The role of government policy and

tourist transport

The role of government

Most governments seek to maximize the

domestic population’s opportunities for

mobility and travel by the provision of

various modes of transport to facilitate the

efficient movement of goods and people at

a national level

The role of government

The development of transport to facilitate

inbound tourism is often motivated by

government’s desire to increase earnings

from tourist receipts

The role of government

To achieve the government’s objectives for

transport to facilitate tourist travel, policies

are formulated to guide the organization,

management and development of tourist and

non- tourist transport

The role of government

Government may need to develop policies

and planning measures which expand and

develop national, regional and local

infrastructure to accommodate tourists

and recreational travel alongside the use for

commuting and non- tourist travel

The role of government

Government’s role is to promote and

protect the interest of the consumer against

unfair business practices, and to ensure that

safety standards are maintained to protect

the interests of employees in large and small

– scale transport operations

The role of government policy

Policy – is the direction and

objectives an organization wishes to

pursue over a set period of time

National policy is normally

formulated by government

organizations with economic and

social factors

The policy making process POLICY MAKERS

Issue/ problem definition

Process of policy definition

Policy formulation

Policy implementation

Problem superceded or redefined

Policy Outcome

POLICY – frequently used to denote

the direction and objectives an

organization wishes to pursue over a

set period of time

POLICY MAKING is a

continuous process which is

applicable to the way tourism

transport issues are considered

by government bodies

Process of policy definition – How to

address the problem

Problem redefined/ super ceded

(replace something that is less

efficient) U TURN

POLICY MAKERS

ISSUE/PROBLEM definition

Process of policy definition

Policy Formulation

Policy Implementation

Problem redefined

Policy Outcome

Transport policy

Is a reactive element of government activity

as changes in society and the demand for

tourist and non- tourist travel require a

certain degree of continuity and change in

policy to meet the new trends and activity

patterns among the population

The government has been a major factor in

developing transportation facilities. They are

responsible of the following:

1. Ensure the safety of the travelers

2. Protect the public from the abuse of the

monopoly/domination power

3. Promote fair competition

4. Develop or continue vital transport services

Transport policy has affected the tourist transport system based on two economical principles:

1. Allocative efficiency; cost-efficient

2. Political obligations (need to protect the public interest for transport provision); road repairs

These principles had an important effect in tourist transport in terms of development, expansion, and regulation of the different modes of transport.

The policy changes in 1980’s – 1990’s which are characterized by:

1. transferring transport from public sector to private sector through privatization

2. the introduction of competition on public transport services

3. the pursuit of greater levels of private capital in the large infrastructure projects – private companies who invests

Flag Carrier

A flag carrier refers to a transportation

company, such as an airline or shipping

company, that is locally registered in a

given country.

They may be state-run, state-owned or state-

designated companies or organizations with

preferential rights or privileges accorded by

the government.

Country Airline Designated State-owned

Afghanistan Ariana Afghan

Airlines Yes Majority

Albania Albanian Airlines Yes Joint-Venture

Algeria Air Algérie Yes Majority (By opening

its capital)

Angola TAAG Angola Airlines Yes Full

Åland Islands Air Åland

Argentina Aerolíneas Argentinas Yes Full

Netherlands KLM Yes No

Netherlands

Antilles

Dutch Antilles

Express

New Caledonia Aircalin

New Zealand Air New Zealand Yes Majority

Nicaragua NICA Yes

Nigeria Virgin Nigeria

Airways Yes

50% Virgin

Atlantic / 50%

Nigerian

institutional

investors

Norway Scandinavian

Airlines System Yes Minority

Oman Oman Air Yes Majority (82.4%

Privatization in the Asia Pacific

Region

1997 – Fastest growing regions in the world for scheduled air travel.

However, even though that the major airlines of Asia belong to the world’s fastest growing airline market, they have remained relatively small in terms of network size, traffic volume and operating revenue, compared with major carriers in the USA and Europe; third world vs first world

Where privatization has occurred, it can take a number of

forms/ways:

1. Listing on the stock market – it adds equity to the

company

2. Sale of the airline to other companies in the same

country

3. Sale of the airline to strategic

shareholders/stakeholders – merging of companies

• Privatization also allows overseas investment in airline through direct investment by shareholders and equity holdings through strategic alliances

• Has certainly opened up the opportunities for the region’s airlines to become part of a global aviation industry through foreign investment, alliances and cooperation even on the absence of state policies to protect state airlines.