1. 1. Domestic Tourism in Asia and the Pacific Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
2. 2. Copyright 2013, World Tourism Organization (UNWTO) Calle Capitn Haya, 42 28020 Madrid, Spain Domestic Tourism in Asia and the Pacific ISBN printed version: 978-92-844-1482-6 ISBN electronic version: 978-92-844-1483-3 Published and printed by the World Tourism Organization (UNWTO), Madrid, Spain. First printing: 2013 All rights reserved. The designations employed and the presentation of material in this publication do not imply the expression of any opinions whatsoever on the part of the Secretariat of the World Tourism Organization concerning the legal status of any country, territory, city or area, or of its authorities or concerning the delimitation of its frontiers or boundaries. World Tourism Organization (UNWTO) Calle Capitn Haya, 42 28020 Madrid Spain Tel.: (+34) 915 67 81 00 Fax: (+34) 915 71 37 33 Website: www.unwto.org Email: omt@unwto.org All UNWTO publications are protected by copyright. Therefore and unless otherwise specified, no part of a UNWTO publication may be reproduced, stored in a retrieval system or utilized in any form or by any means, electronic or mechanical, including photocopying, microfilm, scanning, without prior permission in writing. UNWTO encourages dissemination of its work and is pleased to consider permissions, licensing, and translation requests related to UNWTO publications. Permission to photocopy UNWTO material in Spain must be obtained through: CEDRO, Centro Espaol de Derechos Reprogrficos Calle Monte Esquinza, 14 28010 Madrid Spain Tel.: (+34) 91 308 63 30 Fax: (+34) 91 308 63 27 Website: www.cedro.org Email: cedro@cedro.org For authorization of the reproduction of UNWTO works outside of Spain, please contact one of CEDROs partner organizations, with which bilateral agreements are in place (see: http://www.cedro.org/en) . For all remaining countries as well as for other permissions, requests should be addressed directly to the World Tourism Organization. For applications see: http://www.unwto.org/pub/rights.htm. Citation: World Tourism Organization (2013), Domestic Tourism in Asia and the Pacific, UNWTO, Madrid. Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
3. 3. Table of Contents ________________________________ Foreword .................................................................................................................... 9 Acknowledgement .................................................................................................... 11 Executive Summary ................................................................................................ 13 Introduction ............................................................................................................... 41 1 Australia ............................................................................................................ 51 1.1 Domestic Tourism in Australia .................................................................. 51 1.1.1 Introduction ............................................................................ 51 1.1.2 Overview of Domestic Tourism .............................................. 51 1.1.3 Case Study: Impact on Social Tourism .................................. 60 1.1.4 Conclusion and Recommendation ......................................... 62 2 Bhutan ............................................................................................................... 67 Constraints for the Development of Domestic Tourism in Bhutan .................... 67 3 China ................................................................................................................. 71 3.1 Domestic Tourism in China: Policy, Practice and Prospect ..................... 71 3.1.1 Introduction ............................................................................ 72 3.1.2 Domestic Tourism Profile ....................................................... 74 3.1.3 Major Impact of Domestic Tourism ........................................ 84 3.1.4 Discussion .............................................................................. 86 3.1.5 Conclusion: Future Trends and Policy Recommendations .... 89 3.2 Analyzing the Domestic Tourist Markets of China A Case Study of Guilin 92 3.2.1 Introduction ............................................................................ 92 3.2.2 Literature Review ................................................................... 94 3.2.3 Methodology .......................................................................... 96 3.2.4 Findings .................................................................................. 98 3.2.5 Discussion and Conclusion .................................................... 107 Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
4. 4. 3.3 Travel Experience and Life Satisfaction through Mobility: A Constructivist Perspective on Domestic Tourism in China ................... 110 3.3.1 Introduction ............................................................................ 110 3.3.2 The Context of Domestic Tourism in China ........................... 110 3.3.3 Travel Experience and Life Satisfaction through Mobility ...... 114 3.3.4 Conclusion ............................................................................. 122 4 India ................................................................................................................... 131 4.1 Domestic Tourism in India: The Industry, Ground Reality and Policy Framework ..................................................................................... 131 4.1.1 Introduction ............................................................................ 131 4.1.2 Domestic Tourism Industry .................................................... 132 4.1.3 Domestic Tourism in Policy and Administration .................... 140 4.1.4 Discussion: The Meeting of Ground Reality and Policy ......... 143 4.1.5 Conclusion and Recommendation ......................................... 148 5 Indonesia .......................................................................................................... 153 5.1 Domestic Tourism in Indonesia ................................................................. 153 5.1.1 Overall Country Profile ........................................................... 153 5.1.2 Domestic Tourism Profile and Development .......................... 162 5.1.3 Case Study: The Potential of Domestic Tourism in Bali and Bandung .......................................................................... 171 5.1.4 Conclusion and Recommendation ......................................... 182 6 Iran .................................................................................................................... 187 6.1 Domestic Tourism in Iran .......................................................................... 187 6.1.1 Introduction ............................................................................ 187 6.1.2 Overall Country Profile ........................................................... 189 6.1.3 Domestic Tourism Profile ....................................................... 202 6.1.4 Conclusion and Recommendation ......................................... 207 6.2 Managing Nowruz Holidays: The Case of Fars Province, Iran .............. 213 6.2.1 Introduction ............................................................................ 213 6.2.2 Nowruz in Iran ........................................................................ 214 6.2.3 Nowruz Holidays Management in Fars Province ................... 216 6.2.4 Conclusion and Recommendation ......................................... 220 6.3 A Case Study of Best Practice in Educational Tourism: Student Tours and Visits in Iran ................................................................ 225 6.3.1 Introduction ............................................................................ 225 6.3.2 Definition and Types of Students Tours and Visits ................ 226 6.3.3 Case Study of Student Educational Tour Operation .............. 229 6.3.4 Conclusion ............................................................................. 236 4 Domestic Tourism in Asia and the Pacific Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
5. 5. 7 Japan ................................................................................................................. 239 7.1 Domestic Tourism in Japan ...................................................................... 239 7.1.1 Introduction ............................................................................ 239 7.1.2 Overall Country Profile ........................................................... 241 7.1.3 Domestic Tourism Profile ....................................................... 262 7.1.4 Case Study: Japanese Domestic Tourism Development ....... 279 7.1.5 Recommendation ................................................................... 281 8 Republic of Korea ............................................................................................. 285 8.1 Domestic Tourism in Republic of Korea ................................................... 285 8.1.1 Introduction ............................................................................ 285 8.1.2 Overall Tourism Profile ........................................................... 286 8.1.3 Best Practices in the Revitalization of Domestic Tourism ..... 298 8.1.4 Conclusion and Recommendation ......................................... 309 8.2 A Case Study of Social Tourism Policies in Republic of Korea................. 313 8.2.1 Introduction ............................................................................ 313 8.2.2 Social Tourism Policies .......................................................... 315 8.2.3 Impact of Social Tourism ....................................................... 320 8.2.4 Conclusion and Recommendation ......................................... 324 8.3 A Case Study of Rural Tourism in Republic of Korea................................ 326 8.3.1 Introduction ............................................................................ 326 8.3.2 Overview of Rural Tourism ..................................................... 327 8.3.3 Rural Tourism Analysis by Types ........................................... 329 8.3.4 Conclusion and Recommendation ......................................... 334 9 Malaysia ............................................................................................................ 337 9.1 Domestic Tourism in Malaysia................................................................... 337 9.1.1 Overview of Domestic Tourism .............................................. 337 9.1.2 Domestic Tourism Profile ....................................................... 338 9.1.3 A Case Study of Domestic Tourism Malaysia Evidence focusing on the Role of Transportation ... 349 10 Mongolia ........................................................................................................... 357 10.1 Domestic Tourism in Mongolia ................................................................. 357 10.1.1 Introduction ............................................................................ 357 10.1.2 Overall Country Profile ........................................................... 359 10.1.3 Domestic Tourism Profile ....................................................... 370 10.1.4 Case Study: Impact on Social Tourism .................................. 381 10.1.5 Recommendation ................................................................... 387 5 Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
6. 6. 11 New Zealand ..................................................................................................... 393 11.1 Domestic Tourism Market Segmentation ................................................. 393 11.1.1 Executive Summary ............................................................... 393 11.1.2 Market Segmentation ............................................................. 496 12 Pakistan ............................................................................................................ 403 12.1 Domestic Tourism in Pakistan................................................................... 403 12.1.1 Introduction ............................................................................ 403 12.1.2 Overview of Tourism .............................................................. 404 12.1.3 Overall Country Profile: Prospects of Domestic Tourism ...... 408 12.1.4 Domestic Tourism Profile ....................................................... 425 12.1.5 Conclusion and Recommendation ......................................... 430 13 Philippines ........................................................................................................ 437 13.1 Domestic Tourism in Philippines .............................................................. 437 13.1.1 Introduction ............................................................................ 437 13.1.2 Overall Country Profile ........................................................... 438 13.1.3 Domestic Tourism Profile ....................................................... 450 13.1.4 Conclusion and Recommendation ......................................... 453 13.2 Domestic Tourisms Role in Local Economic Development ..................... 458 13.2.1 Introduction ............................................................................ 458 13.2.2 Enabling Factors .................................................................... 462 13.2.3 Case of The Puerto Princesa City, Province of Palawan ....... 466 13.2.4 Conclusion ............................................................................. 471 14 Sri Lanka ........................................................................................................... 475 14.1 Domestic Tourism in Sri Lanka.................................................................. 475 14.1.1 Introduction ............................................................................ 476 14.1.2 Overall Country Profile ........................................................... 479 14.1.3 Domestic Tourism Profile ....................................................... 488 14.1.4 Conclusion and Recommendation ......................................... 502 15 Thailand ............................................................................................................ 505 15.1 Some Reflections on Thai Domestic Tourism .......................................... 505 15.1.1 Introduction ............................................................................ 505 15.1.2 Overview of Tourism .............................................................. 505 15.1.3 Domestic Tourism Profile ....................................................... 512 15.1.4 Conclusion and Recommendation ......................................... 527 6 Domestic Tourism in Asia and the Pacific Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
7. 7. 15.2 A Case Study of Community Based Tourism in Thailand ......................... 529 15.2.1 Executive Summary ............................................................... 529 15.2.2 Background: Community Based Tourism in the Thai Context ................................................................. 531 15.2.3 Conclusion and Recommendation ......................................... 548 16 Vietnam ............................................................................................................. 553 16.1 Domestic Tourism in Vietnam ................................................................... 553 16.1.1 Introduction ............................................................................ 554 16.1.2 Overall Country Profile ........................................................... 555 16.1.3 Domestic Tourism Profile ....................................................... 565 16.1.4 Case Study: Impact on Social Tourism .................................. 575 16.1.5 Recommendation ................................................................... 577 Conclusion ................................................................................................................. 579 List of Contributors ................................................................................................... 585 List of Acronyms ....................................................................................................... 593 7 Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
8. 8. 8 Domestic Tourism in Asia and the Pacific Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
9. 9. Foreword ________________________________________ Domestic tourism is at the heart of the social fabric of Asia and the Pacific. Pilgrimages, festivals, and festivities are a central part of life in all the countries of the region, building on the various religions and their numerous offshoots, often associated with age-old agrarian practices. Indeed, even the golden week, so dear to many cultures and the centre of annual domestic holidays in numerous Asian destinations, is steeped in this tradition. Likewise, domestic tourism, although overshadowed by international tourism until recently, has been a major contributor to the economies of Asia and the Pacific. One of the fundamental reasons for this state of affairs was the quest for foreign exchange that countries sought as export earnings were particularly important in their initial stage of tourism development and hard currency was in short supply. However, the situation has changed dramatically with the rapid economic growth in the region. The increase in the per capita income of many countries enabled a growing percentage of the population to take part in and profit from domestic tourism. The affluent middle class of Asia and the Pacific is today, not only a major source market for domestic tourism, but also an increasingly important segment of the outbound market. Moreover, domestic tourism has played a central role in many Asian destinations acting as a shock-absorber in countries affected by natural and man-made calamities that had a bearing on their international tourism. While the economic benefits of domestic tourism cannot be ignored, the socio-cultural contribution it has on the ground plays an even greater role in the countries of Asia and Pacific. Indeed, one of the major objectives of the present study was to assess this important component. Country profiles and case studies therefore highlight issues such as employment, community involvement and sustainable development as these are equally, or even more important, than the volume of expenditure or the number of tourists. I wish to extend my appreciation to the Ministry of Culture, Sports and Tourism of the Republic of Korea for funding this important research and to all those who contributed to this study, namely to Mr. Omar NAWAZ and Ms. Hyeon-Jin LEE, for their valuable inputs as lead consultants of this report. I would also like to commend the Regional Programme for Asia and the Pacific for the initiative taken on the present study of domestic tourism in Asia and the Pacific. 9 Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
10. 10. I believe this innovative study will guide countries in Asia and the Pacific, and beyond, to enhance their understanding of the impact and reach of domestic tourism and provide ground for adequate policies that support the development of domestic tourism as a tool for economic growth and social cohesion. Taleb Rifai Secretary-General, World Tourism Organization (UNWTO) 10 Domestic Tourism in Asia and the Pacific Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
11. 11. Acknowledgements ______________________________ UNWTO would like to acknowledge the following contributors to the study1 : Domestic Tourism in China: Policy, Practice and Prospect Professor Guangrui Zhang Analyzing the Domestic Tourist Markets of China: A Case Study of Guilin Professor Jigang Bao and Dr Yueying Hazel Xu Travel Experience and Life Satisfaction through Mobility A Constructivist Perspective on Domestic Tourism in China Dr Honggen Xiao Domestic Tourism in India: The Industry, Ground Reality and Policy Framework Dr Kiran A. Shinde Domestic Tourism in Indonesia Dr Myra P. Gunawan and Ms Yani Adriani Domestic Tourism in Iran Dr Zahed Ghaderi Managing Nowruz Holidays: The Case of Fars Province, Iran Dr Hamid Zargham A Case Study of Best Practice in Educational Tourism: Student Tours and Visits in Iran Mr Masih Sharif Domestic Tourism in Japan Mr Tomohiko Watanabe 1 In alphabetical order of the study chapter. 11 Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
12. 12. Domestic Tourism in Republic of Korea Dr Kang Wook Lee A Case Study of Social Tourism Policies in Republic of Korea Dr Sun Jin Ji and Dr Jae Geul Kim A Case Study of Rural Tourism in Republic of Korea Mr Hyung Doo Choi and Mr Hyun Suk Choi A Case Study of Domestic Tourism Malaysia Evidence Focusing on the Role of Transportation Dr Hossein Nezakati and Mr Yousef Keshavarz Domestic Tourism in Mongolia Dr Amartuvshin Dorjsuren Domestic Tourism in Pakistan Mr Zafarullah Siddiqui Domestic Tourism in Philippines Dr Miguela M. Mena Domestic Tourisms Role in Local Economic Development Ms Maria Cherry Lyn S. Salazar-Rodolfo Domestic Tourism in Sri Lanka Dr Nizam Lantra Some Reflections on Thai Domestic Tourism Dr Therdchai (Ted) Choibamroong A Case Study of Community Based Tourism in Thailand Ms Potjana Suansri and Mr Peter Richards Domestic Tourism in Vietnam Mr Hoang Dao Bao Cam 12 Domestic Tourism in Asia and the Pacific Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
13. 13. Executive Summary ______________________________ Background and Objectives The domestic tourism (DT) study was launched in September 2011 by the Regional Representation of Asia and the Pacific of UNWTO with the sponsorship of the Republic of Korea. The responses based on a concept note and a detailed set of Terms of Reference (ToR) outlined in the Introduction to the present publication were received from academics, professionals and tourism administrators of the following countries: Australia, Bhutan, China, India, Indonesia, Iran, Japan, Korea, Malaysia, Mongolia, New Zealand, Pakistan, Philippines, Sri Lanka, Thailand, and Vietnam. The main objectives were outlined as follows: a) Compile domestic tourism statistics and analyze characteristics focusing on its socio- economic impact and resilient capacity; b) elucidate information on the accommodation (formal and informal), transport, leisure, and safety and security sectors that have a bearing on domestic tourism; c) provide guidelines for sustainable development of domestic tourism and highlight best practice cases in terms of strategies, policies and product development; d) increase the related stakeholders awareness of domestic tourism which plays an important role in socio-economic development and industrys resilience during global crisis situation; e) serve as a useful groundwork for further studies on domestic tourism in Asia and the Pacific and the rest of the world. Tourism is an important element in the economy of Asian and Pacific countries. While international tourism has been highlighted due to its capacity of generating foreign exchange as an export earner, that many destinations in their formative years of tourism direly needed, domestic tourism (DT) was neglected both as an area of development as well as a subject of research. Statistics on DT, vital to any economic analysis, were either unavailable or unreliable since there was no strict adherence to standard measurement systems. International tourism, on the other hand, had the advantage of a system where arrivals and departures were measured at frontier points and expenditure was in foreign currency. This situation changed dramatically with the introduction of Tourism Satellite Accounts (TSA), an initiative of the World Tourism Organization (UNWTO) that has greatly revolutionized accounting procedures, systems and analysis. Many countries, especially the 13 Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
14. 14. developed nations, adopted TSAs at its inception in the 1990s, whereas it permeated Asia and the Pacific much later with varying degrees of success depending on the strength of the accounting systems of the destinations under review. The present study of DT across Asia and the Pacific draws heavily on TSAs that have been implemented. The TSAs by themselves are not viable without the supportive data of domestic travellers provided through household surveys conducted by National Tourism Administrations and Organizations (NTAs and NTOs). Surveys have not been implemented in all the countries under review and one of the outcomes of the above study was for requests for assistance in the implementation of household and administrative surveys. It must be noted that one of the major outcomes of the present study has been the emphasis laid on the socio-cultural element of DT by a majority of the contributors in various fields, of policy, planning, ethics and sustainability. Methodology Due to time and financial constraints most of the studies are dependent on secondary sources (desk research) for their information. Wherever access was possible, authors have availed themselves of data from the tourism satellite accounts (TSA) and the household and administrative surveys that are now a feature of the Asia and the Pacific destinations. Some cases of primary research where authors had worked on the subject previously on their own or through institutes to which they were attached also feature such as studies on China (Guilin), Iran, and the Republic of Korea to mention a few. Overall Structure of the Document The overall structure of the study reflects the difficulties encountered in the approach that is not uniform and have been undertaken according to the strengths and background knowledge of the authors. The contents tend to vary in depth and style of the contributors. The lack of precise data on domestic tourism has led to an over-emphasis on international tourism that was requested merely as a point of reference and in some cases to a perceived imbalance in the studies. The study on India stresses the role and implications of policy decisions, especially with pilgrimages as a reference source, while that of New Zealand is summarized from the country profile of the Ministry but concentrates on market segmentation that was extremely innovative and enriching in its approach. In this situation these 2 reports do not conform exactly to the TOR but contain more than useful data. In like manner it was found that there was little information available on domestic tourism in Bhutan and further editorial research revealed the limitations to this field in the country hence study is entitled as constraints to the development of domestic tourism in Bhutan. 14 Domestic Tourism in Asia and the Pacific Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
15. 15. Salient Findings of Domestic Tourism in Asia and the Pacific The various case studies based on socio-economic and socio-cultural data such as on community based tourism in Thailand, Nowruz holidays and educational tours in Iran, social and rural tourism in Korea, all of which have an impact on DT of the country, and which are pure case studies, are worthy of replication. These case studies border on social tourism with an element of sustainability, responsible and participatory tourism, that set the standards for others to emulate. Indeed, the social tourism policies outlined in the study on Korea with its detailed analysis of tourism vouchers and coupons based on assistance to the disenfranchised finds an echo in reports of other countries including China. The lessons learnt are universal and not confined to the Asia and Pacific region alone. The Korean efforts have been lauded by other Asian destinations that bemoan the lack of such facilities in their own countries. Some authors have added specific case studies within the country profile such as Indonesia and the Philippines. In the case of Indonesia, Bali and Bandung have been included giving an insight into their growth from a historical perspective and the problems faced in the light of various incidents that affected them. The Philippines integrates a study on Puerto Princessa City, an example of a planned green tourism sustainable venture. Asia and the Pacific, unlike any other region in the world, is characterized by the historical, geographical, economical and political context that is unique and have an enormous bearing on tourism in general and DT in particular. Asia and the Pacific is marked by contrasts and heterogeneity that pervades all aspects of society. Even from the point of view of the evolution of tourism, the role of pilgrimages in India, Pakistan, Sri Lanka, and Indonesia is so imbedded in the social fabric that a rational approach to transport and accommodation is not possible. One simply wonders how millions move and stay in places which are devoid of the basic facilities. The past 3 decades have witnessed different periods of economic and financial development in Asia and the Pacific. The rapid growth of the North East and South East Asian economies in the eighties and nineties led to the emergence of the Tiger Economies which, unfortunately, was followed by the Asian financial crisis of 1997 and, quite recently, the world financial crisis whose effects have not totally subsided. Asian tourism showed its resilience to withstand this plus the various natural and man-made calamities that befell such as SARS, AHI, Tsunami of 2004, and in the case of Indonesia and India, a series of acts of terrorism. Amidst these catastrophes Asian tourism has continued to maintain a healthy growth rate, much higher than the world average. Family ties are sacrosanct in all Asian societies with the result that visiting friends and relatives (VFR) predominates both in the motivation (purpose of visit) and the place of stay. It is therefore, extremely difficult to evaluate the accommodation units used by this sector in 15 Executive Summary Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
16. 16. their sojourns where residences of families and friends form a secondary home in their own right. As a matter of fact the study on Thailand revealed that the household survey questionnaires carried 2 categories: 1) family and 2) friends and relatives. The study revealed that VFR constitutes more than half and in some instances two thirds the motivation for DT visits. Added to this is the informal sector of accommodation which once again features as the most important unit used by DT in their stays. Since this sector is not within the purview of NTOs and NTAs questionnaires of the household surveys aiming at obtaining data on accommodation often fall short of the desired results. This should be one of the major priorities of household survey questionnaires in the future. The other major characteristic of DT in the region is the demography. Home to over 60% of the worlds population the contrasts are enormous. China and India have a population of over a billion each while Bhutan wedged between both countries has only 716.000 people. China, has identified its population as its greatest DT asset as a raw material to be exploited! Human resources are no doubt the bread and butter of domestic tourism but at the same time the population composition, especially one of ageing has become a negative factor that some of the advanced Asia and Pacific destinations are attempting to tackle. The ageing population has become a major issue in Japan, Korea, Australia and to a certain extent in China. The galloping population increases of Asian destinations of the past have been controlled and countries such as Indonesia and Vietnam now look forward to the youth to carry forward their economic development. On the other hand low densities in countries such as Mongolia, Australia and New Zealand require other solutions. The rapid and constant economic growth of the Asian destinations in the past three decades especially through globalization and liberalization has led to the emergence of an affluent middle-class who constitutes an important source market for DT. This middle-class that has emerged in the destinations and has been outlined by all the authors possesses sufficient disposable income to be able to compete with international visitors for goods and services in their respective countries. The reverse side is that this affluent class now prefer to travel abroad thereby depriving DT of a valuable market. Indonesia, Malaysia, Thailand, and the Philippines have evolved sophisticated marketing and advertising campaigns to entice this middle-class to stay at home. Holidays and working hours have evolved in all the countries that, in the past, had stringent controls giving domestic tourism a big boost. Vietnam and China are two cases in point with the latter making a concerted effort to increase the number of paid holidays so that DT will benefit. Sometimes these measures have been taken through social pressures but by and large Asia and the Pacific now have not only the disposable income but also the leisure that is so necessary to develop DT. Korea is hoping to introduce the substitution holiday law whereby any holiday falling on a Saturday, Sunday or a national holiday will be given an additional day off. The value of even one or two additional holidays has an enormous repercussion on DT. 16 Domestic Tourism in Asia and the Pacific Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
17. 17. Asian destinations have a number of holidays often associated with religion, culture and festivals that is an additional asset to DT especially for short breaks where outbound visits abroad are meaningless. Indonesia and Sri Lanka in particular observe national holidays of all major religious denominations thereby giving the local population the opportunity to make use of the tourism facilities reserved for international visitors. This has been done through selected price reductions during the holiday breaks. Accumulated leave has been a problem of Australia (Australian slogan No Leave No Life has been aimed at DT through print and visual media) and Japan who have offered incentives and embarked on marketing campaigns to encourage its citizens to take their accumulated leave in the destinations. This is considered to be a significant reserve for DT. The value of education and educational tours as a boost to DT has been stressed by most authors with concrete examples from Iran and Indonesia. The necessity to integrate tourism into the curriculum of students even at a young age is a policy that should find universal application. DT does not require the knowledge of a foreign language and can be taught in the local vernacular as interaction with the community does not call for other skills. However, this requires well structured courses that stress on sustainability and responsible tourism. Tourism in general and DT in particular has acted as a shock absorber, cushioning the negative impacts during crises. DT has been the reserve on which Asian destinations such as Indonesia and Sri Lanka have relied upon to protect their product, especially accommodation, from disuse and deterioration, and at the same time maintain and provide employment to the people whose livelihoods depended on tourism. Word of mouth publicity has been the greatest advertising agent of DT. The social media without any additional cost could be an effective marketing tool especially since many Asian and Pacific destinations are well equipped in IT, especially mobile phones with internet facilities. The urban-rural ratio has been another major social and economic issue in many Asian destinations. Concerted efforts in Korea, China, Philippines, Malaysia and Thailand have eased some of the disparities but globally this issue has engendered debate. Korea has embarked on a programme of promoting rural tourism to the urban dwellers with a series of pilot schemes. However, it is noteworthy that the urban centres form the biggest catchment areas for DT in many Asian destinations. Another aspect of the DT studies elaborated by the authors pertain to policies that impacted on the development of tourism often to the benefit of the destinations but in some instances such as the devolution of the Ministry of Tourism in Pakistan and the subsequent handing over of tourism to federal states has had a negative effect on international as well as domestic tourism. 17 Executive Summary Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
18. 18. There have been more and more public/private partnerships with the development of free market policies. NTAs and NTOs continue to take the responsibility of DT in Asia and the Pacific but private entrepreneurs now play a bigger role than in the past. Summary of Country Profiles Australia Domestic Tourism in Australia Australian Government Department of Resources, Energy and Tourism The importance of tourism as an export earner and as a source of employment has been duly recognized by the Australian government. Tourism contributes 2.5% of the GDP and around 8% of total export earnings with one in five employed in the sector (half a million persons). Administration, policies and budgets are therefore fully geared to tourism. Tourism Australia under the aegis of the Department of Resources, Energy and Tourism (RET) is fully responsible for all promotional activities with domestic tourism give an important position in the whole structure. Australias blueprint Tourism 2020 outlines the objectives and the targets for the future. Australia has a solid economic and social base that enables the development and promotion of domestic tourism on par with international tourism. The well developed infrastructure despite vast distances to be travelled is a plus factor in favour of tourism. Likewise accommodation units are within the reach of domestic tourists whose disposable income permits them to take advantage of the entire range of products. The socio-cultural data concerns the declining rate of growth of the population due to ageing, low fertility and increasing life expectancy all of which have a negative bearing on domestic tourism. Australia also has a high urban population (60%) ratio when compared to the rural areas which once again impacts on tourism. The holiday season apart from the Christmas vacations is governed to a great extent by the school vacations that are generally associated with domestic departures. Australia is a great sporting nation that attracts many domestic visitors to the various events. Sustainable tourism development, particularly green tourism is a field in which Australia has taken an initiative and is a forerunner. Australias National Landscapes Programme is an innovative and unique partnership between Parks Australia and Tourism Australia, inspired by the need to make Australias wealth of over 9,000 national parks, protected areas and reserves more attractive for domestic and international visitors. The findings highlight 18 Domestic Tourism in Asia and the Pacific Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
19. 19. the advanced statistical base available to the researcher that is supported by a well developed tourism satellite accounts system backed by regular household surveys. Finally specific measures to develop and promote domestic tourism are outlined. This is approached from a supply and demand angle. Of particular interest is the following: It is in this context that Tourism Australia launched No Leave, No Life on 30 March 2009. The programme is designed to equip employees and employers with tools to tackle annual leave stockpiling with flow-through benefits to the domestic tourism industry. Bhutan Constraints for the Development of Domestic Tourism in Bhutan Bhutan is a landlocked country situated between India and China, with a surface area of 38.3 thousand km2 with a population of 716 thousand (2011) of whom around 15% live in the Capital, Thimphu. Bhutan is a mountainous region in the Himalayas with high peaks and deep ravines dominating the topography. The harsh climate is another drawback where avalanches and mud slides are common. The biggest drawback to tourism development is transport: the country does not have a railway system, has only one major road from East to West and one airport (moves are under way to build more domestic airports and helipads). Mountaineering and trekking are the most popular nature based tourism activities where pack animals are used for transport. Bhutan has a rich history with a monarchical system of government. Buddhism (75%) and Hinduism (25%) are the major religions. Monasteries dot the landscape and cultural tourism is a major attraction. Spring is the major festival season. From a tourism point of view, given the fragile bio-systems both natural as well as cultural that the country attempts to preserve, Bhutan is basically a country in transition. Despite some international celebrities making the headlines by visiting Bhutan tourism is still a relative luxury. The country received 300 visitors in 1974 that has risen to 64,000 in 2011. The compulsory entry fees base imposed on all international visitors have been a good source of revenue to the economy. International tourism is estimated to account for 10% of the GDP. The policy of high-end, low-volume tourism is therefore paying dividends. Given that 23% of the population live below the poverty line and 70% survive through subsistence farming, domestic tourism is not an activity within the reach of the average Bhutanese. Neither research nor statistics is available on domestic tourism in the country. It is quite likely that some Bhutanese participate in pilgrimages and cultural events but given the major constraints outlined above of infrastructure and disposable income the numbers would be negligible. However, with the increasing income through international tourism, a 19 Executive Summary Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
20. 20. system of community development which in the long-run will pave the way for domestic tourism should be encouraged. China Domestic Tourism in China: Policy, Practice and Prospects Professor Guangrui Zhang Travel and tourism account for 9.2% of the GDP and 7.7% of employment (2010). Given Chinas surface area and population, two advantages that other countries can hardly match, the one providing rich resources, and the other the market, tourism remains a vital cog in Chinas economy. In absolute terms the numbers are staggering: According to the statistics released by China National Tourism Administration, in the year of 2010 the number of domestic trips reached over 2.1 billion, generating CNY 1,260 billion as revenue. The number of overnight-stayed international arrivals was 55.66 million in total, generating over US$ 45.8 billion as foreign exchange earnings from tourism. Therefore, the grand tourism revenue for the year was over CNY 1,570 billion, accounting about 4% of the countrys GDP. Chinese tourism grew in 2 stages: from 1949 to 1978 the concentration was only on inbound tourism while in the next 30 years outbound and domestic tourism have been given due recognition. Domestic tourism has been characterized by a period of spectacular growth in the last 2 decades. The causes and consequences of this rapid growth cannot be disassociated with the overall socio-economic developments of the country and its context articulated from a historical, economic, socio-cultural, and regional development perspectives. In terms of average spend/person it has remained rather low but this has been supplemented by an ever growing broad base. Policy evolution has followed general economic and political trends. The policy changes, incentives, product development (budget hotels, transport facilities especially on railways), specific markets (family, young travellers), and specific products (rural, cultural event, frontier tourism) have all been oriented in the context of the world financial crisis and its consequent effect on the Chinese economy. China decided on a path of stimulating domestic consumption and domestic tourism has been given top priority among all the tourism markets since 2008. The impacts of domestic tourism in the economic surge by providing jobs, redressing the rural exodus, and revitalizing the economy are on par with the overall economic, social, 20 Domestic Tourism in Asia and the Pacific Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
21. 21. cultural and political goals of the Government. Concrete measures have been implemented to facilitate the task of which the introduction of the 5 day week in 1995 followed by the long holiday system in 1999, much ahead of some of Chinas neighbours, are noteworthy. The 11 day holiday period effectively enabled the Chinese to take a 3 week break during the Golden Week by combining it with other national holidays. This, however, is not without its negative impacts since congestion, pressure on transport and accommodation and an overall stagnancy of the economy is the flip side of the coin. China has also experimented with vouchers and incentives to stimulate domestic tourism amongst certain disenfranchised social groups of low income, a measure that has been put to good effect in Korea, and has a parallel in France. The future of domestic tourism in China is inalienably linked to the success of its economic policies that aims at reducing the urban/rural imbalance and to provide incentives to the latter to reduce excessive exodus to the towns and cities and also provide better livelihood thereby safeguarding jobs and income. Travel Experience and Life Satisfaction through Mobility A Constructivist Perspective on Domestic Tourism in China Professor Honggen Xiao This study contextualized within specific settings and articulated from their own perspectives, accounts from backpacker narratives and auto tourists lived experiences have lent to discussions on travel experience, experiential learning through travel, auto tourism and mobility, family vacations and togetherness, and life satisfaction or quality of life, which are characteristic of contemporary Chinese society within which domestic tourism is simmered and acts as an agent, along with other forces, for social cultural change currently occurring in China. Based partly on primary research the study is evocative of the evolution of Chinese tourism, comparable to early experiences in Western society at a time backpackers or auto tourists ventured into an adventure that today has paved the way for a more stable and structured component of tourism. The narratives give an insight into various inter-related aspects of tourism such as transport, accommodation, safety and security, and community relationships. Though the volume may be limited the potential is large since the market, especially amongst the youth, is vast in China. It must also be remembered that there is a disparity between the developed Eastern coastal belt and the West of the country and individual travel in all its forms is fast replacing package tours that offer a means of distribution of wealth and poverty alleviation leading to social harmony. 21 Executive Summary Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
22. 22. Analyzing the Domestic Tourist Markets of China: A Case Study of Guilin Professor Jigang Bao and and Dr Yueying Xu Domestic tourism in China is experiencing fast growth and its contributions to the nations economic and social development are significant. By a case study approach, the study has chosen Guilin of the Guangxi Zhuang Autonomous Region in Southwest China as an example to investigate the development of domestic tourism in China, with a focus on examining the characteristics and changes in Guilins domestic tourist markets during the decade 1999 to 2008. The background and the driving forces for Guilins domestic tourism development are analyzed and possible explanations on the changes in tourist origins are provided. The impacts that Guilin domestic tourism development has on the destination and its communities are also discussed. The study makes use of both primary and secondary data. As one of the earliest and most representative tourist destinations in the nation, Guilins experience in domestic tourism development can provide some insights of what Chinas domestic tourism has gone through and how tourism interacts with the countrys fast economic and social development. India Domestic Tourism in India: The Industry, Ground Reality, and Policy Framework Professor Kiran Shinde The study analyzes the historical evolution, regional variations and policy of Indian tourism in general and domestic tourism in particular within the various economic plans (Five Year, Ten Year Plans) of the Indian Government. The evolution from a planned to liberalized economy that followed world trends in the past decade of which India has been a beneficiary and a leading protagonist recently has had an impact on tourism with lesser state controls and more room for the private sector. This has conversely facilitated the emergence of a robust middle class (estimated around 200 million persons) who constitute the base for the development of domestic tourism. Consequently there is a noticeable shift from the traditional domestic tourism trips that were the monopoly of the masses in the past to one that is modern and in keeping with the aspirations of a rising wealthy middle class. This leisure based demand is dependent on services that require a different set of policies and products. However, the importance of pilgrimages and religious travel cannot be undermined as this age old tradition is part and parcel of the Indian ethos. Added to this must be included the category of people who travel to visit friends and relatives (VFR) where the main motivation is family reunions and are undertaken solely for this purpose. Since precise details of the flow of domestic tourism is not readily available from first hand recent sources it has been concluded from the various surveys and research undertaken in 22 Domestic Tourism in Asia and the Pacific Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
23. 23. the past by public and private institutes that the domestic tourism flows are ten times that of international arrivals. The theme of the study is based on how the existing policy framework copes with this reality and the need for adaptation to keep pace with evolving trends. The accommodation sector has seen a growth in hotels and motels catering to international tourists but these also serve domestic tourists. On the other hand it is still the informal non- star hotels that constitute the bread and butter of domestic tourists. Where the transport sector in concerned the growth of low-cost carriers in India is a boon to the domestic market but road and rail continue to dominate domestic tourism. Affluence has also permitted the average Indian to car ownership that again facilitates travel. In conclusion as the author states In exploring possible answers to questions related to domestic tourism, this paper focuses on two aspects: the structure of domestic tourism and how it features within the existing policy framework. While doing so, it attempts to highlights area where the policy has been effective, as well as identify the shortcomings that contribute to uneven growth and the less than desired levels of achievements in the promotion of domestic tourism Indonesia Domestic Tourism in Indonesia Dr Myra P. Gunawan and Ms Yani Adriani Indonesia is the worlds largest archipelagic country with 17,500 islands in a land area of almost 2 million km2 and a population of 237 million (4th in the world). 57% of the population is concentrated in 6, 8% of the surface area in Java. Composed of diverse indigenous ethnic and cultural groups the country has the biggest Muslim population of any country in the world. These factors have an enormous bearing on domestic tourism that has increased rapidly in the past 2 decades when the country was affected by a series of natural and man-made catastrophes. Indonesian international tourist arrivals reached a peak in 1997 but despite the setbacks the industry survived the darkest period through its resilience that prompted the authorities to invest heavily on domestic tourism to counter balance the negative effects of the loss in foreign exchange. This policy change enabled the industry to make a significant contribution to the GDP and most importantly maintain jobs and sustain livelihoods. Domestic tourism was given a boost by administrative measures (recognition in the tourism satellite accounts with a differentiation of terminology for local and intra-regional travellers). Indonesia carries out a regular annual household survey since 1981 to determine the source of domestic tourism and hence the statistics are reliable. Once the value and weight of 23 Executive Summary Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
24. 24. domestic tourism was recognized the authorities embarked on a special promotional campaign aimed at enticing the locals to discover their own country pariwisata nusantara. The net result has been that within the 30 year period (1981-2011) the number (of domestic tourists) has increased at an accelerating pace from a rough estimate of about 44 million into a magnitude of about three-fold. The numbers of trips made accelerated at an even greater pace from about 51 million to about five-fold. 50% of Indonesias population is under 25 years hence the youth market presents an opportunity and a challenge to planners and policy makers to tap this lucrative source. On the other hand increase in income and living standards has resulted in a wealthy middle- class emerging recently whose exigencies in terms of products and services are not second to those of international tourists. Accessibility through the introduction of low cost budget airlines (the country disposes 237airports) has facilitated travel in this vast country that has been beneficial to domestic tourism. The accelerated growth of car and motorcycle ownership (8.85 million and 65 million respectively) has provided greater mobility influencing intensity of travel and reach as well. According to the national household survey of 2010, the total travelling population was estimated at 122 million persons and the total trips at 198 million. The survey also noted that 54% stayed with friends and relatives (VFR) and 71% in non-classified accommodation units. The income generated from DT accounted for 60% of the total income from tourism expenditure. A case study of Bali underlines the importance of DT to the island whose image was totally submerged by its international notoriety that suffered drastically following the Bali bombings. For the first time in its history Bali tourism was faced with the fact of how fragile the sector is from externalities never anticipated nor imagined. Thanks to domestic tourism Bali was able minimize the economic and social losses. Iran Domestic Tourism in Iran Dr Zahed Ghaderi The study contains both primary (surveys undertaken directly by the author) and secondary research on Irans domestic tourism. Iran is a very rich destination from the point of view of its cultural heritage as it has a very old civilization and its natural assets that are relatively less known: Damavand summit at 5,671 m altitude and the Loot and Central deserts, coupled with more than 50 lakes, caves, mineral springs and spas all of which offer enormous potential for tourism. 24 Domestic Tourism in Asia and the Pacific Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
25. 25. Modern tourism in Iran dates back to the creation of the Jalbe-Sayahan Bureau in the Ministry of Interior 75 years ago which was responsible for the establishment of accommodation units along the Caspian sea amongst other tourism activities. However, Iran had been the victim of a long drawn out war with Iraq that depleted her resources and political maneuvers that have destabilized international tourism placed after the 53rd nation in international arrivals in 2011 with 3.1 million visitors does not seem to do justice to its heritage. The population of Iran is estimated to be around 75 million with an urban rural ratio of 3:1. The human resources are therefore available for a healthy growth of its domestic tourism component that has no doubt benefitted from the relatively poor international market. Irans cultural heritage is strongly liked to its festivals of which Nowrooz or the dawn of spring in March is widely celebrated throughout the country. It attracts millions of visitors and in its wake come a number of problems of carrying capacity related to congestion, accommodation and transport. Various household surveys including one carried out by the author in September 2009 supplement the relatively weak statistical data on domestic tourism. From this and other surveys it transpires that VFR constitutes 51% of all visits while leisure and pilgrimage are equally important. Being the leading Shiite state in the world there are numerous pilgrimage sites that attract many domestic visitors. It is estimated that domestic tourism spend is over 80% and that total employment (direct and indirect) in the tourism sector accounts for 1.2 million, i.e. 5,6% of the total work force on Iran. While Iran has a good network of roads, railways, and airlines, the political situation has led to a lack of maintenance that has had certain negative effects especially in safety and security of its carriers. 70% of the domestic tourist transport, though, is by private vehicles, with the FIT market accounting for 54% of sales. Policy changes, more investment and a gradual easing of Irans isolation will boost its tourism market both international as well as domestic. The study has concluded with a set of very detailed recommendations. Managing Nowruz Holidays, the Case of Fars Province, Iran Dr Hamid Zargham Domestic tourism in Iran has been witnessing a growth rate caused by increase in urbanization, growth in numbers of Iranian families with high disposable income, and the proliferation of private vehicles over the period 1997 to 2011. Domestic demand has increased from 450,000 travellers in 1997 to more than 6,500,000 in 2011. It reaches its peak during the Iranian New Year holidays. Traditionally the New Year holiday period (or Nowruz, 20 March to 2 April) is the favoured time for travel, recreation, rest, and visiting relatives and friends. New Year holidays statistics show that the number of trips increased 25 Executive Summary Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
26. 26. from 19 million in 2002 to 149 million in 2011, generating a cash flow of more than US$ 3.5 billion. As a result of this high travel demand, government authorities encountered serious challenges such as: 1. Supply of accommodation services; 2. the need for police, security and emergency medical assistance; 3. provision of tourist guiding and information services; 4. liquidity management; 5. overcharging and supply monitoring and; 6. environmental damage and pollution. In order to administer wellbeing and comfort of the travellers the government has established facilities headquarters at national, provincial, and district levels. This content analysis study briefly reviews the expansion of domestic tourism in Fars province and summarizes important contributing factors. Through investigating experiences and achievements in management of domestic tours during New Years holiday, the study shows that Nowruz tourism makes a significant contribution in promoting regional economic growth, improving local economic structures, driving the development of related industries, and enhancing employment and activating domestic demands. A Case Study of Best Practice in Educational Tourism: Student Tours and Visits in Iran Mr Masih Sharif The study underlines the importance placed by Iran on educational student tours that are supported by the state and is a part of the curriculum where theory and practice are closely interwoven. These tours are well structured and widely spread. Domestic tourism in Iran has been the main beneficiary of student educational tours. From a socio-economic point of view these tours are extremely significant in leading to more understanding not to mention the direct and indirect economic impacts. Another aspect is the redressing of urban/rural imbalance. While the state plays the leading role as policy maker and chief benefactor associations have been active in cooperating with the department of education of Iran to complement these activities and a case study has been made of the FarAvaran Association. Established in 2004 based in Tehran, the FarAvaran Association was created by a group of tourism graduates and tour guides aiming for cultural and tourism development which mainly deals with organizing student tours and visits. These tours are organized directly in collaboration with the schools or through agreements between this association and the Ministry of Education. 26 Domestic Tourism in Asia and the Pacific Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
27. 27. Japan Domestic Tourism in Japan Mr Tomohiko Watanabe Japans dramatic post-war redevelopment and economic recovery has placed it on par with Western countries with the GDP and per capita income at a level where social inequalities prevalent in other Asia societies are minimal. An egalitarian wealthy middle-class, therefore, dominates society where domestic tourism has found its rightful place. The rapid economic growth in the 1960s saw an improvement in infrastructure, particularly transport, that benefitted tourism. While income and consumption levels increased steadily until the 1990s so did domestic tourism. However, growth has been sluggish thereafter and a large number of internal destinations, facilities, products, and accommodation units have failed to keep pace with new challenges brought about mainly by the technological revolution. A very interesting case in point is the Japanese hot springs (more than 3,000) offering accommodation and indoor facilities to domestic visitors. The traditional Japanese package tours have been replaced by FITs and the owners of the units have found it difficult to readapt to the changing market conditions. This is but one symptomatic example of logistical problems facing the industry. The market scale of domestic tourism is evident from the volume of the traffic. It is estimated that there are 200 million domestic visitors as against 17 million outbound and 9 million inbound visitors. Japanese policy has also seen a change in direction with the establishment of the Japan Tourism Agency in 2008. Tourism has been given priority being placed as one of the pillars of the 21st century with domestic tourism identified as the motor of growth. One of the aims of the 5 Year Plan was to increase the length of the Japanese domestic trip by one night from the 2.5 average to 4 nights. Festivals are a feature of Japanese domestic tourism. Of these the Nebuska festival, Hakat Gion Yamakas, and Sapparo Maburi attract 3 million visitors for each event. The Japanese accommodation system draws on both the modern and the traditional with Ryokans, Minsyyuku and Syukubo (temple stays) being popular amongst the local population. These motels and guest houses in traditional Japanese style cater to the domestic tourism clientele who find them to be affordable, clean and comfortable. Unlike other Asian destinations the Japanese have a ready made accommodation set-up that meets their needs. The transport system is one of the most modern in the world with Japanese trains and vehicles as modern as anything to be offered in the West. Curiously, despite being a longitudinal destination with an excellent air transport service, airlines account only for 5.5% of domestic transport usage. 27 Executive Summary Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
28. 28. Japan has elaborated a fairly comprehensive market segmentation of its domestic travellers with the elderly, retired, baby boomer generation, small groups and disabled travellers forming part of the system. Tour Operators and Travel Agents (10,200 registered companies) face stiff challenge from the internet. Modern technology has penetrated even to the senior citizens and FITS are steadily replacing the package tours for which the Japanese had a predisposition. Security remains one of the major concerns of the Japanese especially in the wake of the tsunami and its consequent impact on nuclear plants. Sustainable tourism development does not have the same importance as in other Asian destinations since sustainability is probably an inbuilt cult of the Japanese. Korea, Republic of Domestic Tourism in the Republic of Korea Dr Kang Wook Lee The study gives an overall picture of the tourism industry of Korea that has kept pace with the rapid expansion of the Korean economy which registered a growth of 6.2 % in 2010, marked by a doubling of the per capita income in a decade (2000 to 2010). Consequently, domestic tourism has been the beneficiary of the new-found wealth of the people but it has also received competition from outbound tourism where there is trade deficit with inbound arrivals (9.7 million arrivals as opposed to 12.7 million departures). It has also led to income polarization leading to inequalities that has to be addressed in the socio-cultural context. Another outcome of the economic boom has been an ageing and declining population with its repercussions on domestic tourism. This study places an emphasis on the revitalization of the regional economy, the management of crisis in tourism-related industries, sustainable tourism development, and community empowerment. Best practices of domestic tourism in Republic of Korea have been selected and analyzed, based upon the opinions of tourism experts. Koreans have also profited from the technological revolution where the country is in the forefront of new products that have been of immense value to domestic tourism, e.g. Jejumall online website that provides one-stop service to search for information on the Jeju area and the Tourtalkers, an innovative interactive kit. This paper proposes an expansion in leisure time and a reform to the system to ease the financial burden for tourism-market participants, based on best practices in the revitalization of domestic tourism in the Republic of Korea. This study also proposes several policy recommendations which place importance on the development of tourism products which reflect regional characteristics, while suggesting initiatives related to community based tourism, and health and well-being oriented tourism products. Based on the advanced IT of 28 Domestic Tourism in Asia and the Pacific Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
29. 29. the Republic of Korea, the paper proposes to provide efficient tourism information service in connection with the tourism information system. Case Study of Social Tourism Policies in Korea Dr Sun Jin Ji and Dr Jae Geul Kim Despite the growing economic wealth of the country the demand for domestic tourism has declined in the past 3 years. The main reasons attributed have been a lack of time, financial considerations, destination attractiveness and health. Accordingly the government of Korea has paid more attention to reinvigorate domestic tourism through social policies and measures such as the tourism voucher, begun in 2005 and suspended from 2007 to 2009 but reintroduced once more thereafter, inviting travel and the tourism coupon each with its own specificities target groups and mode of operation. The paper also gives the opinions of beneficiaries of the above in the form of primary research through interviews. The social tourism policies have been very successful in giving an opportunity to travel to the disenfranchised and the disabled but improvements are still deemed to be necessary for the system to be fully functional. The total number of official persons living below the poverty line is approx. 1,530,000 but only 20,000 people, barely 1.5% of the total, benefited from the system. The system also needs active marketing for the Korean population, especially the lower strata who really need the benefits, to fully understand its mechanisms and its application. Finally, Korea posted a tourism balance of payment deficit of around US$ 2.7 billion in 2011. The social tourism programme that includes travel vouchers and travel coupons could be one of many alternatives to reduce the tourism deficit by vitalizing domestic tourism. Case Study of Rural Tourism in Korea Mr Hyoung Du Choi and Mr Hyun Seok Choi The study points out to a decline in domestic tourism in the face of increased competition from outbound visitors and the ensuing policy decision to reduce socio-cultural differences between the urban and the rural areas by giving support to the latter to increase their income. Development of rural tourism also has other positives such as meeting the new demand of those tired of mass tourism, preventing leakages (profit that accrue to multinational corporations and foreign investors) and adverse environmental effects. Korean rural tourism dates back to 1984 when the pilot projects of farms were set up which grew to 277 by 2007. The establishment of the 5 day work week greatly encouraged domestic rural tourism as people had more spare time and income. Another factor 29 Executive Summary Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
30. 30. influencing rural tourism was nostalgia for country life which explains the large number of repeat visitors. The study has taken 3 villages as case studies, each with its distinctive rural characteristic, and elaborated on the benefits to be gained to the community and the sector through the multiplier effect. Malaysia Domestic Tourism in Malaysia Information based on the Department of Statistics of Malaysia Malaysia has made a rapid and spectacular development in tourism, especially in the past 2 decades and now can claim to be the leader in this field in Southeast Asia. Political stability, economic progress and social harmony in a relatively peaceful atmosphere have helped the country to surge ahead with international arrivals surpassing 25 million visitors in 2011. The two major events, one natural (SARS and AHI), and the other the financial crisis were overcome without major scars. A resilient tourism industry has been supported by an aggressive marketing and promotional campaign that has benefitted both international as well as domestic tourism. The tourism satellite accounts and domestic household surveys have been systematically developed giving statistics that are reliable, up to date, and detailed in content. A sample of the survey findings of 2010 are enumerated below: 1. The total number of domestic tourists was estimated at 115.5 million. 2. Domestic tourism is governed by seasonality associated with the holiday season of which the Islamic Id ul Fitr (Hari Raya), and the Chinese New Year are critical periods. The dates of the former tend to vary each year. 3. On an average almost 50% of Malaysians aged over 15 years made a domestic trip. 4. Urban expenditures account for 72.3% and the rural component, 27.7%. 5. The average length of stay was 2.58 days. 6. 84% of domestic tourists stayed with friends and relatives but the main motivation of travel of VFR fell to 42.6% with shopping accounting for 32.3% and leisure to 18.2%. 7. Details of household income, accommodation, transport, areas visited, gender, age group, occupation, etc are given in detail. 30 Domestic Tourism in Asia and the Pacific Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
31. 31. A Case Study of Domestic Tourism Malaysia Evidence Focusing on the Role of Transportation Dr Hossein Nezakati and Mr Yousef Keshavarz The study gives a general overview of the historical evolution of Malaysian tourism with specific references to the role of transportation in domestic tourism. It draws heavily on the findings of the 2010 household survey supplemented by conceptual theories applicable to Malaysian tourism. Mongolia Domestic Tourism in Mongolia Dr Amartuvshin Dorjsuren The chapter presents the growth of domestic tourism in Mongolia during the communist or socialist period (19211990). Thereafter, contemporary trends in native tourism are examined with reference to political, economic, cultural and geographical factors. The second half of the chapter empirically explores the positive and negative consequences of increasing domestic tourism in Mongolia. Mongolia occupies 1.566 thousand km2 but is inhabited by less than 3 million people, of whom 45% live in the capital city of Ulaanbaatar. The vast country has contrasting topography ranging from the Gobi desert to the Siberian tundra and consequently harsh climatic conditions. The population that is basically nomadic has very close family bonds and this has played a very important role in domestic tourism since visiting friends and relatives is almost sacred. International tourism is limited with the country having received less than half a million tourists in 2011. In its 1995 Tourism Development Guidelines, the Government of Mongolia articulated one of its development objectives as achieving ecologically oriented tourism sector development in conformity with the sustainable economic development conception". In recent years, the Golden Eagle Festival, the Ice Festival and the Camel Festival area becoming important events that particularly attract winter tourists to Mongolia. The geography of the country precludes transportation facilities as are common in other densely populated destinations which is a constraint to domestic tourism development (55% of the traffic is carried by rail) but within the available infrastructure a very good accommodation system has evolved dating to the socialist period in the form of spas, sanatoriums and holidays camps. Spas and sanatoriums though are usually located at curative hot and cold mineral springs and natural resources that are relatively distant from the populous centres. By the 1990s, there were over 180,000 domestic tourists visiting these holiday and recreational camps. One interesting feature is the role of children in Mongolian domestic tourism: Almost half of overall holiday camps were exclusively for 31 Executive Summary Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
32. 32. children. These camps served for school children during their summer holiday mainly between June and September. School groups usually spent 14 days at the camp, where they participated in various themed cultural (i.e. talent contents including singing, dancing and creative writing), sporting and educational activities. It is clear that children's camps served as holiday centres for children to make friends and learn something new or uncover their talents, as they still are today. Another feature is camping (ger). In recent years, Mongolians share the camping facilities of the international tourists. Although the ger camps began to be established after the 1990s, it was particularly in the last five years that the majority of the ger camp developed in Mongolia. With the liberalization of the economy Mongolia is placing sufficient stress on an equitable and sustainable domestic tourism structure which is deemed to be important to maintain socio-cultural values of a country in transition. Mongolia has also a well developed social tourism structure particularly among three main population groups of pensioners, people with disabilities including children and children from disadvantaged background. The study also carries a short incursion into the impact of domestic tourism in the traditional nomadic lifestyles of the people. New Zealand Domestic Tourism Market Segmentation Information based on Ministry of Tourism, New Zealand New Zealand Tourism has been in the forefront of domestic travel surveys (DTS) in Asia and the Pacific, having carried out DTS in a systematic way since 1983. Under Objectives it was noted that the purpose of the Domestic Travel Survey (DTS) was to provide accurate, quarterly information on the number and type of trip, characteristics, behaviour and expenditure of domestic visitors. The domestic tourism market segmentation report presents the findings of the 2009 Domestic Tourism Research project undertaken for the Ministry of Tourism on behalf of New Zealands wider tourism sector and key industry stakeholders. The research that was completed by a consortium comprising Angus & Associates, The Knowledge Warehouse and Tourism Resource Consultants opted for a market segmentation analysis that identified eight groups of domestic travel consumers each different in its demographic and psychographic profile, its travel behaviour and its travel needs, and each calling for a different marketing approach. 32 Domestic Tourism in Asia and the Pacific Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
33. 33. Pakistan Domestic Tourism in Pakistan Mr Zafarullah Siddiqui Pakistans creation as a modern State dates back to 1947 but being situated in the Indus valley, renowned for its early civilization, and bordered by the Himalayan mountain range the country has such a vast natural and cultural heritage that has been under-exploited for tourism. The reason probably lies in the political context of its birth as a nation and the trials and tribulations it has undergone thereafter. A decade since 9/11 after which international tourism saw a dramatic drop, domestic tourism has come to the fore in Pakistan .Pakistan registered 854,000 international arrivals in 2009 and 56% mentioned that they were coming to visit friends and relatives (VFR). This shows that they were mostly expatriates with foreign nationality. In other words, if not for the frontier formalities they would be considered as domestic visitors. Reliable statistics do not exist and the last household dates back to over a decade. Some of the findings are, nevertheless, probably valid even today: the most popular form of transport is by road (bus: 48%, car: 20%), average duration of stay less than 3 days (75%). But the hotels/motels figure of a 91% occupancy of all accommodation units probably does not take into account the VFR. Pakistan is a federal State with 5 major provinces each of which has its own autonomy and tourist assets. The dismantling of the Federal Ministry of Tourism in April 2011 and the subsequent handing over of the tourism activities to the provincial governments has had an adverse effect on Pakistan tourism. Thus Pakistan tourism seems to be in the throes of a period of transition on policy matters at the moment. Pakistans limited wealthy middle-class that had provided the base for leisure tourism especially during the peak summer months when there was a tendency for people to move to the mountain resorts that had a cooler climate. This was the base for domestic leisure tourism but political events have disrupted this source. There is hope that with more stability, improvement of facilities and a better policy, domestic tourism in Pakistan can flourish since the destination has the assets and a ready market. Despite tremendous tourism potential, Pakistan does not enjoy favourable tourist image in the global travel industry. Realizing the fact that it may be an uphill task to change world perception about Pakistan, Tourism Organizations both in Public and private sector are now focusing on promoting Domestic Tourism. Domestic Tourism is now recognized as the most powerful agent of 33 Executive Summary Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
34. 34. economic development and a source to create national harmony and also to benefit underutilized tourist infrastructure. Philippines Domestic Tourism in the Philippines Dr Miguela M. Mena With a rich tropical and cultural heritage, hospitable people, and its strategic geographical position in Asia, the Philippines is ideally suited to tourism. Furthermore, being an archipelagic nation it possesses more than 7,100 islands giving it a natural diversity that coupled with a population of over 88 million persons enables it to play an important role in domestic tourism. The study traces the structure and policies of Philippine tourism regulated at the national level and led by the Department of Tourism (DOT). Domestic tourism has been recognized as a significant sector in the countrys tourism development programme. For example, the DOT supervises a number of attached agencies that include the Philippine Retirement Authority which facilitates retirement tourism. Domestic tourism statistics are largely dependent on the household surveys carried out in 2005 and 2009 which gives a good insight into the evolution of the sector over the years. The study further elaborates on the various products, infrastructure, and the cultural activities, enumerating the many festivals of the various ethnic groups of the country. Special mention must be made of the unique position held by the Philippine telecommunications system that is reputed in Asia. The population has access to both the internet as well as mobile phones. The DOT has consequently taken advantage of the social media to boost its domestic tourism campaign Its more fun in the Philippines. The study concludes that [] the demographic changes, in combination with their travel motivations, will have important implications on lifestyle, travel preferences and travel behaviour of Philippine residents. Nowadays, more residents of the Philippines have the necessary leisure time and discretionary income to allocate to touristic activities which means they will have greater opportunity as well as capability to travel domestically. 34 Domestic Tourism in Asia and the Pacific Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
35. 35. Domestic Tourisms Role in Local Economic Development Ms Maria Cherry Lyn S. Salazar-Rodolfo This report examines the role of domestic tourism in the development of the Philippine tourism industry, specifically of select local destinations, with focus on Puerto Princesa City in the Province of Palawan, the location of the Puerto Princesa Underground River (PPUR), voted as one of the new seven wonders of the world. It provides rationale to the need for investments in tourism statistics in tourism-oriented destinations, in aid of policy, business and community planning towards sustainable development. It identifies the enabling policies, strategies and action programmes that have supported the growth of destinations and the challenges to sustainability, particularly in relation to the domestic tourism market. Tourism has been recognized as a major industry by virtue of the Tourism Act of 2009 which, amongst other considerations placed special emphasis on the collection, analysis and dissemination of tourism data. Tourism statistics have been supplemented by two household surveys, that of 2005 and the latest of 2010. An interesting finding to emerge from the 2 surveys is that of purpose of visit. The former gave VFR as the main purpose while in that of 2010 pleasure/vacations had overtaken it. This could be a reflection of an evolving society and greater affluence. Four conceptualized factors have been enumerated to study the domestic tourism market a little more in detail: a) supply the products on offer are far greater and of a better quality than in the past. More public, private sector participation has led to a good offer in accommodation units; b) improved market conditions have emerged in the domestic tourism offer in the past 5 years a number of new products and services. Migrant workers have also emerged as a major domestic tourism component; c) enhanced capacity liberalization of the domestic air transport industry in 1995 paved the way in domestic flights at reduced rates. There was also a concerted policy by the Central government to facilitate domestic tourism travel which has borne fruit through the emergence of low cost carriers and the investment on road transport; d) enabling institutions, especially the 1991 act to devolve tourism to the local government units gave a greater share of the responsibilities to the institutions worked at grass root levels whereby communities became stronger in terms of organizing and taking part in the development process. The case of Puerto Princesa City is discussed in detail as a very relevant case study in the domain of domestic tourism. 35 Executive Summary Copyright 2013, World Tourism Organization (UNWTO) // UNWTO, 3 April 2013, for contributors use only.
36. 36. Sri Lanka Domestic Tourism in Sri Lanka Dr Nizam Lantra The establishment of a national plan for tourism development in 1966 made provision for domestic tourism in a limited way with the identification of accommodation units within the various resorts due for construction. Thus, while international tourism was the main focus, domestic tourism was not ignored. This concerted effort to recognize and integrate domestic tourism into mainstream tourism was visible in the creation of a Community Relations Unit within the Tourist Board when it was first created in 1968. Domestic tourism in Sri Lanka existed long before the advent of modern tourism, for example, large halls for resting and sleeping purposes, commonly called Ambalamas which still continue to function wherever pilgrimages are common, supplement the accommodation units. Though precise statistics are not available it is estimated that 7 million domestic visitors travel to all parts of the country during the year. This is in contrast to the less than a million foreign visitors. Though Sri Lanka is the home to Theravada Buddhism, other religious denominations (Hinduism, Christianity and Islam) have a rightful place within society. Sri Lanka probably has the largest number public holidays of any country in the world which encourages domestic tourism as short breaks become frequent. A striking feature of DT in Sri Lanka is the rising middle class that emerged with the opening up of the economy from a protectionist to a liberal one in the nineteen seventies. GDP and per capita increases enabled the affluent to make use of tourism facilities that were basically developed for international tourism. Two decades of internal ethnic strife led to a stagnation of foreign visitors but fortunately domestic tourists came to the rescue of hoteliers and the industry. 26% of guest nights in registered hotels and 74% in informal accommodation units are catered to by domestic visitors. In the light of the importance of domestic tourism, the Sri Lanka Tourist Board introduced a domestic tourism programme in its structure with a fully fledged vision and mission statement. Following the conclusion of the war with the separatist movement in 2009, Sri Lanka has seen a resurgence of its tourism both international as well as domestic. A sense of curiosity has overtaken security concerns of the past and there has been movement from the populated South to the earlier inaccessible North and East of the country by domestic visitors who had a tendency to confine themselves to the cultural sites in the past. At the same time home stays in the North and East cater to this nascent