Doc. dr. sc. Romina Alkier Radnić I. AN INTRODUCTION TO TOURISM

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1 Doc. dr. sc. Romina Alkier Radnić I. AN INTRODUCTION TO TOURISM

2 TOURISM MYTHS AND REALITIES (1) In 2006 the World Travel and Tourism Council (WTTC) demonstrated the tremendous scale of the world s tourism sector (WTTC, 2006): The travel and tourism industry s percentage of world gross domestic product was 10,3%. The world travel and tourism sector had a turnover of US$ 6477,2 billion. The world travel and tourism industry supported 234 million jobs (8,7% of total world employment).

3 TOURISM MYTHS AND REALITIES (2) Tourism is major force in the economy of the world, an activity of global importance and significance. Tourism had been remarkable in its resistance to adverse economic and political conditions. New vocabulary: safety security risk management crisis recovery

4 TOURISM MYTHS AND REALITIES (3) International organisations support tourism for its contribution to world peace, its ability to delver on the Millennium Development Goals an in particular poverty alleviation, the benefits of the intermingling of peoples and cultures, the economic advantages that can ensue, and the fact that tourism is a relatively clean industry.

5 TOURISM MYTHS AND REALITIES (4) Technology increasingly pervades the tourism sector. Tourism is ideally placed to take advantages of developments in information technology, from the use of the Internet to book travel and seek information about destinations, through the use of mobile telephone technology to revolutionise the way the tourism invormation can be delivered direct to the user in situ at the destination.

6 TOURISM MYTHS AND REALITIES (5) MYTH The majority of tourism in the world is international. Most tourism journeys in the world are by air as tourists jet-set from country to country. REALITY Tourism in the world is predominantly domestic (people travelling in their own country). Domestic tourism accounts for about 80% of tourist trips. The majority of trips are by surface transport (mainly the car). Tourism is only about leisure holidays. Tourism include all types of purpose od visit, including business, conference and education.

7 TOURISM MYTHS AND REALITIES (6) MYTH Employment int tourism means substantial travel and the chance to learn languages. REALITY Most employment in tourism is in the hospitality sector and involves little travel. Large multinational companies such as hotel chains and airlines dominate tourism. The vast majority of tourism enterprises in every destination are SMEs. Tourism is straightforward sector demanting little research or planning. Tourism is a complex multi-sectoral industry demanding high-level planning underpinned by research to succeed.

8 THE SUBJECT OF TOURISM (1) Tourism activity is a relatively new development and only recently has been considered worthy of serious business endeavour or academic study Tourism sector is of sufficient economic importance and its impact upon economies, enviroments and societies is significant enough for the subject of tourism to deserve academic consideration

9 THE SUBJECT OF TOURISM (2) The subject area itself remains bedevilled by conceptual weakness and fuzziness The subject encompasses a number of diverse industrial sectors and academic subjects Tourism suffer from an image problem in academic circles

10 CENTRE OF TOURISM STUDIES

11 LEIPER S MODEL

12 BASIC ELEMENTS OF LEIPER S MODEL 1. TOURISTS actor in this system 2. GEOGRAPHICAL ELEMENTS traveller-generating region tourist destination region transit route region 3. THE TOURISM SECTOR range of businesses and organisations involved in delivering the tourism product

13 GEOGRAPHICAL ELEMENTS IN A TOURISM SYSTEM WITH TWO DESTINATION TDR 1 TR 1 TR 2 TGR TDR 2 TR 3 TGR: Travellergenerating region TR: Transit route TDR: Tourist destination region

14 DEFINITIONS OF TOURISM The word tourist first appeared in the English language in the early 1800 s DEMAND-SIDE DEFINITIONS International Conference on Travel and Tourism Statistics a converence called to tidy up definitions, terminology and measurement issues SUPPLY-SIDE DEFINITIONS UNSTAT approved the adoption of tourism satellite accounts as the method of measuring the economic sector of tourism

15 DEMAND-SIDE DEFINITIONS OF TOURISM (1) The activities of persons travelling to and staying in places outside their usual enviroment for not more than one consecutive year for leisure, business and other purposes (WTO i UNSTAT, 1994.) Tourism arises out of a movement of people to, and their stay in, various places, or destinations

16 DEMAND-SIDE DEFINITIONS OF TOURISM (2) Two elements in tourism:. JOURNEY TO short THE term DESTINATION.. The journey and stay take place outside environment or normal place of residence STAY (INCLUDING ACTIVITIES) AT THE DESTINATION Movement to destinations is temporary and Destinations are visited for purposes other than taking up permanent residence or employment in the places visited

17 DEMAND-SIDE DEFINITIONS OF TOURISM (3) Tests include the following: Minimum length of stay One night Maximum length of stay One year Strict purpose of visit categories

18 SUPPLY-SIDE DEFINITIONS OF TOURISM (1) The tourist industry consists of all those firms, organisations and facilities which are intended to serve the specific needs and wants of tourists. (Leiper, 1979.)

19 SUPPLY-SIDE DEFINITIONS OF TOURISM (2) The tourism satellite account (TSA) is the agreed approach to defining the tourism sector: PROVIDES INFORMATION ON THE ECONOMIC IMPACT OF TOURISM, INCLUDING CONTRIBUTION TO GROSS DOMESTIC PROVIDES PRODUCT, INFORMATION INVESTMENT, ON TAX TOURISM REVENUES, ALLOWS TOURISM EMPLOYMENT TOURISM CONSUMPTION AND TO ITS BE AND CHARACTERISTICS COMPARED THE IMPACT WITH ON A NATION S BALANCE OF PAYMENTS OTHER ECONOMIC SECTORS

20 UNWTO SUPPLY-SIDE DEFINITION OF TOURISM (1) International Standard Industrial Classification, ISIC (P = part involvement with tourism; T = totally dedicated to tourism) ISIC divisions Business activity Example Construction T Hotels, recreational facilities, transport facilities, resort residence Wholesale and retail P T Motor vehicle sales, sales of motor vehicle fuels, retail food sales, retail sales of textiles Retail sales of travel accessories, souvenir sales, etc.

21 UNWTO SUPPLY-SIDE DEFINITION OF TOURISM (2) ISIC divisions Hotels and restaurants Transport, storage and communications Financial intermediation Business activity P T P T P T Example Fast food restaurants, food Hotels, camping sites Transport via railways, chauffeured vehicles, inland water transport Inter-urban rail, airlines, special rail tour service, long-distance bus service, cruise ships Exchange of currencies, life insurance, credit cards Travel insurance

22 UNWTO SUPPLY-SIDE DEFINITION OF TOURISM (3) ISIC divisions Real estate, renting and business activity Public administration Business activity P T P T Example Buying or selling of leased property, letting or owning of leased property Rental of ski equipment, letting of owned tourism property Translation services, customs administration, fishing regulation, foreign affairs, border guards Tourism administration, information bureaux, visa issuance, regulation of private transport

23 UNWTO SUPPLY-SIDE DEFINITION OF TOURISM (4) ISIC divisions Education Other community Extra-territorial organisatins Business activity P T P T P T Example Adult education, driving schools, flying schools, boating instuction Hotel schools, tourism education programmes, recreation and park service schools, tourist instruction Swimming, scuba instruction, flying instruction, boating instruction, motion picture entertainment Visitor bureaux, travel clubs, travel unions OECD, World Bank, IMF, ASEAN International tourism bodies

24 INTERRELATIONSHIPS AND CLASSIFICATIONS Most of tourism throughout the world is a leisure activity Latin translation means to be free Defining leisure is more problematic than defining tourism Time Attitude of mind to create periods when other obligation are at minimum Leisure

25 LEASURE, RECREATION AND TOURISM

26 TOURISTS (1) Heteregeneous group with different personalities Group with different experiences Group with different demographics

27 TOURISTS (2) DOMESTIC TOURISTS INTERNATIONAL TOURISTS Refers to travel by residents within their country of residence Travel outside the country of residence Problem: more difficult to measure than international tourism Problem: currency, language and visa implications

28 TOURISTS (3) Classification by purpose of visit category : LEISURE AND RECREATION OTHER TOURISM PURPOSES BUSINESS AND PROFESSIONAL Holiday tourism Sports tourism Cultural tourism Visiting friends and relatives (VFR) Study tourism Health tourism Meetings Conferences Missions Incentive tourism Business tourism

29 TOURISTS (4) Mass tourism Alternative tourism Has a major impact upon the destination because of the sheer scale of the industry and the nature of the consumer Have a much reduced impact upon the destination, not only because of the type of consumer involved but also because they will shun the travel trade and stay in local pensions or with families

30 AIRLINE PRICING AND PURPOSE OF VISIT CATEGORIES Free to travel at most times Price sensitive Able to plan in advance Unconstrained Leisure and recreation Other tourism purposes Business and professional Travel times limited Price insensitive Not always able to plan in advance Highly constrained

31 SOCIO-ECONOMIC CHARACTERISTIC (1) Variable Levels of measurement 1. Age Collect by single years It may be convenient to summarise by age cohorts 2. Sex Male/female Age-sex cohorts may also be useful 3. Education Basic four-part classification may be most useful: a) Elementary b) Secondary c) Post secondary d) Non-university and University It may be useful in other circumstances to distinguish between completion of secondary or post-secondary programmes and partial work (drop-out before completion)

32 SOCIO-ECONOMIC CHARACTERISTIC (2) Variable Levels of measurements 4. Occupational status Categories can include: a) Employed full-time b) Employed part-time c) Retired (some reference to former occupation may be desired) d) Homemaker e) Student f) Unemployed 5. Occupation Best determined through an open-ended question Codes refer to the type of industry in which the traveller is employed 6. Annual income especially sensitive subject, some of the concern over reporting income can be reduced by using income categories Household income is often the most relevant measure of income

33 SOCIO-ECONOMIC CHARACTERISTIC (3) Variable 7. Family composition Levels of measurement This can be an especially important variable One possible classification is: a) Single individual living alone b) Husband-wife family c) No children under 18 years d) No children at home or no children at all e) Adult children or other adult relatives living at home f) With children undre 18 years g) With no other adult relatives h) With other relatives i) Single-parent families j) Male head k) Female head l) All other families

34 SOCIO-ECONOMIC CHARACTERISTIC (4) Variable Levels of measurement 8. Party composition This is closely related to the previous variable for many travelling parties Levels include: a) One person alone b) One family with children c) Two families with children d) Organised group e) One couple f) Two or more couples g) Group of friends (unorganised group) h) Other

35 TRIP VARIABLE (1) Variable Levels of measurement 1. Season or trip period Calendar quarters: a) January to March b) April to June c) July to September d) October to December If the trip overlaps two or more quarters, the following convention is often used: for household surveys, used the quarter in which the trip ends; for exits or re-entry surveys use the date of the survey 2. Trip duration Both days and nights are used as the unit of measurement Number of nights is usually one less then the number of days Actual number of days or nights up to one week is often collected

36 TRIP VARIABLE (2) Variable Levels of measurement 3. Trip distance This should be based, in part, on the threshold distance required for definition of a trip Narrow ranges for lowest levels are desirable to permit aggregating or exclusion of data Possible classification would be: a) miles b) miles c) miles d) miles e) miles f) More than 1500 miles (2400 km) Metric conversion is usually necessery for international comparisons

37 TRIP VARIABLE (3) Variable Levels of measurement 4. Purpose of trip Classification include: a) Conventions or other business meetings b) Buying, selling, installation, or other business c) Recreation/vacation d) Touring/sightseeing e) Attending cultural/sporting events f) Participating in cultural/sporting events g) Visiting friends or relatives h) Other family or personal matters i) Shopping j) Study tour k) Health/rest Many trips involve more than one purpose, so it may be useful to specify primary purpose

38 TRIP VARIABLE (4) Variable 5. Mode of transportation Levels of measurement a) Private automobile b) Rental automobile c) Bus/motor coach d) Train e) Scheduled airline f) Chartered airline g) Privatnim avionom h) Boat/ship (additional categories for ferries, cruise ships, private boats may be added as necessary) Some trips involve multiple modes such as a combination of scheduled airline and rental car These combinations may be specified or a primary mode may be requested

39 TRIP VARIABLE (5) Variable Levels of measurement 6. Expenditures a) Transportation (broken down by mode, if desired) b) Accommodation (including camping fees, but not park entrance fees) c) Food and beverages (restaurant meals may be separated from food purchased at a store) d) Convention or registration fees e) Admission fees and other entertainment, including park admissions, licence fees for hunting and fishing f) Souvenirs g) Other purchases

40 TRIP VARIABLE (6) Variable 7. Type of accommodation Levels of measurement a) Hotels and inns b) Motels and motor inns c) Resorts d) Campgrounds e) Hostels f) Commercial cottages g) Institutional camps h) Private cottages i) Bed and breakfast/tourist home j) Homes of friends or relatives k) Other toclassification could be based on size of accommodation, price, public versus private ownership, function (e.g. fishing camp, ski resort), type of location (e.g. airport strip, downtown), availability of liquor and so on.

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