourism to a particular economy. Expenditure statistics makes it possible to
determine the monetary value of tourist movements. Tourist spending at a destination determines
how much of the total volume of foreign exchange enters a particular country.
Tourist spending for an international tourism commonly covers all tourist expenditures in a
country and expenditure on shopping.
It, however, excludes payments to international carriers in respect of journeys to and from the
country visited.
Similarly, for other destinations, expenditure covers what is incurred at the destination, but not
expenditure on the journey to and from the destination.
For the balance of payments purposes, fare payments by foreign visitors to a country’s carriers
represent income to the country visited. Although this item is usually included in the transport
item of the balance of payment in conformity with the international recommendations, it is a part
of tourist spending and a part of the country’s earnings from tourism.

International tourism expenditure can typically be classified under the headings of

accommodation, food and drink, entertainment, shopping and travel within the host destination.
For purposes of comparison between countries, value statistics are often converted to US dollars.
Average expenditure per visit or per night= Total visitor expenditure at the destination
Number of arrivals or number of tourist nights
While the global estimates of tourist expenditure give general indications of the value of tourism
to an economy, visit and night averages provide, respectively, general indications of the type and
quality of the traffic for a destination.
The difficulties involved in collecting reliable expenditure figures from tourists, coupled with the
absence of a strictly enforced and all-embracing system of exchange control, have led to the
accuracy of expenditures being seriously questioned.
3. Profile (Characteristics) Statistics
These types of tourist statistics are very essential for those concerned with marketing and
development of tourism. Any information regarding the markets, the mode of transport used and
socio-economic characteristics of the visitors are all essential for tourism planning and
development. The total volume of arrivals and tourist nights have to be divided in to various
market segments according to the purpose of visit, mode of transport used, place of origin, tourist
profile characteristics and tourist behavior patterns in order to provide meaningful information
for marketing and development purposes.
Profile statistics are made up of statistics relating to the visitor and those relating to the visit.
Typically, information collected contains the following details;
The visitor
 Age  Nationality(country of residence)
 Sex  Occupation
 Group type(alone, family)  Income
The visit
 Origin and destination
 Mode of transport

 Purpose of visit
 Time of visit
 Length of stay
 Accommodation
 Activities engaged in
 Places visited
 Tour or independently organized
Mode of transport for international tourism refers to the transport used to enter the country
visited. Type of accommodation used covers a wide range of possibilities with much variation by
country.
All the above information provides a basis for evolving a realistic marketing strategy and for the
physical planning of the amenities at the tourist destination.
B. Statistics of Domestic Tourism
The main difference between domestic and international tourism from statistical point of view is
that with the latter a frontier has to be crossed. This provides the easy opportunity to observe and
record such movement.
Demand for accommodation and other services and facilities by domestic tourists may
complement (go together) or compete with that by tourists from abroad. It is therefore desirable
to analyse the two types of demand together, though in practice this is not as yet normally the
case owing to the higher priority given to the collection of international tourism statistics and the
greater difficulties of measuring domestic tourism.
Domestic tourism worldwide is in terms of volume much more important than
international tourism. Generally, figures underestimate true domestic movements, as visits to
friends and relatives, the use of forms of accommodation other than hotels(for example, second
homes, camp and caravan sites) and travel by large segments of population from towns to the
country side are not for the most part included. The WTO (1984) reported that “there are
relatively few countries that collect domestic travel and tourism statistics.”
The WTO (1981) identifies four main uses of domestic tourism statistics:-
1. To measure the contribution of tourism to the overall economy: to know or estimate
the contribution of tourism to the GDP, although it is impossible to asses accurately

2. For promotion and marketing policies: many countries promote themselves strongly as
destinations to their own residents in this sense , they compete with foreign destinations for their
own tourists’ spending
3. To assist area development policies :many governments assume responsibility for the
geographical distribution of tourism with the dual aim of ensuring a better quality of t he
environment in the principal tourism areas and to promote underdeveloped areas and relieve
congested areas
4. To aid social policies: governments provide aid for the construction and operation of
socially oriented tourist reception plants. Because of the financial implications, a statistical
knowledge of holiday taking habits and trends by nationals is required for the formation of
policies. Example social tourism
The measurement of domestic tourism covers similar areas to that of international tourism:
volume, value and visitor profile statistics.
5.3 Methods of Measurement of Tourism
5.3.1 International Tourism
Statistics relating to international tourism are normally estimates rather than exact values.
The reasons for this mainly center on the fact that the monitoring and measuring what are at
times complex movements of people is not easy and is subject to error. Even controls at
international boundaries and currency controls do not normally work to provide accurate
information.
(a) Volume statistics
The principal methods as far as basic volume statistics are concerned may be divided in to 3
categories:
1. Enumeration at the arrival and departure points
2. Registration at hotels and other accommodation units
3. Sample surveys
 Enumeration at the arrival and departure points
Volume statistics are often obtained using counting procedures at entry and exit points to a
country. Procedures used at entry and exit points have normally been determined on the basis of
administrative control and other reasons not specifically related to tourism. Tourism statistics are
thus a by-product of the process, rather than its main aim.

Enumeration at the arrival and departure points is an administrative procedure which assists
measurements. For example, frontier arrivals may be counted by way of checking passports,
visas, disembarkation cards and the like. The counting in this case is done at the point of entry or
exit from the destination. The entry or exit point may be single or multiple, depending up on the
size and location of a country. In the case of a large country, the entry and exit points are many
and the tourists have a choice of embarkation or disembarkation from any of these, depending
upon their convenience and choice. On the other hand, in smaller countries and in particular in
islands, there is a limited number of entry and exit points. This method of enumeration at the
points of arrival and departure is an accurate method of obtaining numbers and can also provide
information on the length of stay of tourists.
By way of linking arrival and departure dates of individual visitors, the information on the length
of stay of tourists is arrived at. Travel statistics world wide are most frequently expressed in
terms of frontier arrivals, i.e., the number of visitors entering a country as determined by some
form of frontier check.
 Registration
Registration of tourists at the place of their stay is another method of measurement. Here,
registration is made at the hotels and other such establishments, or even the cashing of traveler’s
cheques. The registration forms of hotels and other such accommodation units are the sources of
eliciting information from the tourists who fill these forms at the time of registration.
From these registration forms, data are reported periodically to a central bureau which in turn
supplies this to concerned authorities. This method of measurement, however, requires legal
authority and enforcement. Unless it is binding on such establishments to collect such
information, accurate and timely data collection may not be possible.
The data collected by way of registration at hotels and other such establishments provide a
variety of valuable information which includes information on numbers, length of stay and
tourist nights, places of origin, etc.
Statistics collected by this method are not necessarily entirely accurate:

 It covers to varying degree different forms of accommodation provided on payments. It is

often difficult to extend it to all types of accommodation, including private homes where tourists
stay. Example, No estimates would be possible for those staying with their friends and relatives.
 There may be double counting of arrivals when tourists change their accommodation at
the destination. It happens that a tourist, after having registered at a particular hotel, decides to
change it for another for reasons of convenience and /or economy
 Sample surveys
Sample of a population are made by means of interviews and use of questionnaires. The contact
may be made at the time of arrival of the visitor, or subsequently when the traveler returns
home after the event, or possibly en route.
In either case, s/he is asked to complete a detailed questionnaire which elicits the information or
details of his participation in tourism during the past period. When the surveys are detailed
enough and cover places visited, length of stay and similar information, the may at the same time
also provide basic statistics of volume of tourism to particular destinations, such as regions, in
addition to profile and behavior characteristics of the population in general.
The more comprehensive survey endeavors to include all or most visitors to a country and obtain
volume and expenditure data as well as qualitative data about the tourists themselves and about
various aspect of their trip. This survey is carried out at points of arrival and departure or en
route. In order to be representative of the total traffic, interviews must be carried out at all major
points of arrival and departure of foreign tourists and also on all or most routes continuously
and also throughout the year.
The sample survey method is independent of the administrative process and has the advantage of
making contact with the tourists from whom all kinds of information relevant to the industry may
be elicited.
(b) Expenditure statistics
Expenditure statistics are very difficult to collect. We can derive them:
 Indirectly using foreign currency estimates from banks/ exchange figures from banks and
other financial institutions,
 Using information from suppliers of tourism services and facilities- such as hotels.

 Through collecting information directly from the tourists themselves, through sample
surveys of foreign tourists as they leave the country(after the event), and from nationals as they
return from a foreign trip
These methods are difficult and not normally satisfactory. For example, there will be black
market-illegal activities.
(c) Profile or characteristics

Profile statistics of tourists can be found through sample surveys. Tourists will be asked to
complete a detailed questionnaire which elicits the information-the survey including places
visited length of stay, age-sex profile, marital status, monthly income and similar information.
5.3.2 Measurement of Domestic Tourism
Statistics of domestic tourism are just like those of international tourism in that they are
estimates, normally representing informed guesses and subject to different levels of error.
Although some countries base them on returns from accommodation establishments, this does
not provide appropriate coverage. It is increasingly common to collect information from the
visitors themselves. This is normally done through sample surveys and can take different forms
as follows.
1. Household Surveys
Household surveys are based on knowledge of the resident population, and provide a balanced
view of domestic tourism for pleasure or business purposes. A structured sample of households
is constructed and interviewers are employed to collect information using questionnaires.
Questions normally relate to past behavior, covering trips already made, although studies of
intentions are sometimes undertaken. Domestic tourism surveys and national travel surveys can
all be based on household surveys. They also provide, as a matter of course, information on
foreign travel by residents and information on those who don’t travel. In theory, household
surveys allow international comparisons to be made.
Household surveys are suitable for recording the tourism of large numbers of people, and a
resident of a country, whether he travels within the country or abroad, can be contacted in his
home
2. Enroute Surveys

En route surveys are surveys of travelers during the course of their journey. Enroute surveys are
similar to frontier survey in the sense that a strategic point is selected for interviewing. At these
strategic points, tourists will be either interviewed or given a questionnaire or other
documentation to complete in their own time for return by post. The way the survey is conducted
depends on the transport used. Its main advantages are that all forms of tourism can be covered
and many interviews can be conducted in a day.
A major problem with this type of work is that:

 The representativeness of the sample can be in doubt because of incomplete knowledge of
traffic movement within a country.
 A further potential problem, as in most survey work, concerns non-response, particularly
if the respondent is asked to complete the questionnaire in his own time and to post it.
Enroute survey response rates are optimized by selecting respondents at propitious/favorable
points in their trip and collecting information in situ.
3. Destination Surveys
Destination surveys are normally limited to areas with high levels of tourist activity and can
provide information outside the scope of a household survey on the volume, value and
characteristics of tourism to individual destinations within a country, such as a region. They
typically take the form of personal interviews by teams of interviewers. Information is drawn
from survey of accommodation (using registration forms) and sample surveys of visitors at the
destination.
Questions are also asked to elicit opinions about the destination and associated attitudes. A major
problem with this type of work is that it is difficult in this type of work to ensure that the sample
of visitors is representative, though efforts are made to ensure a spread across appropriate days
and weeks, and that interviews are conducted at a wide range of sites.
4. Surveys of suppliers
Surveys of the suppliers of tourism services are sometimes undertaken in order to gain
information such as occupancy rates, numbers of overnight stays, visitor numbers, etc.
accommodation occupancy surveys are in fact common worldwide.
5.4 International and domestic travel today

In approximately 50 years (1950-2000), tourism has become the biggest industry in the world, in
terms of employment figures and sales records. For example, in USA, tourism is one of the three
largest employers. In the year 2000, it had also become the world’s most rapidly growing
industry and there are no indications as yet that tourism will stop growing.
Most spending in tourism is of domestic in character: The majority of tourists stay in their home
country.
International tourism accounts for an estimated 10% of all tourism expenditures, still making it
the biggest export industry in the world. The money foreign tourists spend in a country are
considered as export: tourism brings foreign currency in the country.
INTERNATIONAL TOURISM
It encompasses all the services required for tourists, that is: the services i9n the country of origin,
the destination country and all the stops made en route. International tourism integrates all sorts
of public, private and government agencies and companies like airport authorities, border and
customs agencies, (public) transportation systems, accommodation facilities, restaurants,
souvenir industries, etc.
As said earlier, the period from 1950-2000 has shown a continuous increase in the number of
international tourist arrivals. There were, however, declines in growth rate due to the economic
recessions of 80’s and 90’s.
The WTO’s prediction is that tourism will continue to grow through out the next century
provided that there are no global disasters such as wars, acts of terrorism or severe economic
rescissions.
Before we go in to the numbers and statistics, let it be clear that the figures used are not very
‘water proof’ (impermeable) and can’t always be correctly. Not all countries count tourist
arrivals in the same way or are even accurate in recording the number of tourists visiting them
annually.
 Some countries only count arrivals in registered hotels and official accommodation
 Some countries only count border traffic at airports and other border posts
 Some countries have no border control example Germany, Belgium and Netherlands
 Countries usually don’t count their money received through tourism the same way .There
is also black market-difficult to measure foreign exchange
In the year 1960, the number of tourists was 69 million

In the year 1990, the number of tourists was 457 million

In the year 2000- international tourism accounted for 700 million tourists’ world wide and this
number is expected to grow to 1 billion within the next 10 years.
International tourism receipts:
-2000-US$ 600 billion
-1990 -US$ 260 billion
-1960-US$ 69 billion
REGIONAL SHARE OF TOURISM ARRIVALS AND RECEIPTS
Where Do Tourists Travel? / 1980-1999/
Europe seems to dominate the international tourism market because (the most important reason
is that Europe is simply consists of many countries.
Americas (north and south) stand 2nd place.
East Asia takes the third position.
Africa attracts few tourists i.e. 4.1% in the year 1999(30 million arrivals).Morocco and Tunisia
account a great part of that no. Most tourists are VFRs – from neighboring countries, not western
tourists.
The East Asia / Pacific region’s market share has increased highly – an average of 9% annually
in 1990- The economic ‘tigers’ like Hong Kong , Singapore, Malaysia, Thailand, Indonesia, and
more recently China and Vietnam have also boomed as tourist destinations. The purpose of their
visit is for business travel, shopping trips, VFR.
Regional Share in Tourism Receipts/1980-1998/
Europe’s share of receipts is considerably smaller than its share of tourist arrivals. In other
words, European countries enjoy relatively little tourism spending per arrival. The reason for this
can, again, be found in the high number of fairly small countries within Europe. A country is just
as easily visited as it is departed.
Among the countries in the Americas, the US. Canada, Mexico- visit to these large countries
usually means long stays: more money is spent in the country.
East Asia/ pacific region experienced highly increased tourism receipts. Much of these can be
attributed to Australia, Newzealand and Indonesia, where people spend holidays of long
duration. Another reason, already mentioned is the business and shopping tourism to East Asian
countries.

Africa not only has the modest share in tourist arrivals, its receipt even account for a lower share.
Most of the receipts come from Europeans and Arabs visiting North Africa.
What are the Main tourists Destinations?
In terms of international tourist arrivals in 1999:
1. France-----------11%
2. Spain------------7.8%
3. United states---7.3%
4. Italy-------------5.4%
5. China-----------4%
In terms of % of the total receipts in 1999, the picture looks a little different.
1. United states---16.4%
2. Spain------------7.2%
3. France-----------6.9%
4. Italy-------------6.2%
5. UK--------------4.6%
DOMESTIC TOURISM
The greatest amount of tourism is domestic tourism. Unfortunately, it is difficult to measure,
because there are no borders to be crossed and many domestic travellers don’t stay in ‘official’
hotels or accommodations, but rather with family and friends, in their second homes or
campsites.
Many governments try to encourage domestic tourism: it is a means of keeping money in the
country.
Residents of a country take holiday abroad are the same as importing a good: foreign money is
bought and taken out and spent in the country to be visited.
Tourists coming into a country are the same as an export of goods. So, governments encourage
both incoming tourism of foreigners and domestic tourism – they don’t want too many own
citizens to leave the country and spend their money elsewhere.

In fact, there are even governments who actively impose restrictions on their citizens travelling
abroad. They want a positive balance of trade: earnings from export of goods and services
(including foreign travelers coming into the country) to be higher than the costs of imported
goods and services (including own citizens going abroad). Cities and regions within countries are
advertising and developing their own attractions and facilities for both domestic tourists and
foreign visitors. Good tourism research, a careful planning and attractive promotion are very
important to attract as many tourists as possible.
5.5 General Problems and limitations of tourism statistics
a. Problems of tourism statistics
Almost all international tourists have 3 actions in common according to Mc Even. These are:
1. They cross international frontiers.
2. They exchange their own currency for foreign currency.
3. They spend time outside their own country, and this implies using some form of
accommodation.
It is possible to use these actions as methods for measuring international tourism, i.e. by
enumerating arrivals at frontiers, by recording currency transactions and by recording the
number of nights in various types of accommodation units by the foreign visitors. Each method,
however, has its limitations in respect of recording and enumerating foreign visitors. Counting
foreign visitor arrivals is the most usual and most widely adopted method.
The tourist statistics is basically concerned with arrivals and departures, and more particularly
with the former. In arriving at these figures, it is concerned with events rather than individuals.
The main difficulty here is, perhaps, the risk of double counting. For example, an Italian tourist
on his way to holiday in Spain may travel by car for 2 days through France and on his return
journey to Italy will also travel 2 days through France, hence his journey i.e. his arrival in France
is recorded twice.
Another problem of statistical measurement in tourist arises from the difficulty of
differentiating between tourists and other travelers, and between them and the resident
and working population.
Regarding transport to the destinations, tourists may use public transport or use their own private
transport. They normally enter various destinations without stopping and often without
registering their arrival. They do so increasingly even when crossing many national frontiers.

At the destination, tourists use variety of accommodation ranging from hotels, pensions,
apartments, guest houses and friends’ and relatives’ homes. They eat in the same establishments
and buy items for use and other services from the same sources from which these are bought by
those who are not tourists.
The other problem is that information provided by the use of questionnaire will only be as
accurate as the honesty of answers, and it is particularly difficult to know if respondents
are answering questionnaires honestly or within sufficient thought about the questions.
This problem is compounded (aggravated) where mailed questionnaires are used.
Asking questions of arriving passengers at the destinations is in reality an intention survey, rather
than an accurate picture of what those passengers will actually engage in while in the country;
while surveys carried out on departing travelers will require recall- at best guess work, especially
where the aim is to assess the expenditure which the tourist has incurred.
While international standards for methods of data collection and definition of terms have
become widely accepted, particularly among the developed countries, small variations
continue to make genuine comparisons difficult, not only between but within a country over a
period of time. Above all, if specific types of tourist activity are being examined, as part of a
large sample of general tourists, limits of confidence may fall sharply.
Accurate measures of tourist expenditure are equally difficult to make. Shopping surveys have
problems of distinguishing between residents and tourists, frequently under or over estimating
their expenditure. Above all, much of the real tourist expenditure is lost to statistical collection,
especially in developing countries, because it is not taken in to account. This includes
secondary spending by tourist on shops and other outlets.
It may, however, be stated that the various general problems of statistical measurement in
tourism discussed above are to be encountered in countries having common borders. It is in these
countries that distinction becomes difficult.
b. Limitations of Tourism Statistics
The interpretation of tourism data is fraught with danger. The following points should be kept in
mind:
1. Tourism statistics are normally estimates, often derived from sample surveys. As such,
they are subject to various forms of errors.

2. For measurements which result from sample surveys, in general, the smaller the sample
size the greater is the likely error.
3. Even a large sample size for data relating to a region may give rise to acceptable levels of
error. Analysis of a sub-set of the data pertaining to a smaller region may not be feasible due to
much reduced sample size.
4. Where the methodology in collecting data changes, it’s dangerous to compare results.
5. There are serious problems involved in attempting to compare figures collected by
different countries. This arises because there is not only considerable variation in the methods
employed by different countries, but also variations in the measures adopted. A notable example
is that some countries count tourist arrivals (at least one night spent in the country visited), where
as others prefer to count visitor arrivals (this includes excursionists that don’t an overnight.
CHAPTER SIX
IMPACTS OF TOURISM
The study of tourism’s impact, particularly its detrimental environmental and socio cultural
effects, has come to be viewed as one of the most continuous issues surrounding the industry in
the late 20th century. The rapid growth of tourism in the 20 th century produced problems as well
as opportunities, on a vast scale for both developed and developing countries. The governments
of these countries have come to realize that unrestrained and unplanned tourist development can
easily aggravate these problems to a point where tourists will no longer wish to visit the
destination. In short, without adequate planning tourists may destroy what they have come to see.
More attention is now given to developing and promoting tourism in a way that is sustainable in
the long term and that involves local communities in decision making. It is invariably the
economic benefits of tourism, however, that persuade governments, local areas and commercial
operators to invest in the industry in the first place and develop its full potential. Tourism brings
with it a range of benefits and problems, which affect economies, environment, cultures and the
social interaction of communities. Tourism must strive to maximize the economic benefits of the
industry while minimizing its detrimental environmental and socio-cultural impacts, if it is to
prosper as a major influence on the world economy.
General frame work for impact assessments
Examine the context-environment, society, economy
Forecast future if tourist development does not proceed/had not proceeded.
Examine tourist development
Examine what happened when development occurred
Suggest measures to reduce adverse impacts
Analyze the impacts and compare alternatives
Present the results
Make decision
6.1 Economic Impacts of Tourism
Positive Impacts
The decision by any government to pursue a strategy of developing its tourism potential is
invariably based on the industry’s positive economic impacts. Now tourism is the world’s largest
export earner and the world’s biggest industry in terms in creating jobs and generating revenue.

 Direct economic benefits of providing employment, income and foreign exchange which
leads to improving of living standards of the local populations and overall national/regional
economic development.
 Direct economic benefits of increased government revenues (through various types of
taxation on tourism) which can be used to develop community facilities and infrastructure and
general economic development.
 Indirect economic benefits of tourism being a catalyst to the development of other
economic sector such as agriculture and industry (including cottage industry) through the
supplying of goods and services used in tourism. The dollar spent by the tourist move from one
level to the other till the other until it percolates/reaches to the deepest part of the society. This is
known as the multiplier effect.
 Indirect socio economic benefits of improvement to transportation facilities and services
and other infrastructure necessary for tourism which also serve general community social and
economic needs
 Investment encouragement / tourism brings about an encouragement among the
government and private sector for investments and money spent by tourists will go for
investments in to other sectors , society, infrastructure , superstructure etc, thus tourism
contributes to the development of a place.
 Tourism neutralizes and balances the balance of payment situations of a lot of countries
(if Ethiopia receives Kenyan tourists and they spend their money here, it makes no difference as
Kenya can buy some Ethiopian goods.)
 Tourism is a vital method of developing and promoting certain poor or non industrialized
countries or regions where traditional activities are on decline
 Encourages investment and development
Negative Impacts
 Loss of potential economic benefits to the local area and resentments by the local
residents if tourist facilities are owned and managed by outsiders, although sometimes there is, at
least initially, no alternative to this.

 Reduction of potential foreign exchange earnings when imported goods and services are
utilized in tourism, although there are also sometimes no alternatives for this.
 Economic distortions and resentment created if tourism s concentrated in only one or few
areas of a country without corresponding economic development in other areas.
 Economic distortions created if tourism attracts too many employees from other
economic sectors such as agriculture and fisheries.
Inflation of local prices of land goods and services because of the demand of tourism. This is
specifically true as tourists typically have a higher spending capability than the residents –either
because tourists have higher incomes or because they saved for the trip and are inclined to spend
more. Hence tourists become responsible for increasing the prices of commodities as food,
transportation, and arts and crafts.
6.2 Socio-Cultural Impacts
There is a general consensus that while tourism’s well documented negative environmental
effects can be significantly reduced with appropriate planning and management, the socio
cultural consequences of tourist activity have the potential to be far more damaging in the long
term, sometimes taking generations to eradicate. This is due to the fact that many destination
governments will not include the negative socio- cultural impacts of tourism in their policy and
mission statement. In addition to this, the factor adaptation i.e., once the society is getting
exposed to a culture which is different from its own, it is very difficult to recover. For instance,
in some developing nations, premature exposure to western ideas and technologies, especially by
the youngsters such as dressing styles, hair styles, way of communication and etc has led to
erosion of the original culture of these nations and thereby created a variety of social problems.
So, it is difficult and even will take long time to regain the original culture.
There can be both positive and negative socio cultural impacts (socio cultural benefits and costs).
These are as follows:
Positive Impacts
If tourism is well planned, developed and managed in a socially responsible manner, it can bring
several types of socio cultural benefits and are discussed as follows:
 Stimulus for conservation of important elements of cultural heritage of an area because
they are partially justified and financed by tourism attractions including:
 Conservation of archaeological and historic sites and interesting architectural styles

 Preservation and sometimes revitalization of traditional arts, handicrafts, dance, music,

drama and customs, ceremonies, dress and certain aspects of traditional lifestyles.
 Financial assistance for the maintenance of museums, theatres and other cultural facilities
and activities and for supporting the organization of special cultural festivals and events.
 Renewal of sense of pride by residents in their culture when they observe tourists
appreciating it
 Cross cultural exchange of tourists and resident, learning more about one another’s
cultures, resulting in greater mutual understanding and respect
 Tourism offers a way to revive the social and cultural life of the local population
Negative Impacts
If not well planned and controlled, tourism can generate negative socio cultural impacts
including the following:
 Resentment and conflicts with in residents and families cultural conflicts between
residents and tourists.
 Over crowding of amenity features /shopping and community facilities and congestion of
transportation systems by tourists to the extent hat residents cannot conveniently use them
 Over commercialization and loss of authenticity of traditional arts and crafts, customs
and ceremonies to suit tourists’ demand, for example, important traditional dance and music
performances may be greatly shortened and modified to suit tourists’ tastes and schedules, and
handcrafted objects of religious significance may be produced as tourist souvenirs.
 Demonstration effects of residents, especially young people imitating tourists/ their life
style patterns.
 Deterioration of cultural monuments and loss of cultural artifacts through overuse by
tourists
 Pre-emption (right to do) of beaches and other amenity areas for exclusive tourism use
without provision of access to residents, which lead to local resentment and loss of amenities.
 Misunderstanding and conflict between residents and tourists because of differences in
language, customs, religion, values and behavioral patterns.
 Alteration to religious codes, for instance, opening shops on the Sabbath, cancellation of
religious festivals, etc.

 Violation of local dress codes by tourists for example ,women must be properly dressed
in Islamic societies
 Problems of drugs/ alcoholism, crime, prostitution which may be exacerbated (make
worse) by tourism.
 Loss of native languages-mass tourists visiting oversea resorts for extended period of
time have an impact on indigenous language
 Loss of traditional industries- traditional industries like indigenous crafts may be lost if a
tourist area substitutes local goods for imported goods
 Natives assume artificial behavior
 Transformation of forms and types of occupation
 Transformation of values
 Modification of consumption patterns
6.3 Environmental Impacts of Tourism
Types of Environmental Impacts
Tourism can generate both positive and negative or no appreciable impacts, depending on how
its development is planned and controlled.
Positive Impacts
Tourism, if well planed and controlled, can help maintain and improve the environment
in various ways. For example:
 Conservation of important natural areas: tourism helps to justify and pay for the
conservation of important natural areas as well as wildlife including marine environment via the
development of national and regional parks, and reserves since these are attractions for visitors.
Without tourism, these natural areas might be developed for other uses or allowed to ecologically
deteriorate, with consequent loss of environmental heritage.
 Conservation of archaeological and historical sites: tourism also helps to justify and
pay for the conservation of historical and archaeological sites which are important sources of
attractions or sites for tourists which otherwise would be deteriorated or disappeared, thus
resulting in the loss of cultural heritage of an area.
 Enhancement of the environment: development of well-designed tourist facilities (such
as attractive, landscaped hotels) may enhance landscapes which are other wise dull and
uninteresting.

 Improvement of infrastructure: an economic and environment benefit, local

infrastructure of airports, roads, water, sewage, solid waste disposal systems,
telecommunications, etc can be improved through the development of tourism, which uses and
pays for the infrastructure, thus leading to an overall reduction of pollution problems and
enhancing the environmental quality of the area.
 Improvement of environmental quality: tourism provides the incentive to make the
environment clean through managing and controlling air, water, noise and visual pollution.
 Increasing environmental awareness: in places where residents have limited interest in
and concern about the natural environment and its conservation, observing tourists’ interest in
nature encourages environmental awareness.
There may be other or more specific types of positive environment impacts depending on the
particular type of tourism development and the tourism area characteristics involved.
Negative Impacts
1. Water pollution: proper sewage disposal system has not been installed for hotels, resorts
or other tourist facilities. There may be pollution of ground water from the sewage. There should
be planned out fall of sewage and its treatment so as to minimize the chance of pollution.
2. Air pollution: tourism is generally considered as a “clean industry” but air pollution
from tourist vehicles and tourism development areas can result into excessive air pollution
problem. If strict emission standards are fixed and devegetated are probably planned and
landscaped, then up to some extent we can curb the problem of air pollution.
3. Noise pollution: by tourist vehicle /airplanes/tourist attractions like amusement parks/car
or motorcycle race trucks may reach irritating levels for nearby residents. Very loud noise can
result in ear damage and psychological stress.
4. Visual pollution: poorly designed hotels /tourist facility/building , non compatibility
with local architecture/ inadequate landscaping / use of large and ugly advertising signs/ mesh of
overhead utility lines( electric, telephone and telegraph poles and lines)/ poor maintenance of
building and landscaping can result in an unattractive environment for both hosts and tourists.
5. Waste disposal problems: improper disposal of litter and solid waste from resorts and
hotels can generate environmental and health problems, diseases, pollution and unattractive to
the destination.

6. Ecological disruption and environmental hazards: Ecological disruption- several

types of ecological problems e.g., overuse of fragile environment, killing of animals,
deforestation, excessive collection of corals by boat anchors, disruption of animal habits and
activities by photography etc can result from uncontrolled tourism. Environmental hazards- poor
engineering design of tourist facilities can generate landslides, flooding, and disruption of any
natural drainage channels etc may lead to earthquake, high winds, and flooding and land
slippage.
7. Damage to historic / archaeological sites: over use or misuse of environmentally fragile
archaeological sites can lead to damage of these features through excessive wear, vibration ,
vandalism, graffiti writing, etc
8. Land use problems: tourist facilities like hotels, resorts, restaurants, etc may preempt
land that is more valuable for other types of land uses, such as for agriculture, mining
9. Congestion and overcrowding: places are so overcrowded by tourists which makes
freedom of movement difficult or impossible and which may affect the environment negatively.
This problem happen at areas like market, highway or traffic area, handicraft or souvenir shops
and other facilities
Reducing Mechanisms for negative impacts
There are a number of examples of environmental impacts of tourism, and a few illustrations of
how the problems might be managed. Some argue that it is not enough for individual authorities
to tackle the situation; that it should be tackled on a global scale. The negative impacts can be
tackled using the following mechanisms:
 Constructing adequate drainage system to prevent flooding and standing out water causes
for health problem around the tourist attraction
 Application of land use zoning
 Installation of internationally accepted standards of water and sewage disposal system for
all tourist facilities
 Use of non polluting vehicles such as electric carts or shuttle buses
 Application of appropriate designing standards and controlling ugly advertisement
 Development of electric power system to provide adequate and reliable power and also to
prevent air and noise pollution.

 Establishment of controls on spear fishing, mining or beach sand for construction, cutting
of trees for fire wood, etc
 Maintenance of environmental health and safety standards for both tourists and residents
 Using negative entropy for solid waste
Here are some of the recommendations and which are taken from (guideline for sustainable
tourism by WTTC) and will help to reduce the negative environmental impacts of tourism
 Identify and minimize product and operational environmental problems, paying particular
attention to new projects
 Pay due regard to environmental concerns in design, planning, construction and
implementation
 Be sensitive to conservation of environmentally protected or threatened areas, species or
scenic aesthetics, achieving landscape enhancement where possible
 Practice energy conservation, reduce and recycle waste, practice fresh water management
and control sewage disposal
 Control and diminish air emissions and pollutants
 Monitor, control and reduce noise levels
 Control, reduce and eliminate environmentally unfriendly products, such as asbestos,
CFCs, pesticides and toxic, corrosive, infectious, explosive or flammable material
 Consider environmental issues as a key factor in the over all development of travel and
tourism destinations

CHAPTER SEVEN
International, regional and National travel and Tourism Organizations
For any industry or discipline to develop, an organization is an essential prerequisite as it plays a

vital role in its proper planning, development and growth. An organization consists of
individuals whose primary role is the achievement of the objectives for which it has been set up.
In other words, organization means a combination of a group of individuals whose main purpose
is to achieve through a group action the objectives for which it has been set up. Organizations in
the field of tourism are concerned with associations, groups, and official or semi- official bodies
involved in tourism area. A distinction can, however be drawn in all these types of organizations
in terms of structure, scope and functions. The association of members with similar functions can
be at various levels- local, regional, national and international.
HISTORY OF TOURISM ORGANIZATIONS
Early history: The history of cooperative endeavor in tourism can be traced back to the year
1908.Three countries-France, Spain and Portugal felt the need of pooling their resources in the
interest of promoting tourism and founded the ‘Franco-Hispano-Portuguese Federation of
Tourist Association’. This might perhaps be the 1st international tourist organization. This
association made a beginning in cooperative endeavor in the field of tourism and paved the way
for such future endeavors on very large scale.
After WWI, in 1924, ‘International Union of Official Organizations for Tourist Propaganda’
was founded. The 1st congress of the organization was held at The Hague, Holland in 1925 and
was attended by delegates from national tourist organizations of 14 European countries. The aim
of this congress was to exchange information on tourist publicity, to obtain international customs
concessions for the export and import of tourist publicity materials and alleviate frontier
formalities or other obstacles to free international tourist traffic.
The International Union of Official Organizations for Tourist Propaganda (IUOOTP) was the
forerunner of The International Union of Official Travel Organization (IUOTO). In the year

1946, the representatives of various tourist organizations met in London and the following year,
in 1947, the IUOTO was founded. The head quarter of IUOTO was in Geneva, Switzerland. It
was the only non- governmental organization whose activities covered almost every sector of
tourism throughout the world. The organization made a pioneering effort in the stimulation and
coordination of tourism development at the global level. It represented over hundred national
tourist offices of various countries as full members and about eighty-eight national and
international organizations (both public and private sectors) as associate members.
The aim of the organization was to stimulate and stimulate the free flow of persons in the interest
of economic development and to strengthen social and cultural relations, to foster the steady
expansion of international tourist flow, to supply results of tourist market research, to protect the
interest of tourists and the tourism industry, to gain recognition of the value of tourism as a
means of world peace. On 2nd January, 1975, IUOTO got transformed into World Tourism
Organization (WTO), with headquarters set up in Madrid, Spain. This was due to the fact that,
the shift expansion of travel had created the need for world body to deal with tourism problems
at the governmental levels and this led to the transformation of IUOTO into WTO. The WTO is
an intergovernmental organization with more than 160 countries as member.
7.1. Categories of Tourism Organizations
A. In terms of structure/formation/makeup, they fall under the following two categories:
 Official or semi official bodies, e.g. National, Regional and Local tourist organizations, and
Public Sector Undertakings
 Private voluntary organizations, e.g. hotelier or travel agents association
B. In terms of scope/coverage and function, organizations fall under the following two
categories:
 Organizations based on the particular tourist service limited in their function and scope,. This
category of association is called sectoral organizations, since their scope and function are
limited to a particular sector of tourism industry. For example an association of travel agents,
an association of airline employees or hotel guides

 Large organizations-Organizations based on a geographical area serving global tourist

interests, e.g. National Tourist Organizations-physically embracing the national boundaries
of a destination, or a Regional Tourist Authority embracing its regional authority area, or a
Local Tourist Authority embracing its local authority area.
C. Based on geography- international, regional with in world, national, regional with in nation,
state or provincial, regional with in state or province, local categories.
D. In terms of ownership- governmental, quasi-governmental, and private.
E. In terms of function or types of activity-

regulators,suppliers,marketers,developers,consultants,researchers,educators,publishers,profession
al associations, trade organizations and consumer organizations.
F. By industry-transportation, travel agents, tour wholesalers, lodging, attractions, recreation

e.t.c.
G. In terms of motive- profit, non-profit
7.2. NEED AND IMPORTANCE OF ORGANIZATIONS IN TOURISM
1. Organizations play an important role in planning, development and growth of tourism

industry.
2. It provides a sense of belongingness and prestige.
3. It provides an international forum to voice the problems and finding solutions to those.
4. It helps in marketing and promotion.
5. It helps in collection of relevant statistics, data and information on tourist trends and
technological developments.
6. It offers legal solutions
7. It helps in giving training and spreading awareness.
8. It helps in business development.

9. It gives right to use logos and brand names.
10. Listing of names in publication and newsletters of organizations.
7.3. Some International Tourism Organizations
World Tourism Organization (UNWTO)
It is the most widely recognized organization in tourism today. It is the only organization that
represents all national and official tourist interests. It was founded in 1976 with its general
purpose of giving tourism the importance it deserves. It gives priority to developing nations. It is
located in Madrid,Spain. It has the following objectives:
1. To accelerate and enlarge the contribution of tourism –international and domestic- to peace,
understanding, health and prosperity throughout the world.
2. To facilitate, in travel, people’s access to education and culture.
3. To raise standard of living in the less developed areas of the world by helping to provide
facilities for foreign tourism and the promotion of tourist traffic to these areas.
4. To improve the conditions of country dwellers and so to contribute to an expanding world

economy.
5. To act as international agency of coordination and cooperation to spread tourism.
6. To provide services to members valuable to them in their national operations in the field of
tourism.
7. To provide a point for meeting and coordination of all tourist interests of member countries
concern both the national tourist organizations and professional sectors and organizations
representing the interest of the travelers. Liaison vigilance
8. To establish permanent liaison and consultation with the various sectors of tourist operators.
9. To do all this in the most efficient way.

UNWTO performs the following activities:
1. Constant review of tourism trends and developments and vigilance over changes in
economic and social conditions affecting tourism, and maintenance of standards within
tourism sectors
2. It acts as a clearing house for all available information on statistical data, legislation and
regulations, facilities and special events.
3. Systematic collection, analysis and dissemination of data on various aspects of tourism.
4. Conducting research studies covering the tourist market, plants and enterprises, physical
planning and area development, promotion and marketing, economic analysis and
financial techniques, etc.
5. Regular supply of studies, as well as updated information on trends in various fields of
tourism to its member countries.
6. Fostering the adoption of measures in cooperation with member countries for simplifying
frontier formalities and removing barriers to the free flow of international tourists.
7. Organizing and convening international conferences, seminars, workshops and meetings
on all aspects of tourism.
8. Preparation of draft international agreements on tourism.
9. Examining vocational training programs in tourism with a view of contributing to the
establishment of suitable teaching programs tailored to specific needs in developing
countries especially.
Universal Federation of Travel Agents Association (UFTAA)
UFTAA was founded in Rome in November, 1966. The aims and functions of UFTAA are:
 To act as the negotiating body with the various

branches of tourism and travel industry on behalf of its members and also in the interest of the
public.
 To ensure for all travel agents through their national

associations the maximum degree of cohesion and understanding, prestige and public

recognition, advancement of the members’ interest and protection from legislation and legal
points of view.
 To offer to its member all the necessary professional

and technical advice and assistance in matters concerning their trade.
UFTAA has created an international agreement with IHA for settling disputes regarding
bookings, cancellations and cancellation fees. A court of administration has also been created to
settle the disputes between hotels and travel agents.
UFTAA consists of National travel agency association of over 78 countries with more than
33,000 travel agencies globally. Its head quarter is in Brussels, Belgium. UFTAA represents the
interest of travel agents worldwide.
World Travel and Tourism Council (WTTC)
This council is a global coalition of chief executive officers from all sectors of the industry.
These include transportation, accommodation, catering, recreational, cultural, and travel service
activities. It mainly represents the private sector of tourism worldwide. Officers are located in
Brussels, Belgium (headquarter); Canada, the UK and New York. The mission of WTTC is
threefold:
1. To convince governments of the enormous contribution of travel and tourism to national

and world economic development and to ensure that policies appropriately reflect this
fact.
2. To promote the expansion of travel and tourism markets in harmony with the
environment.
3. To eliminate barriers to the growth of the industry.
WTTC plans to continue its support for aviation liberalization, the expansion of bilateral and
multi lateral decontrol, privatization and airline ownership deregulation.
The environment is the core of travel and tourism and a critical political issue. WTTC shares the
global concern for environmental protection. In 1992, guidelines for travel and tourism

companies were formally adopted by the WTTC, focusing on audits, impact assessment and
management commitment.
Bureaucratic barriers to travel such as entry and exit procedures irritate consumers and lower the
quality of the travel experience. WTTC urges visa-free travel consistent with security
requirements while challenging all forms of exit barriers.
International Air Transport Association (IATA)
It is world association of scheduled airlines with which they coordinate their effort to serve the
passengers, share their expertise, and analyse their problems. Over 100 companies belonging to
the association together provide the bulk of world scheduled air services.
IATA was founded in 1945 by the airlines of many countries to cope up with the expansion of
civil air services after WWII. It is the successor of ‘International Air Traffic Association’
(IATA) founded in 1919 at Hague, Holland for regularizing air transport. It works closely with
ICAO. Its members are mainly airlines its primary function is to facilitate the movement of
persons and goods. IATA’s services are:
 The global planning of international time table.
 The standardization of the inter company communications and reservation systems.
 The international coordination of telecommunication network and computer systems.
 The single formula for tickets and airways bills.
 The training of travel agents and freight agents.
 To regulate legal questions of general concern, to develop security measures.
 To examine and solve the problems raised by tourism and the flow of passengers and
goods at the airport and to establish procedures and technical norms.
IATA’s aims are:
 To promote safe, regular and economical air transport for the benefit of people of the
world, to foster air conference, and to study the problems connected their with.
 To provide means for collaboration among the air transport enterprises engaged directly
or indirectly in international air transport services.
 To cooperate with the ICAO and other international organizations.
IATA’s activities are:

 IATA’s major purpose is to ensure all airlines traffic move with greatest possible speed,
safety, convenience, and efficiency.
 For airlines, IATA provides solutions to the problems.
 For government, IATA furnishes medium for negotiation of international rates and fares
agreement, airmails, etc.
 For general public, IATA ensures high standards of efficient operations, proper business
practice by airlines and the agents.
International Civil Aviation Organization (ICAO)
Establishment of ICAO was discussed during Chicago convention held from 1st November to 7th
December, 1944 in Chicago. A Provisional International Civil Aviation Organization (PICAO)
functioned from 6th June 1945 to the formal establishment of ICAO on 4 th April 1947 -as a
specialized agency of UN for promoting of civil aviations at a global scale. The head quarter of
ICAO is in Montreal, Canada. ICAO has regional offices in Mexico, Lima, Paris, Dakar, Cairo
and Bangkok. In 1996 member ship rose to 180. ICAO is an intergovernmental body devoted to
cooperation in settling international aviation standards. It is responsible for the development of
“freedom of the air.”Its members are mainly countries. Its aims and objectives are as follows:
 To develop the principles and techniques of international air navigation and to foster the
planning and development of international air transport with a view to:
 Safe and orderly growth of civil aviation throughout the world
 Encourage art of aircraft design for peaceful purposes
 Encourage development of airports, airways and navigation facilities.
 Meet the needs of the people of the world for safe, regular, efficient, economical air
transport
 Prevent economic waste caused by unreasonable competition
 Ensure the rights of contracting countries are respected and they get a fair opportunity to
operate international airlines
 Avoid discrimination between contracting countries
 Promote safety of flight in international air navigation
 Promote generally the development of all aspects of international civil aeronautics
 To establish international standards, recommended practices and procedures covering the
technical fields of commercial and private aviation

 In tries to reduce customs, immigration , public health and other formalities

 To provide technical assistance to states for the development of civil aviation programs,
regional plans for ground facilities and services needed for international flying
 Disseminates air transport statistics and prepares studies on aviation economics
 Fosters development of air law conventions
The organization has a council which comprises 30 seats and is elected by the assembly for a
period of 3 years. Its meeting is held in every 3 year to give direction to its work.
Airport council international (ACI)
Refers to association of government bodies which are charged with the responsibilities of
operating airports, as well as other organizations involved in airport related activities. It is based
on Geneva, Switzerland.
Center for responsible tourism (CRT)
Based on Anselmo, California, its main aim is “eradicating the economic, cultural and
environmental exploitation of third world people by mass tourism.” it encourages alternative
tourism.
United Nations educational, scientific and cultural organization (UNESCO)
Formed in 1946 in Paris, It is charged with promoting international collaboration in education,
science and culture in the cause of peace and security. UNESCOs involvement in tourism has
included studies of tourisms social and cultural impacts and registration of sites.
Arab tourism organization (ATO)
Established in 1954 and comprises representatives from the governments of Arab states.
It acts to both to promote tourism and to coordinate tourism policies across member countries.
Pacific Asia Travel Association (PATA)
It was founded in 1951 as a non profit organization to develop, promote and facilitate travel to
and among the many pacific destinations. It has 44 founding members. Its head quarter was
established in San Francisco, USA in 1953. PATA has its own director for Europe in London
works to promote traffic from European countries to pacific countries. PATA’s 1 st Asian head
quarter was opened in1976 Manila, Philippines. The underlying philosophy of PATA is that the
entire travel industry must work together to develop an ever increasing flow of pleasure travel
from each member will derive a fair share of the total business.

It primarily operates in the US market which is the world’s biggest travel market. It focuses
attention on travel opportunities in member countries and building greater awarweness and
specific contracts among the travel trade in countries from where the tourist originates. The
activities of PATA are as follows:
 Assisting small and upcoming destinations to develop their infrastructure
 Providing expertise in different fields of tourism
 Planning schemes for destination, hotel operations and discounts
 The annual conferences of PATA and its work shops provide greater scope to its
members to share ideas and exchange views about promotion of tourism
 All members benefit from travel research, marketing, training and development of visitor
plans and services
 It publishes PATA news, pacific area destination handbook
 Promotion occupies major portion of PATA’s total effort
 International hotel directory used not only by members but also by countries of the world
International Hotel Association (IHA)
It was founded in London in 1946. It has more than 4000 international standard hotels, 131 states
and territories, 60 national hotel associations, and 500 individual hoteliers as members. The head
quarter is in Paris. Its operations are directly linked to the everyday realities of hotel management
Aims and activities of IHA:
 Its aim is to work at international level to unite the hotels associations of all the countries
 To offer them opportunity to discuss problems of mutual interests and to find the
solutions in keeping with the objectives of the hotel profession
 It defends the professional intere3sts of the hotels and restaurants and tries to enhance the
standard and reputation of the industry.
 It enjoys consultative status with UN organizations like WTO, ILO and UNESCO
regarding international raining programs
 It has compiled the book list of hotel schools and their syllabus and set up the IHA
training exchange network for young workers in hotels
 publishes International Hotel Guide annually and directory of Travel Agency who respect
IHA/ UFTAA convention

 it also publishes international hotel review to reflect association’s point of view on

current issues
European Travel commission (ETC)
It was established in 1948 as a non profit organization to help rebuild the economies of Western
Europe after WWII .It coordinates the national Tourism organizations (NTO’s) of various
European countries.26 countries are members and function include research, marketing and
tourism policy issues. ETC is supported by EC, which considers tourism as an industry of great
potential and of great economic and social significance. The objectives of ETC are:
 To foster international tourism cooperation in Europe
 To exchange information on tourism development projects and marketing techniques
 To undertake/commission appropriate travel research concerning various issues related to
travel and tourism.
 To promote tourism within and to Europe from other parts of the world, particularly from
North America and Europe.
Organization for Economic Cooperation and Development /OECD/
It was created in 1961 to foster economic growth and development of 24 countries in non-
discriminatory international business climate, advance people’s freedom to travel across borders
within minimum barriers. Its head quarter is in Paris. Each year, OECD publishes a report
‘Tourism Policy and International Tourism in OECD Countries’. It reviews the current tourism
issues and records in tourism activity for each country on a yearly basis.
World association of travel agencies (WATA)
Founded in 1949, this organization comprises independent travel agencies from a number of
countries. Its goals are to enhance member agency profits, lobby on behalf of member interests
and to facilitate the development of tourism. It is located in Geneva, Switzerland.
American Society for Travel Agents/ASTA/
It is the world’s one of the largest professional travel trade association established in New York
in 1931. It has 16,000members in 120 countries including travel agencies, airlines, railways,
steamship companies, government tourist offices, resorts, car rentals, etc. Its aims are:
 To foster programs for the advancement of travel agencies
 To promote ethical practices
 To provide public forum for travel agents
Africa Travel Association (ATA)

It was founded in the year 1975 in New York City as international non profit, non political
professional travel industry association. Its objective is to promote tourism to Africa.
Its membership comprises of national government tourist offices, travel agencies, airlines, hotels,
ground tour operators, group leaders, marketing and media executive.
It publishes a magazine “Africa Tourism Magazine”
It is a member of WTO and ASTA. With Green Globe, it organizes Annual International
Marketing Conference in Africa, Biannual Symposium on environmental and cultural
preservation.
It helps travel agents in learning about how to profit from higher commissions, by networking
key contacts with tourist boards, hotels, and other ground operators, by educating and providing
social experiences to travel agents about Africa, and by helping them in marketing services.
National Tourism organizations (Organizations operating in Ethiopia)
Ministry of culture and tourism /MOCT/
The activities of MOCT are as follows:
 All matters of tourism come under the agencies of government run MOCT
 MOCT helps in facilitating travel across the country.
 produces series of booklets on Ethiopian culture and attraction
 Addresses the VISA issues to government
 Promotion of the country in various trade fairs, conferences and exhibition.
 G advice and recommendation on tourism development issues
 Produces maps and information brochures and maintains web on internet sites.
 Development of all over tourism policy and development plan
 Carries out research in to potential markets.
 Collection and analysis of tourism related statistics
 standardization of travel agencies and hotels
 conducting training programs for tourism industry people
This is a member of WTO and aims at creating a cordial atmosphere for proliferation of tourism.
National Tour Operation and Travel Agency Enterprise Ethiopia: (NTO)

This is the oldest and most reliable travel agency under MOCT. it was founded by
America travel service in 1982. It is the representative of American travel related services and
has a fleet of 139 vehicles- Mercedes, luxury coaches, and radio equipped 4 wheel drives, mini
buses and pickups etc. it is the chief arm of the Ethiopian tourism industry. It offers the
following services:
 transfer services
 ticketing and air booking
 taxi services
 car hire
 professional guide service
 safari tours
Ministry of foreign affairs:
Tourism requires easy and free flowing travel formalities. The immigration office of the ministry
of foreign affairs generally helps in granting the visas extend the visas and issue temporary and
permanent residence permits.
Regional Tourism Offices:
There are altogether 8 regional tourism offices in Ethiopia namely, Tigray Tourism Bureau,
Mekelle; Amhara Tourism Commission, Bahir Dar; Oromia Culture and Tourism Bureau,
Adama; Southern Peoples Region Hotels, Parks and Tourism Agency, Awassa; Dire Dawa
Administrative Council Trade, Transport and Tourism Bureau, Dire Dawa; Afar Region Culture,
Tourism and Information Bureau, Semera; Gambella Region Culture, Tourism and Information
Bureau, Gambella; and Addis Ababa Tourism Commission, Addis Ababa. The most common
functions to these all regional tourism offices are as follows:
 To promote and develop the foreign tourist movement in to the region
 To study tourist problems in the region and take necessary measures towards the growth
of national tourist economy
 To improve tourism infrastructure
 To take actions for the development of tourist attractions and resources
 To coordinate in the region, all activities of a tourist nature exerted by various
organizations concerns with tourism

 To maintain relations with ministries and the federal ETC regarding issues related to
tourism
 To collect and analyze regional tourism statistics
 To carry out inspection and classification of hotels, travel agents
 To recognize and license tour guides
Local tourism councils:
Helps in promoting tourism at the regional level. It is the regional council that s very much
aware of all ground level realities of their region.
Ethiopian wild life and natural history society:
This organization provides an inventory of the wild life and natural history of Ethiopia and may
prove o be of interest to the business traveler who is inclined to wildlife and natural history.

CHAPTER EIGHT
The Future of Tourism Industry
Tourism is a dynamic and varied activity, where both the industry and the public have proven
extremely adaptable to new situations. As the world changes, so will the travel and tourism.
Technological, political and social changes will make travel market of today different from that
of the 1990’s.
The future of tourism is an attempt to sensitize the trends and influences up on the future of
tourism. It is believed that most of the variables and trends are interlinked and are combined to
accelerate the pace of tourism change.
The new consumer of tourism is becoming knowledgeable and discerning, and seeking quality
and participation. The increasing knowledge and sophistication of new tourists can now be
catered by a tourism industry which is firmly embracing the marketing concept, facilitated by
technological developments such as computer reservation system (CRS), data base marketing
and internet.
The trend of future tourism is clearly away from mass passive tourism and towards more tailor-
made, individual consumption of active tourism.
According to the study made by WTO in 1992, two groups of factors will shape the future of
tourism:
I. Exogenous variables: - These are the external factors, not the factors from tourism itself
which includes demographic and social trends, economic and financial issues, political,
legislative and regulatory trends, technology, transport, trade, safety, environment and global
warming.

II. Market forces of demand:-these are the tourism related issues which encompass the
demand, supply and distribution of tourism and travel products.
8.1. EMERGING TRENDS IN TOURISM
A. Travel for different purposes will continue to increase in the years ahead. Some of
the purposes are:
 Leisure travel- due to an increase in discretionary income and time, higher educational
level, the desire for non material experience, more travel promotion and the creation of new
travel products, travel and tourism will increase.
 VFR’s-the members of today’s families are likely to be scattered in many part of the
world. Most people have friends who have moved to different areas, so, VFR tourism will be one
of the main reasons to travel.
 Business and professional travel-business travel will continue to grow as domestic and
international businesses continue to expand. Offices, plant locations and sources of supply are
being decentralized and internationalized. Professional travel will increase, too, as people
recognize the need to communicate more with others in their profession and to keep their skills
and knowledge up-to-date. The travel and tourism will develop new marketing techniques to
meet the needs of professional travelers.
B. Increased Recognition
Until recently, the travel industry was more or less ignored by the academic community,
government and other bodies. However, with the growing realization of the power of travel and
tourism to employ millions of people, to improve international relations and to help balance
foreign trade, the travel industry is gaining new respect. The different components of tourism are
also beginning to see their interrelationship and project themselves as a single industry.

 Academic community-schools are beginning to focus more on practical skills that will
have a direct application in the practical world.
 Government-governors around the world are recognizing the benefits of tourism

especially inbound tourism to their country’s economy. To promote tourism and to say that it is
well planned, many countries have created tourism ministries. The relationship between the
government and the travel and tourism industry will be an interesting area to occur in the coming
years. Tourism policy will become an important part of the nations’ economic policy. Tourism
will be even intertwined with the economic health of nations that is nations will be less likely to
engage in conflict if it means risking economic benefits.
C. Continued Deregulation
Many years have been passed since the airline de-regulation act was enacted, but the effects of
de-regulation are being debated. Each time there is a midair collision or an airline goes bankrupt,
a certain segment of the population is crying out for re-regulation.
Three controversial areas about de-regulation
 The level of service and safety in airline industry: in an attempt to cut costs airlines
may be tempted to reduce service or take short cuts that compromise safety.
 The trend towards concentration: just a few large carriers could end up controlling all
the business.
 The inequitable spread of savings among travelers: airlines may be tempted to charge
higher fares on routes where they have less competition and use the profits to subsidize
discounted fares on intensely competitive routes.
But, in general, for the future airline de-regulation and privatization will continue.
D. Advanced Technology
Developments in technology take place every day, and many new developments –not yet
dreamed of-will occur in the future. Most of the technologies will be consumer centric. The
developments may make travel more pleasant, efficient and comfortable. Transportation,
hospitality industry, attractions and the channels of distributions are the main areas that are
bound to feel the impact of technology.
Transportation: continuous development of transportation may make travel time small and
enable remote areas more accessible. The following are some of the technological innovations in
transportation:-
 Automobiles- the increase in fuel prices and development of alternative fuels, a need to
improve designs to make vehicles smaller and less air drag and environmentally friendly provoke
new innovations of automobiles.
 Air craft-new commercial air crafts with much more efficient engines that can carry
passengers with considerable lower fuel per passenger’s mile are inventing.
 Space vehicle- space travel would probably appear to an elite market with the shuttle
hauling commercial cargo.
 Motor coaches-continual improvements are expected. Coaches are the most fuel
efficient, environmentally friendly and usually lower priced per passengers.
 Trains- continual reservation development is expected. The expansion of different

services and facilities will increase the demand for really good rail transportation. Continued
technological development in the area of high speed net works of train.
 Ships- Ship vacations will be one of the fastest growing segments of the pleasure travel
market. Improvement in technology to make ships safer, more comfortable and faster; new ships
and efficient engines; continuous development in indoor/outdoor entertainments; dining and
dancing; health facilities like spas; computer centers and fitness programs are expected to
sophisticate ship industry.
As stated above the major areas of technological advancements related to tourism are
transportation (listed above), hospitality industry (like hotels, art resorts and sporting) and
marketing systems. Hotels, motels, lodges, and resorts are examples of hospitality industry.
 Hotels, motels and lodges- Many technological developments have been made in the
construction and operation of accommodation. Foremost, we can observe the skyscrapers of
different cities of the world. Others like CRS development, free phone service, different forms of
payments like credit cards, teleconferencing and more complete facilities such as an
entertainment, specialty shops, dry cleaning and laundry services and different types of dining
rooms are progressing.
 Future resorts(by Douglas Carey)-resorts are examples of developments in the area of

hospitality and according to Douglas Carey the following are types of resorts:
Holistic-health spas created to restore mental, physical and spiritual well-being. Various
drugs would be used to alter moods increase memory and learning ability, enhance creativity and
so on would enable guests to make this type of resort vacation their annual health and preventive
maintenance.
Fantasy fulfillment-self indulgent, exotic recreational pursuits, gaming and gambling are
some of the activities.
Sporting resorts-are resorts offering professional coaching and instruction in a variety of

sports. Use of robotics and computer simulation such as video games will dramatically improve
efficiency in training and conditioning.
Art resorts- here there is a chance of improving guests’ music, poetry, sculpture,
painting, dance and other art forms.
E. Increased Education and Professionalism
The increasing competition and complexity of travel and tourism industry as well as the
sophisticated demand of tomorrow’s traveler implies that travel and tourism employees will need
to be better educated. Education will also be important for adapting to an industry which is
constantly changing. To inspire the confidence of the public, the travel and tourism industry will
need to develop a more professional image among its employees.
As the world becomes small through advances in transportation and communication, travel
professionals will have an excellent opportunity to help people get to know their world. Students
of business of tourism will live in interesting manner.

Benefits of education and training in tourism:-
o For the industry as a whole (it adds value), and it raises the quality of personnel and
influences a sense of professionalism and ownership.
o It helps to define the industry and indicate the underlying similarities with other sectors
(transport, attractions, hospitality, accommodation…).
o To make stake holders better understand the industry and its relationships and then begin
to perceive business opportunities.
o Training, in particular, deliver skills and practical knowledge which boost performance
and productivity of personnel across the industry, and the linking of education and training with
man power planning allows a closer gearing of the needs of the sector with the out puts of
tourism schools.
o Education and training helps to retain staff, provide a carrier path for employees and,
over all, achieve better use of human resource in the tourism industry.
F. Changing Demographics
For travel and tourism industry, certain demographic changes are significant in planning and
promoting products and services.
 Age- generally travel for senior citizens is becoming large market segment because they
have the time and the money compared to other age groups.
 Work- changes in work place particularly in work schedules have a direct impact on
vacation and leisure travel. Decreasing in working hours, multi-task by individuals, weekend
vacations, changes in life style etc. have their own impact on the tourism sector.
G. Political Trends
Great leaders in many fields have extolled (inscribed) that the social benefits to humanity results
from travel. Solon (Greece)- states that ‘we travel in order to see’-to see is to increase
understanding and appreciation of other people, other culture and other land. Countries whose

leaders understand and encourage tourism are making an effort to improve the personal
relationship between their citizens and those of other countries.
 Tourism flourishes in a climate of peace and prosperity.
 Travel teaches tolerance.
 Stability increase tourist flows.
 Generally, it is believed that the world will be prosperous, rich and stable through
tourism.
H. Environmental Changes
It is only recently that the negative effects of tourism have been set against the most tangible
economic gains. This become all the most potent with the rise of environmentalism and green
consciousness in the mid to late of the 1980’s.
Considering that tourism utilities; natural resources and its facilities occupy natural landscape,
any philosophy of tourism’s future must consider environmental impacts. Today, there is a
strong trend towards increased environmental awareness and sensitivity i.e. the future of tourism
is expected to be more sustainable. Recently, green movement of tourism is on the track.
The use of different amount of gasoline or diesel fuel by different means of transportation,
wastes from hotels, motels, shops etc. must be evaluated carefully to recognize the ecological
and environmental effects. Good planning and follow up is needed for sound and efficient
tourism development. In addition, zoning and building code is important. Finally, any tourism
development should viable, desirable, economic and social force in any community.
Generally the future of tourism will be aimed at:-
 Making a positive contribution to the global environment.
 Accepting responsibility for the environmental consequences and minimizing any

adverse environmental impact.
 Conducting all the activities in the sprit of being custodies of the environment.
 Enabling guests and employees to experience the process of environmental care at first
hand, so that they will be encouraged to make contributions in their daily lives.
 To show that sustainable tourism development is achievable.
All these trends are a reflection of the growing maturity of both the tourist as a consumer and the
tourism industry itself.
World problems:- although the future of travel industry appears to be bright, certain conditions
and events may occur that would discourage or curtail travel and tourism.
 Overcrowding and pollution.  Unsafe air ways.
 Problem in the availability of oil.  Labor strikes.
 Political instability e.g. terrorism,  disease and poverty

hijacking and bombings.
 Hallo graphs will hinder tourists
 Fluctuating currency rates from traveling away by their ability of
reproducing any environment artificially.
Few observers believe that, the above problems may return to its original meaning of travail
(dangerous and hard work). So, the industry must be prepared to deal with the situations
(problems).

CHAPTER NINE
Tourism Planning, Marketing and Customer Care
9.1 Tourism Planning
CONCEPTS OF TOURISM PLANNING
Effective tourism planning utilizes those general planning concepts that have proven to be
effective in meeting the challenges facing modern development processes, but adapted to the
particular characteristics of tourism.
In its broadest definition, planning is organizing the future to achieve certain objectives. It is a
general term which signifies a proposed method of action or procedure to achieve a
predetermined goal or objective. Planning is the process of identifying objectives and defining
and evaluating methods of achieving them. Planning now applies the comprehensive and
integrated approach, which recognizes that all development sectors and supporting facilities &
services are interrelated with one another and with the natural environment and society of the
area. The systems approach to planning requires that sufficient information be obtained about the
system in order to understand and analyze it.
An important aspect of planning is community involvement in the planning process and decision
making. This is based on the concept that planning is for the residents of an area, and they should
be given the opportunity to participate in the planning of its future development and express their
views on the type of future community they want to live in.
STAGES IN THE TOURISM PLANNING PROCESS
There are 8 basic stages in the tourism planning process, applicable to any national or regional
planning situation.
1. Study preparation: The first stage is careful preparation of the study so that it achieves its
main aim of providing appropriate development guidance. It is identifying the project (to plan for
something to be done). This stage involves agreement on the project terms of reference, selection
of the team members, and appointment of steering group to oversee the project, and organizing
the study activities.
2. Determination of development goals and objectives: It involves setting the objectives of
the project. The precise objectives of the tourism development must balance the economic,
environmental and socio-cultural impacts that the development will generate, and should stress
the priorities where there is potential conflict. Although the goals and objectives are agreed at
this early stage, the development process must be sufficiently flexible as to allow further
focusing and alterations as the project proceeds.
3. Surveys: It is an inventory of the development area in terms of prevailing situations. It
involves collecting data, both quantitative and qualitative, on the characteristics of the
development area and the current demand/supply situation in terms of tourist activity. Working
from the general to the specific, this stage of the planning process will entail the analysis of
global tourism patterns and trends, any existing data on current tourism arrivals, an inventory of
al the elements of the existing and planned tourist infrastructure and facilities, plus coverage of
the economic, environmental, social and cultural aspects of the plan.
4. Analysis and synthesis: It involves a structured analysis and synthesis of the data
collected at stage 3 to arrive at a number of important outcomes, including:
 Market analysis-this will detail the expected level and type of demand, and should
include target numbers of tourists.
 The required supply of tourism facilities-from the market analysis, it will be possible to
plan the number and type of accommodation, transportation and attractions, plus manpower
levels.
 Infrastructure requirements- improvements to existing infrastructure and the development
of new infrastructure can be e determined from the data collected at stage 3.
 Environmental, social and cultural effects-this will involve establishing carrying
capacities and proposing mechanisms to limit detrimental impacts while at the same time
maximizing tourism’s beneficial effects.
Analyzing (breaking down into deferent components) and synthesizing (putting together the
components having the same nature) of the survey outcome is essential as to know what kind of
approach is required.
An important part of this stage is the identification of major opportunities and/ or constraints for
developing tourism. This provides a focus for formulating recommendations and identifies how
to maximize the opportunities and overcome the constraints.
5. Plan formulation: It is formulating a policy for development along with operational
aspects. This stage is best approached by preparing and evaluating alternative development
scenarios, since there is seldom one ideal set of principles, but rather optimal choices that

balance costs and benefits. The alternatives are evaluated according to a range of factors such as
how they meet the development objectives, maximizing economic returns, reinforcing positive
tourism impacts and minimizing the detrimental environmental and socio-cultural effects of
tourism development.
6. Recommendations: It is seeking technical expertise from different disciplines. In other
words, it is the formulation of the institutional recommendations, drawn up with due regard to
the views of the project steering committee.
7. Implementation- Addresses how the plan will be in action. It is putting the plan and the
recommendation in to action/operation.
8. Monitoring- Address the detection of any problems that arise (e.g. through continuous
feedback on implementation), so that appropriate remedial action can be taken.
Plans generally need to be adjusted over time due to changing goals, changing market conditions
and unanticipated impacts.
SIGNIFICANCE OF TOURISM PLANNING
As we have seen in chapter 7, tourism generates both positive and negative environmental, socio
cultural and economic impacts. The purpose of all tourism planning activity is to guide future
tourism actions in order to meet predetermined objectives in a way that reduces potential
conflicts and maximize benefits. The tourism sector objectives can be achieved more effectively
if carefully planned and integrated in to the country’s total development plan and program.
Specifically, tourism planning is necessary for the following reasons:
 As modern tourism is a relatively new type of activity in many areas, a tourism plan and
development program can provide guidelines in those areas for developing tourism.
 Tourism is a complicated, multi- sector and fragmented activity involving other sectors
such as agriculture, fishery, manufacturing, etc. planning and project development coordination
are necessary to ensure that all elements developed in an integrated manner to serve tourism as
well as general needs.
 Much of tourism is essentially selling a product of an experience comprised of visitor use
of certain facilities and services. There must be careful matching of the tourist markets and
products through the planning process.
 Tourism can bring various direct and indirect economic benefits that can be best
optimized through careful and integrated planning.

 Tourism planning can be used as process for optimizing the socio-cultural benefits and
prevention or lessening of the problems.
 Careful planning is required to determine the optimum type and level of tourism that will
not result in environmental degradation and to tourism as a means to meet environmental
conservation objectives.
 Satisfying the manpower needs of tourism requires careful planning and programming
and, in many cases, developing specialized training facilities.
TOURISM PLANNING APPROACH

The basic tourism planning approach is aimed at practical application in the formulation of
tourism development policies and plans. The basic planning process expressed previously
provides the general planning framework. The approaches of tourism planning are as follows:
 Continuous, incremental and flexible approach- tourism planning is seen as a
continuous process with adjustments made as needed based on monitoring and feedback, but
within the framework of maintaining the basic objectives and policies of tourism development.
 Systems approach- tourism is viewed as an interrelated system and should be planned as
such.
 Comprehensive approach- a holistic approach.
 Environmental and sustainable development approach.
 Integrated approach- related to systems and comprehensive approaches, tourism is
planned and developed as an integrated system with itself and overall plan & development
patterns of the area.
 Community approach- community involvement in the planning, decision making,
development and management of tourism.
 Implementable approach- the tourism development policy, plan and recommendations
are formulated to be realistic and implementable, the implementation techniques being
specifically identified and adopted throughout the policy and plan formulation.
 Application of a systematic planning process.
This approach is applied conceptually to all levels and types of tourism planning, but specific
form of application will, of course, vary depending on the type of planning being undertaken.
LEVELS AND TYPES OF TOURISM PLANNING

Tourism planning is prepared at various levels, with each level focusing on a different degree of
specificity. Although not always possible to achieve, the planning should be prepared in
sequence from the general to the specific, because general levels provide the framework and
guidance for preparing specific plans. The various levels of tourism planning and design are
described below.
International Level
This level of planning is concerned mostly with international transportation services, the flow
and tour programming of tourists among different countries, complementary development of
major attraction features, and multi country marketing and promotion programs. Some limited
tourism planning, marketing and cooperative activities generally take place at the international
level through organizations such as UNWTO, IATA, and ICAO.
The international planning level is weak because it depends on the cooperation of individual
countries.
National Planning
The national level of tourism planning is focused on several elements as listed below:
 Tourism policy
 The general amount, types and quality level of accommodation and other tourist facilities
and services required.
 The major tour routes in the country.
 Overall tourism marketing strategies and promotion programs.
 Tourism organizational structure, legislation and investment policies.
 Education and training institutions.
 Facility development and design standards.
Regional Planning
The regional level of tourism planning is for one region of a country, often a state or province,
and formulated within the framework of the national tourism policy plan, if such exists. Regional
planning focuses on the elements of:
 Regional policy
 Regional access and the internal transportation network of facilities and services.
 Type and location of tourist attraction.

 Amount, types and location of tourist accommodation and other tourist facilities and
services.
 Regional level of environmental, socio-cultural and economic considerations and impact
analysis.
 Regional level training and education programs.
 Marketing strategies and promotion programs.
 Organizational structure, legislation, regulation, and investment policies.
Sub Regional Planning
In some countries or regions, there is a need for sub regional planning, which is more specific
than the regional level, but not as detailed as development area or resort land use planning.
Development Area Land Use Planning
Tourism development areas designed for integrated tourist resorts, resort towns, urban tourism,
and tourist attractions require land use plans. This more detailed level of planning indicates the
specific area for hotels and other types of accommodations, retail shops and other tourist
facilities, recreation parks and conservation areas, the transport system of roads, walkways and
other elements such as local airport or rail way line and station, and the planning for other
infrastructure of water supply, electric power, etc.
Facility Site Planning
Site planning is very specific planning for individual buildings or complexes of buildings such as
hotels, commercial centers, and visitor facilities. The actual location of buildings and other
structures, recreation facilities, streets and walkways, parking, landscaping areas, and other land
uses & their interrelationships are shown in map form.`
9.2 TOURISM MARKETING

Core Concepts of Marketing
Before we define what marketing is, first let us see some important concepts of marketing. These
core concepts of marketing are discussed below:
Needs, wants and

demands
Markets Products and services
Core concepts
of marketing
Exchange, transaction and Value, satisfaction and

relationships quality
Figure: Core concept of marketing

A. Needs, Wants and Demands
Needs: the most basic concept underlying marketing is that of human needs. A human need is a
state of felt deprivation. Included are the physical needs for food, clothing, warmth, and safety as
well as social needs and belonging and fame, and individual needs for knowledge and self-
expression. These needs were not invented by marketers but are part of the human makeup.
Wants: human wants are the form human needs take as they are shaped by culture and
individual personality. Wants are how humans communicate their needs. Wants are described in
terms of objects that will satisfy needs.
Demand: people have almost unlimited wants, but limited resources. When backed by buying
power, wants become demands.
B. Products
A product is anything that can be offered to satisfy a need or want. The concept of products is
not limited to physical products only. Anything capable of satisfying a need can be called a
product. More broadly defined, products also include such other entities as experiences, persons,
places, organizations, information and ideas.

C. Value, Satisfaction and Quality

Customer Value: is the difference between the benefits that the customer gains from owning
and/or using a product and the costs of obtaining the product. Costs can be both monetary and
non monetary. One of the biggest non monetary costs for hospitality customers is time.
Customer Satisfaction: depends on a products’ perceived performance in delivering value
relative to the buyer’s expectation. If the product’s performance falls short of the customer’s
expectations, the customer is dissatisfied. If the performance matches expectations, the buyer is
satisfied. If performance exceeds expectations, the buyer is delighted.
Customer expectations are based on past buying experiences, the opinions of friends, and
marketer and competitor information and premises. Marketers must be careful to set the right
level of expectations. If they set expectations too low, they may satisfy those who buy, but fail to
attract new customers. If they set expectations too high, customers will be disappointed. Highly
satisfied customers make repeat purchases, are less price sensitive, remain customers longer, and
talk favorably to others about the company and its products.
Quality: has a direct impact on product or service performance. Thus, it is closely linked to
customer value and satisfaction. It can be defined as ‘freedom from defect’. Customer focused
definitions suggest that quality begins with customer needs and ends with customer satisfaction.
D. Exchange, Transaction and Relationships
Exchange: is the act of obtaining a desired object from some one by offering something in
return. Exchange marketing occurs when people want to satisfy needs and wants through
exchange. It is one of several ways people can get a desired object.
Where as exchange is the core concept of marketing, transaction is marketing’s unit of
measurement. A transaction consists of a trade of values between two parties. A transaction
involves at least two things of value, conditions that are agreed to, a time of agreement and
place of agreement. We must be able to say A gives X to B and gets Y in return at a certain time
and place within certain understood conditions.
Relationship Marketing: involves creating, maintaining and enhancing strong relationships
with customers and other stakeholders- distributers, dealers, suppliers, etc. relationship
marketing is most appropriate with customers who can most affect the company’s future.

E. Market: The concept of transaction leads to the concept of market. A market is a set of actual
and potential buyers who may transact with a seller. Sellers constitute the industry and buyers
constitute the market.
The Concept of Marketing
The term marketing has been defined by experts and here are some of the definitions:
(1) “ Marketing is a social and managerial process by which individuals and groups obtain what
they need and want through creating, offering and exchanging the products of value with others”.
(Philip Kotler,1994)- These must be a stated or implied demand and an ability to supply for a
market to exist.
(2) “Marketing is essentially concerned with prediction of people’s future behavior and an
attempt to influence their behavior in some particular way.” ( Colin Mclver)
(3) “Marketing is a business process by which the existing and potential demand for goods and
services is determined, cultivated and supplied by the seller. The process includes the efforts of
all functional areas of the seller working in a concert to produce at the right price, time and place
the service or product that meets t he market’s demand and t he marketer’s profit goal.”(Dr.
William Kaven)
Marketing process in tourism sector has a cyclical nature as shown in the diagram.
Identifying customers
needs
Monitoring
review & evaluation
Developing products&
services
Product & service promotion

Fig. The Marketing Process in Tourism
Marketing Management Philosophies
There are 5 concepts under which organizations conduct their marketing activity. They are
discussed below:

1. Manufacturing (Production) Concept

It is one of the oldest philosophies guiding sellers. This concept holds that consumers will favor
products that are available and highly affordable, and therefore management should focus on
production and distribution efficiency. The problem with concept is that management may
become so focused on manufacturing systems that they forget the customers.
2. Product Concept
Like the manufacturing concept, it has an inward focus. The product concept holds that
consumers prefer existing products and product forms, and the job of management is to develop
good versions of these products. This misses the point that consumers are trying to satisfy needs
and might turn to entirely different products to better satisfy those needs, such as motels instead
of hotels.
3. Selling Concept
The selling concept holds that consumers will not buy enough of the organization’s products
unless the organization undertakes a large selling and promotion effort. The aim of a selling
focus is to get every possible sale, not to worry about satisfaction after the sale or revenue
contribution of the sale. The selling concept does not establish a long term relationship with
customers, because the focus is on getting rid of what one has rather than creating a product to
meet the needs of customers.
4. Marketing Concept
It is a more recent business philosophy and one that is being rapidly adopted in the hospitality
industry. This concept holds that achieving organizational goals depends on determining the
needs and wants of target markets, and delivering the desired satisfaction more effectively and
efficiently than competitors. Unlike the selling concept, it takes an outside in perspective. In the
marketing concept, the company coordinates all the activities that will affect customer
satisfaction and makes its profits by creating and maintaining customer satisfaction.
Starting Point Focus Means Ends
The Selling Concept factory existing selling and profits through

Products promoting sales volume
Figure: Selling and Marketing
The Marketing Concept market
Concepts Contrasted
customer integrated profits through
Needs marketing customer satisfaction
5. Societal Marketing Concept

It is the newest marketing concept. The societal marketing concept holds that the organization
should determine the needs, wants and interests of target markets and deliver the desired
satisfactions more efficiently and effectively than competitors in a way that maintains or
improves the consumers’ and societies’ wellbeing. The societal marketing concept questions
whether the marketing concept is adequate in an age of environmental problems, resource
shortages, rapid population growth, worldwide inflation, and neglected social services. It asks if
the firm that senses, serves and satisfies individual wants is always doing what is best for
consumers and societies in the long run. The pure marketing concept ignores possible conflicts
between short run consumer wants and long run societal needs.
9.3 CUSTOMER CARE
Introduction
A customer relation is the approach of an organization to wining and retaining customers. On

one level customer relations means keeping customers fully informed, turning complaints in to
opportunities, and genuinely listening to customers. On another level, being a customer-focused
organization means ensuring that all activities regarding trading for example planning, design,
production, marketing, and after sales of a product or service all are built around the customer,
and that every department and individual employees understands and shares the same vision.
Only then can a company deliver continuous customer satisfaction and experience good
customer relations. Customer relation is also known as customer care.
Customer expectation is the needs, wants and preconceived ideas of a customer about a product
or service. Customer service is the ability to provide service or product in the way it has been
promised.
Need and Importance of Customer Care
The most critical activity of any organization wishing to stay in business is its approach to
dealing with its customers. If you could increase your sales by 50% without increasing your

marketing budget, would you be interested? Of course you would, what marketing professional
or business owner would not be interested?
Business owners often make the costly mistake of servicing a customer once then assuming
“they will stay” as a customer or client without maintaining and growing that relationship. A
year later, that business owner is wondering what happened to that customer and where they
went. Why haven’t they heard from them? Did they leave? If so, why?
There are many reasons a customer may leave you, but the ones you will hear most often are:
 They felt your pricing was too high or unfair.
 They had an unresolved complaint.
 They took a competitors’ offer.
 They left because they felt you didn’t care.
When you consider that the last two make up the majority of why a client or customer will no
longer use your service or buy your products- it can be a hard pill to swallow. After all, it means
they are an inactive customer because they felt you didn’t care about them and your competitor
did. This makes sense when you consider that customers often purchase your service or product
because they have developed a relationship with you, they owned another product or yours, or
they were referred to you by a friend or associate.
When faced with the above facts, why is it businesses spend 80% of their marketing dollars
going after new customers rather than nurturing, retaining and maintaining the customer
relationship they already have? Before you spend your time and money going after new
customers why you don’t currently have a relationship with. Consider the following statistics:
 Repeat customers spend 33% more than new customers
 Referrals among repeat customers are 107% greater than non-customers.
 It costs 6 times more to sell something to a prospect than to sell that same thing to a
customer.

As you can see, your marketing dollars will go further if you use it to build, nurture and develop
your customer relationships. This is not as difficult as you think. Building these relationships just
means that treating your customers as if they truly are your strategic partners and showing them
that you truly care about them. It is important to try to satisfy them with the right products and
services. Supported by the right promotion and making it available at the right time and location.
Customers can easily detect indifference and insincerity and they simply will not tolerate. Lon-
term customer loyalty is a long-term challenge that you must strive for every day and with every
transaction no matter how big or small.
While a growing business needs to constantly capture new customers, the focus and priority
should be on pleasing your existing customer base. Companies that fail to nurture and retain their
customer base ultimately fail. You will also spend twice as much to get new customers as you
will in maintaining your existing customer base. You will also be limited in your ability to attract
new customers if you can’t hold on to and satisfy your existing customers.
The bottom line is that one of the key components in marketing and business growth is to spend
the majority of your time and effort nurturing customer relationships, so that you get business
from existing customers. This is a strategy that will move you forward in increasing your sales
by 50% without increasing your budget.
Key to Success in Customer Care
Top tips for customer care
There are a number of fundamental rules that you as retailer should strive to follow in order to
create a great sense of customer satisfaction and loyalty in your business. These tips include the
following:
 Give them personal attention- one of the areas that customers most appreciate a good
salesperson is when they are able to give them undivided attention. Never look around your store
at other possible customers when you are engaged in a conversation with an individual. It will
look like you are not listening or paying attention and can give the wrong impression.

 Make customers feel important- if you are able to get your customers’ name without
sounding cheesy, do so. Thank them and use their name whenever it seems appropriate, but be
aware that overusing this can make you sound insincere, so judge it wisely.
 Always try to say yes- staying positive when faced with difficult requests for rare and
limited collectibles makes your customers’ see that you are trying to please them and want their
custom.
 Give a little more- if you have regular and loyal customers, reward them- giving
discounts for bulk purchase, give them loyalty card, etc.
 Appreciate customer feedback and be flexible- it is extremely important to ask your

customers for feedback. Be flexible- don’t say this is our policy. Solve complaints accordingly.
 Show new customers you care.
 Employee training and loyalty
 Reliability- if you say a purchase will come on Monday, bring it on Monday. If

something goes wrong, let customers know immediately and compensate them for their
inconvenience.
 Product awareness- know what customers purchase and keep them in stock.
Types of Customers
Generally speaking, customers fall in three types.
1. Dissatisfied customers: If the product’s performance falls short of the customer’s

expectations, the customer is dissatisfied. Only 4% of dissatisfied customers complain. 96% just
go away. The problem is they do not go away quietly. They tell 10 to 15 people about their bad
experience with us. If these customers are telling 10 to 15 people, that would be bad enough.
But, do we imagine that the telling remains the same from person 1 to person 15? In fact, as we
all know from personal experiences, the stories grow and worsen as it is told.
2. Satisfied customers: If the product’s performance matches expectations, the buyer is

satisfied. These customers are willing to stay until something better comes along. They are
satisfied for now. This is the trap that many organizations fall in to on the subject of customer
satisfaction.
3. Delighted customers: If the product’s performance exceeds expectations, the buyer is

delighted. They are actually powerful marketing weapon for our organization. Owners of
organizations have realized that delighted customers are singing phrases to other potential
customers
The Importance of Customers and their Expectations
Customer expectation is the needs, wants and preconceived ideas of a cu8stomer about a product
or service. Customer expectation will be affected by customers’ perception of the product and
can be created by previous experience, advertising, brand image, awareness of competitors, etc.
the level of customer is also a factor , and a customer might expect to encounter efficiency,
helpfulness, reliability, confidence in the staff, and personal interest in his/her patronage.
Customer service is the ability to provide service or product in the way it has been promised. The
modern customer demands the ‘best’ from the organization. S/he has the ability to perceive even
the minutest of detail in the product or service being offered.
Creating Good Customer Care Images
Good customer care is about:
 Meeting our customers’ needs
 Knowing how to deal effectively with our customers in all circumstances.
 Building good working relationships with our colleagues.
 Managing communication, expectation, and perception.
 Securing a competitive edge in recruitment and selection.
Customer care golden rules
We are always seeking value, goods and services which exceed our needs and expectations. So
why should our customers be different? A customer is:

1. The most important person in any business
2. Not dependent on us, we are dependent on them
3. Not an interruption of the work. They are the purpose of it.
4. Not some one to argue or match with.
5. Part of the business, not an outsider.
6. A person who brings his or her want. It is our job to fill these needs and wants.
7. Deserving the most courteous and attentive treatment we can give them.
8. The back bone of this and other business.
9. A person who makes possible to pay the employees’ salary.

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Introduction to Travel and Tourism 2006E.C.

CONCEPT OF TRAVEL AND TOURISM

1.1. Meaning & Nature of Tourism

Before we go to define tourism, it is necessary to differentiate among what is meant by leisure,

1. Working hours have been reduced.

2. Now, there is provision of holiday with pay.

3. Life expectancy has increased.

4. Technological developments like washing machines, dishwashers, computers, telephone

Aksum University | Tourism Mgt 1

There are 4 different perspectives of tourism.

B. the business providing tourist goods and services

C. the government of the host community/area/: perspectives of the government as a wealth

Aksum University | Tourism Mgt 2

According to WTO and approved by UN in 1993,”Tourism is the activity of persons traveling

1. Involvement of travel by non residents

2. Stay of temporary nature in the area visited, and

3. Stay not connected with ay remunerated activity or an activity involving earnings.

Aksum University | Tourism Mgt 3

Basic characteristics of the tourism industry

 Dominated by private sector enterprises

 Dynamic and entrepreneurial

 Many small and medium sized enterprises

 Serves domestic and international markets

 Thrives on face to face communication

 Makes extensive use of new technology

 Rudimentary management structure

 Vulnerable to external pressures

 Have positive and negative impacts.

Aksum University | Tourism Mgt 4

1.2. Definition of Traveler, Visitor, Tourist and Excursionist

Visitors are classified in to two:

Aksum University | Tourism Mgt 5

Influence on demand tourist demand travel supply tourism impacts

Aksum University | Tourism Mgt 6

Leisure tourism Business tourism

-Takes place in free or leisure time -takes place in working time

-Travelers choose their destination -companies choose

-More flexible in schedule -less flexible

-High price elastic -price inelastic

-More seasonal -less seasonal

Domestic and international tourism

Leisure tourism (discretionary travel) VFRs Business tourism

 Health and fitness -business meeting

Aksum University | Tourism Mgt 7

 Religion -trade fairs

 Education - training event

 culture -incentive travel

FIG: Classification of tourism and travel based on purpose of travel.

1.4. The Tourism System

Aksum University | Tourism Mgt 8

3. Outbound tourism: It involves Ethiopians (residents) traveling in another country.

E.g. Ethiopians travelling in Japan

1. International tourism: It consists of inbound tourism and outbound tourism in Ethiopia.

2. National tourism: it consists of domestic tourism and outbound tourism in Ethiopia.

3. Internal tourism: It comprises of domestic and inbound tourism in Ethiopia.

INTERNATIONAL TOURISM Fig: forms and categories of tourism

Aksum University | Tourism Mgt 9