the structure of the industry

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TRAVEL AND TOURISM THE STRUCT URE OF TH E INDUSTRY

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The structure of the industry is complex for the following reasons: It consists of a wide range of interrelated commercial and non- commercial organisations. Most of these organizations are in the private sector and are small and medium sized.

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Page 1: The structure of the industry

TRAVEL A

ND TOURISM

THE S

TRUCTU

RE OF THE IN

DUSTRY

Page 2: The structure of the industry

The structure of the industry is complex for the following reasons:It consists of a wide range of interrelated commercial and non- commercial organisations.Most of these organizations are in the private sector and are small and medium sized.

Page 3: The structure of the industry

COMMERCIAL ORGANISATIONSThese include private sector organisations such as:1)Mystic Mountain2)Outameni3)Sandals group of hotels4)Iberostars

Page 4: The structure of the industry

VALUES AND ATTITUDES OF COMMERCIAL ORGANISATIONS

A good way to determine their values and attitudes would be to look in detail at the organisations previously listed as examples and then:1)define their objectives2)define their source of funding and methods of income

Page 5: The structure of the industry

3) define how they meet stakeholder or shareholder expectations.

Page 6: The structure of the industry

NON-COMMERCIAL ORGANISATIONSThese include public and voluntary sectors such as: 1)The Tourism Product Development Company (TPDCO)2)Jamaica Environmental Trust3)The Jamaica Tourist Board (JTB)

Page 7: The structure of the industry

VALUES AND ATTITUDES OF NON-COMMERCIAL ORGANISATIONS

It is possible to determine the values and attitudes of these organizations by observing:1) their objectives2) their source of funding and methods of income 3) their stakeholder or shareholder expectations

Page 8: The structure of the industry

AGENCIES DELIVERING TRAVEL AND TOURISM PRODUCTS AND SERVICES

For this section of the syllabus the countries to be investigated are:JamaicaPanama ParisThe agencies are as follow:1) tourist attractions- built; natural

Page 9: The structure of the industry

tourist attractions- events as attractions and the facilities which these take place in2) accommodation and catering- to include accommodation grading scheme3) tourism development promotion- locally, regionally, and internationally4) transportation by air; by land; by water

Page 10: The structure of the industry

5) travel agencies6) Tour operators and the components of a package holidayNote that all of these individual component depend on each other, and that no single component exists on its own.

Page 11: The structure of the industry

THE STR

UCTURE OF T

HE

TRAVEL A

ND TOURISM

INDUSTRY

THE MANAGEM

ENT AND DEVELO

PMEN

T OF T

OURIST DESTI

NATIONS

Page 12: The structure of the industry

Destinations are places where there is tourism. Social, cultural, environmental and political conditions influence tourist destinations. The people who are responsible for destination management must try and ensure that tourism integrate with other social and economic activities of the particular area so that it can sustain future development.

Page 13: The structure of the industry

OBJECTIVES OF TOURISM DEVELOPMENT

Tourism occurs in the more economically-developed countries (MEDCs) and less economically- developed countries (LEDCs). “Many developing countries of the world are engaged in tourism as a means of earning foreign exchange and to redress balance of payment ills” . Mathews, (1997) : Nettekoven (1976) , cited in Daye (p.24,1997)

Page 14: The structure of the industry

OBJECTIVES OF TOURISM DEVELOPMENTOrganisations may get involved in tourism development for the following reasons:Economic- examples include:•employment creation both direct and indirect• increasing foreign currency earnings to contribute to the balance of payment and GDP

Page 15: The structure of the industry

• brining in tourists who spend locally and contribute to the multiplier effect

• increasing income for the commercial operators

• economic development and regeneration to develop the infrastructure and improve the local area and conditions for people.

Page 16: The structure of the industry

OBJECTIVES OF TOURISM DEVELOPMENTEnvironmental examples include: • habitat preservation for wild life in an area•regeneration and conservation of the built and natural environment• environmental education of the local people and or tourists visiting the area•stimulating environmental improvements of benefit to local people and wildlife as well as tourists

Page 17: The structure of the industry

OBJECTIVES OF TOURISM DEVELOPMENT Socio-cultural- examples include:• promoting understanding •improving quality of life for the local population•providing community facilities, as well as facilities for tourists

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• revival of traditional activities, festivals and ceremonies to celebrate culture and develop a sense of pride in one’s own identity

Page 19: The structure of the industry

OBJECTIVES OF TOURISM Political –examples include: •enhancing the image of an area is particular important to LEDCs or for countries that may be perceived in a negative way due to war or natural disasters• creating a regional or national identity to boost domestic morale and encourage visitor numbers

Page 20: The structure of the industry

THE STR

UCTURE O

F

TRAVEL A

ND TOURISM

IMPACTS OF TOURISM DEVELO

PMENT

Page 21: The structure of the industry

TYPES OF IMPACTEconomic- positive effects:• increased incomes•increase foreign exchange•Increase employment•improved infrastructure•multiplier effect

Page 22: The structure of the industry

TYPES OF IMPACTEconomic- negative effects:•decline of traditional employment opportunities•seasonality of employment•increased living costs•increased taxes

Page 23: The structure of the industry

TYPES OF IMPACTSocio-cultural – positive effects:•preservation of customs and crafts•provision of community facilities and public services•aiding of international understanding•encouraging travel, mobility and social integration

Page 24: The structure of the industry

TYPES OF IMPACTSocio-cultural –negative effects:•conflicts with the host community•crime•loss of cultural identity•the demonstration effect

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TYPES OF IMPACTSocio-cultural – negative effects:•changes to family structure•social problems such as begging and prostitution

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TYPES OF IMPACT Environmental – positive effects:•improved assets•landscaping•conservation•regeneration•building regulations

Page 27: The structure of the industry

TYPES OF IMPACTEnvironmental – negative effects:•traffic congestion•erosion of natural resources •pollution of air and water•litter•increase in noise levels

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TYPES OF IMPACTEnvironmental –negative effects:•panoramic view damage•destruction of different wild life systems and breeding patterns

Page 29: The structure of the industry

OBJECTIVES OF T

OURISM

DEVELOPM

ENT

PRINCIPL

ES OF DESTIN

ATION MANAGEM

ENT

Page 30: The structure of the industry

The principles of successful tourism management include:1)maximising the retention of visitor spending at the destination2)investing tourism income in public and social projects for local communities

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3) widening access to facilities and assets4) staff training and development5) training and employment of local people in tourism and related activities6) tourism education

Page 32: The structure of the industry

OBJECTIVES OF

DESTINATI

ON

MANAGEMENT

THE ROLE

OF DESTI

NATION MANAGEMEN

T IN MINIMISING NEGATI

VE IMPACTS

Page 33: The structure of the industry

Note that current issues and consumer trends such as those mentioned above can impact on tourism development.Destination management can minimise tourism’s negative impacts through:•planning and control

Page 34: The structure of the industry

• using the principle of sustainable development

• visitor and traffic management• assessing environmental impact

Page 35: The structure of the industry

CHANGES IN TH

E

EVOLUTIO

N OF TOURISM

DEVELOPM

ENT

THE B

UTLER MODEL

Page 36: The structure of the industry

According to Butler (1980), all destinations follow a cycle of evolution and pass through stages similar to youth, maturity and old age.The consequence of which a particular destination will decline unless it can re-invent itself through a process called “rejuvenation”.

Page 37: The structure of the industry

This cycle of evolution compared to the product life cycle (theory) by Butler reflects the following stages:•exploration•involvement•development•consolidation

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• stagnation• decline or rejuvenation

Page 39: The structure of the industry

CHANGES IN TH

E

EVOLUTIO

N OF

DESTINATI

ONS

CHARACTERISTICS OF D

ESTINATI

ONS THAT

INFLUENCE T

HEIR EV

OLUTION

Page 40: The structure of the industry

These factors include - key features of the destination:1) weather and climate2) scenery and landscape3) vegetation and wild life4) historical and cultural attractions5) modern built attractions

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6) indoor/outdoor activities7) accommodation options8) events and festivals9) food /drink and entertainment10) accessibility and gateways

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CHARACTERISTICS OF DESTINATIONS THAT INFLUENCE THEIR EVOLUTION

Tourist appeal by visitor type:1)young people2)singles3)families4)DINKY5)grey market

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6) special needs 7) business tourists

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CHARACTERISTICS OF DESTINATIONS THAT INFLUENCE THEIR EVOLUTION

Visitor statistics:1)recent trend2)projection for future3)stage in evolution using life cycle model

Page 45: The structure of the industry

CHARACTERISTICS OF DESTINATIONS THAT INFLUENCE THEIR EVOLUTION

Factors influencing popularity:1)cost of accommodation2)cost of transport3)costs at destination4)tour operator promotional activity5)over commercialization

Page 46: The structure of the industry

6) crime and social problems7) political instability and unrest8) terrorism9) positive / negative media coverage10) positive / negative tourism management11) growth in independent travel12) growth in short breaks

Page 47: The structure of the industry

13) exclusivity14) increased accessibility15) water / air/ noise hazard16) natural disasters