Chapter Notes for HTM 173 Spring 2015
Chapter Notes for HTM 173 Spring 2015 HTM173
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This 9 page Class Notes was uploaded by Anne Butts on Monday March 2, 2015. The Class Notes belongs to HTM173 at Purdue University taught by Ksenia Kirillova in Fall. Since its upload, it has received 176 views.
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Date Created: 03/02/15
Tourism Policy and Organization 1 Why involve the government a Political reasons to foster international relations b Environmental reasons c Economic reasons tourism dominant economies or countries with centralized government 11 Roles of Government in Tourism a Tourism coordination i Between levels of government industry sectors b Policy setting and tourism planning i Matching supply demand and principles of sustainability c Tourism legislation i Visa zoning license requirements carrying capacity regulations d Infrastructure development i Roads airports sewage etc e Tourism development facilitation and control i Seeking developers investors etc f Tourism operations i State national parks museums monuments etc g Tourism research and marketing h Tourism training and education 111 Tourism Policy a It is a set of guidelines for all those directly and indirectly involved in tourism by specifying the broad goals and objectives priorities and actions that provide the basis for the future development of tourism b Aspects to consider i Destination area needs ii Tourism goals iii Constraints internal and external iv Tourism strategies and programs IV Tourism Organizations a Can be analyzed according to geographical scale i Global ii Multicountry regional iii National iv Stateterritorial v Regional vi Local b UN World Tourism Organization UN WTO know what it is what it can do etc i Established in final form 1975 ii Headquartered in Madrid iii Global forum for tourism issues and practical innovations iv Inter governmental organization V Regional programs from Africa Americans Asia Europe and Middle East c World Travel and Tourism Council i Established in 1990 ii Headquartered in London UK iii Private sector membership organization iv Forum for business leaders in travel and tourism v Strategic priorities 1 Freedom to travel 2 Policies for growth 3 Tourism for tomorrow d International Civil Aviation Organization ICAO i 1944 ii Montreal Canada iii Governments of 190 countries iv Goal is to promote safe secure and sustainable development of international civil aviation V MultiCountry Organization a 2 types i Organization for broader economic development 1 EU 2 Organization for Economic Cooperation and Development OECD 3 Association of Southeast Asian Nations ASAN ii Tourismspecific 1 Caribbean Tourism Organization a Headquartered in Barbados b Provide services and information necessary for sustainable tourism development 2 European Travel Commission 3 South Pacific Tourism Organization 4 Developmental agencies and banks VI National Tourism Organizations a 2 types i National Tourism Administration NTA 1 E g Department of Resources Energy in Tourism of AU 2 Set policies for specific country and planning ii National Tourist Office NTO 1 Tourism Australia The Canadian Tourism Commission 2 Mainly marketing responsibilities 3 Abolished in 1966 in US because they thought it was useless VII What about USA a Brand USA is private nonprofit organization established by Congress in 2009 to promote international travel to USA i Illustrates the trend towards privatepublic partnerships b ROII return on investment VIII Stateterritorial tourism organizations a Primary role is to domestic travel promotion but sometimes also involve international promotion Distribute travel information Operate visitor centers Gather stateWide statistics e Education IX Regional Organizations visitlouisianacoastcom a Varies by geographical location b Usually nonprofits funded by state and grants c Mostly tourism promotion X Local Tourism Organizations a At the individual community level DMOsl destination marketing organization Responsible for marketing Convention and Visitor Bureaus CVBS Tourism commission tourism office etc Room or inkeeper taxl way of funding for the visitor centers Grants Membership programs Activities promotion famfamiliarizartion tours tourism planning sometimes 999 999 Fetchm Chapter 5 Tourism Planning 1 What do we need to know a Why do we need tourism planning What happens if we don t plan Barriers to tourism planning Purposes of tourism planning Groups involved in tourism planning f Steps in tourism planning 11 Reason For Tourism Planning a Because i Tourism developments have both negative and positive impacts What types of impacts does tourism have ii Tourism is more competitive than ever before and there has been a 9906 proliferation in the promotion of tourism destinations iii Tourism is a more complicated phenomenon than it was previously thought to be iv Tourism has damaged many natural and cultural resources v Tourism affects everyone in a community and all people involved in tourism should participate in the tourism planning process 111 Consequences of Unplanned Tourism Development a Physical impacts Human impacts culture Marketing impacts Organizational impacts Other impacts i Market impacts IV The Destination Life Cycle a Exploration i Small numbers of adventurous visitors ii Little or no infrastructure for tourism 1 Antarctica b Involvement i Local investment opening a restaurant because you notice an increase in 9906 visitors not the government in tourism and infrastructure starts ii Visitor numbers being to increase 1 Mountain in Tanzania c Development i A rapid growth in visitor number visitors become less adventurous ii External investment replaces local d Consolidation i Growth in visitor numbers begin to slow ii Tourism becomes mass market 1 ChicagoLas VegasCancun 2 Most destinations we know about because they are popular e Stagnation i Heavily rely on the repeat visitors ii Frequent changes in tourism business ownership 1 So popular people don t even care to go there anymore 2 Key West about 20 years ago people didn t want to go because it was overcrowded demarketing f Decline i Visitor number decrease ii External investors being to pull out 1 New Jersey was big in the 80s but then other cities ie Las Vegas grew and investors pulled out g Rejuvenation i New attractions are developed h ALL OF THESE PARTS OF LIFE WERE TERMED BY BUTLER amp WALDBROOK 1991 V Plog s 1973 Model a Psychographic groups i Allocentrics Venturers innovators in travel markets seek uncrowded and unique destinations ii Psychocentrics Dependables followers in travel markets seek comfortable commercialized destinations iii Midcentrics most of us VI Purposes of Tourism Planning a Identify alternative approaches b Adapt to the unexpected c Maintaining uniqueness d Creating the desirable e Avoid the undesirable VII Who should be involved in tourism planning a Local businesses Infrastructureutilities government Residents anybody who lives in the area Regulatory authorities Law enforcement Tourism organizationsagenciescity planners Transportation localcorporate Consultants environmentaltourismlocal Perspective tourists Local nonprofits Investors VIII Roles and Responsibilities in Tourism Planning a Groups that should be involved i Government tourism officials FerWoman ii Local community residents iii Nonprofit organization representatives iv Other government agency officials V Tourism organization representatives vi Tourism business operators vii Tourism consultants IX Steps In the Tourism Planning Process a Background Analysis i Strengths weaknesses opportunities and threats SWOT ii Governmental policies goals objectives and programs iii Existing destination mix elements and components iv Existing tourism demand b Detailed Research and Analysis i Resource analysis 1 Carrying capacity 2 Limits of Acceptable Change LAC a What are the acceptable levels of development 3 Resource classification 4 Attraction Inventory ii Activity analysis 1 Activities are all the things that the visitor can do at the destination area a Active and passive b Seasonal and yearround iii Market analysis 1 Pleasure and business travelers from existing market segments within existing and new geographic 2 Leisurebusiness travelers from existing market segments 3 Leisurebusiness travelers from new market segments a Research Techniques i Personal interviews ii Focus groups iii Telephone interviews iv Mailed and faxed questionnaires v World Wide Web online surveys iv Competitive analysis 1 Tourism plans must consider a A destination s competitive advantage b Future plans of competitors c Intervening opportunities destinations that are closer to a target market than you are c Synthesis and Visioning i Must make recommendations in five areas 1 Product development Marketing Tourism organizations Community awareness of tourism 5 Support services and activities ii Position Statements 1 Describe the existing situations in tourism development marketing organization community awareness and support services and activities iii Vision Statement 1 Re ect the desired future states in tourism development marketing organization community awareness and support services and activities d Goalsetting Strategy Selection and Objective Setting i Goals 1 Results or outcomes that the destination area tries to achieve within three to five years ii Strategies 1 Broad approaches selected to achieve tourism goals that help translate existing conditions into desired future situations iii Objectives 1 Results or outcomes that the destination area tries to achieve within one to two years e Plan Development i Description of programs activities roles and funding f Plan Implementation and Monitoring i Plan implementation 1 The tourism plan is put into action by a governmental tourism agency ii Plan monitoring 1 As the plan is being implemented the coordinating agency checks to ensure that progress is made as originally intended g Plan Evaluation i The performance of goals and objectives is measured ii Recommendations are made for future tourism planning based on the P93 results and outcomes of this plan I Principles of Sustainable Tourism Development a To improve the quality of life of the host community b To provide a high quality experience for visitors c To maintain the quality of the environment on which both the host community and visitors depend II Many Forms of Tourism Development a Lowimpact i Ecologically sustainable tourism development ESTD ii Alternative tourism b Highimpact tourism i Mass tourism ii Resort tourism III LowImpact to HighImpact Tourism a Low impact of soft tourism are often referred to as Alternative Tourism usually smaller scale and meet ecologically sustainable tourism development guidelines b High impact or mass and resort tourism have the potential of causing major transformations of local environments and peoples IV HighImpact Tourism a Architectural Pollution the development of architectural forms not compatible with local environments and cultural heritage b Ribbon Development strip development following coastlines or roads leading to important attractions c Infrastructure Overlaod when the visitor use of systems including power and sewage is great than the capacity of these systems d Traffic Congestion traffic volumes exceed the capacity of the local road and highway systems V PrivateSector Roles in Tourism Development a Idea generation b Entrepreneurial role c Specialized technical skills d Financing VI Government Roles in Tourism Development a Stimulator or catalyst for development b Regulator of tourism developments c Developer d Operator e Social tourism provider FIND DEFINITION IN BOOK WILL BE ON QUIZ f Financial and nonfinancial support VII Types of Government Incentive For Tourism Development a Fiscal Incentives i Tax holidays or deferrals ii Remission of tariffs iii Tax reductions b Direct and Indirect Incentives VIII IX X XI XII i ii iii iv V vi vii viii ix x Xi Nonrefundable grants Lowinterest loans Interest rebates Forgivable loans Loan Guarantees Working capital loans Equity participation the government owes a particular facility Training grants Infrastructure assistance Lease backs Land donations Objectives of PreFeasibility And Feasibility Studies a Prefeasibility study To determine Whether a detailed economic feasibility study is justified and Which topics the detailed study should address b Detailed economic feasibility study to determine the economic feasibility of a tourism development project opportunity Detailed Economic Feasibility Study a Needed by the Developers and Investors i To determine if the project Will produce a profit b Needed by the Lenders i To determine if the developers and investors can pay off the project Economic Feasibility Analysis a Determines if a tourism development project can produce a satisfactory financial return for investors b Has seven steps 1 Project Description ii Pricing iii Revenues iv Expenses and Profits v Capital Costs vi ROI return on investment CostBenefit Analysis a Project may be economically feasible and not require this step b Usually done on behalf of government agencies to assess the social as well as the financial ramifications Feasibility is mainly financial Costbenefit is more holistic bigger analysis considering all the impacts
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