Unit I - Tourism & Hospitality Management 251488MG-1
Unit I - Tourism & Hospitality Management 251488MG-1
By
Dr. Abhishek Chakraborty
Department of Management - BIT Durg.
Tourism Meaning Concept.
Tourism is one of the world’s fastest-growing industries and a major foreign exchange and employment
generation for many countries. It is one of the most remarkable economic and social phenomena.
The word ‘tour’ is derived from the Latin word tornus, meaning ‘a tool for making a circle.’ Tourism may
be defined as the movement of people from their usual place of residence to another place ( with the
intention to return) for a minimum period of twenty-four hours to a maximum of six months for the sole
purpose of leisure and pleasure.
According to WTO (1993), ” Tourism encompasses the activities of persons traveling and staying in places
outside their usual environment for not more than one consecutive year for leisure, business, and other
purposes.”
The Rome conference on tourism in 1963 defined tourism as ‘ a visit to a country other than one’s own or
where one usually resides and works. This definition, however, did not take into account domestic tourism,
which has become a vital money-spinner and job generator for the hospitality industry.
The UNWTO defines tourists as ‘ people who travel to and stay in place outside their usual environment for
not more than one consecutive year for leisure, business and other purposes not related to the exercise of an
activity remunerated from within the place visited.
Travel is as old as mankind on earth. At the beginning of his existence, man roamed about the planet’s
surface in search of food, shelter, security, and better habitat. However, with time, such movements were
transformed into wanderlust.
About five thousand years ago, climate changes, dwindling food and shelter conditions hostile invaders
made the people leave their homes to seek refuge elsewhere like the Aryans left their homes in Central Asia
due to climate changes. Perhaps, this leads to the development of commerce, trade, and industry.
Religion, education, and cultural movement began during the Hindu and Chinese civilizations. Christian
missionaries, Buddhist monks, and others traveled far and wide carrying religious messages and returned
with fantastic images and opinions about alien people.
For centuries movement of people continued to grow due to the efficiency of transport and the assistance
and safety with which the people could travel. By the end of the 15th century, Italy had become Europe’s
intellectual and cultural center. It represented the classical heritage both for the intelligentsia and the
aristocracy.
During the 16th century, travel came to be considered an essential part of the education of every young
Englishman. Travel thus became a means of self-development and education in its broadest sense. The
educational travel was known as the ‘Grand Tour.’
The industrial revolution brought about significant changes in the pattern and structure of British society.
Thus, the economy of Britain was greatly responsible for the beginning of modern tourism. It also created a
large and prosperous middle class. Because of remarkable improvement in transportation systems in the
latter half of the 18th century and the first quarter of the 19th century, an increasing number of people began
to travel for pleasure.
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Travel was inspired initially by the need for survival (food, shelter, and security), the desire to expand trade,
and the quest to conquer. As the transportation system improved, the curiosity for transforming the vast and
virgin world into a close neighborhood created a new industry, i.e., Travel and Tourism.
However, the developments of rails, roads, steamships, automobiles, and airplanes helped to spread
technology across the globe. Earlier travel was a privilege only for wealthy people, but with the industrial
revolution, the scenario altogether changed. Transportation, as well as accommodation, became affordable to
middle and working-class citizens.
Essentially, with the development of jet travel, communication, new technology, tourism, and travel became
the world’s largest and fastest-growing industry.
Travel and tourism have recently emerged as a dominant economic force on the global scene, accounting for
more than 12% of total world trade and growing at 8 percent annually.
Types of Tourism
Tourism has two types and many forms based on the purpose of visit and alternative forms of tourism.
Tourism can be categorized as international and domestic tourism.
International Tourism
When people visit a foreign country, it is referred to as International Tourism. To travel to a foreign country,
one needs a valid passport, visa, health documents, foreign exchange, etc.
Inbound Tourism
Outbound Tourism
This refers to tourists traveling from the country of their origin to another country. When tourists travel to a
foreign region, it is outbound tourism for their own country because they are going outside their country. For
example, when a tourist from India travels to Japan, it is outbound tourism for India and Inbound tourism for
Japan.
Domestic Tourism
The tourism activity of the people within their own country is known as domestic tourism. Traveling within
the same country is easier because it does not require formal travel documents and tedious formalities like
compulsory health checks and foreign exchange. A traveler generally does not face many language problems
or currency exchange issues in domestic tourism.
Forms of Tourism
Tourism has various forms based on the purpose of the visit and alternative forms. These are further divided
into many types according to their nature. Forms of tourism are the following:
Classification of Tourism
Tourism can be classified into six distinct categories according to the purpose of travel. These are the
following:
1) Recreational: Recreational or leisure tourism takes a person away from the humdrum of everyday life. In
this case, people spend their leisure time in the hills, sea beaches, etc.
2) Cultural tourism satisfies cultural and intellectual curiosity and involves visits to ancient monuments,
places of historical or religious importance, etc.
3) Sports/Adventure: Trips taken by people with a view to playing golf, skiing and hiking, fall within this
category.
4) Health: Under this category, people travel for medical, treatment or visit places where there are curative
possibilities, for example, hot springs, spa yoga, etc.
5) Convention Tourism: It is becoming an increasingly important component of travel. People travel within
a country or overseas to attend conventions relating to their business, profession, or interest.
6) Incentive Tourism: Holiday trips are offered as incentives by major companies to dealers and salesmen
who achieve high targets in sales. This is a new and expanding phenomenon in tourism, These are in lieu of
cash incentives or gifts, Today incentive tourism is a 3 billion dollar business in the USA alone.
Nature of Tourism
Tourism as a socio-economic phenomenon comprises the activities and experiences of tourists and visitors
away from their home environment and are serviced by the travel and tourism industry and host destination.
The sum total of this activity experience and services can be seen as a tourism product.
The tourism system can be described in terms of supply and demand. Tourism planning should strive for a
balance between demands and supply. This requires an understanding not only of market characteristics and
trends but also of the planning process to meet the market needs.
Often tourists from core generating markets are identified as the demand side; the supply side includes all
facilities, programs, attractions, and land uses designed and managed for the visitors. These supply-side
factors may be under the control of private enterprises, non-profit organizations, and the government. New
and innovative forms of partnerships are also evolving to ensure the sustainable development and
management of tourism-related resources.
The supply and demand side can be seen to be linked by flows of resources such as capital, labor, goods, and
tourist expenditures into the destination, and flows of marketing, promotion, tourist artifacts, and
experiences from the destination back into the tourist generating region.
In addition, some tourist expenditures may leak back into the visitors generating areas through repatriation
of profits of foreign tourism investors and payment for improved goods and services provided to tourists at
the destination. Transportation provides an important linkage both to and from the destination.
For planning purposes, the major components that comprise the supply side are:
Tourist information.
Marketing and promotion.
The community of communities within the visitor’s destination area.
The political and institutional frameworks for enabling tourism.
The tourism system is both dynamic and complex due to many factors linked to it and because of the
existence of many sectors contributing to its success. These factors and sectors are linked to the
provision of the tourist experience and the generation of tourism revenue and markets.
The dynamic nature of the tourism system makes it imperative to scan the external and internal
environment of the destinations on a regular basis so as to make changes when necessary to ensure a
healthy and viable tourism industry.
A tourism product can be defined as the sum of the physical and psychological satisfaction it provides to
tourists during their travelling en route to the destination. The tourist product focuses on facilities and
services designed to meet the needs of the tourist. It can be seen as a composite product, as the sum total of a
country’s tourist attractions, transport, and accommodation and of entertainment which result in customer
satisfaction. Each of the components of a tourist product is supplied by individual providers of services like
hotel companies, airlines, travel agencies, etc.
The tourist product can be analyzed in terms of its attraction, accessibility and accommodation.
Attractions of the three basic components of a tourist product, attractions are very important. Unless there is
an attraction, the tourist will not be motivated to go to a particular place. Attractions are those elements in a
product which determine the choice made by particular tourist to visit one particular destination rather than
another. The attractions could be cultural, like sites and areas of archaeological interest, historical buildings
and monuments, flora and fauna, beach resorts, mountains, national parks or events like trade fairs,
exhibitions, arts and music festivals, games, etc.
Tourist demands are also very much susceptible to changes in fashion. Fashion is an important factor in the
demand for various tourist attractions and amenities. The tourist who visits a particular place for its natural
beauty may decide to visit some other attractions due to a change in fashion. Peter has drawn up an
inventory of the various attractions which are of significance in tourism. These are given below in a table:-
Cultural: Sites and areas of archaeological interest, Historical buildings and Monuments, Places of
historical significance, Museums, Modern Culture, Political and Educational institutions, Religious
Institutions
Traditions: National Festivals, Arts and Handicrafts, Music, Folklore, Native life and Customs
Scenic: National Parks, Wildlife, Flora and Fauna, Beach Resorts, Mountain Resorts.
Entertainment: Participation and Viewing sports, Amusement and Recreation Parks Zones and
Oceanariums, Cinemas and Theatres, Night Life and Cuisine.
Others: Climate, Health resorts or Spas, Unique characteristics not available elsewhere.
However, the attractions of tourism are, to a very large extent, geographical in character. Location and
accessibility (whether a place has a coastal or inland position and the ease with which a given place can be
reached) are important. Physical space may be thought of as a component for those who seek the wilderness
and solitude. Scenery or landscape is a compound of landforms; water and the vegetation and has an
aesthetic and recreative value. Climate conditions, especially in relation to the amount of sunshine,
temperature and precipitation (snow as well as rain), are of special significance. Animal life may be an
important attraction, firstly in relation to, bird watching or viewing game in their natural habitat and
secondly, for sports purposes, eg. fishing and hunting. Man’s impact on the natural landscape in the form of
his settlements, historical monuments and archaeological remains is also a major attraction. Finally, a
variety of cultural features-ways of life, folklore, artistic expressions, etc. provide valuable attractions to
many.
Accessibility
It is a means by which a tourist can reach the area where attractions are located. Tourist attractions of
whatever type would be of little importance if their locations are inaccessible by the normal means of
transport. A Tourist in order to get to his
destination needs some mode of
transport. This mode may be a motor car,
a coach, an aeroplane, a ship or a train
which enables him to reach his
predetermined destination. If tourist
destinations are located at places where
no transport can reach or where there are
inadequate transport facilities, they
become of little value. The tourist
attractions, which are located near the
tourist-generating markets and are linked by a network of efficient means of transport, receive the maximum
number of tourists. The distance factor also plays an important role in determining a tourist’s choice of a
destination. Longer distances cost much more in the way of expenses on travel as compared to short
distances.
An example can be that of India. About two and a half million tourist arrivals for a country of the size of
India may look rather unimpressive. However if one looks at certain factors like the country’s distance from
the affluent tourist markets of the world such as the United States, Europe, Canada, Japan and Australia, one
may conclude that the long distance is one of the factors responsible for low arrivals. It costs a visitor from
these countries, quite a substantial amount, to visit India for a holiday. It has been stated earlier that Europe
and North America continue to be the main generating and receiving areas for international tourism,
accounting for as much as 70% and 20% respectively, of international tourist arrivals. Easy accessibility,
thus is a key factor for the growth and development of tourist movements.
Accommodation
The accommodation and other facilities complement the attractions. Accommodation plays a central role
and is very basic to tourist destinations. World Tourism Organization in its definition of a tourist has stated
that he must spend at least one night in the destination visited, to qualify as a tourist. This presupposes
availability of some kind of accommodation. The demand for accommodation away from one’s home is met
by a variety of facilities. The range and type of accommodation is quite varied and has undergone
considerable change since the last half century. There has been a decline in the use of boarding houses and
small private hotels. Larger hotels are increasing their share of holiday trade, especially in big metropolitan
areas and popular spots. In more traditional holiday and sea-side resorts in Europe and elsewhere, big hotels
are keeping their share of holiday resorts. In recent years, some changes have been reflected in the type of
accommodation. There has been an increasing demand for more non- traditional and informal types of
accommodation. The latest trends in
accommodation are holiday villages. In
recent years there has been an increase in
the popularity of such accommodation.
Amenities
Facilities are a necessary aid to the tourist centre. For a sea-side resort, facilities like swimming, boating,
yachting, surf-riding, and other facilities like dancing,
recreation and other amusements are important for
every tourist centre. Amenities can be of two types;
natural, eg. beaches, sea-bathing, possibilities of
fishing, opportunities for climbing, trekking, viewing,
etc. and man-made, eg. various types of entertainment
and facilities which cater to the special needs of the
tourists. Excellent sandy beaches, sheltered from
sunshine with palm and coconut trees and offering
good bathing conditions form very good tourist
attractions. Certain other natural amenities such as
spacious waters for the purpose of sailing, or the
opportunities for fishing and hunting are also very
important.
CHARACTERISTICS OF TOURISM PRODUCT
By now, you must have understood what a tourism product is. Now let us look at some of its
characteristics:-
1) Intangible - Unlike a tangible product, say, a motor car or refrigerator, no transfer of ownership of goods
is involved in tourism. The product here cannot be seen or inspected before its purchase. Instead, certain
facilities, installations, items of equipment are made available for a specified time and for a specified use.
For example, a seat in an Aeroplane is provided only for a specified time.
2) Psychological - A large component of tourism product is the satisfaction the consumer derives from its
use. A tourist acquires experiences while interacting with the new environment and his experiences help to
attract and motivate potential customers.
3) Highly Perishable - A travel agent or tour operator who sells a tourism product cannot store it.
Production can only take place if the customer is actually present. And once consumption begins, it cannot
be stopped, interrupted or modified. If the product remains unused, the chances are lost i.e. if tourists do not
visit a particular place, the opportunity at that time is lost. It is due to this reason that heavy discount is
offered by hotels and transport generating organizations during off season.
4) Composite Product - The tourist product cannot be provided by a single enterprise unlike a
manufactured product. The tourist product covers the complete experience of a visit to a particular place.
And many providers contribute to this experience. For instance, airline supplies seats, a hotel provides
rooms and restaurants, travel agents make bookings for stay and sightseeing, etc.
5) Unstable Demand - Tourism demand is influenced by seasonal, economic political and others such
factors. There are certain times of the year which see a greater demand than others. At these times there is a
greater strain on services like hotel bookings, employment, the transport system, etc
6) Fixed supply in the short run -The tourism product unlike a manufactured product cannot be brought to
the consumer; the consumer must go to the product. This requires an in-depth study of users’ behavior, taste
preferences, likes and dislikes so that expectations and realities coincide for the maximum satisfaction of the
consumer. The supply of a tourism product is fixed in the short run and can only be increased in the long run
following increased demand patterns.
7) Absence of ownership - When you buy a car, the ownership of the car is transferred to you, but when
you hire a taxi you buy the right to be transported to a predetermined destination at a predetermined price
(fare). You neither own the automobile nor the driver of the vehicle. Similarly, hotel rooms, airline tickets,
etc. can be used but not owned. These services can be bought for consumption but ownership remains with
the provider of the service. So, a dance can be enjoyed by viewing it, but the dancer cannot be owned.
8) Heterogeneous - Tourism is not a homogeneous product since it tends to vary in standard and quality
over time, unlike a T.V set or any other manufactured product. A package tour or even a flight on an aircraft
can’t be consistent at all times. The reason is that this product is a service and services are people based. Due
to this, there is variability in this product. All individuals vary and even the same individual may not
perform the same every time. For instance, all air hostesses cannot provide the same quality of service and
even the same air hostess may not perform uniformly in the morning and evening. Thus, services cannot be
standardized.
9) Risky - The risk involved in the use of a tourism product is heightened since it has to be purchased before
its consumption. An element of chance is always present in its consumption. Like, a show might not be as
entertaining as it promises to be or a beach holiday might be disappointing due to heavy rain.
10) Marketable -Tourism product is marketed at two levels. At the first level, national and regional
organizations engage in persuading potential tourists to visit the country or a certain region. These official
tourist organizations first create knowledge of its country in tourist –generating markets and persuade
visitors in these markets to visit the country. At the second level, the various individual firms providing
tourist services, market their own components of the total tourist product to persuade potential tourists to
visit that region for which they are responsible.
Some examples of natural tourism products in India are Marina beach- Chennai, Darjeeling hill
station-West Bengal, Islands of Andaman & Nicobar- Andaman & Nicobar, Deserts of Thar-
Rajasthan, etc
Man-Made Tourism Product
Something which is not natural, found in the destinations to attract the tourists. These are man-made
creations. As per the tourism point of view they are made for pleasure, leisure or business.
Cultural aspects include those man-made products which depict the culture of the people, civilization and
are related to history. Such as
Traditional aspects are related to traditions. Basically, it reflects the activities, beliefs and life of
people of any particular region. Such as
Examples of Man-made tourism products are Ajanta and Ellora cave-Maharashtra (Cultural), Surajkund
Craft Mela-Haryana (Traditional), Essel World-Mumbai, etc
In other words man has taken initiative to preserve the natural aspects of earth and also managed in a way to
provide best possible services to the tourists who come for the visit, for example, accommodation, parking
facilities, etc. Some examples are National Park or Wildlife Sanctuaries, Flower Festival, Marine Park, Aero
and Water Sports, Botanical Garden etc.
In India, there are many national parks like Ranthambhore-Rajasthan, where tigers and many animals are
preserved and tourists are given facilities like a jungle safari.
Some events are for a short time scale while other last for longer days. Sometimes events are mounted in
those places where the tourist’s eye usually don’t reach such as unusual exhibitions.
Some examples of event-based tourism product include Camel Polo at Jaisalmer- Rajasthan, Kite flying in
Ahmedabad-Gujarat, where tourists also participate and observes. In Snake boat race-Kerela, one can enjoy
witnessing it. Short time scale event includes Republic day parade-New Delhi and long days event include
Khajuraho dance festival-Madhya Pradesh.