CHAPTER FOUR

Types and forms of Tourism

4.1 Major Types of Tourism
• Domestic tourism is tourism within a country.
• International tourism is tourism across countries.
Forms of tourism (based on the destination)
4.1 Adventure tourism: Adventure tourism is more
likely to be a physical activity that tourists would
not participate in at home and is more dependent
on the natural resources of a place. Eg. mountain
biking.
Adventure tourism
 4.2 Ecotourism
• Ecotourism is a tourism product that is intended to attract
responsible tourists to visit fragile, pristine, and relatively
undisturbed natural areas.
• Its focus is on the conservation of the environment,
including flora and fauna.
• At the same time, it is intended to improve the well-being
of the local people as it is characterized by its low-impact,
small-scale tourism (rather than mass tourism, which is
more commercial).
• It helps educate the traveler; provides funds for
conservation; directly benefits the economic development
and political empowerment of local communities; and
fosters respect for different cultures and for human rights.
 Forms of tourism cont.
• 4.3 Conference tourism: Conference tourism is a
type of travel that can be defined as people who go
to business meetings and events to a common
destination.
 Forms cont.
• 4.11 Cultural tourism

• cultural tourism is “movements of persons for

essentially cultural motivations such as study tours,
performing arts and cultural tours, travel to
festivals and other cultural events, visits to sites and
monuments, travel to study nature, folklore or art.
• 4.5 Medical tourism: Medical tourism refers to
people traveling abroad to obtain medical treatment. It
is usually referred to those who traveled from less-
developed countries to major medical centers in highly
developed countries for treatment unavailable at
home.
• 4.6 Religious tourism: Religious and spiritual
tourism refers to travel for religious or spiritual
purposes, such as undertaking a pilgrimage and
visiting sacred sites.
• 4.7 Park tourism: visiting parks /natural or man
made/
 Forms cont.
• 4.12 Educational tourism
• Students travel to overseas learning or training
centers, such as universities, for short or vacation
courses.
• 4.13 Business tourism:
• travel for commercial, professional and work-
related purposes – represents the major non-
leisure form of tourism and business tourists are
widely recognized as the highest-spending category
of travelers (attend meetings, congresses,
exhibitions, business events). Individuals are still
working and being paid.
 CHAPTER FIVE
TOURISM MANAGEMENT

The purpose of management in tourism

organizations

• profitability, which can be achieved through higher

output, better service, attracting new customers
and cost minimization.
• efficiency, to reduce expenditure and inputs to a
minimum to achieve more cost-effective outputs;
• effectiveness, (achieving the desired outcome); this
is not necessarily a profit-driven motive.
• There are four commonly agreed set of tasks of
managers: organizing, planning, leading and
controlling.
5.1. Financial Management
•Finance Management is concerned mainly with
procuring/obtain/ funds in the most economical and
prudent/careful/ manner, deploying these funds in
most profitable way in a given risk situation, planning
future operation and controlling current and future
performance and development through different
tools.
•It is an approach by which depending on importance,
resources can be allocated to various projects.
• Finance Management centers around funds raising
for business in the most economical way and
investing these funds in optimum way so that
maximum return can be obtained for the
shareholders.
• The finance manager has to take careful decision in
respect of following areas :
• 1. Financing
• 2. Investment
• 3. Dividend (distribution of profits by a corporation to its shareholders)
• 4. Current Assets:
 Financing cont…
• 1. Financing Decision: The finance managers has to
decide the sources of fund for business. It is to
decide whether entire capital should be raised
from Equity Capital or a part is to be raised from
loan.
• 2. Investment Decision: It relates to the acquisition
of assets. Assets may be classified as real assets
such land, building, plant, equipment etc. and
financial assets like shares and
debentures/bonds/ . A debenture is a medium- to
long-term debt instrument used by large
companies to borrow money, at a fixed rate of
interest.
 Financing cont
• 3. Dividend Decision: It is basically a financing
decision. This is because profit is a source of fund.
By not paying dividend the retained earnings or
reserve can be increased.
• This ultimately lead to maximization of wealth of
the organization provided decision on investment
are correct. Thus, dividend decision is a
compromise between paying reasonable dividend
and retaining balance profit in reserve.
• 4. Current Assets Management: This is necessary
for maintaining a balance between current assets
and current liability. a liability is defined as the future sacrifices of economic benefits that
the entity is obliged to make to other entities as a result of past transactions or other past events
 5.2. Human Resource Management
• Whatever means are employed to deliver tourism
services to the customer, the role of human
intervention is almost universal.
• The role of human resources and its efficient
management in creating quality has been widely
recognized as one of the most important elements
in improving an organization’s competitiveness.
• Features of tourism service differ from other
manufacturing sectors. The characteristics of
tourism service operations include the following
features.
 Human cont.
• Most tourism services include a significant
intangible component. Most services are intangible
in that you do not receive something physical or
tangible in return for your money. You are buying
an experience and the evaluation of this experience
may include a strong subjective element as well as
aspects that you can judge objectively.
• Tourism services cannot be inventoried. If left
unsold, the sales opportunity for a service is lost. A
hotel room left unsold overnight or an empty seat
on a theme park ride is lost revenue and an
opportunity that can never be regained.
 Human cont.
• Tourism services are time dependent. Tourism
services are frequently prepared/produced, served
and consumed almost simultaneously, frequently
within sight of, and possibly with the participation
of, the customer in a way that is infrequent in
manufacturing.
• The human contribution within this process is
critical.
 Human cont.
• Consumers are always involved in the production process.
• Simultaneous production and service inevitably involve the
customer in aspects of the production process.
• Tourism services cannot be quality controlled at the factory
gate.
• Tourism services are difficult to standardize because they
generally require a high level of human intervention for
their delivery and are, thus, subject to variability because
of the human element.
• You cannot return or substitute a service which has been
unsatisfactory.
 5.3. Marketing Management
• Marketing is a process whereby individuals and groups
obtain the type of products or goods they value.
• For those tourism operators who may wish to grow and
expand, a number of options exist:
• marketing consortium, where a group of operators
cooperate to create and develop a product.
• by licensing franchisees (market expansion) to operate
businesses using their corporate logo and codes.
• strategic alliances, where different businesses agree to
cooperate in various ways.

• joint ventures, where operators seek to create new

businesses.
• franchising, where major operators use their market
presence and brand image to further extend their influence
• In any tourism organization there are four main
marketing variables that need to be harnessed:
1. Product formulation, which is the ability of a
company to adapt to the needs of its customers in
terms of the services it provides.
2. Price, which is the economic concept used to adjust
the supply of a service to meet the demand, taking
account of sales targets and turnover.
3. Promotion, which is the manner in which a
company seeks to improve customers’ knowledge
of the services it sells so that those people who are
made aware may be turned into actual purchasers.
4. Place, which is the location at which prospective
customers may be induced to purchase a service the point
of sale (e.g. a travel agent or another point of distribution
such as the worldwide web).
These ‘four Ps’ are incorporated into the marketing process
in relation to the known competition and the impact of
market conditions. Thus, the marketing process involves the
continuous evaluation of how a business operates internally
and externally to meet customer requirements.
 5.4. Operational Management
• Business operations in tourism assume a major role:
the highly seasonal nature of tourism requires
seasonal staff at resorts, airports, in hotels and for
trans-port operators.
• Operations management focuses on five
interrelated areas:
1. capacity, which is understanding the ability of the
organization to produce something (such as service)
2. standards, which are those prevailing within the
tourism sector (such as waiting times at an airport
check-in or hotel reception)
3. scheduling, which is the planning of work and use
of the organization’s physical and human
resources
4. inventory, which is understanding the
organization’s ability to meet supply and demand.
5. control, which ensures the operations are
managed in an efficient and systematic manner
and brings the planning, preparation and readiness
inherent in the four functions above into action.
 CHAPTER SIX
Priorities of Tourism Planning

•6.1 Tourism Development Planning

•Planning ‘ is an ordered sequence of operations and

actions that are designed to realize one single goal or
a set of interrelated goals ’.
• planning is the key to the success of any activity.
• Planning is a process: for anticipating and ordering
change: that is forward looking: that seeks optimal
solutions: that is designed to increase and ideally
maximize possible development benefits and: that
will produce predictable outcomes.

• planning is a very difficult term to define. The term

planning can be used in a variety of contexts; with
individuals, groups, organizations and governments.
• It is now recognized that tourism must be developed
and managed in a controlled, integrated and
sustainable manner, based on sound planning.
Planning is important in tourism for a wide range of
reasons.
 First it provides a mechanism for a structured provision of
tourist facilities and associated infrastructure over quite
large geographic areas.
 Second, in view of the natural patterns of fragmentation within

tourism, any systems that permit co-ordination of activity are likely

to become essential to the development of the industry’s potential.

 This fragmentation is mirrored in the many different elements that

are required to come together within a tourism plan, including

accommodation, attractions, transportation, marketing and a range of

human resources.
 Third, conserving resources upon which the industry
depends, and maximizing the benefits to local
population that may grow through proper
management of those resources.
 Fourth, planning can be a mechanism for the
distribution and redistribution of tourism-related
investment and economic benefits.
• Fifth, the integration of tourism into planning systems gives
the industry a political significance (since most planning
systems are subject to political influence and control)
and therefore provides a measure of status and legitimacy
for an activity that has not always been taken too seriously
as a force for economic and social change.
 6.2 Site and Destination Planning Concepts
A. Destination Tourism planning

• Destinations refer to the place where the tourist spend their time while
they are on vacation.
• Geographically it ranges from small communities to a region of a
country to an entire city.
• Working at the destination scale in an integrated manner is crucial
since this is where the entire visitors experience is delivered.
• Most of the interactions and impact of tourism activity occur at the
destination level making it the ideal unit for tourism and visitor
management.
• Many destinations operate within highly competitive
environments. So the challenge for destinations is to
develop a service culture, physical environment and a set of
products that can satisfy not only first-time visitors but
attract repeat visitors.
• The components of planning, therefore, include;
tourist attraction features, tourist facilities and services,
access internal transportation network etc.
Destination tourism planning need to take the following points into
consideration:
 
1. Identify the characteristics of the destination:- surveying and
identification of the resources and attractions should be done in order to
consider in the planning.
2. Maintain the diversity of attractions with in destinations:-
diversity provides varieties of attractions and encourage tourists to stay
longer and or come back again.
3. Cluster the attractions within the destination:- this gives more
opportunities for needed services such as infrastructure.
4. Planning for present development and future expansion.
B. Site Planning
•Regions and destinations of tourist development are
collections of sites. The most commonly practices scale of
tourism is the site, or the land area within a destination. So site
planning is the final level of planning and is the most detailed
one.
• Sites can be owned by individuals, governments, organizations and
firms.
• Planners and designers of tourist attractions have obligation to
maintain major qualities of site in their land, buildings and activity
plans.
• Designing on this scale is in fact creating the final tourism product or
what can be called place making.
• Place making is not merely the manipulation of materials. Rather, it is
the creative adaptation of a given site to new uses and it is the
retention of the essence of a place while giving it new physical and
psychological meaning.
• In the process of design and site planning,
points that need to be given attention are:-
 Survey the characteristics of the site
 Divide the site in to zones according to the existing
characteristics
 Plan and organized design elements in a proper way

  that suit the site

6.3 Tourism Planning at the National Level

National planning establishes the policies, physical and

institutional structures and standards for development to
proceed in a logical manner.
It also provides the basis for the continuous and
effective management of tourism, which is so essential for the
long-term success of tourism.
•The other important specific benefits of under taking national
tourism planning includes:
Establishing the overall tourism development objectives
• Integrating tourism into the overall devote policies and
patterns of the country/region and making coordinated
development of all the many elements of the tourism sector
• Optimizing and balancing the economic, environmental &
  social benefits of tourism
• Developing tourism so that its natural & cultural resources
are indefinitely maintained and conserved
• Establishing the guidelines and standards for preparing
detailed plans of specific tourism development areas
• Laying the foundation for effective implementing
of the tourism policy and plan, and continuous
management of the tourism sector
• Offering a base line for the continues monitoring of
tourism development and keeping it on track
• Promoting international contact and good will
 6.4 Tourism Planning at the International level
• The formation of WTO in 1975 were landmarks in
the areas of international cooperation in tourism.
• Tourism planning at the international level involves more
than one country and includes areas such as;
 international transportation services,

 joint tourism marketing,

 regional tourism polices and standards,

 cooperation between sectors of member countries, and

other cooperative concerns.
 CHAPTER SEVEN
Tourism as a tool for Development
7.1 The Role of Tourism in Economic and Regional
Development
 If the activities of tourism are well planned, developed and managed,
it will bring positive economic impacts. The major positive impacts
of tourism in a host country are:
1.
  Foreign exchange earnings
2.
  Contributions to government revenues
3.
  Employment generation
4.
  Infrastructure investment
5. Contribution to local economies
Foreign
  exchange earnings

Tourism expenditures generate income to the host

economy and can stimulate the investment necessary
to finance growth in other economic sectors. Some
countries seek to accelerate this growth by requiring
visitors to bring in a certain amount of foreign
currency for each day of their stay.
Contribution
  to government revenues

It has both direct and indirect contribution to the

government revenue.
Direct contributions are generated by taxes on
incomes from tourism employment and tourism
businesses, and by direct levies on tourists such as
departure taxes.
Indirect contributions come from taxes and duties
levied on goods and services supplied to tourists.
Employment
  generation

•The rapid expansion of international tourism has led to

significant employment creation. For example, the hotel
accommodation sector alone provided around 11.3 million
jobs worldwide in 1995.
•Tourism can generate jobs directly through hotels,
restaurants, nightclubs, taxis, and indirectly through the
supply of goods and services needed by tourism-related
businesses.
Stimulation
  of infrastructure investment

•Tourism can induce the local government to make

infrastructure improvements such as better water and
sewage systems, roads, electricity, telephone and public
transport networks. Infrastructural networks (roads,
airports, tourist facilities, and others) developed to
encourage tourism can also be used by the local community to

improve their quality of life.

Contribution
  to local economies
•As the environment is a basic component of the
tourism industry's assets, tourism revenues are often
used to measure the economic value of protected
areas. Money is earned from tourism through
informal employment (e.g. street vendors, informal
guides).
 7.2 Community based Tourism Development
• Community-based tourism is gaining popularity and
it is increasingly being promoted as a means of
reducing poverty and fostering local community
development.

• Community participation is often suggested as an

essential ingredient in improving the quality of
tourism’s contribution to national development.
 Community cont.
Participation of indigenous communities means involving
low-income groups and people in rural and urban areas,
who are not generally involved in the process of
government. Thus, CBT should entail/involve/ at
community development in remote, rural, impoverished,
marginalized, economically depressed, undeveloped,
poor, indigenous, ethnic minorities, and people in small
towns.
• The fundamental issue of CBT is that disadvantaged
community members should be the actors and
beneficiaries: they control, own and manage CBT
development.
 7.3 Tourism and Environmental Conservation
• Environment now includes not only land, air, water,
flora and fauna, but may also encompass ‘people,
their creations and the social, economic and
cultural conditions that affect their lives.
Tourism has the following specific positive impacts on
the environment of host community:

 Environmental awareness among residents

(environment improvement schemes like
improved environmental education).
 Conservation cont.
 Tourism and the environment are interdependent i.e.
The physical environment provides many of the
attractions to the visitors. Hence, tourists like to visit
places that are attractive, clean and not polluted.
 Conservation cont.
 Conservation of important natural areas and
wild life, preservation of buildings, attractions
historic sites and natural habitat.
 Tourism provides the incentive to the
preservation of the natural environment, the
prudent use of natural resources.
 Strong environmental regulatory and enforcement
framework.
 CHAPTER EIGHT
Impacts of Tourism
Effects of tourism on the host region can be negative as well
as positive.
 Inappropriate tourism planning, development and practice
can degrade habitats and landscapes, deplete natural
resources, and generate waste and pollution.
•In contrast, responsible tourism can help to generate
awareness of and support for conservation and local culture,
and create economic opportunities for countries and
communities.
• The impacts of Tourism are a subject of debate. On one
hand, Tourism plays an important and positive role in the
socio-economic and political development of many
countries.
• On the other hand, the impacts are often difficult to pinpoint
and measure.
 8.2 Economic Impacts of tourism
Tourism, as a sector that comprises an extensive
range of economic activities, can be considered as
the largest industry in the world.  International
tourism is also one of the fastest growing and most
ramified sectors of the global economy, covering a
broad range of enterprises, sectors and
stakeholders.
• However, resulted from variation in planning,
development and management practices tourism
has either negative or positive economic impacts in
the host community.
Positive economic impacts of tourism:
 As mentioned earlier if the activities of tourism are well
planned, developed and managed, it will bring positive
economic impacts. The major positive impacts of tourism in a
host country are:
A.Foreign exchange earnings
B.Contributions to government revenues
C.Employment generation: Increases employment opportunities
D.Contribution to local economies: Improves local economy
E. Contributes to income and standard of living
A. Improves investment, development, and infrastructure spending

B.Increases tax revenues

C.Improves public utilities infrastructure
D.Improves transport infrastructure
E. Increases opportunities for shopping
F. Creates new business opportunities
 Impact cont.
• Negative economic impacts of tourism:
A. Leakage (the amount of foriegn exchange spent for
imported goods and services used in tourism)
B.Economic dependence
C.Seasonal character of jobs
D.Increases price of goods and services
E. Increases price of land and housing
F. Increases cost of living
G. Cost for additional infrastructure (water, sewer, power, fuel, medical,
etc.)

H. Increases road maintenance and transportation system costs

I. Seasonal tourism creates high-risk, under- or unemployment issues
J. Competition for land with other (higher value) economic uses

K. Jobs may pay low wages

 8.3 Social-Cultural impact of tourism
The practices of tourism also result in negative and
positive socio-cultural impacts. Socially and culturally
tourism has often been reported that, rather than acting
as “a vital force for peace” it has often been the source of
social tensions.
Positive impacts
A. Developing positive attitudes towards each other
B. Learning about each other’s culture and customs
C. Reducing negative perceptions and stereotypes
D. Developing friendships
A. Developing pride, appreciation, understanding, respect, and tolerance
for each other’s culture
B. Increasing self-esteem of hosts and tourists
C. Improves quality of life
D. Facilitates meeting visitors (educational experience)
E. Positive changes in values and customs
F. Promotes cultural exchange
G. Improves understanding of different communities
H. Increases demand for historical and cultural exhibits
I. Greater tolerance of social differences
J. Satisfaction of psychological needs
Negative socio-cultural Impact
A.Impatience with the different cultures, creating resentment
among the local people.
B.High-living tourists in countries or areas with serious
economic problems use to eat in fine restaurants and live in
hotels (tourist wealth) while the majority of the locals are still
under serious economic stress (less living standard) which is a
manifestation of economic disparity and can lead to conflict.
C. Socio-cultural change that occurs among the local
inhabitants of the area like male and female
prostitutes.
D. The presence of large members of tourist provides
a source for illegal activities including drug
trafficking, robbery and violence.
E. Westernization of indigenous culture: Clothing, dietary habits, accent,
and other social norms due to demonstration effect.
F. Loss of archaeological and historical heritages: artifacts due to lack of
proper control at the host country. Example: Theft of artifacts by
tourists.
G. Disturbing of local people: Noise pollution generated by a
concentration of tourist and tourist vehicles
H. Excessive drinking, alcoholism, gambling
 8.4 Environmental Impacts of Tourism
• Positive impacts:
A. Environmental awareness among residents (environment
improvement schemes like improved environmental education).
Tourism and the environment are interdependent i.e. the physical
environment provides many of the attractions to the visitors. Hence,
tourists like to visit places that are attractive, clean and not polluted.

B. Conservation of important natural areas and wild life, preservation of

buildings, attractions historic sites and natural habitat.
C. Incentives/funds for resource management
D. Protection of selected natural environments or prevention
of further ecological decline
E, Preservation of historic buildings and monuments
F. Improvement of the area’s appearance (visual and aesthetic)
G. A "clean" industry (no smokestacks)
 Negative Environmental Impacts
• 1. Pressure on natural resources
• Intensive tourism development can also threaten natural
landscapes, notably though deforestation, loss of
wetlands and soil erosion.

Water
• The tourism industry generally overuses water resources
for hotels, swimming pools, golf courses and personal use
of water by tourists.
• Soil
• Increased construction of tourism facilities has increased
the pressure on soil resource and scenic landscapes.
 Impact cont.
2. Pollution and waste generation

Air pollution
•Transport by air, road, and rail is continuously increasing in
response to the rising number of tourists and their greater
mobility. Excessive use of internal combustion vehicles, like
cars, airplanes and other engines and technological
equipments affects the quality of the air.
• Water pollution

 Is resulted from improper development of sewage and waste disposal

systems from tourist facilities(hotels), direct pollution caused by
activities on banks and in river basin (outlets of oils and fuels, outlets
of organic waste, etc.), direct pollution on water surface (outlets from
motor boats, and the like).
 Water bodies are polluted and their biodiversity decreased; incre­ased
pressure on sewage systems and waste water treatment plants, i.e.
higher costs.
3. Damage to ecosystems
Uncontrolled tourism activities can lead to severe
disruption of wildlife habitats and increased pressure
on endangered species.
Tourism can also lead to the indiscriminate
clearance of native vegetation for the development of
new facilities, increased demand for fuel wood and
even forest fires.
Ecologically fragile areas are also threatened by
intensive or irresponsible tourist activity.
Intensive tourism development and recreational
activities in coastal areas can lead destruction and
coastal degradation and threaten other marine
ecosystems.
Other major problems arising from tourist activities
in mountain regions include disruption of animal
migration by road and tourist facilities, sewage
pollution of rivers, excessive water withdrawals
from streams to supply resorts and accumulation of
solid waste on trails.
o Loss of natural landscape and agricultural lands to
tourism development
o Loss of open space