tourism concept

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Tourism Concept.

Pankaj Gairola

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Diversification.

Amit Sharma (Ernest and Young)Director learning and development.

Gunjan Sharma (Marriott director finance Asia Pacific)

Amit Midda ( Director finance genpact)

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Outline

Sustainable tourism is an industry committed to making a low impact on the environment and local culture, while helping to generate future employment for local people.

The positive of sustainable tourism is to ensure that development is a positive experience for local people; tourism companies; and tourists themselves

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Responsible tourism.

The pillars of responsible tourism are therefore the same as those of sustainable tourism – environmental integrity, social justice and economic development.

It is more than a form of tourism as it represents an approach to engaging with tourism, be that as a tourist, a business, locals at a destination or any other tourism stakeholder.

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Sustainable Tourism vs Responsible Tourism.

Sustainable tourism is where tourists can enjoy their holiday and at the same time respect the culture of people and also respect the environment. All stakeholders are responsible for the kind of tourism they develop or engage in

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Essential economic activity.

1 Resource Maintenance2 Production3 Distribution4 Consumption

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Essential economic activity.

Living in one place allows people to accumulate more personal possessions than nomadic people. Some people also acquire landed property, or private ownership of the land. Because a percentage of people in civilizations do not grow their own food, they must trade their goods and services for food in a market system, or receive food through the levy of tribute, redistributive taxation, tariffs or tithes from the food producing segment of the population. Early civilizations developed money as a medium of exchange for these increasingly complex transactions. To oversimplify, in a village the potter makes a pot for the brewer and the brewer compensates the potter by giving him a certain amount of beer. In a city, the potter may need a new roof, the roofer may need new shoes, the cobbler may need new horseshoes, the blacksmith may need a new coat, and the tanner may need a new pot. These people may not be personally acquainted with one another and their needs may not occur all at the same time. A monetary system is a way of organizing these obligations to ensure that they are fulfilled fairly.

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Resource MaintenanceResource maintenance means tending to, preserving, or improving the stocks of resources that form the basis for the preservation and quality of life. A capital stock is a quantity of any resource that is valued for its potential economic contributions. Capital stocks are also often referred to as “capital assets.”

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ProductionThe second of the four basic economic activities is production. Production is the conversion of resources into usable products, which may be either goods or services.

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DistributionDistribution is the sharing of products and resources among people. In contemporary economies, distribution activities take two main forms: exchange and transfer.

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ConsumptionConsumption refers to the process by which goods and services are, at last, put to final use by people. In some cases, such as eating a meal or burning gasoline in a car, goods are literally “consumed” in the sense that they are used up and are no longer available for other uses. In other cases, such as enjoying art in a museum, the experience may be "consumed" without excluding others or using up material resources.

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Tourism as an essential economic activity.

Tourism industry possesses all the elements of essential economic activity hence it is also a part of the essential economic activity.

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Chichén Itzá, the most famous Mayan temple city, served as the political and economic center of the Mayan civilization The Pyramid at Chichén Itzá (before 800 A.D.) Yucatan Peninsula, Mexico

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This statue of Jesus stands some 38 meters tall, atop the Corcovado mountain overlooking Rio de Janeiro.

Christ Redeemer (1931) Rio de Janeiro, Brazil

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In the 15th century, the Incan Emperor Pachacútec built a city in the clouds on the mountain known as Machu Picchu ("old mountain"). This extraordinary settlement lies halfway up the Andes Plateau, deep in the Amazon jungle and above the Urubamba River. It was probably abandoned by the Incas because of a smallpox outbreak and, after the Spanish defeated the Incan Empire, the city remained 'lost' for over three centuries. It was rediscovered by Hiram Bingham in 1911.

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This great amphitheater in the centre of Rome was built to give favors to successful legionnaires and to celebrate the glory of the Roman Empire. The Roman Colosseum (70 - 82 A.D.) Rome, Italy

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On the edge of the Arabian Desert, Petra was the glittering capital of the Nabataean empire of King Aretas IV (9 B.C. to 40 A.D.). Masters of water technology, the Nabataeans provided their city with great tunnel constructions and water chambers. A theater, modelled on Greek-Roman prototypes, had space for an audience of 4,000.

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The Great Wall of China was built to link existing fortifications into a united defense system and better keep invading Mongol tribes out of China. The Great Wall of China (220 B.C and 1368 - 1644 A.D.) China

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Global economists forecast continuing international tourism growth, ranging between three and six percent annually, depending on the location

Objective:maximize revenue (minimize loss of resources / conservation of environment)

“Science of managing the stress on remaining biologically diverse habitats, indigenous cultures, destinations, and

protecting tourism as an industry

Integrated management of capacity & conservation.

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History of tourism and transportation.Air Ship

Zeppelin

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Lakehurst, New Jersey. Of the 97 people on board, 35 people died

Hindenburg DisasterCrusing Speed of airships (80 mi/h)

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Modern cruise liners.

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Recreational tourism

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Fisherman’s Wharf/Golden Gate National Recreation Area, San Francisco, CA

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Niagara Falls, N.Y. and Toronto

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Great Smoky Mountains National Park, Tenn./N.C. America’s most visited national park is neither the Grand Canyon nor Yosemite. The natural beauty and the four distinct seasons enjoyed in the GSMNP is unmatched!

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Designed by Gustave Eiffel for the 1889 World Fair, at 300m it was then the world's tallest building, originally built as a tempory structure to commemorate the centenary of the French Revolution.

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7 wonders of the world.

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Newzeland adventure capital of the world.

Excursionist : A tourist or traveler

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Waitomo Glowworm Caves, Maori Hangi (feast) and Concert, Rainbow Springs Nature Park,, Agrodome Farm Show, Scenic Interislander Cruise, TranzAlpine Train ,TranzCoastal Train Journey,Milford Sound Cruise, Otago Peninsula Wildlife Tour from Dunedin

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France is the top tourist destination of the

world.  (Life style capital of the world)

The Chateau of Versailles (commonly called Versailles) is a royal chateau, outside the gates of which the village - and now the city - of Versailles.

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Spain is famous for leisure tourism. (SUN, SEA AND SAND)

Spain is famous for Canary Islands, Majorca, Malaga and several Other Mediterranean Islands.

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Demand for sustainable Tourism

Using the principles of Marketing and Project management we can forecast demand and design a suitable tourism product.Project management is the discipline of planning, organizing, securing and managing resources to bring about the successful completion of specific project goals and objectives.

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Development of Sustainable tourism is rather more complex thus it is complete program management.

Program management is the process of managing several related projects, often with the intention of improving an organization's performance. In practice and in its aims it is often closely related to Systems engineering.

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Theme of the destination. (Tourism product)

The theme of the destination should be based on sustainable tourism. Moreover, it should be completely compatible with guest needs and consistent in all respect.Most themes adopt a human civilization or environment scheme that is repeated on all items, construction, uniforms, décor, posters etc.This technique helps guest to identify with the theme.

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Product design identify consumer needs.Physiological, Sociological, Psychological.

Maslow’s Hiarchy basis for

understanding consumers' motives for action.

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Market Survey and Segmentation

Prepare a rough outline of few sustainable tourism product.Conduct a preliminary market survey to study the customer response.Identify different market segmentation.Remodel your tourism product on the basis of market survey and target market.

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Nature of Tourism Product.

Tourism product generally include a combination of goods and services. The challenge is intangibility of the product offered, the services offered and the variety of experience and destination.Another feature of this could be high degree of expectation of the planners and the tourist.Above all it is even more difficult to minimize the negative impacts of tourism the planners always need to be on there toes to achieve the desired result.

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Design specification.

Product blue print should be prepared on the basis of market survey, target market and customer needs.There should be a sufficient demand.Availability of sufficient funds and the justification of financial outlay i.e. need and benefits should exceed all cost.SWOT analysis.

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FEASIBILITY

The feasibility of tourism conceptThe key to success: The adaptability of the product to the marketing situations.The following points are to be answered :

1.Is the new product a good idea?2.Do we have the skills required to plan

and run the sustainable tourism business?

3.Is the host community supportive and involved?

4.Do we have enough infrastructure?

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Feasibility

Environmental cost and impacts.Sociological impacts.Impact on agriculture and other industries.Program may need to deliver tangible benefits quickly.Identify training needs.What are the risks.

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Promotion and Advertising

Commercial advertisers often seek to generate increased consumption of their products or services through branding, which involves the repetition of an image or product name in an effort to associate related qualities with the brand in the minds of consumers.

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Marketing Product • PricingDistribution • Service • RetailBrand managementAccount-based marketingMarketing ethicsMarketing effectivenessMarket researchMarket segmentationMarketing strategyMarketing managementMarket dominanceMarketing process outsourcing

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Promotional content Advertising • Branding • UnderwritingDirect marketing • Personal SalesProduct placement • PublicitySales promotion • Sex in advertising

Promotional media Printing • Publication • BroadcastingOut-of-home • Internet marketingPoint of sale • Promotional itemsDigital marketing • In-gameIn-store demonstration • Brand AmbassadorWord of mouth • Drip Marketing

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Economic Impacts of Tourism.

Rise in GDP and per capita Income.Generate employment.Improvement in Infrastructure.Rise in Inflation and scarcity of resources.Increase in foreign trade.Growth of crafts & industrial production.Improvement in transportation, communication and medical facility.

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Environmental Impacts

Rise in pollution (Land, Water, Air, sound)Loss of flora and fauna. Land slides and erosion of soil, and coral reefs.Rise in carbon dioxide emissions global warming.

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Positive impacts on the environment.

Create awareness and educate people on environmental issues.Creation of new protected areas for eco tourism.Get money for conservation efforts.

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Social and cultural impacts.

Evolution of new blended cultures.Change in life style, education and standard of living.Artificial behavior or demonstration effect.Cultural degradation or loss of culture.Rise in illegal activity and crimes such as drugs, liquor, prostitution etc.

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Political Impacts.

Improvement in foreign relations at governmental level as well as people to people level.Political activism ( opposition of land acquisitions and new project works )Rise in terrorism ( Bali bombings, Egypt massacre of tourist )

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Forms of travel agency business

Sole ProprietorshipPartnershipCorporate firm (public, private, Govt., Holding and subsidiary, MNC)

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Carrying capacity.

The carrying capacity of a biological species in an environment is the population size of the species that the environment can sustain indefinitely, given the food, habitat, water and other necessities available in the environment

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Carrying capacity from Human Perspective.

For the human population, more complex variables such as sanitation, waste decomposition, and medical care are sometimes considered as part of the necessary establishment.

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Tourism carrying capacity.

The World Tourism Organisation argues that carrying capacity is the maximum number of people who may visit a tourist destination

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Per capita land availability100mt. X 100mt. Is one hectare.

Per capita land availability in India has declined from 0.89 ha in 1951 to 0.3 ha in 2001. The per capita availability of agriculture land has declined from 0.48 ha in 1951 to 0.14 ha in 2001. The declining availability of per capita land resources is further exacerbated by degradation and desertification of land. At the same time decline in area of common land resources affect the livelihood system of marginal farmers, landless and livestock dependent people of whom women constitute a substantial portion.

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World population growth rate and future estimate.

a

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Sustainable Development.

Sustainable development is a pattern of resource use that aims to meet human needs while preserving the environment so that these needs can be met not only in the present, but also for future generations.

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Field of sustainability.

The field of sustainable development can be conceptually broken into three constituent parts: environmental sustainabilityeconomic sustainability andsociopolitical sustainability.

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Why there is no systematic solution to the problem.

Benefits of natural or social capital depletion can usually be privatized the costs are often externalized (i.e. they are borne not by the party responsible but by society in general) Natural capital is often undervalued by society since we are not fully aware of the real cost of the depletion of natural capital.

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The retreat of Aletsch Glacier in the Swiss Alps (situation in 1979, 1991 and 2002), due to global warming

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Forms of travel agency.

Proprietorship

Partnership Company

Regulating Act

None 1932 1956

Management Owner Partners Professional Experts

Legal No-separate No-separate Separate

Financial Resources

Small Medium Larger

Existence Uncertain Uncertain Perpetual

Tax Return One One Two

Liability Unlimited Unlimited Limited

Audit Accounts

None None Compulsory

Winding up No formalities

No formalities

Through law

Members One 2-20 Private 2-50 Public 7 compulsory

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Types of tour packages

Independent tours (separate components)Escorted toursHosted ToursIncentives Travel/Tours (fully paid)Freedom tours or tailor made holidays

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Tour formulation factors affecting tour design.

Purpose of tour (objective).Choice of destinationsTourist BudgetLegal RequirementsTypes of tourist accommodation.Tour period.Departure and stay information.Tour price ; inflationary condition ex. Rate.Tour Reference tools.Feasability.

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Tour Design and selection process.

Initial research (need, benefit, cost, destination and market)Develop itineraries (few distinct itineraries)Chose destination companies. (supplier negotiations)Tour costing and pricing.Advertising and promotion.Set up booking procedures and offices.Actual operation of tour.

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Tour Components

Tour escorts and guides.Tour bags, travel kits and surprise gifts.Hotels and meal plans.Transfers, sightseeing, entry passes, SPA.Printed information and stationary.Child supplements, meal supplements, refreshments.Airfares, train tkts., cruise packages.Car hire, car parking, valet services and airport lounges.Travel insurance, visa and documentation charges.

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Market Research.

Customer needs, benefits & cost or price that a customer is willing to pay.Characteristics of current or previous clients.Geographic location of customers.Attributes & preferences of potential buyers.Competition, market size & segmentation and your own target.Constraints viz., license, permission, finance, restrictions, taxes and others?

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Service characteristics

Intangibility.Perish ability.Inseparability.Simultaneity.Variability.

A service is a set of singular and perishable benefits.

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Service Specification

Service Consumer Benefits Service-specific Functional Parameters Service Delivery Point Service Consumer Count Service Delivering Readiness Times Service Support Times Service Support Languages Service Fulfillment Target Service Impairment Duration per Incident Service Delivering Duration Service Delivery Unit Service Delivering Price

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Service marketing mix.

The service marketing mix comprises off the 7’p’s. These include:• Product • Price• Place• Promotion

• People• Process• Physical evidence.

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Tour costing

Direct cost like ( tour components, change in exchange rates )Indirect cost (Administration, Promotion, Advertising, Printing and publishing, stationary etc.)

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Tour brochure.

Name of the travel company.Means of transport.Details about destinations and attractions.Itinerary.Accommodation types, location, meal plan.Name of the overseas representatives.Price & Booking, reservation and xxl conditions.Other services- Ins., currency, supplements.Travel documents required.

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Pre-Departure Necessities.

Passport, Visa, ECNR and EC.Foreign exchange, travelers cheque.2 copies of each travel doc.Tour vouchers, custom, tax, gift certificates.Stationary and postal material.

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Types of contracts

Hotel allocationHotel blockingGroup bookingGroup faresCat 35Negotiated faresConsolidated fares

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Seasonal faresCompanion faresFamily faresInclusive tour fare

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State Tourism Departments

India is a beautiful country with a varied topography and a rich cultural heritage. It consists of 28 States and 7 Union Territories. Most states of India have a Tourism Development Board which provides information and infrastructure to the tourists visiting the state.