Chapter 6 Tourism Policy and Chapter 6 Tourism Policy and Organizations Organizations

Learning ObjectivesLearning Objectives Identify the reasons for government involvement and the

roles of government in tourism. Describe the elements of a tourism policy model and how

they are used to form a tourism policy for a destination. Explain the roles of global tourism organizations, including

the WTO. Explain the roles of multi-country regional organizations. Explain the roles of national tourism organizations. Explain the roles of state, provincial, and territorial

government tourism organizations. Explain the roles of regional and local tourism

organizations.

Overview Overview

Reasons for government involvement in tourism

Government roles in tourism Tourism policy formulation Tourism organizations

Reasons for government Reasons for government involvement in tourisminvolvement in tourism

Political reasons Travel across national boundary--entry and exit--

overseas destination approved by CNTA. Enhance the national and international image.

Environmental reasons Carrying capacity-sustainable development

Economic reasons Japan trade surplus in 1980s-encourage outbound

trips-balance of payment.

Government roles in tourismGovernment roles in tourism Coordination

Among many government bodies concerned with different aspects of tourism.

Among government agencies at different levels. Among the government, the private sectors and nonprofit organizations.

Tourism policy-setting Tourism planning Tourism legislation and regulation

The number of paid vacation days Policies on passports and visas

Tourism infrastructure development Tourism operations

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

Tourism development stimulation and control

Tourism marketing and research Tourism training and education

Government roles in tourismGovernment roles in tourism

Tourism Model Policy Tourism Model Policy

Destination Area Needs

EconomicSocialCulturalEnvironmental

Tourism Goals

EconomicGovernment operationsHuman resource developmentMarket developmentResource protection and conservationSocial and cultural

Constraints

External Internal Climate Availability of investmentEconomy Availability of landEnergy Local resident useMarket Manpower availability Quality of attractions and facilities

Tourism Objectives

Tourism policyProgramsStrategiesPrioritiesactions

Tourism policy formulationTourism policy formulation

Tourism OrganizationsTourism Organizations

Tourism Organizations

Tourism organizations can be viewed in the following ways:

1. Geographically: Global organizationsMulti-country regional organizationsNational tourism organizationsState, provincial organizationsRegional tourism organizationsLocal tourism organizations

2. By ownership: government, quasi-government, or private.

3. By function: suppliers, marketers, development, consultants, educators, publishers, professional associations .

4. By industry: transportation, travel agencies, tour wholesalers, lodging, attractions, and recreation.

5. By motive: profit and nonprofit.

• Most widely recognized organization in tourism

• Serves as a global forum

• Transfers tourism know-how

• Produces statistics and market research

• Develops tourism human resources

• Works to facilitate travel

• Promotes sustainability

• Creates special projects

WTO Web site http://www.world-tourism.org

World Tourism Organization (WTO)

Global Organizations

The World Tourism organization

History

Its beginnings is the International Union of Official Tourist Publicity Organization, set up in 1925 in the Hague. Then it was renamed the International Union for Official Tourism Organizations after World War II and moved to Geneva. IUOTO was renamed the world tourism organization,and its first General Assembly was held in Madrid in May 1975.

The World Tourism Organization is the most widely recognized and leading international organization in the field of travel and tourism today. Its membership includes 138 countries and territories and more than 350 affiliate members. And the headquarters is in Madrid.

Activities

1)The transfer of Tourism know—how to development countries is a major task .Here WTO contributes decades of experience in tourism to the sustainable development goals of nations throughout the world.

2)WTO is well known for its statistics and market research. Research is the one of its most important contributions.

3)Human resource development is another WTO goal.WTO sets standards for tourism education.

4)WTO attempts to facilitate world travel through reduction of government measures for international travel as well as standardization of requirements for passports, visas,and so forth.

5)They are also involve in regional promotion projects.For example, the Silk Road and the Slave Route projects.

Financial Support

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

Global Organizations

Some goals of WTTC are:

1. Work with governments to make tourism a strategic economic development and employment priority.

2. Move toward open and competitive markets.

3. Pursue sustainable development.

4. Eliminate barriers to growth in the industry.

Wed site http://www.wttc.org

World Travel and Tourism Council

World Travel and Tourism Council It is a global coalition of the top 100 chief executive officers from all sectors of the industry. These include accommodations, catering, cruises, entertainment, recreation, transportation.

It was established in 1990, WTTC is led by a 15—member executive committee. It meets twice a year and reports to an annual meeting of all members. Day-to-day operations are carried out by the President and a small staff based in London, Brussels, and Washington,D.C.

WTTC has done more to create awareness of the economic importance of tourism than any other organizations. WTTC works with government to make tourism a strategic economic development and employment priority, pursue sustainable development.

WTTC does many researches and proposes for an international standard Satellite Accounting System.

International Civil Aviation Organization

Global OrganizationsGlobal Organizations

ICAO was established in 1944.

It is an organization of governments joined to promote civil aviation on a worldwide scale.

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

International Air Transport Association

It is the global organization for all the international air carriers.

Its principle function is to facilitate the movement of person and goods from everywhere to everywhere.

IATA is a valuable information source on the world airline industry. Their market research helps the industry develop its strategic and marketing plans.

IATA’s mission is to represent and serve the world airline industry.

The IATA Web site is at http://www.iata.org

Global Organizations

Multi-country Regional Organizations

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

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

http://www.oecd.org

• Pacific Asia Travel Association (PATA) Represents nations in Asia and the Pacific.

http://www.pata.org

Pacific Asia Travel Association

The PATA represents countries in the Pacific and Asia that have united to achieve a common goal, namely, excellence in travel and tourism growth in this vast region.

Its work has been to promote tourism through programs of research, development, education, and marketing.

PATA has gained a reputation for outstanding accomplish among similar world organizations.

Developmental Organizations

Examples:

• World Bank

• United Nations Development Program

• Asian Development Bank

National OrganizationsNational Organizations Office of Travel and Tourism Industries (OTTI)

International Trade Administration, U.S. Department of Commerce Research and Policy Mission statement: OTTI is dedicated to helping US businesses gain

access to and compete in the global market place. http://tinet.ita.doc.gov

Travel Industry Association of America (TIA) leading private tourism organization in U.S. Represents the whole U.S. travel industry Promotes and facilitates increased travel to and within the U.S. http://www.tia.org and http://www.seeamerica.org

Canadian Tourism Commission (CTC) Public-private partnership Plans, directs, manages, and implements programs to generate and p

romote tourism in Canada. http://www.CanadaTourism.com

China National tourism Administration (CNTA)

Other Tourism Organizations

• Convention and Visitor Bureaus (CVBs)

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

• International Association of Convention and Visitor Bureaus (IACVB)

• Most city CVBs belong to this organization.

• http://www.iacvb.org

CNTA Management SystemCNTA Management System National level tourism administration bureau. (N

TO)

China National Tourism Administration

— CNTA Province and municipality level tourism adminis

tration bureau. eg.Tianjin City or county level tourism administration bure

au.

Organizational Structure Of CNTAOrganizational Structure Of CNTA

Chairman

Planning and

Financial Department

GeneralAdministration

Office

Marketing&

CommunicationsDepartment

Policyand

LegalDepartment

HumanResources

Department

IndustryManagementDepartment

Vice chairman

New York office

LosAngeles

office

Londonoffice

Parisoffice

Frank-fruitoffice

Zurichoffice

Maridoffice

Tokyooffice

Osakaoffice

Singa-poreoffice

Sydneyoffice

Torontooffice

Asia Tourism Exchange

Center Limited

Hong Kong

China’s Tourism PoliciesChina’s Tourism Policies

Policy serves politics. The change of national tourism policy, to

some extent, reflects changes in the country’s political and economic systems.

National tourism policy in China has experienced two major changes, namely, tourism serving politics, and tourism serving the economy.

Recognition: from a diplomatic activity to an industry of importance.

Politics only. 1949-1978. Tourism was treated as people-to-people diplomacy,

seeking no economic returns. Politics plus economics. 1978-1985. Eg. Discriminatory pricing policies. Economics over politics. In 1986, the national government declared tourism t

o be a comprehensive economic activity with the direct purpose of earning foreign exchange.

Since 1998 tourism was considered as a new growth point of the national economy and most provinces have made tourism one of the pillar industries in their local economic development planning.

China’s Tourism PoliciesChina’s Tourism Policies

Administration: from micromanagement and control to macromanagement and service.

From 1949 to the mid-1960s, travel to China by overseas Chinese was treated as a foreign affairs activity and was controlled by the office of Overseas Chinese Affairs under the State of Council. All aspects of tourism were tightly controlled by the national government.

CNTA was set up in 1981 with the rapid growth of tourism in the late 1970s. It became China’s national tourism organization (NTO), and concentrated on the macromanagement of the tourism industry.

China’s Tourism PoliciesChina’s Tourism Policies

Priority: from inbound only to both international and domestic travel.

The mode of China tourism development is quite different from that in most of the development countries.

Inbound tourism － domestic tourism － outbound tourism

China’s Tourism PoliciesChina’s Tourism Policies

Business: from monopoly to standardization in tourism business operations.

Travel agency: from three magnates (CITS, CTS,CYTS) to 7000 travel services (international and domestic categories) in 1999.

Hotels: There are 203 hotels and 76,192 bed spaces in 1978; 7035 hotels with 889,430 rooms in 1999, 61% of rooms

were state owned while 15.8% were owned , partly or wholly, owned by overseas investors.

China’s Tourism PoliciesChina’s Tourism Policies

Actions: from a product-oriented to a market-oriented mode, from a seller’s market to a buyer’s market.

In the late1970s and early 1980s,China’s tourism was a seller’s market. China exercised a product-oriented management policy and showed little interest in marketing or market research.

From 1986 to 1990, CNTA’s promotional budget was only US$1.4million per year, and this included the operating cost of its overseas offices.

After 1989, the seller’s market was replaced by a buyer’s market. China realized the importance of the tourism market.

By 1991, CNTA’s promotional budget increased to US$3.2 million, representing more than a 100 percent increase compared to 1990. Between 1991 and 1993, CNTA actively engaged in tourism promotion, and the promotion budget doubled from US$3.2 million to 6.4 million.

China’s Tourism PoliciesChina’s Tourism Policies

Major tourism policies and regulations implemented in China since 1978 Major tourism policies and regulations implemented in China since 1978

Year Policy and Regulation Target Area Status of Implementation

1979 Introduction of foreign investment Initially in the hotel but expanding to travel agency sector

Successfully implemented

1984 “Five together” Investment in tourism industry Successfully implemented

1985 “Provisional Regulation on the Administration of Travel Agencies”

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

1988 “Regulations on the Star Standard and Star-Rating of Tourist Hotels of People’s republic of China”

Hotels Successfully implemented

1992 Development of State-level Resorts Tourist attractions Successfully implemented

1993 “Provisional methods on the Administration of Hotel Management Companies”

Hotels Successfully implemented

1995 “Provisional Regulations on the Administration of Quality Service Guarantee Funds of Travel Agencies”

Travel agencies － service quality and customer satisfaction

Successfully implemented but with resistance at the initial stage

1996 Regulation on the Administration of Tour Guides

Travel agencies － qualification and licensing of tour guides

Successfully implemented

1996 Regulation on the Administration of Travel Agencies

Travel agencies Successfully implemented

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

AssignmentAssignment

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