Tourism Management Handout
Tourism Management Handout
TOURISM ATR
Department
TableofContents
PARTI–TOURISMBASICS
1. INTRODUCTION TO TOURISM……………………………………………….1
WhatisTourism?
Factors that Motivate Peopleto Travel
Traditional andNiche Tourism
What isTourismManagement?
2. TYPES OF TOURISM…………………………………………………….3
3. TOURISM TERMINOLOGY…………………………………………….4
4. FACTORS AFFECTING TOURISM…………………………………….5
5. DEMAND OF TOURISM………………………………………………….7
Types of Tourists
6. MOTIVATION FACTORS OF THE TOURISTS………………………..8
Internal Factors of Motivation
External Factors of Motivation
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Tourism Management
TOURISM IN NIGERIA…………………………………………………………….46
Problem Facing Tourism Development in Nigeria
Solution to Problem Facing Tourism in Nigeria
Important and Benefits of Tourism in Nigeria
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Part I – Tourism Basics
1.1 INTRODUCTION TO TOURISM
“The World is a Book and Those Who Do Not Travel Read Only a Page.”
- Saint Augustine.
What is Tourism?
Tourism involves the activities of people travelling and staying in a place away from
their home environment for leisure, business or other purposes.
Mathieson and Wall (1982) define tourism as follows:
"Thetemporarymovementofpeopletodestinationsoutsidetheirusualplacesofworkand
residence, the activities undertaken during their stay in those destinations, and the
facilities created to cater to their needs."
Tourism was mainly been traditional in its early form. With the evolution of cultures,
economies, and knowledge, tourism took a different form called sustainable tourism
with theaspectofwell-plannedtour,well-studieddestination,andconservationofdestination.
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Traditional and Niche Tourism
Thefollowingtablelistsdownafewpointsthatdifferentiatetraditionaltourismfromniche
tourism:
Tourism is travelling with an objective. All tourism necessarily include travel but
alltraveldoesnotnecessarilyincludetourism.Wecansay,travellingisasubsetof tourism.
One similarity between travel and tourism is, they both are temporary movements.
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2.1 TYPES OF TOURISM
In this chapter, we will be discussing the various types of tourism and their
characteristics.
Mass Tourism
It involves tourism of organized large groups of people to special tourist locations. It is a
traditionalwaywherethedailyprogramisfixedbythetourorganizer.Itisasocialactivity. The
tourists generally desire for souvenirs andsite-seeing.
For example, religious places, theme parks, boat cruises, resort towns.
AlternativeTourism
It includes individually organized tours to find first-hand information about a place,
local culture, andenvironment.
For example, biking tour planned by an individual while accommodation is catered for
on the go.
Business: It is touring for conducting business transactions, attending business
meetings, workshops, or conferences. The objective of business tourism is mainly
professional.
Pleasure: It includes tourism for improving one’s physical or spiritual well-being. For
example, vacation at a Yoga or rehabilitation center.
Nature: It is tourism at places famous for pristine nature and serene beauty. The main
objective is to experience and enjoy nature such as farms and wildlife. Ecotourism is a
part of nature tourism.
Cultural:Thistypeoftourismhasanobjectiveofunderstandingthelocalhistoryofthe place,
foods, local productions, and localculture.
Social: It includes tours conducted among relatives, friends, and others.
RecreationalTourism:Itincludestravellingtoescapefromroutinelife.Thisisoften done for
enjoyment, amusement, or pleasure. For example, Camping or beachvisit.
Active Tourism: It is conducted with a clear objective such as climbing a mountain,
touring around the world, or learning local culinary arts or languages.
Sports Tourism: It is tourism for attending some sports event such as World Cup
Cricket Match, FIFA, or Olympics.
Religious Tourism: It involves travelling to places of religious significance such as
Vaishno Devi in Jammu-Kashmir and Golden Temple at Amritsar (India), Mecca in
Saudi Arabia, Bethlehem, and other such places.
Health or Medical Tourism: It involves travelling to improve one’s health. It is with
the objective of visiting weight-loss camps, naturopathy centers, and health resorts.
Adventure Tourism: It involves tourism for adventurous activities such as rock
climbing, bungee jumping, sky-diving, hiking, horse-riding, surfing, rafting, or skiing.
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3.1 TOURISM TERMINOLOGY
Let us now discuss a few terms that are frequently used in the tourism industry.
Attraction: It is a physical or cultural feature of a place that can satisfy tourists’ leisure
basedneed.
Cultural Heritage: It is an expression of the manner of living developed by a
community and passed on from one generation to the next. It includes customs,
practices, places, objects, artistic expressions andvalues.
DarkTourism:(BlackorGrieftourism)Itisthetourisminvolvingtraveltoplaces historically
associated with death andtragedy.
Destination: It is a place the tourist visits and stays there for at least 24 hours. The
destination supports staying facilities, attractions, and touristresources.
Ecotourism: It involves maintenance and enhancement of natural systems such as
water, air, woods and forests, and flora and fauna throughtourism.
Excursionist: Persons traveling for pleasure in a period less than 24hours
Foreign Tourist:Any person visiting a country, other than that in which he/she usually
resides, for a period of at least 24hours.
Hiking:A long and vigorous walk on thetrail.
Intermediaries: They are the intermediate links between the form of goods
andservicestouristsdonotrequireandtheformofgoodsandservicesthetourists demand.
Itinerary: A documented plan of thetour.
Leisure:Thefreetimewhenobligationsareataminimumandonecanrelax.
Recreation: The activities carried out during leisuretime.
Site: It is a particular place bound by physical or culturalcharacteristics
Skiing: It is a recreational activity and competitive winter sport in which the participant
uses skis to glide onsnow.
Snorkeling:Itisthepracticeofswimmingonorthroughawaterbodywhilebeing equipped
with a diving mask composed of a shaped tube called asnorkel.
Terrain: It is a stretch of land, especially with regard to its physicalfeatures.
Tourism Carrying Capacity: The maximum number of people that may visit a tourist
destination at the same time, without causing destruction of the physical,
economic,socio-culturalenvironment,andanunacceptabledecreaseinthequality of visitors'
satisfaction.
Travel:Theactofmovingoutsideone'shomecommunityforbusinessorpleasure but not for
commuting or traveling to or from usualplaces.
United Nations World Tourism Organization (UNWTO): It is the United
Nations(UN)agencyresponsibleforthepromotionofresponsible,sustainable,and
universally accessibletourism.
Visitor: A non-residential person visiting theplace.
WTO: World Tourism Organization.
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4.1 FACTORS AFFECTING TOURISM
There are many factor that influence the running of the tourism industry. Some show
immediate effect while, there are also factors which affect in the long run.
Environment at Destination
Tourism is in its best form when the destination boasts of conducive climate. In contrast,
any undesired changes in the environment such as high winds, flash floods, drought, and
extreme climate can affect tourism adversely.
For example, during harsh summer months in India, people prefer to travel to colder
climate regions like hillstations.
Economy of theCountry
When a country is undergoing economic turbulence and when people are facing
unemployment issues, tourism is affected adversely. On the contrary, when a country’s
economy is doing well and people can afford to spend money on leisure, tourism
progresses.
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Technology
Internet has penetrated to almost every corner of the world. Tourists are enjoying the
benefits of Internet. While planning a tour, the tourists try to get the idea about the
places they are going to visit, the quality of amenities and services, and the attractions at
the destination. After visiting a destination, the experienced tourists share their opinions
on various platforms of the Internet.
Thus, the reviews of experienced tourists shared on the internet work as guidelines for
the following tourists. Hence, just like a double-edged sword, the Internet can boost as
well as bring down the tourism business.
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5.1 DEMAND OF TOURISM
“Travel makes one modest. You see what a tiny place you occupy in the world.”
- Gustave Flaubert, a FrenchNovelist.
Tourism demand is the total number of persons who travel or wish to travel to use the
touristfacilitiesawayfromtheirplacesofworkandresidence.(MathiesonandWall,1982)
Tourism is a dynamic field. It varies on the number of factors related to the tourists; the
country of destination, the market from which the tourists emerge, and market of the
destination.Thetourismmanagersandresearchersstudyalotabouttourists’motivations and
cultures, their changing behavior, and the driving and affecting factors of tourism. They
also study the destinations investigating the amenities and attractions they provide or any
prospective ways to attract thetourists.
The tourism businesses can figure out the demand of tourism in a particular area, by
identifyingthetypesof varioustourists,theirbehaviors,andcreaterightofferingsforthe
rightmarket.
Let us see, the types of tourists and how tourist behavior varies with respect to various
factors.
Types of Tourists
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Budget Travelers: They are economy-oriented tourists. Their touring decisions about
places, travelling mode, and other related factors are largely dependent on their
financialstatus.
Homebodies: They are mainly relaxed tourists. They do not get into
adventure.Thetouristsagedabove45to50yearsbelongtothistype.Thebusy professionals
under 45 years also belong to thistype.
Moderates:Theyplantheirtourahead,haveahighinclinationtowardstourism but they do not
get into sports or adventureactivities.
Vacationers: They plan touring during vacations such as summer break or
Christmasbreak.Theyarenotalwayssureofwhereandwhytheywishtovisit.
Motivation of the tourists stems from the domain of human psychology. It is the
satisfaction-forming factor. The factors of motivation can be categorized into two types:
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acquire much higherrank.
Family and Age: The family matters when it comes to the structure and the income.
Today, the families with nuclear structure and double income tend to opt for long
distance, extravagant tourism more than joint families or families
withsingleearningmemberwhoareinterestedinvisitingdomesticplaces.The tourists also
have different preferences of places according to their age. For example, tourists in the
age group of 5 to 45 years might enjoy visiting destination in the USA such as
Disneyland more than the seniorcitizens.
Culture or Social Class: Tourists of different cultures prefer different places, events, and
different types of tourism. In addition, if friends and families who
havevisitedaplaceearlierspreadthefirsthandinformationthatmotivatesthe others to visit the
placetoo.
Market: Ever-changing market variables alter tourism. Changes in value of currency,
political situations, and economic well-being of the country influence the decisions of
atourist.
Family and Age: The family matters when it comes to the structure and the income.
Today, the families with nuclear structure and double income tend to opt for long
distance, extravagant tourism more than joint families or families
withsingleearningmemberwhoareinterestedinvisitingdomesticplaces.The tourists also
have different preferences of places according to their age. For example, tourists in the
age group of 5 to 45 years might enjoy visiting destination in the USA such as
Disneyland more than the seniorcitizens.
Culture or Social Class: Tourists of different cultures prefer different places, events, and
different types of tourism. In addition, if friends and families who
havevisitedaplaceearlierspreadthefirsthandinformationthatmotivatesthe others to visit the
placetoo.
Market: Ever-changing market variables alter tourism. Changes in value of currency,
political situations, and economic well-being of the country influence the decisions of
atourist.
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7. MASLOW’S PYRAMID OF MOTIVATION
An American psychologist and a professor of the 20th century, Abraham Maslow
proposed a theory on the hierarchy of human needs. It can be depicted as a model of five
basic motivational needs any human being has. These needs are:
Physiological (or Biological): Need for air, food, water, shelter, warmth, and sleep,
which are required for thesurvival.
Safety: Need for safety from harmful elements, freedom from fear, physical safety,
economical safety, safety against accidents or their negative impacts. Safety may also
manifest into security such as job security and financialsecurity.
Social: Need for having a family, need for intimacy, friends and social groups. Need for
belonging and being accepted and loved byothers.
Self Esteem: Need of feeling accepted and respected by others, need for recognition and
attention fromothers.
Self-Actualization: Need to realize one’s full potential. A human being requires to attain
this need after all the above needs aresatisfied.
Thispyramidhelpstounderstandtheprioritiesofthehumanneedsintheorderdepicted. As we
can see, the tourism covers the bottom four levels of thetriangle.
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8. CONSUMER BEHAVIOR IN TOURISM
Consumer behavior is one of the most researched areas in tourism. This studies why a
tourist chooses a particular destination and what are the driving factors that influence his
decision for travelling.
Geographical Factors: Some physical factors like geographical and climatic conditions,
facilities and amenities available at the destination, advertisingand marketing conducted
by tourism business alter the decision making of the tourists.
Social Factors: A few social factors such as a person’s social network, which
providefirsthadinformationthatcanalteraperson’sdecisionofvisitingornot visiting a
particularplace.
PlaceofOrigin:Therecanbeabroadspectrumoftouristbehaviordepending
upontheplacetheybelongto.NorthAmericansliketofollowtheirowncultural framework.
Japanese and Korean tourists like to visit places ingroups.
Tourism Destination: It is a major contributing factor altering tourist behavior. If a
destination has all basic provisions such as electricity, water, clean surroundings, proper
accessibility, amenities, and has its own significance, it largely attractstourists.
Education of Tourist: The more educated the tourist is, the wider range of choices,
curiosity, and the knowledge of places he would have. This drives the decision making
when it comes to choosing adestination.
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9. PLOG’S MODEL OF TOURISTS BEHAVIOR
Plog classifies tourists into three categories as described below:
Allocentric (The Wanderers): A tourist who seeks new experiences and adventure in a
wide range of activities. This person is outgoing and self-confident in behavior. An
allocentric person prefers to fly and to explore new and unusual areas before others do so.
Allocentrics enjoy meeting people from foreign or different cultures. They prefer good
hotels and food, but not necessarily modern or chain-type hotels. For a tour package, an
allocentric would like to have the basics such as transportation and hotels, but not be
committed to a structured itinerary. They would rather have the freedom to explore an
area, make their own arrangements and choose a variety of activities and tourist
attractions
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Midcentric (Combination): This category of tourists covers the ones who swing
between the above said two types.
In the above phases, the tourist goes through different phases and therefore also seeks
different tourism options or destinations.
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Part II – About Tourism Destinations
“The traveler sees what he sees; the tourist sees what he has come to see…”
G. K. Chesteron, an English Writer, Poet, and Philosopher.
Destination is the basic component of tourism. Identifying and capturing the essence of
the place is vital for the tourism business to do well. If an attractive place is turned intoa
destination, the place generates high revenue fromtourism.
Today,DestinationManagementisanimportantsubjectintourismstudies.Itfocusseson the
development and management of destinations to provide highly satisfyingexperience to
the visitors without hampering the local culture andenvironment.
The following five A’s define the tourist needs and demands:
Accessibility
It is the ability to reach to a place of destination by opting one or multiple means of
transportation. The transportation should be timely, convenient, inexpensive, and safe.
Today there are various means of transportation like airlines, railways, surface
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transportation, and water transportation.
Accommodation
It is a place where the tourists can avail food and shelter on payment. Today, a wide
range of accommodations are available ranging from a basic budget accommodation to
elite class seven-star hotel suites.
Attraction
It is a place of interest where tourists visit, typically for its inherent or exhibited, natural
or cultural value, historical significance, or natural or artificial beauty. The attraction
creates a desire to travel to a specific tourist destination. They also offer leisure, comfort,
adventure, or amusement.
For example, Paris draws tourists by offering Fashion as attraction.
Activities
Activities are what the tourists perform for fun and amusement. For example, boating,
scuba diving, canoeing, camel riding, and visiting a place.
Amenities
Amenities refer to the beneficial services offered to the tourists like visitor information
centers, telecommunications, roads, drinking water, toilet blocks, garbage bins, etc.
Centered Destination
It is the most common type of tourist destination, where tourists spend most of their time
on occasional excursions to nearby places of attraction. For example, Andaman Island is
a centered destination.
Multi-Centre Destination
Here the destination comprises two or more destinations of equal importance. For
example, India is a multi-center destination where each Indian state or region offers
different culture, nature, and culinary experience.
Touring Destination
A touring destination refers to a place to visit as part of linear itinerary.
Transit Destination
It is a place of a brief halt en-route while the tourists are heading towards the final
destination.
For example, Abu Dhabi is a transit destination where tourists take a short break for
going to Cape Town, South Africa.
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11. MILIEUS OF TOURISM
Milieu is nothing but the physical, cultural, or social environment in which the people
live or which influences people. The milieu includes one’s family, friends, the place of
residence, and the surrounding culture.
In the domain of tourism, the milieus are broadly divided into two different categories.
Let us see them in detail:
Geographical Milieus
Rural Area
It is the countryside area or area outside the boundaries of a city. There are less number
of settlements, low density of population, and less pollution in the rural area. The pace of
life is slower. Nature is more accessible with the beauty of farms and fields, woods,
plantations, and wild life. Less infrastructure developments are found in the rural area.
Rural areas offer attractions such as beautiful landscape, vegetation and plantation of
specific crops,
Urban Area
It covers cities and developed towns. The urban areas have high density of population
and large number of houses and apartments. The cities are more affected by air and noise
pollutions. The pace of life is too fast in urban areas. The life and living here boasts of
contemporary infrastructure and technology.
Urban areas are usually home to man-made attractions such as Disneyland, theme parks,
museums, or vintage sculptures and architecture. They also attract tourists for gourmet
food and local culinary experiences.
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Coasts and Beaches
This area offers extra ordinary beauty of Terra Firma, vegetation, and water together.
Apart from the above stated features, the coastal areas are high on the list of tourism
destinations as they also offer exotic sea food, view of different forms of sea and artistic
sand sculptures, and water sports. The coastal areas also provide an opportunity to see the
marine life either in their natural habitat or in the marine museum.
Beaches are tempting destinations for relaxation and recreational holidays. According to
the World Tourism Organization estimates, coastal areas represent one-third of global
tourism income.
Islands
Islands have developed thriving tourism over the last few years. They draw tourist
attraction for their breathtaking beauty of land surrounded by water, refreshing breezes,
and tranquility. They offer a wide range of water sports like speed- boating, canoeing,
snorkeling, and diving. They offer market for authentic pearls, mother-of- pearl
ornaments, and wooden handicrafts.
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For example, Andaman & Nicobar Islands (India), Madagascar (Africa), Islands of
Hawaii, Bora
Bora, Tahiti, and Morea (South Pacific Islands) are few examples of highly frequented
islands for tourism.
Mountainous Region
Mountains have indisputable tourist potential and they attract tourists of all categories.
The adventure tourists visit mountains for their remoteness, difficult access, unbeaten
mountain trails, and wilderness. The adventure sport liking tourists visit mountains for
climbing, hiking, skiing, mountain biking, and bungee jumping. Some tourists visit
mountains to see the beauty of rare flora and fauna, take fresh unpolluted air, and get to
know the unique local cultures. The pace of life in mountain regions is low.
For example, Andean Inca trails of Ethiopia, sacred Buddhist sites and in Himalayas.
Desert Region
This region is popular with tourists for its sand dunes, serenity, clean air, flora and fauna,
and awesome view of night sky. It also offers desert sports such as quad biking, air
balloon rides, and activities such as camel trekking and camping. The deserts also offer
introduction or engagement with unique local cultures. The pace and style of life is very
different in the desert.
For example, Thar (India), Sahara (Morocco), and Namib Desert (Coastal South Africa)
are famous tourist milieus.
Cultural Milieus
Cultural milieus are visited for their heritage, historical, archeological, educational, or
adventure importance attached to them. Some of them are also widely known for sports
or other entertainment activities.
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Historical
This milieu contains the places of historical importance such as sites of ancient wars,
civilizations, ruins of sculptures revealing periodic cultures, monuments, castles, forts,
and ancient religious sites. The people studying or interested in history, human evolution,
manuscripts, cultures, and art around the world find these places attractive. Historical
milieus are protected by a country’s law.
Archeological
It is a place where one can find the evidence of historic or prehistoric activity that is
recorded by the discipline of archeology. This milieu offers ruins and remains of houses
and pottery, inscriptions, weapons, idols, biological remains such as bones and scales
which link to the past human activity or presence of a prehistoric animal at the place. The
archeological tourist places are bound by law and limitations on the tourist activities laid
by the government.
Educational
The sites and places of educational importance contribute a large portion of tourism. A
school trip is the simplest form of educational tourism. Most of the top universities
around the world impart the study abroad program for their students to provide the
students with short study sessions of a few weeks to a full year of cultural and linguistic
experience. Tourists attend educational cruises which make the people of common
interests come together to acquire knowledge.
Adventure
A place popular for adventure tourism calls for the interest in adventurers. Some tourists
have inclination towards trying their capabilities on extreme sports such as bungee
jumping, sky diving, mountaineering, hiking, parachuting, surfing, skiing, sailing, and
other similar action sports.
Sports
A wide range of sports are sincerely pursued by people, which make a noticeable reason
for tourism. National or international sports events such as Olympics, Commonwealth
games, FIFA or World Cup Cricket tournaments attract tourists greatly.
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12. DESTINATION MANAGEMENT
“All you need is the plan, the road map, and the courage to press on to your
destination.”
- Earl Nightingale,
- An American Radio Person, Writer, and a Speaker.
After having seen what is meant by destination and what are its different types, it’s time
to look into what destination management is, what do they do to manage a destination,
and why it is important to manage a destination.
Objectives of DMO
The objectives of DMO are as follows:
To steer destination development.
To increase tourism influx.
To spread the benefits of tourism.
To reduce tourism impacts on environment and local culture.
To promote and market the country ultimately for tourism.
DMO Partnerships
The DMO partners with various other organizations as:
Accommodation providers who provide serviced and non-serviced
accommodations such as hotels, bed and breakfast, self-catering establishments,
holiday caravans, and camping sites.
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Attraction managers who provide maintenance of attractions, museums, galleries,
countryside sites, boat trips, and walking tours.
Food and beverage providers such as restaurants, pubs, and cafes.
Retail outlets such as specialty and independent shops, and shopping centers.
Transport operators such as surface and air transport providers.
Public sector organizations such as state services for availing licenses and
permissions.
Characteristics of DMO
Some common characteristics of a DMO are:
It is an independent, non-profit organization.
It is a membership-based organization comprising public, private, non-profit, and
academic tourism stakeholders from the region.
It is governed by a board of directors.
It has diverse set of revenue generation from membership fees, hotel taxes, retail
opportunities, online booking commissions, advertising in publications and
websites. It provides services mostly at zero cost to the end users.
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Set the Goals for Tourism Development
Set economic, socio-cultural, and environmental goals. Goals are realistic, measurable
targets for the destination’s tourism vision. Tach goal goes hand in hand with the vision.
While setting the practical goals, the following answers are found out:
How many inbound tourists does the destination want to attract?
How many jobs, for whom, at what pay scales, and for what seasons?
What is the anticipated percentage increase of income for local residents?
How many tourists are too many?
The stakeholders identify the practical aspects of goals, timelines, and the actions needed
to perform to achieve each goal.
Choosing the destination: It takes place under the influence of cost, climate,
first-hand information, internet, and amenities at the destination.
Post-tour phase: The visitors share pictures andexperiences with relatives and
friends, recommend to visit or not to visit the destination.
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The DMS organizes the information to facilitate all the stakeholders of tourism to make
their presence felt on the Internet. It also enables the destination and tourism businesses
offer dynamic tour packages. DMS help DMOs by using Content Management System
(CMS) to support the presence of DMO on web and social media.
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Part III – Managing Tourism
14. The Tourism Supply
“People who spend money on experiences report being happier than those who spend
money on objects.”
-Anonymous,thepsychmind.com.
Attractions
They are the places the tourists perceive as the satisfaction of their leisure- oriented needs.
Natural Attractions: Caves, canyons, rocks, waterbodies, landscapes.
Man-Made Attractions: Theme parks, towers, bridges, architecture, temples,
mosques, churches, and monuments.
Cultural Attractions: Historical sites, monuments, local arts and crafts, local folk
core, music and dance.
Transportation
They are the modes of commuting.
Road: Car, bus, cycle.
Rail: Long distance, high speed, commuter, or intercity trains.
Water: Boats, ferries, cruises.
Air: Carriers that operate on fixed schedule, Charters that operate as and when
required.
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Intermediaries
They are the mediators.
Travel Agents: The business of selling hospitality and tourism products.
Tour Operators: They deal with the operating components for rates.
Destination
It is the place the tourists visit. It is composed of:
Accommodation: Hotel, motel, lodge, guest house, B&B.
Restaurant: Specialty restaurants, themed restaurants, branded restaurants such as
CCD, KFC, Bistros, and takeaway food joints.
Tourist Facilities: Pubs, entertainment parks, shopping centers, and casinos.
Activities
They include activities the tourists are interested to engage in:
Adventure Sports: Mountain biking, bungee jumping, rafting, and other
similaractivities.
Leisure: Basking on beaches, swimming, dining nearwaterbody.
Business Activities: Attending seminars, business meetings,promotions.
Health Activities:Attending Yoga sessions, exercising,undergoing naturopathy,
and similar suchactivities.
Constructed Components
They are the
Infrastructureand superstructures.
They include allsurface, underground, and above the ground constructions andfacilities.
Water supplysystem
Cooking gas supplysystem
Electric supplysystem
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Drainage and sewagesystem
Rest rooms forsanitation
Airports
Transporthubs
Parking hubs
Accommodations/hotels/Restaurants
Museums
Gardens
Shoppingcenters
Attractions
Operating Components
They are mainly related to the services. They include the work force that is instrumental in
imparting excellent experience to the tourists.
Transport service
Food service
Accommodation service
Service at the places of attraction
Regulatory Components
They are the permitting authorities.
The public sector: Government policies
Licensing
Civil rights authorities
NGOs
The tourist supply inspires, conducts, and affects the entire tour. If any one of the above
given components does not work well, it impedes the experience of the tourists and the
tour does not turn out to the tourists’ satisfaction.
In this chapter, let us see the functional structure of any tourism business as an
organization. Tourism is a large business in the service industry encompassing a wide
range of activities and direct interaction with its customers.
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Thomas Cook, a UK based travel company, established in 2007, provides a large
array of travel and tourism packages.
Kesari Tours and Travels, India offers group tours, specialty tours, and economy
tours.
Get America Tours, New York conducts year-round tours to majestic locations on
both the east and west coasts of North America.
British Tours Ltd, London offers personal tours in cars or mini buses in and around
London with various themes.
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Friends with Technology: Learning and having strong hold on new technology
creates an opportunity for a tour operator to reach customers, expose a wide range
of tour products, and increase sales in less cost and time.
Enthusiastic and Friendly: A tour operator must have enthusiastic and friendly
attitude to create welcoming and interesting environment among the customers.
Knowledgeable: The tour operator must be well-acquainted with the tourism
products, destinations, attractions, and cultures.
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panels, flyers, Internet, interpretive panel containing orientation maps, picture
maps, photographs, or diagrams as well as titles, introductory text, and contact
information, leaflets, media advertising material such as images, audios, and
videos.
General Management
This department develops and executes overall business strategies. It is responsible for the
entire organization. General management deals with determining overall business
strategies, planning, monitoring execution of the plans, decision making, and guiding the
workforce, and maintaining punctuality and disciplinary issues.
Marketing Department
The workforce in this department is responsible in identifying customer needs and
creating tourism products to satisfy them. The marketing managers mainly are involved in
the following activities:
Market Research: It includes understanding the environment, staying tuned with the
economic developments, knowing customer needs, and strengths and weaknesses of
peer competitors.
Understanding Market Segments: It includes dividing the total tourism market into
smaller market segments. It also involves targeting particular markets, creating
separate appealing tourism products for different market segments, and positioning
those products to draw consumers.
For example, Universal Tours offers different products for Students, honeymooners,
women, and senior citizens.
Product Decisions: It is about deciding about addition or removal of a product feature
in an offering, deciding about development of new product, manipulating product
features.
Promotion Decisions: It includes informing the target market about various products
they would find interesting. Marketing department joins hands with publicity agencies
such as radio, television, and website management agency to promote the product
package.
Price Decisions: It involves decisions about the selling cost of product as well as
discount rates.
Product Distribution: It pertains to which intermediary to employ and where to place
the promotional material.
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Operations Department
The Operations Department combines two or more tourism components (among attractions,
transportation, intermediaries, destination, accommodation, and activities) to create a package
and sell it to the consumer.
It organizes and conducts a tour within or out of the country and ensures that it turns out
successful.
It prioritizes customer preferences and supplier offerings to determine the best tour
arrangements.
It plans the tour itinerary and informs the customers about the schedule of the tour and
details such as how to reach the destination, what to see and do there.
It contacts relevant agencies for making arrangements of accommodations and bookings
travel tickets.
Finance Department
The Finance Department is responsible for acquiring and utilizing money for financing the
activities of the tourism business. The finance people assess short term and long term capital
requirements.
Long term capital requirements in tourism are maintenance of office building, vehicles,
office infrastructure, and business equipment. Short term capital requirements involve labor
and staff payments, providing communication facility, payment of electricity and other
resources.
A large number of tourism businesses need to invest initial amount for hotel, lodges, and
airline bookings. The owners of tourism business invest their money with the sole purpose of
getting high returns out of the investment. Hence the head of the finance department is obliged
for achieving the organization objectives by using the finances wisely.
Sales Department
This department is solely responsible for selling the relevant tourism products to the
consumers. The sales person in the tourism business is the first link between the tourism
business itself and the consumer. The staff must have deep knowledge of the product and
strong communication skills to convince the consumers. The sales person also promotes the
destination.
The sales staff identifies and cultivates new customers.
The sales staff recommends best suited products to the customer by assessing their needs.
They sell a tourism product successfully by approaching, presenting key features,
resolving customer queries, and closing the sell.
The sales staff maintains cordial relationship with the customers.
Purchase Department
By following a standard procedure of procurement, this department ensures the enterprise has
appropriate and timely supply of all the required goods and services. The purchasing
department procures the goods and services to be consumed by other departments in the
business organization.
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17. TOURISM – MARKET SEGMENTATION
“The travelers are staying longer and spending more money. When you look at it in that
sense, I’d say it’s very positive.”
- Craig Ray, Director of Tourism Division of Mississippi Development Authority.
All tourists are not the same. Just as they may belong to different regions, they may be of
different age groups and earn different incomes and have different tastes and preferences
to live their lives in a certain manner; the tourists also have different choices when it
comes to selecting the mode of travel, destination, and the activities at the destination.
Tourism market segmentation is the strategic tool for getting a clear picture of diversity
among the tourists. The tourism researchers and the tourism industry use market
segmentation information to study the opportunities for competitive advantage in the
marketplace.
Every tourist being different, the tourism industry possibly is not capable of satisfying
every individual’s need. This is the foundation of segmenting the total market.
While all tourists are different, some of them are similar to each other. Marketing force of
a tourism business group the tourists into various segments that categorize the similar as
well as distinct members. Market segmentation can be applicable to any of the tourism
supply components and provides benefits as given below:
It helps to understand specific demands of the consumers.
It helps to allocate marketing expenses efficiently.
It helps to create effective marketing strategies to target specific market segment.
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Geographic
Geographic market segmentation is done considering the factors such as tourists’ place of
origin. This factor is important as the tourists belonging to different places are brought up
with different cultures and show different traits of behavior. It is the most basic type of
segmentation.
Demographic
This segmentation is done by considering the tourist’s gender, age, marital status,
ethnicity, occupation, religion, income, education, and family members.
Psychographic
The marketing people do this segmentation by taking into account the psyche of the
tourists. They gather information about the tourists’ interests, attitudes, their way of living
life, opinions, and overall personality.
Classes of Tourists
Depending upon the motives and the way of touring, there are various classes of tourists:
Tourists Travelling with Families: The tourists who visit places with their first and
extended families, or families of relatives. One person, generally the head of the tourist
family is the decision maker. The families generally travel for holidays and leisure and
tend to expend sparingly. They generally are keen on receiving the best services for what
they have paid. They tend to carry more luggages.Smith (1956) introduced the concept of
market segmentation as a strategic tool. He stated that “Market segmentation (…) can be
viewed as a heterogeneous market (one characterized by divergent demand) as a number
of smaller homogeneous markets”.
Single Tourists: They travel alone and are independent. They are alone but not lonely; as
tourism is what they pursue as a hobby. The gap year travelers, unmarried persons,
widows/widowers, backpackers, and solitary tourists travel single. They decide for
themselves and tend to expend more. They tend to carry less stuff on the journey. They
tend to behave balanced if any challenging situation occurs and are rational towards tour
schedules.
Groups of Tourists: Students from schools and universities as members of educational
tours, fellows of various fraternities with common interests, groups of newly- weds, or
senior citizens.
Tourists Visiting Friends and Relatives: These tourists travel to meet friends or
relatives, or to attend a celebration or gathering. These tourists generally plan their tours in
the breaks such as Diwali holidays, Christmas holidays, or any kind of long break when
most of the people have break.
Business Tourists: They are the professional tourists on the business trips. They decide
for themselves but do not spend much money. For example, a sales or a marketing person
travels to another city to attend a business fair, and business manager travels to another
country for business deals.
Incentive Tourists: They tour for consuming the reward they received in the form of a
few days’ family holiday package at some hotel or resort. Such rewards are generally
distributed if an employee performs outstanding to achieve the goals.
Health Tourists: These tourists travels to places with the agenda of health on their mind.
They travel to avail some special medical treatment, operation, surgery, medication, or
inexpensive aesthetic surgeries available in different country. Some tourists in this
category also travel if they are receiving some illness from the climate at their residence
such as Asthma.
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18. TOURISM – MARKETING MIX
Tourism marketing is different because the customer purchases a series of services. While
marketing a tourism product, the sales or marketing person insists on the positive facets of
the following four components:
Product
The tourism being a service sold to the customers, tourist experience is the product, which
is intangible, and non-storable. The quality of the tourist experience as a product is
directly proportional to the quality of the service a tourism business provides. The product
must be designed to highlight its features and to satisfy the tourist’s needs. If the product
is branded, the customers find it more reliable.
Price
Determining the price of the product requires consideration of three key factors:
Operating costs: Operating costs include both fixed and variable costs. Fixed costs
remain same regardless of the sales which involve building, insurance, and equipment
costs. Variable costs include costs for wages, gas, electricity, cleaning, maintenance,
repairing, materials used in production, office stationery, linen, food, petrol,
machinery, uniforms, bank fees, marketing research expenses, and expenses for
advertisements, promotions, brochures, and conducting consumer or trade events.
Profit Margins: This is determined by comparing the competitors’ offers and the own
product offers. Profit margins are set without compromising the competitive
advantage.
Commissions of Intermediaries: Working with intermediaries incurs commissions.
Commissions are the fees paid to the intermediaries to distribute and sell your product.
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Tourism Product Pricing Policies
Commonly followed pricing policies include:
Discount Pricing: This strategy calls for reductions to a basic price of product or
services. It is a form of sales promotion which at times proves to be rewarding for the
customers.
Variable Pricing: This pricing varies with respect to the variation in features of a
product.
Loss Leader Pricing: It is selling few products at prices lower than the actual prices.
It helps to settle the loss by attracting customers to buy more number of products.
Promotional Pricing: It is selling a product for free with another product with the
objective of promoting the free product. Customer interest is generated to use the free
product thereby increasing the sale.
Place
The place is where the tourists visit and stay. The potential of a tourist destination lies in
its attractiveness or aesthetic value, accessibility, and the facilities it provides to the
tourists. The tourists also seek a place highly for the activities it offers, the amenities and
skilled workforce it provides, and its location.
The tourism industry as a whole survives because of various tourism products and
services. Tourism industry is flexible. The products of tourism cannot be easily
standardized as they are created for the customers of varied interests and demands. As the
tourism products are mainly the tourists’ experience, they can be stored only in the
tourists’ memories.
Let us understand more about tourism products and services:
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Residents Oriented Products (ROP)
Here, the products and services are created mainly for the local residents staying at a
particular tourist destination. This category requires investment in public sectors more.
Some of them are:
Hospitals
Public Parks
Banks and ATMs
Petrol Pumps
Postal Service
Accommodations
The tourist destinations are equipped with different types of accommodations. They cater
for tourists’ stay at the destination.
Serviced: This type of accommodation is supported by skilled staff such as
housekeepers, drivers, guides, and cooks.
Self-catering: This accommodation offers staying facilities but dining is required
to be self-catered. It is equipped with cooking, fuel and facility, some basic
supplies such as tea/coffee/sugar sachets, and a drinking water source.
Hotels: Budget rooms to 7* hotels with classy amenities. The hotels contribute a
major share of imparting the experience to the tourists by providing best services
and amenities.
Guest Houses: Owned by business or government organizations, which can be
used by its staff and staff relatives.
Camping Sites: They are open sites often located in areas of lush greenery. They
are equipped with clean place to pitch the personal tent, a water supply, and
electric supply. Camp sites have common rest rooms.
Reservations
The tour operator is responsible for making reservations for special events or activities the
tourists are interested in. At some places, the reservations are required to be done well in
advance to avoid last minute hassles. The events or activities such as a music concert or a
theatre show, visiting a theme park or a zoo, require people to secure seats or avail entry
with prior reservations.
Guided Tours
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The tour operators can arrange guided tours. Some qualified staff who can get access to
the place, explain the importance of the place, support, and guide the participants through
the entire visit. The guide is arranged to accompany the tour participants as a part of tour.
Transport Facilities
These facilities are for travelling from one place to another.
Surface Transport: It includes support of transport by road or water.
Air Transport: This is the support of transport by air, generally given for long distance
travel. Many times the tours include a halt of a couple of hours at transit destinations.
Today the airports are built and maintained as engaging tourist terminals by providing
amenities such as spas, lounges, food joints, bars, and book shops, retail shops for selling
authentic local food, clothes, and souvenirs.
Today the Airlines are no more backstage when it comes to caring for their customers.
They offer loyalty programs to their customers under Frequent Flyer Program to
encourage the customers to travel more and accumulate points and redeem them against
travel or rewards.
Dining Facilities
The tour operators can book accommodation that provides dining facilities or it can tie up
with the local restaurants which are ready to entertain groups. If the tour package is all
inclusive, the tour operator pays for breakfast, lunch, and dinner. If not, the tourists need
to pay from their own pocket.
“In the end, all business operations can be reduced to three words; people, product, and
profits. Unless you have got a good team, you can’t do much with the other two.”
- Lee Lacocca, American Automobile Executive.
The tourists have ever changing demands which the tourism product is required to satisfy
for the survival of the tourism industry. Kotler defines a product as it is "anything that can
be offered to a market for attention, acquisition, use, or consumption that might satisfy a
want or need. It includes physical objects, services, persons, places, organization, and
ideas".
Medlik and Middleton (1973) term tourism products as “a bundle of activities, services,
and benefits that constitute the entire tourism experience.” This bundle consists of five
components: destination attractions, destination facilities, accessibility, images, and price.
Having been known what the tourism product is, let us see the elements of the tourism
product and how the tourism product is developed.
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The Physical Plant: It is tangible and is composed of various resources on which the
tourism is based. Plainly, the physical plant is nothing but the destination with sound and
catchy architecture that enhances tourists’ experience. It can be:
A natural attraction such as a landscape, wild life, natural structure.
A man-made attraction such as a resort.
A fixed property such as an accommodation.
A mobile property such as a ship or an airbus.
A natural or manmade condition such as weather, crowd, infrastructure at the destination.
Service: The features or facilities of the physical plant are put to use for the tourists with
service. Providing services calls for a major contribution from human resources. It
pertains to performing tasks for the benefit and satisfaction of the tourists. For example,
serving food in a hotel is a service by the staff there.
Hospitality: It is the attitude with which the service is provided. Hospitality includes
performing the service with smile, enthusiasm, untiringly, and with dedication. For
example, arranging guest room supplies or serving food or beverage in a presentable
manner is a part of hospitality.
Freedom of Choice: It is offering the tourist some acceptable range of options in order to
elevate their experience. The degree of freedom varies greatly depending on the type of
tourism (pleasure, business, family, or other), the tourist’s budget, previous experience,
knowledge, and reliance on a travel agent.
A good tourism product must include some choice for its consumers. By offering some
freedom to the tourists, the product gives some sense of control to the tourists. The
freedom to choose an airline, a route, a seat, an accommodation, or a restaurant can
enhance a tourist’s satisfaction. Freedom also implies good surprises. When the tourists
come across unanticipated events, they get the feeling of being very fortunate to be in the
right place at the right time, thereby gaining extra value from the visit.
Involvement: It depends upon the quality of inner four elements. These elements prepare
the tourists for physical, intellectual, and/or emotional involvement in tourism services.
Involvement is not only the physical participation, but also a sense of engagement in an
activity- may it be for pleasure or business.
More the involvement of the tourists, more they are interested in striking conversation
happily with others, more they are enthusiastic and curious to try out new things, and time
passes fast for them.
Thus, a combination of tourists’ involvement, freedom of choice, service with hospitality
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and perfect destination (with all A’s present) can make the best tourist product.
The creation of a tourism product is a complex process. The following table shows the
steps of creating tourism product:
Primary Inputs Intermediate Inputs Intermediate Output Final Output
(Resources) (Tourism Facilities) (Tourism Services) (Tourist experiences)
The product creation process starts with primary inputs such as resources, raw materials,
other materials for construction, energy, and fuel. This could also include the agricultural
products required to prepare food for the tourists.
The primary inputs are then processed further through manufacturing or construction into
intermediate (or processed) inputs. The intermediate inputs are nothing but the tourism
facilities such as gardens, parks, museums, art galleries, shopping centers, convention
centers, accommodations, restaurants, and gift or souvenir shops. They facilitate and
support the tourism.
The intermediate inputs are further refined through expert management, workforce, and
technical services, and packaging into intermediate outputs. The intermediate outputs are
nothing but the services associated with tourism industry.
For example, the intermediate input such as a hotel room remains just as a commodity
unless it is occupied by the tourist and turns into a part of a tourism product by
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incorporating the occupant’s experience. Similarly, the food at restaurants needs to be
cooked and presented by the staff at any restaurant and needs to be ordered and consumed
by the tourists.
The final outputs are nothing but the personal experience the tourist takes from availing
services and by carrying out various tourism-related activities. The tourists utilize the
intermediate outputs (or services) to generate intangible but a high value experience such
as satisfaction, recreation, and completion of a business related task or maintaining a
contact of friends or relatives.
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Part IV – Tourism Impacts, Trends, and Future
22. IMPACTS OF TOURISM
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Social Impacts of Tourism
Let us see the impacts of tourism on society:
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Digital Technology in Tourism
Today, tour operators and tourists, both are equipped with latest technology. It has
empowered the tourism business managers and tourists to explore, discover and reach
new places by facilitating online travel and accommodation bookings, and more.
The tourists use various mobile apps as simple as a compass app, online booking apps,
currency converter apps, world time apps, language translation apps, weather apps,
google maps, and restaurant or accommodation locating services on their mobile device.
The tourists can also add their own data to create overlay on the Google Map and explore
all possibilities in visiting a location by using Google Maps API. Some apps help to plan
the tour, find out cheap flights, local transport hubs, eating joints, and destination
attractions.
The apps enhance the tourist experience before, during, and after the tour.
Today, the large tour operators invest finances to create their own mobile apps. They are
inclined to use as less papers as they can and prefer to send pdf documents of itinerary to
their customers and insurance documents to insurance service providing clients. They
also use most of the apps the tourists use; plus, they highly rely on some apps such as
Trafalgar app, Passport to Tour app, mTripapp, which can connect them with the
tourists on the trip, track the itinerary, and get on-the-fly information of the tour.
Since technology is making tour operators reach their customers and clients at the speed
of light, the tour operators use it for promoting their business and various products,
increasing their brand awareness, knowing tourists’ preferences, and providing easy
access to their products and services.
Polar Tourism
Arctic and Antarctic polar regions have always attracted tourists. Polar tourism is a
dynamically growing industry due to the efforts tour operators take to provide various
attractions, destinations, and activities for their customers. Adventure tourists and
common tourists who long for unique weather experience, solitude, and view of wild life
in its natural habitat opt for polar tourism.
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Space Tourism
It includes orbital and suborbital rocket flights into the space. Riding into the space for
recreation and unique experience was the idea behind this tourism. Till date, only very
rich tourists paying very large sum of money could possibly realize the dream to see
beyond the blue planet. In coming years, this extravagant tourism can be made available
for common people too.
Dark Tourism
Dark tourism is the oldest form of tourism developed recently. Due to the fear and natural
attraction to uncover mystery of death human beings always have, some tourists prefer to
visit the destinations such as battlefields, places of violent homicides, or any places
where large number of people lost their lives naturally or forcefully in the span of last
100 to 125 years.
For example, tourists visit Pompeii to see the corpses of the victims of the volcanic
disaster literally turned into plaster casts. The volcano on Mt. Vesuvius had destroyed the
ancient town of Pompeii. Though the disaster occurred and claimed thousands of lives
long ago, the threat of more such volcanic eruptions still exist today. Hence, Pompeii is
an archeological and also a dark tourism site.
Some more places the tourists visit for dark tourism are:
Chernobyl and Prypiat, Ukraine: Tourists visit this place to see the ruins of the nuclear
disaster that took place on 26 Apr 1986.
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Ground Zero, USA: It is The World Trade Centre site attracting tourists since the 9/11
attacks that took place in 2001.
Auschwitz, Germany: This dark site is famous for Nazi concentration camps with
various rooms piled with thousands of pairs of glasses, shoes, and human hair. It displays
the walls of the corridor exerting the lists of their victims' names and the dates of their
death, and the house of the camp commandant.
Costa Concordia: On the coasts of Tuscany, Italy; the site of this wrecked ship attracted
tourists for around two years.
Voluntourism
It is taking volunteered vacation and touring for charity. People do not just go touring for
recreation and fun but also to serve the community dealing with natural calamities. In
case of flash floods or cyclones, the people in the affected areas need support. Some
tourists voluntarily visit such places and extend their hands for help in whichever
possible way they can.
Also, tourists are travelling to care for orphans, for plantation, protecting wildlife, and
similar other tasks.
Luxury Tourism
It mainly pertains to the rich business tourists, who strongly believe that time is of prime
importance and they must pay to save time at any cost. Wealthy tourists are inclined to
undergo unique experience such as staying at a private island, personal attention from the
service providers and access to elite class attractions and amenities.
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Culinary Tourism
The tourists who like to receive local culinary experience, like to tour for this purpose.
They attend food festivals, food competitions, visit local farms, vineries, and cheese
manufacturing companies, interact with local community or cooks for special culinary
experience.
BRIC Tourism
The four major developing countries namely Brazil, Russia, India, and China have a great
potential for driving global economy through hospitality and tourism industry. These
countries are important for both inbound and outbound tourism. Global tour operators are
adapting their tourism businesses to exploit the huge market these countries provide.
Future of Tourism
It is quite obvious that tomorrow’s tourists and tour operators will tend to rely more on
technology. With the introduction of the next generation apps and online services, tourism
is going to get further accessible and enjoyable.
According to Ari Steinbuerg, the founder of a travel startup Vamo, the tourists will tend to
spend less time planning in advance. Efficient booking services and apps will enable the
tourists to create versatile itineraries with reasonable price. Future tourists would not
prefer to be confined to packaged tours. With the availability of large number of options,
the tourists would prefer to realize every possible wish regarding tourism.
With more flight connectivity, travelling modes and accommodations introducing more
comfort, technology helping mankind progressively, the tourism will continue to bring
momentum in its sector.
TOURISM IN NIGERIA
PROBLEM FACING TOURISM DEVELOPMENT NIGERIA.
One should have expected that the tourism industry of Nigeria should be the best in the world
because of the abundance of natural facilities there in ranging from mountains to valley,
forest, water falls and many others.
Despite the enormous role played by the tourism industry which contribute greatly to the
development of national economy and aviation industry in the world tourism industry in
Nigeria is still under different kind of problems, even in the past and present the industry is
being faced with these difficulties. In order to ensure transparency and development in the
industry, the problems deserve urgent attention and solution.Some of the problems are;
I. Problem of inadequate financing
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II. Ineptitude on the part of government
III. Non-adoption and exploration of endowments
IV. Lack of Tourism education and awareness
V. Lack of good access road and transportation
VI. Lack of decent moderate, hotel accommodation at the tourism centers
VII. Ignorance of the importance and potentials.
VIII. Pilferage of our cultural objects and destruction of our monuments
IX. Appointment of wrong director generals to parastatals that handle tourism
X. Lack of public awareness and exhibition in the international market
XI. Insufficient provision of reservation and relaxation centers for tourists.
XII. Lack of qualified and adequate personnel’s.
XIII. Lack of social amenities, facilities and relaxation centers for tourists.
XIV. Lack of storage facilities for preservation
XV. Inability to promote local and traditional festivals in international events for physical
features.
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