Tourism Principles 2

T102:Tourism Industry Overview
Lecturer: Ms. Sofia Celeste E. Sarino

TOURISM INDUSTRY OVERVIEW
Basic concepts:
• Leisure vs. Recreation
• Leisure vs Tourism
• Recreation vs Tourism
Recreation: refreshment:
the refreshment of the mind and
body after work, especially by
engaging in enjoyable activities.
Leisure: free time: time during which
somebody has no obligations or
work responsibilities, and therefore
is free to engage in enjoyable
activities.
“Tourism in the pure sense is essentially
a pleasure activity in which money
earned in ones abode is spent in
places visited. In this sense, Tourism
represents a particular form of leisure
and a particular form of recreation
but does not include all uses of leisure
and all forms of recreation. It
includes much travel but not all forms
of travel.”
1. In 1963, a United Nations
Conference on International Travel
and Tourism recommended a new
definition of a “visitor” which
covers two classes.
• Tourists – temporary visitors staying
at least 24 hours with purposes
such as leisure, recreation, holiday,
family, business or meeting.
• Excursionists – temporary visitors
staying less than 24 hours in the
destination visited and not making
an overnight stay, including cruise
travelers but excluding travelers in
transit.
TOURISM INDUSTRY SECTORS
CORE COMPONENTS INFRASTRUCTURE TOURIST SERVICES
COMPONENTS COMPONENTS
Lodging Transportation Information Services
Food and Beverage Business Services Vehicle dealers
Attractions Public Services Clothing equipment
Entertainment Communication Residential
Infrastructure Construction and
Maintenance
Transportation Public services
Recreation
Land and Water
FORMS AND TYPES OF TOURISM
1. Pilgrimage Tourism- mostly related
to religion
2. Health Tourism – involves spas and
places with health-giving waters
3. Winter Tourism – winter sports, ski
festivals
4. Mass Tourism- mass travel made
possible by improvements in
transportation and technology.
5. Dark Tourism – visiting the sites of
death and suffering like the sites of
the German Holocaust in Aushwitz.
6. Visiting Family and Relatives
Tourism
7. Eco tourism
8. Space Tourism
9. Sports Tourism
10.Pop culture tourism
ECONOMIC IMPACTS OF TOURISM
1. Effects on income
2. Effects on employment
3. Effects on the area’s balance of
payments with the outside world
4. Effects on investment and
development
INCOME
• Experience shows us that it takes
less time to increase income through
tourism than from manufactured
goods or other available options.
• Tourism income comes generally

from salaries, interest, rent and
profits.
• Tourism is both an income generator
and income redistributor, because of
the flow of capital from one country
to another.
• Another advantage that tourism can
offer a developing country is the
range of businesses needed to
provide to tourists. They include,
local food and drinks, flowers,
handicrafts, restaurants, tour guides,
interpreters etc.
• The most common method for
estimating the income generated
from tourism is by determining the
tourism multiplier for a destination.
• Multipliers are means to estimate

how much extra income is produced
in an economy as a result of the
initial spending or injection of cash.
EMPLOYMENT
• Tourism is a labor-intensive industry
creating the most jobs compared to
other industries.
• There are three types of
employment generated by tourism:
1. Direct – is that which results from
providing goods and services
directly to tourists in hotels,
restaurants, bars, nightclubs and
the like.
2. Indirect employment – consists of
theses positions that are associated
with other tourism related activities
but are used by both local residents
and the tourists.
3. Induced Employment –refers to
people working in positions only
peripherally related to tourism but
generated because of it. Ex:
construction workers, doctors and
accountants.
BALANCE OF PAYMENTS
• Balance of payments is an accounting of the
flow of goods, services and funds in and out of
the country during a given period.
• Most countries with good tourism facilities
but little industrial or agricultural export
potential, appreciate the contribution that
incoming tourists can make to their balance of
payment accounts. See world tourism rankings.
INVESTMENT AND DEVELOPMENT

• Once an area has become economically
successful, more business men and
government agencies may be influenced to
invest in tourism and other industries in that
area.
• This is known by economists as an accelerator
concept.
NEGATIVE ASPECTS OF TOURISM

1. High Inflation
2. Land speculation destinations
3. High leakages from the economies of
developing nations
4. Low return in investment due to seasonal
fluctuations in demand
5. Overdependence on Tourism
INFLATION AND LAND VALUES

• The demand for more hotels, vacation homes
and tourist facilities may bring more income
to the builders, real estate agents and
landowners bu local residents are forced to
pay more for their homes because of the
increased value of land.
HIGH LEAKAGES
• It occurs from the cost of goods and services
that must be imported to satisfy the needs of
tourists.
• Example when developing countries have to
import cars, buses, manufactured materials
and technology from developed nations to
meet the demands of tourists.
• Another source of leakage is the expenditure

for promotion and publicity to encourage
tourists to visit a certain destination. This is a
huge expense that reduces the earnings of a
destination area.
SEASONALITY
• The seasonality of demand is reflected in hotel
occupancy rates. Many hotels experience greatly
reduced revenues during the off season.
OVERDEPENDENCE ON TOURISM
• By becoming over dependent on tourism some
destinations become so vulnerable to changes in
tourist demand. Some factors of change are
prices, political situations, changing fashions and
energy availability.
IMPACT CONTROL MEASURES
1. Develop tourism gradually so that local
residents can have sufficient time to adapt to
it and understand it.
2. Maintain a scale of tourism development
that is appropriate for the local as well as
national environment.
3. Involve residents and their spokesmen in
planning and decision-making so they can
participate in determining their future.
4. Apply the concept of tourism development

zones.
5. Make certain that residents have easy access
to tourist facilities, attractions and services
including reduced admission fee if necessary.
6. Provide incentives to local ownership,
management and operation of hotels and
other tourist facilities.
7. Develop strong linkages between tourism

and other economic activities such as
agriculture, fisheries, handicrafts and
manufacturing to help develop these sectors.
8. Plan, develop, and organize tourism so that
no area becomes too congested with tourists
and residents can easily use community
facilities and services.
9. Train local people to work effectively in all

levels of tourism, including managerial and
technical positions in order to reduce the
number of imported employees and to lessen
possible misunderstanding between tourists
and local employees.
SOCIAL IMPACTS OF TOURISM
• Refer to changes in the quality of life of
residents of tourist destinations.
Host-Visitor Interactions
- Tourism causes more interaction between
people particularly between the tourists or
visitors and the local residents or hosts.
- To understand the impacts of social tourism in
an area it is important to understand the
different types of visitors.
a. Explorer – this type of visitor is interested in

being an active participant-observer among
the host population. Adapts easily to the
local lifestyle and does not need special
tourist accommodations.
b. Elite – this type is few in number. He can

afford to pay well for unusual vacations. He
is well-traveled and usually known as the
“jet-set”. His arrangements are either made
by a travel agent or may be preplanned.
c. Off-beat – this tourist adapts well to simple
accommodations and services provided for
him.
d. Unusual Tourist – this one loves sub-exotic

cultural sites, the unusual or primitive just as
long as he can quickly and safely return to
more familiar surroundings and group.
e. Incipient Mass Tourist – this visitor looks for
the amenities of Western societies.
f. Mass Tourist – comes from the middle class.
He arrives in a destination with other
tourists. Their attitude is “you get what you
pay for”.
g. Charter Tourist – this tourist creates an

extremely high amount of business and
receiving a high degree of standardization in
services and products.
Frequency and Types of Tourists and Their Adaptation to Local Norms
Type of Tourist Number of Tourists Adaptation to Local Norms

Explorer Very Limited Adapts Fully
Elite Rarely seen Adapts Fully
Off-beat Uncommon but seen Adapts Well
Unusual Occasional Adapts Slightly
Incipient Mass Steady Flow Seeks Western Amenities
Mass Continuous Influx Expects Western Amenities
Charter Massive Arrivals Demand Western Amenities
Positive Social Effects of Tourism

1. Tourism creates a new medium for social
change and multicultural understanding.
- It brings diverse people together to help them
understand one another.
- Encounter between a person and a
destination in its natural setting.
- It is an encounter of nations and exchange of
values.
2. It encourages adaptation to the realities of

modern life and works toward improving the
host country’s environmental and lifestyle
options.
- The quality of life improves in places where
tourism is being developed.
- The changes in income and occupation brings
about a change in attitudes, values and social
concerns.
3. Promotes knowledge and use of foreign

languages. Promotes health conditions and
disease control.
- Visitors to other destinations often want to
learn a language to improve the quality of
future experiences.
- A high standard for medical practice and
facilities are maintained in destination areas.
Negative Social Effects of Tourism

1. Social Saturation – the presence of large
numbers of tourists in particular places at
specific times result in congestion of facilities
and services and competition for limited
resources.
2. Changes in the Social Structure Behavior and

Roles – it changes the traditional forms of
employment which results in lowering of the
status of agricultural workers, migration of
the population and the breaking up of
families.
- Social norms in young people are changed
like respect for elders and close family ties.
- Some women employed in a tourism

establishment have higher salaries than their
husbands which leads to self esteem problems
and loss of respect among their husbands.
3. Community problems – prostitution is said to
increase in tourist places and areas
frequented by tourists.
Negative Demonstrative Effects

- Consists of tourist behaviors which can be
considered socially and economically
inappropriate.
1. Tourists often demand commodities and
facilities beyond the economic capacity of
local residents.
Ex: Tourists eating in fine restaurants in areas
characterized by hunger and unemployment.
2. Social norms of the tourists that are very

different from the local customs – values and
attitudes of young travelers are copied by the
young locals.
Ex: Nude bathing, inappropriate manner of
dressing and irresponsible behavior.
3. Importation of foreign workers from more

developed countries – these workers who are
generally more skilled than the local people
get better paying jobs and are usually
supervisors of the less skilled locals. Thus the
natives begin to resent the foreigners.
Impact Control Measures

To control the negative impact in an area:
1. Reducing the contact between hosts and guests by
limiting the carrying of the destination and by
regulating the tourist flow.
2. Separating the tourist and tourists within tourist
enclaves.
3. Designing community education and citizen
involvement programs centered on tourism
development, policy, and regulatory issues.
4. Expanding human resource development and
training programs in all components of the tourism
system to include social skills (interpersonal
relations and networking).
Impact of Tourism on Culture

- Tourism increases the acculturation processes as well
as the cultural convergence of people.
Acculturation – those changes that occur in a
culture through borrowing from other
cultures.
Cultural Convergence – tendency of world
cultures to become more alike.
Positive Effects of Tourism on Culture

1. Intercultural Communication – such
interaction may remove social or national
prejudices, and the promotion of better
understanding and positive social change.
- May promote changes in local culture while
preserving or revitalizing local ethnic and
cultural identity.
2. Renaissance of Native Culture – tourism has

stimulated the preservation of traditional art
including traditional songs and dances.
Negative Cultural Impacts of Tourism
• It has led to the destruction of a country’s
works of art.
• The increase in demand for local art has led to
the form and function of art objects and are
no longer representative of their traditional
art.
• The impersonal nature of the tourist market
has decreased the spiritual relevance of the
artist’s work.
• Art is produced according to the tourist’s

taste.
• The increase in demand has led to the
misinterpretation of the age or authenticity of
objects resulting in a large number of
imitations.
Impact Control Measures

• Develop programs which enhance tourism’s
contribution to intercultural communication
and interaction such as matching tourist types
with destination characteristics; designing
programs for the interaction of local residents
and guests promoting goodwill “ambassador”
tourist education.
• Incorporate local indigenous features within

western style structures such as decorating
hotel interiors with local paintings, murals,
sculpture and encouraging porters, maids,
waiters to dress in native costume.
Environmental Impact of Tourism

- The term “environment” connotes both
human and physical characteristics.
- A term that describes the human and physical
characteristics of an area is preexisting forms.
- It is expected that some changes in preexisting
forms will be necessary to accommodate mass
tourism.
Positive Impacts of Tourism

1. Contact with scenic areas has raised man’s
awareness of the earth’s beauty and made it
easier for him to see and enjoy it with
minimum damage.
2. Environmental awareness has been
heightened by mass tourism which directly or
indirectly has caused its destruction.
• To address the impacts of the latter tourism

has been made a tool in preserving the
natural, cultural and recreational resources of
the land for the enjoyment, appreciation, and
education of present and future generations.
• Tourism has provided a reason for the
preservation of historical buildings and the
creation of museums.
• Conservation – the local residents are

beginning to realize that they stand to gain
and earn more if they contribute to the
conservation of their resources. Tourism has
been a tool in the declaration of areas into
protected sanctuaries and areas for
conservation.
• Development of Attractions – some countries

are identifying areas with potential for
tourism. These areas are then developed as
tourist attractions. Ex: high mountain areas in
Switzerland which boasts of the highest
railway in Europe.
Negative Environmental Impacts

• Exceeding the carrying capacity and saturation
levels of an area will surely have a negative
effect on that area.
• Carrying capacity – is the degree of
development a certain area can take without
having detrimental effects on the
environment.
• Destruction of vegetation occurs because of

the large number of tourists who trample on
the vegetation. Campers cut branches or
small trees, thus changing the natural habitats
of some animals and sometimes leads to soil
erosion.
• Air pollution results from the gas fumes

emitted by aircrafts, cars, taxis and buses.
Areas with large number of vehicles usually
suffer from air pollution.
• Water pollution is the result of the discharge
of untreated waste from resorts or boats into
seas, rivers, lakes and springs. This causes
many widespread diseases like cholera,
typhoid, viral hepatitis and dysentery.
• Problems associated with wildlife results from

killing of animals or birds and the disruption of
the normal habits of feeding and breeding. Ex:
the killing of elephants for their tusks, zebras
for hides, antelopes for the heads.
• Geological conflicts – some tourists collect

minerals, rocks and fossils. In caves, the
natural formations are vandalized and coral
collecting has become a serious problem.
TOURISM PLANNING
Planning – is a dynamic process of determining
goals
• systematically selecting alternative courses of
action to achieve those goals,
• implementing the chosen alternatives,
• and evaluating the choice to determine if it is
successful.
• Planning process regards the

environment which includes political,
physical, social and economic elements
as interrelated and interdependent
components
• These should be taken into account in
considering the future of a destination
area.
Plog’s Destination Life Cycle

• Destination areas rise and fall in popularity
due to the whims of the predominant
psychographic groups in which they appeal at
their different developmental stages.
Ex: A new exotic destination tends to appeal first
to the allocentric group – the innovators in
travel who look for less crowded and unique
destinations.
• As the destination area becomes popular it

loses its appeal to the allocentrics and is now
visited by the mid-centrics who greatly
outnumber the allocentrics.
• Plog believes that the mid-centric appeal

stage in the destination area’s history is similar
to the maturity phase of a product life cycle
where sales volume are at its peak.
• Meaning the destination has achieved mass
market appeal.
• Eventually after some time the destination

would also lose its appeal to the mid-centrics
and are replaced by the psychocentrics.
• The pyschocentrics also represent a smaller
proportion of the population and in this stage
the destination is said to be in its final stage
because it has lost its appeal to the market
innovators and mass markets.
• Plog’s hypothesis is that the destination “carry

with them the seeds of their own destruction
if they allow themselves to become over
commercialized and to discard the unique
appeals which made them popular in the first
place.”
• Nowadays it is believed that destination life

cycle can be extended if change is anticipated
and if steps are taken to adapt to change.
1. Hold development to a particular level in

order to maintain the integrity of the area.
2. Have a rigid development plan to which
developers must confirm.
3. Develop new attractions to stimulate new
growth.
Consequence of Poor Tourism Planning

PHYSICAL IMPACTS
1. Damage or physical alteration of the
environment.
2. Damage or permanent alteration of
historical/cultural landmarks and resources.
3. Overcrowding and congestion.
4. Pollution and Traffic problems.
HUMAN IMPACTS
1. Less accessibility to services and tourist
attractions for local residents resulting in
local resentment.
2. Dislike of tourists by local residents.
3. Loss of cultural identities.
4. Lack of skills and hospitality of tourism
employees.
5. Lack of awareness of the benefits of tourism
to the destination area.
MARKETING IMPACTS
1. Failure to capitalize on new marketing
opportunities.
2. Erosion of market shares due to the actions
of competitive destination areas.
3. Lack of sufficient awareness in prime
markets.
4. Inadequate capitalization in packaging
opportunities.
ORGANIZATIONAL IMPACTS
1. Lack of cooperation among individual
operators.
2. Inadequate representation of the tourism
industry's interests.
3. Lack of support from local public authorities.
OTHER IMPACTS
1. Lack of sufficient attractions and events
2. High seasonality and short lengths of stay
3. Poor or deteriorating facilities and services
4. Poor or inadequate travel information
services
Planning In Developed Countries

• Planning is important and should provide
a quality environment for both tourists
and residents.
• In developed countries, planning a
construction of infrastructure is a must
especially in areas that do not have
them.
• For regions who have existing

infrastructure, the planning should
include alternatives to improve or
develop the existing ones.
Tourism in Developing Countries

• Tourism is important in bringing in the much
needed foreign currency to a developing
country.
• Other advantages are increased employment
and development of infrastructure.
• Government involvement is important to
determine the cultural impact of tourism on
the environment and the people.
Roles and Responsibilities for Tourism

Planning
• Joint participation and close cooperation
of the private and government sectors
produce the best results in planning.
• Plans are likely to be successfully
implemented if the private sector is
actively involved in the planning process.
• The starting point of the ttourism planning

process should be the development of a
national tourism policy.
• National Tourism Policy represents the basic
foundation from which more specific goals,
strategies, objectives and plans are developed.
• Since change is inevitable and continuous, so

tourism policy making and planning have to
be dynamic processes.
• The life span of a tourism plan does not
usually exceed 5 years.
Tourism Planning Process

1. Background analysis phase
2. Detailed research and analysis phase
3. Synthesis phase
4. Goal-setting, strategy selection and objective
setting phase
5. Plan-development phase
Background Analysis Phase
• Situational analysis that provides the basic
direction for the succeeding steps.
• Step1: Interpret national tourism policy.
• Tourism policy goals are usually classified into
four: economic, consumer/social,
resource/environmental and government
operations.
• Step2:The background analysis should

produce an inventory or listing of the area’s
tourism resource components, categorized
with their subcomponents.
• These resource components and
subcomponents constitute the existing
tourism product of the destination area.
• Step3: description of existing tourism

demands using available secondary or
published sources of information.
• Step4: review of the major strengths,
weaknesses, problems and issues within the
destination area’s existing tourism industry.
Detailed Research Analysis

• Research should be concentrated in four
distinct areas namely: resources, markets,
activities and competition.
• Destination areas closer to a prime market are
called intervening opportunities because the
tourist must pass them to reach the subject
destination area.
Synthesis
• Should produce conclusions on the 5 distinct
subjects:
a. Tourism development
b. Tourism marketing
c. Tourism industry organization
d. Tourism awareness
e. Other tourism support services and activities
• Planners should ask themselves “where are

we now?” and “where we would like to be”
with regards to the 5 subjects.
Goal setting, Strategy selection and Objective

setting
• Goals, strategies and objectives must be
complementary to policy goals and objectives.
• Once the planning goals have been set there
are various approaches or strategies that can
be employed to achieve them.
Plan Development
• Last step of the tourism planning
process.
• Includes the actions needed to achieve
the objectives, implement the strategy
and satisfy the planning goals.
• Once the tourism plan has been laid out it is

then written in formal reports and then
presented to the different representatives of
sectors involved for review and revision before
publication.

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T102:Tourism Industry Overview

Lecturer: Ms. Sofia Celeste E. Sarino

• Tourism income comes generally

• Multipliers are means to estimate

INVESTMENT AND DEVELOPMENT

NEGATIVE ASPECTS OF TOURISM

INFLATION AND LAND VALUES

• Another source of leakage is the expenditure

4. Apply the concept of tourism development

7. Develop strong linkages between tourism

9. Train local people to work effectively in all

a. Explorer – this type of visitor is interested in

b. Elite – this type is few in number. He can

d. Unusual Tourist – this one loves sub-exotic

g. Charter Tourist – this tourist creates an

Frequency and Types of Tourists and Their Adaptation to Local Norms

Type of Tourist Number of Tourists Adaptation to Local Norms

Positive Social Effects of Tourism

2. It encourages adaptation to the realities of

3. Promotes knowledge and use of foreign

Negative Social Effects of Tourism

2. Changes in the Social Structure Behavior and

- Some women employed in a tourism

Negative Demonstrative Effects

2. Social norms of the tourists that are very

3. Importation of foreign workers from more

Impact Control Measures

Impact of Tourism on Culture

Positive Effects of Tourism on Culture

2. Renaissance of Native Culture – tourism has

• Art is produced according to the tourist’s

Impact Control Measures

• Incorporate local indigenous features within

Environmental Impact of Tourism

Positive Impacts of Tourism

• To address the impacts of the latter tourism

• Conservation – the local residents are

• Development of Attractions – some countries

Negative Environmental Impacts

• Destruction of vegetation occurs because of

• Air pollution results from the gas fumes

• Problems associated with wildlife results from

• Geological conflicts – some tourists collect

• Planning process regards the

Plog’s Destination Life Cycle

• As the destination area becomes popular it

• Plog believes that the mid-centric appeal

• Eventually after some time the destination

• Plog’s hypothesis is that the destination “carry

• Nowadays it is believed that destination life

1. Hold development to a particular level in

Consequence of Poor Tourism Planning

Planning In Developed Countries

• For regions who have existing

Tourism in Developing Countries

Roles and Responsibilities for Tourism

• The starting point of the ttourism planning

• Since change is inevitable and continuous, so

Tourism Planning Process