Business Tourism under Prof. Josefino Tulabing Larena ,AB,CPS,CPE,MPA

1. Managing the
visitor and their
impacts

2. The geography of tourism: Its
application to impact analysis

3. • Geography is about the study of the
environment, people and the coexistence of
man with the environment at different scales,
ranging from the international through the
national and regional to the local level. More
advanced studies of tourism have shown that
the contribution of geography can be
significant, with its interest in place and space
because tourism is an inherently dynamic
activity that requires movement from an
origin to destination area.

4. European tourism: Trends and
patterns

5. • According to the European Travel Commission
(ETC) (2007), France and Spain are the leading
tourist destinations in the EU.
• In Spain, an interesting trend is the tendency
for up to half of tourists to make their own
travel arrangements using the internet, which
reflects the impact of the low-cost airlines in
creating demand for seat-only sales.

6. According to the ETC, the scale of tourism growth
in 2007 can be gauged from the following facts:
• Europeans made trips 279 million trips abroad
(though not necessarily all by air given the large
number of land borders in the EU) in 2007
• Leisure travel grew at 6 per cent 2006–2007
• Travel patterns were influenced by a strong Euro,
improved economic performance across the EU,
and the growth in low-cost airlines and cheap
flights
• The top eight European markets generated
almost two thirds of the total volume of trips (i.e.
Germany, UK, France, Italy, the Netherlands,
Russia, Spain and Switzerland)

7. The geography of European
tourism based on air transport:
Key trends and impacts

8. 2 techniques:
1. Simple analysis and mapping of tourism flows
between origin and destination countries
2. Study their activity patterns (what they do
when, where, for how long and the variations
according to market segment)

9. Simple analysis and mapping of
tourism flows between origin and
destination countries

10. • At the EU level, the largest tourist flows occur
from the UK to Spain whilst the next most
important flow is Germany to Spain. The top city-
to-city flows of travellers are dominated by
holiday and business travel. The top ten city–city
pairs account for around 50 per cent of all intra-
regional travel in the EU.
• In addition markets that are near to a land border
and a popular destination have a strong
propensity to use car-based travel, which results
in seasonal effects upon the roads and airports in
each respective destination area.

11. • Research by Eurostat (the European Statistical
Agency) on the stability of tourism flows in the
EU based on hotel occupancy data shows that
tourism is largely concentrated in the June–
September months although this does vary by
country. These variations therefore highlight the
importance of understanding the timing of tourist
trips and where they are destined if one is to
begin to identify where impacts will occur.
• This historic pattern for 1999 has changed
significantly with the introduction of low-cost
airlines which now have almost 20 per cent of the
market for air travel in Europe.

12. • The UK had almost 570 daily low-cost flights
serving domestic destinations. This was
followed by 366 on the Spain–UK route, 281
on German domestic services and 196 on UK–
Ireland flights and 173 on France–UK flights.

13. Study their activity patterns (what
they do when, where, for how long
and the variations according to
market segment)

14. • Geographical Information Systems (GIS) uses
sophisticated computer programs, typically
the industry standard ArcInfo and variants, to
collect data on tourism with a geographical
dimension. The geographical elements of the
data can then be recorded, mapped and
modelled to understand how overall patterns
of tourist activity exist in a location or region.

15. • GIS is a powerful, yet greatly under-utilized
research tool in tourism. It has an enormous
potential application to assist in managing,
developing and understanding the dynamics
of tourism.

16. • The integration of different data sources in GIS
has a major potential to visually illustrate the
dynamics of tourism, and the different impacts
that exist, by linking other sources of data
together (e.g. records of land degradation,
environmental pollution, economic data).
• This helps us to identify and understand some of
the impacts of tourism and where management
measures will need to be developed. Therefore,
with these issues in mind, attention now turns to
the different impacts to understand what
relationships exist with tourism, how to measure
them and what management tools may be used.

17. Analysing the impact of tourism

18. • One of the major problems facing planners in
assessing tourism impacts is the
establishment of an appropriate baseline
against which to measure the existing and
future changes induced by tourism.
• This is a problem mentioned in scientific
studies of Environmental Assessment (EA)
which seek to combine different data sources
to understand how tourism development
affects the environment.

19. • EA acknowledges the practical problems of
establishing baseline studies and in
disaggregating the impact of tourism from
other economic activities since it is hard to
isolate tourism from other forms of economic
development.

20. • The complex interactions of tourism with the
built and physical environments make it
virtually impossible to measure impacts with
any degree of text box precision. Even so,
impacts may be large scale and tangible (e.g.
where a destination is saturated by visitors) or
small scale and intangible.

21. • Further factors complicating the analysis of
tourism’s impact are the extent to which the
effect of tourism is necessarily continuous in time
and the geography of tourism activity tends to
concentrate in certain locations such as
destinations where the supply of services and
facilities occurs.
• At this point, one needs to begin to identify
specific indicators of tourism impacts chosen to
represent the complex interaction of tourism and
the destination to guide the impact assessment.
Whilst this involves complex methods of analysis
which may be aided by GIS and computer
modelling, it is clear that impacts are more than
just costs and benefits for specific destinations.

22. • One useful starting point in analysing the impact
of tourism in a practical context is to establish
how to measure visitation levels as a basis for
calculating visitor numbers for a destination. Yet
one of the ongoing problems with visitor surveys
is their value, as they are often undertaken at
visitor attractions or based on accommodation
occupancy rates as a means to establish the scale
of visitors. Their ability to yield a representative
sample of visitation at the destination, and thus
their reliability, is debatable.
• Therefore, where visitor information is collected,
it needs to be related to other forms of statistical
information to establish the volume of tourism.

24. The economic impact of tourism

26. • Ogilvie estimated average expenditure by visitors
to show that UK residents spent over £24 million
in 1921 using an adjusted Cost of Living Index
which rose to over £33 million in 1928 but then
dropped due to the stock market crash and
subsequent recession. What is interesting from
Ogilvie’s study is that he observed a £10–£11
million deficit in the 1920s and early 1930s in the
balance of UK outbound tourist spending and
inbound tourism from other countries. This is one
of the most notable studies to make the vital
point that tourism is important to the economy of
many countries.

27. • On the basis of this early economic analysis, one
can see why tourism is used by many national
and local governments as a mechanism to aid the
development and regeneration of economies.
Politicians and decision-makers see that it offers
renewed opportunities for work, income and
revenue for the local economy as places are
affected by global, national and local economic
restructuring.
• There is a prevailing perception among national
and local governments that economic benefits
accrue to tourism destinations, which then create
employment opportunities and stimulate the
development process in resorts and localities.

28. Tourism is not necessarily a stable source
of income for destinations because tourists
are not noted for their high levels of
customer loyalty to tourism destinations.
Page and Hall (2002) identify a number of
features to support this argument based
on urban tourism destinations:

29. • tourism is a fickle industry, being highly seasonal,
and this has implications for investment and the
type of employment created. Tourism
employment is often characterized as being low
skill, poorly paid and low status, and lacking long-
term stability
• the demand for tourism can easily be influenced
by external factors (e.g. political unrest, unusual
climatic and environmental conditions) which are
beyond the control of destination areas
• the motivation for tourist travel to urban
destinations is complex and variable and
constantly changing in the competitive
marketplace

30. • in economic terms, tourism is price and income
elastic, which means that it is easily influenced by
small changes to the price of the product and the
disposable income of consumers
• many cities are becoming alike, a feature
described as ‘serial reproduction’. This means
that once an idea for urban economic
development is successful in one location, the
concept diffuses to other places. The example of
waterfront revitalization is a case in point; many
projects are similar in structure and character
across the world.

31. Pearce (1989: 192) argued that ‘the
objective and detailed evaluation of
the economic impact of tourism can
be a long and complicated task’. This is
because there is little agreement on
what constitutes the tourism industry
although it is normally classified in
relation to:

32. • accommodation
• transport
• attractions
• the travel organizers’ sector (e.g. travel
agents)
• the destination organization sector.

33. Hospitality and ancillary services are also important.
Understanding the economic impact of these disparate
sectors of the economy requires a method of analysis
that allows us to isolate the flow of income in the local
tourism economy. This is notoriously difficult because
of attributing the proportion of tourist expenditure on
goods and services in relation to the total pattern of
expenditure by all users of the destination (e.g.
residents, workers and visitors). What we usually need
to do is identify the different forms of tourist
expenditure and how they affect the local economy.
Typically these include:

34. • the nature of the destination area and its
products, facilities and physical characteristics
• the volume and scale of tourist expenditure
• the state of the economic development and
economy in the destination
• the size and nature of the local economy (i.e. is it
dependent on services or manufacturing or is it a
mixed economy?)
• the extent to which tourist expenditure circulates
around the local economy and is not spent on
‘imported’ goods and services
• the degree to which the local economy has
addressed the problem of seasonality and
extends the destination appeal to all year round.

35. On the basis of these factors, it is possible to assess whether the
economic impact will be beneficial or have a detrimental effect
on the economy. In this respect, it is possible to identify some of
the commonly cited economic benefits of tourism:
• the generation of income for the local
economy
• the creation of new employment
opportunities
• improvements to the structure and balance of
economic activities within the locality
• the encouragement of entrepreneurial
activity.

36. In contrast, there is also a range of costs commonly
associated with tourism and these include:
• the potential for economic over-dependence on one particular form
of activity
• inflationary costs in the local economy as new consumers enter the
area, and potential increases in real estate prices as the tourism
development cycle commences and tourism competes with other
land uses
• depending on the size and nature of the local economy, a growing
dependence on imported rather than locally produced goods,
services and labour as the development of facilities and
infrastructure proceeds
• seasonality in the consumption and production of tourism
infrastructure and services leading to limited returns on investment
• leakages of tourism expenditure from the local economy
• additional costs for city authorities.

37. Constructing the economic impact
of tourism

38. Direct Expenditure
• by tourists on goods and services consumed
(e.g. hotels, restaurants and tourist transport
services), although this is not a definitive
account of expenditure due to leakage of
tourist spending to areas and corporations
outside the local economy

39. Indirect Expenditure
• by visitors is often estimated by identifying
how many tourism enterprises use the income
derived from tourists’ spending. This money is
then used by enterprises to pay for services,
taxes and employees, which then recirculates
in the urban economy.
• In other words, tourist expenditure stimulates
an economic process which passes through a
series of stages (or rounds).

40. Induced Impact
• by calculating the impact of expenditure from
those employed in tourism and its effect on
the local economy.

42. • The figure above introduces the concept of leakage, in
which expenditure is lost from the local system to other
areas. For planners and managers, maximizing local
economic linkages (e.g. buying local produce and
employing local people) can enhance the benefits of
tourism to a locality. Where the local economy is very
vulnerable, and dependent upon a large number of imports
(e.g. labour, goods and services), leakage will be high and
so reducing the openness of the tourism economy will help
to improve the impact locally. Many rural areas are
characteristically open economies and high levels of
leakage in tourism occur there, whereas in urban areas
leakage is reduced as the economy is more closed. In many
less developed countries and island nations that depend
upon tourism, the leakage is also high due to external
control by multinational companies and a reluctance of
tourism businesses to use local products. Instead, high-
volume imports reduce the beneficial local effects of
tourism.

43. More recently, governments have tried to understand
how tourism affects the national economy. In
conjunction with the UN-WTO and Organization for
Economic Co-operation and Development, some
countries have developed tourism satellite accounts
(TSA) to measure more precisely the economic impact
of tourism. In 1999 the New Zealand government
launched the results of its TSA updating it in 2006,
which used a wide range of economic data to identify
six main themes regarding the impact of tourism:

44. 1.the direct impact of tourism on GDP
2. tourism expenditure expressed as a percentage
of GDP
3. the level of tourism employment in the economy
4. the proportion of international travel-related
expenditure as a percentage of total travel-
related expenditure
5.domestic personal expenditure as a percentage of
total travel expenditure
6.domestic business and government expenditure
as a percentage of total travel expenditure.

45. Social and cultural impacts of
tourism

46. • Tourism can emerge as a source of conflict
between hosts and visitors in destinations
where its development leads to perceived and
actual impacts. There has been a wealth of
studies of the social and cultural impacts by
anthropologists and sociologists, embodied in
the influential studies by Valene Smith (1977,
1992).
• The attitudes of residents towards tourism
represent an important way in which this
stakeholder group contributes to policy and
public support for or dissent towards tourism.

47. The focus of any analysis of host–guest impacts
is a function of the interaction between these
two groups and will be dependent upon:
• the nature and extent of social, economic and
cultural differences between tourists and hosts
• the ratio of visitors to residents
• the distribution and visibility of tourist
developments
• the speed and intensity of development
• the extent of foreign investment and
employment.

49. Pearce (1989) cited a range of other social and
cultural impacts result - ing from tourism
including:
• the impact of migration from rural areas to
urbanized tourism resort areas to secure
employment in service industries due to the
higher income levels. This can often modify the
population structure in des - tinations, putting
pressure on services
• changes in occupational structure, as the demand
for low-skill, female and seasonal labour expands
• changes in social values, with greater levels of
community turnover

50. • the impact of gentrification in inner city districts
where urban regen - eration with a strong
tourism element transforms the local hous - ing
market, and leads to residents having to move to
accommodate development
• increased levels of crime when special events and
hallmark events, such as the Olympics, are held
• potentially negative effects related to the
increase in prostitution and gambling to meet
visitor needs. In some destinations such as
Sydney, Bangkok and Amsterdam a distinct sex
zone has emerged, changing the social structure
of the area
• a decline in the use of native language because
the universal method of conversation in tourism
is in European languages (English and French).

51. Based on Doxey’s (1975) study, in which resident
responses in the Caribbean and Canada were observed to
identify a series of stages through which they passed.
These were:
• Euphoria-following the initial development of
tourism
• Apathy-as tourism developed further and
becomes part of the local way of life
• Annoyance- as tourism began to interfere with
everyday life and cause a level of disturbance
• Antagonism- where residents became tourist
averse and tensions, con - flict and anti-tourism
feeling became widespread.

52. Tourism and the environment

53. • In the 1950s it was viewed as being one of coexistence
… However, with the advent of mass tourism in the
1960s, increasing pressure was put on natural areas for
tourism developments. Together with the growing
environmental awareness and concerns of the early
1970s the relationship was perceived to be in conflict.
During the next decade this view was endorsed by
many others … at the same time a new suggestion was
emerging that the relationship could be beneficial to
both tourism and the environment. (Dowling 1992: 33)
• In the absence of an attractive environment, there
would be little tourism. Ranging from the basic
attractions of sun, sea and sand to the undoubted
appeal of historic sites and structures, the environment
is the foundation of tourism.

54. • Because of the highly dynamic nature of the
coastal environment and the significance of
mangroves and the limited coral sand supply
for island beaches in particular, any
development which interferes with the natural
system may have severe consequences for the
long-term stability of the environment.

55. As a result, inappropriate tourism
development on coastal areas
creates:
• erosion, where vegetation clearance exposes
the beach to sea storms, and building activity
on beaches makes sand deposits loose and
more vulnerable to erosion
• the salination of fresh ground water sources,
which are usually in limited supply
• sewage outfall into shallow waters, which
cause nutrients to build up and algal growth
that adversely affects coral reefs.

56. Furthermore, the modification of mangrove swamps on lowland
areas to create harbours and marinas, or for land reclamation,
leads to loss of ecological diversity and a rich environment for
wildlife. It also removes a barrier to sediment build-up. As a
result tourism’s environmental impacts on Pacific islands create:
• environmental degradation and pollution
• the destruction of habitats and ecosystems
• the loss of coastal and marine resources
• coastal pollution
• impacts on ground water.

57. In the South Pacific, Hall (1996) indicated that
ecotourism could be construed in two ways:
• as green or nature-based tourism, with a
niche market as part of special interest
tourism (e.g. scuba diving)
• as any form of tourism development that is
considered to be environmentally responsible.

58. In many island microstates (IMS) in the Pacific,
the significance of environmental issues in
tourism are apparent as a number of common
themes characterize tourism’s development
and the pressures on the resource base:
• scale, where impacts can easily be damaging
to fragile resources
• the high levels of dependency on external
international tourism interests that do not
have a long-term stake in the local
environment

59. • an absence of indigenous sources of capital to
develop tourism, removing many opportunities
for sustainable tourism development that is
community owned and locally managed
• the predominance of colonial patterns of control
in the tourism sector limiting the permeation of
new ideas such as environmentalism
• an economic system characterized by outward
migration, a dependence upon remittances back
to families, aid to assist economic survival, and
bureaucracy (known as the MIRAB model)
• increasing competition among IMS for tourists in
the Pacific and resulting compromises in tourism
planning and development to attract visitors.

60. In many ways the environmental impacts in the
Pacific islands can be combined with the more
general problems that Mathieson and Wall
(1982) identify in resort areas, which include:
• architectural pollution owing to the effect of
inappropriate hotel development on the
traditional landscape
• the effect of ribbon development and urban
sprawl in the absence of planning and
development restrictions (as is the case on
many Spanish resorts in the Mediterranean)

61. • the resort infrastructure becomes overloaded
and breaks down in periods of peak usage
• tourists become segregated from local
residents
• good quality agricultural land may be lost to
tourist development
• traffic congestion may result in resort areas
• the local ecosystem may be polluted from
sewage
• litter and too many visitors in the peak season.

62. The tourism industry response

63. • The hotel industry has responded with
environmental initiatives in the 1990s such as the
International Hotels Environment Initiative, which
promotes recycling, codes of conduct, best
practice among members, accreditation schemes
and improved standards of energy efficiency.
• These elements of environmental management
are non mainstream. In some hotels, waste
minimization strategies have resulted from
environmental audits of the tourism and
hospitality operations to reduce costs. They may
include purchasing more eco-friendly products,
waste reduction (i.e. not laundering guests’
towels every day), reusing resources and packag -
ing and adopting a green policy towards
operational issues.

64. • In Germany the ecotax has been called ‘limon -
adenstener’, a lemonade tax, because hotel
owners have been giving guests drink vouchers in
lieu of the tax. It has also been dubbed a ‘Kurtax’
(a cure tax) that has raised ecological issues
among visitors. This approach to attempting to
remedy the impacts of mass tourism
development is at least beginning to move the
sector towards a greater understanding of its
effect on the environment.

65. Visitor Management

66. • Visitor management develops and adapts
many of the principles and practices used in
the outdoor recreation and leisure areas.
There are two types of mea - sures which are
usually used – ‘hard measures’, which are
place extensive and place permanent
restrictions on visitor activity, and ‘soft
measures’, which involve improving
marketing, interpretation, planning and visitor
coordination.

68. • With the global spread of tourism, the growth in the
demand for domestic and international travel is
creating an insatiable demand for leisure spending in
the new millennium. As new outbound markets such as
China and India develop, there will be a huge increase
in the rate of tourism growth in certain regions such as
Asia-Pacific. The consequences of such growth if it is
allowed to develop in an unplanned, unconstrained
and unmanaged manner is clear: the continued impact
on the environ - ment, people and ecosystems that will
be irreversibly damaged by tour - ism consumption

69. • Since tourism is a powerful force in many
economies, some degree of planned
intervention by the public sector, as well as
the increasing number of public–private
sector partnerships, will be essential in terms
of implementing visitor management plans
and tools. If the example of Venice tells us one
thing, it is that the excesses of tourism can
quickly destroy the visitor experience, the
resource base and the potential for
sustainable tourism if it goes unchecked.

70. Future issues for visitor
management

72. • In the future, the impacts of tourism will continue
to pose ethical dilemmas for planners and
managers. On the one hand, governments are
seeking to develop more socially inclusive
societies, where principles such as ‘Tourism for
All’ are pursued to facilitate a greater inclusion of
special needs by tourism businesses and
agencies, argues against management measures
to limit access to those with the purchasing
power.
• Running counter to such ideological arguments
on tourism is the recognition that visitor
management needs to limit rather than expand
the access to many tourist sites and resources.

76. Future issues for Visitor
Management

79. • These principles can be modified and refined for application
in resorts and urban tourism destinations to achieve a more
coordinated and rational approach to tourism. In sum, the
activities and freedom of tourists will have to be curtailed in
the future as resorts, destinations and sites realize the
imperative of visitor management tools to implement a
more rational and managed use of resources. This is to
maintain a viable and dynamic tourism industry. To do this
will require more innovative thinking and planning,
partnerships between stakeholders and good
communication to explain to visitors the rationale and need
for such measures. The resolution of conflict, balancing
tourism, non-tourism and other interests, will require
planners and tourism managers to cooperate in the best
interests of the locality in an increasingly competitive
marketplace.

80. Thank you! 