Tourism and Hospitality Management

1. ___________________________
Principles, Practices, Philosophies
TOURISM
TWELFTH EDITION
Charles R. Goeldner
J. R. Brent Ritchie
© 2012 John Wiley and Sons, Inc.
All Rights Reserved

2. © 2012 John Wiley and Sons, Inc.
All Rights Reserved
CHAPTER
© 2012 John Wiley and Sons, Inc.
All Rights Reserved
Tourism in Perspective
1

3. © 2012 John Wiley and Sons, Inc.
All Rights Reserved
LEARNING OBJECTIVES
• Understand what tourism is and its many
definitions.
• Learn the components of tourism and tourism
management.
• Examine the various approaches to studying
tourism.
• Appreciate how important this industry is to
the economy of the world and of many
countries.
• Know the benefits and costs of tourism.

4. © 2012 John Wiley and Sons, Inc.
All Rights Reserved
WHAT IS TOURISM?
When we think of tourism, we think primarily of
people who are visiting a particular place for
sightseeing, visiting friends and relatives, taking
a vacation, and having a good time…..
Any attempt to define tourism and to describe
its scope fully must consider the various groups
that participate in and are affected by this
industry. Their perspectives are vital to the
development of a comprehensive definition.

5. © 2012 John Wiley and Sons, Inc.
All Rights Reserved
WHAT IS TOURISM?
Four different perspectives of tourism can be
identified:
1. The tourist. The tourist seeks various psychic and physical
experiences and satisfactions.
2. The businesses providing tourist goods and services.
Businesspeople see tourism as an opportunity to make a profit
by supplying the goods and services that the tourist market
demands.
3. The government of the host community or area. Politicians
view tourism as a wealth factor in the economy of their
jurisdictions.
4. The host community. Local people usually see tourism as a
cultural and employment factor.

6. © 2012 John Wiley and Sons, Inc.
All Rights Reserved
DEFINITION OF TOURISM
Tourism may be defined as the
processes, activities, and outcomes
arising from the relationships and the
interactions among tourists, tourism
suppliers, host governments, host
communities, and surrounding
environments that are involved in the
attracting and hosting of visitors.

7. © 2012 John Wiley and Sons, Inc.
All Rights Reserved
UNWTO DEFINITION OF
TOURISM
Tourism comprises the activities of persons
traveling to and staying in places outside their
usual environment for not more than one
consecutive year for leisure, business and
other purposes.
Source: UNWTO

8. © 2012 John Wiley and Sons, Inc.
All Rights Reserved
UNWTO DEFINITION OF
TOURISM
The term usual environment is intended to exclude trips
within the area of usual residence, frequent and regular
trips between the domicile and the workplace, and other
community trips of a routine character.
1. International tourism
a. Inbound tourism: Visits to a country by nonresidents
b. Outbound tourism: Visits by residents of a country to
another country
2. Internal tourism: Visits by residents and nonresidents of the
country of reference
3. Domestic tourism: Visits by residents of a country to their own
country

9. © 2012 John Wiley and Sons, Inc.
All Rights Reserved
VISITOR
A “visitor” is defined as those persons
who travel to a country other than that
in which they have their usual residence
but outside their usual environment for
a period not exceeding twelve months
and whose main purpose of visit is
other than the exercise of an activity
remunerated from within the place
visited.

10. © 2012 John Wiley and Sons, Inc.
All Rights Reserved
VISITOR
All visitors are subdivided into two further categories:
1. Same-day visitors: Visitors who do not spend the
night in a collective or private accommodation in the
country visited—for example, a cruise ship passenger
spending four hours in a port or day-trippers visiting
an attraction
2. Tourists: Visitors who stay in the country visited for
at least one night— for example, a visitor on a two-
week vacation

11. © 2012 John Wiley and Sons, Inc.
All Rights Reserved
UNITED STATES
The Travel Industry Association of America
(TIA) research department defines a person-
trip as one person traveling 50 miles (one
way) or more away from home or staying
overnight, regardless of distance. Trips are
included regardless of purpose, excluding
only crews, students, military personnel on
active duty, and commuters.

12. © 2012 John Wiley and Sons, Inc.
All Rights Reserved
UNITED KINGDOM
The National Tourist Boards of England,
Scotland, and Northern Ireland sponsor a
continuous survey of internal tourism, the
United Kingdom Tourism Survey (UKTS). It
measures all trips away from home lasting
one night or more; these include:
1. trips taken by residents for holidays,
2. visits to friends and relatives (nonholiday), or
3. trips taken for business, conferences, and
most other purposes.

13. © 2012 John Wiley and Sons, Inc.
All Rights Reserved
AUSTRALIA
“A person visiting a location at least 40
kilometers from his usual place of residence,
for a period of at least 24 hours and not
exceeding 12 months.”

14. © 2012 John Wiley and Sons, Inc.
All Rights Reserved
CLASSIFICATION OF
TRAVELERS

15. © 2012 John Wiley and Sons, Inc.
All Rights Reserved
1. Tourists in international technical definition
2. Excursionists in international technical definitions.
3. Travelers whose trips are shorter than those that
qualify for travel and tourism; e.g., under 50 miles (80
km) from home.
4. Students traveling between home and school only --
other travel of students is within scope of travel and
tourism.
5. All persons moving to a new place of residence
including all one-way travelers, such as emigrants,
immigrants, refugees, domestic migrants, and
nomads.
CLASSIFICATION OF
TRAVELERS

16. © 2012 John Wiley and Sons, Inc.
All Rights Reserved
THE TOURISM PHENOMENON:
COMPONENTS OF TOURISM AND
TOURISM MANAGEMENT
1. The Tourist: travel experiences that he or she seeks when visiting a
tourism destination.
2. Natural Resources and Environment: physiography and its climate.
3. The Built Environment: culture, infrastructure, tourism
Superstructure, Technology, information., governance.
4. Operating Sectors of the Tourism Industry: transportation,
accommodation, food services, attractions, events, adventure and
outdoor recreation, entertainment., trade sector and tourism services.
5. Spirit of Hospitality
6. Planning, Development, Promotion, and Catalyst Organizations
7. The Importance of Integrated/Collaborative Planning and
Development
8. The Processes, Activities, and Outcomes of Tourism: philosophy,
policy, vision, and strategy, planning and development, marketing,
monitoring, stewardship, evaluation..
9. Careers in Tourism

18. © 2012 John Wiley and Sons, Inc.
All Rights Reserved
BASIC APPROACHES TO THE
STUDY OF TOURISM
1. Institutional Approach
2. Product Approach
3. Historical Approach
4. Managerial Approach
5. Economic Approach
6. Sociological Approach
7. Geographical Approach
8. Interdisciplinary Approaches

19. DISCIPLINARY
INPUTS
TO THE
TOURISM
FIELD

20. © 2012 John Wiley and Sons, Inc.
All Rights Reserved
Source: WTTC
TRAVEL AND TOURISM -
WORLD’S LARGEST INDUSTRY
• In 2011 it is estimated to account for some:
$5.9 trillion of Economic Activity
258.5 million jobs
• In 2021 it is estimated to account for:
$11.9 trillion of Economic Activity
323.8 million jobs

21. © 2012 John Wiley and Sons, Inc.
All Rights Reserved
TRAVEL AND TOURISM CAN
GROW BY 4% PER YEAR
• Travel and Tourism will continue to expand
faster than the economy as a whole and
faster than comparable industries.
• By 2021 Travel & Tourism is expected to
account for:
• $11.9 trillion
• 323.8 million employees
• Growth depends on enlightened government
policy
Source: WTTC

22. © 2012 John Wiley and Sons, Inc.
All Rights Reserved
WORLD’S TOP 5 TOURISM
DESTINATIONS 2009
Source: UNWTO
International
Tourist Arrivals
Rank, (million) % Change
2009 Country 2009 2009/08
1 France 74.2 -6.3
2 United States 54.9 --5.3
3 Spain 52.2 -8.7
4 China 50.9 -4.1
5 Italy 43.2 1.2

23. © 2012 John Wiley and Sons, Inc.
All Rights Reserved
WORLD’S TOP 5 TOURISM
DESTINATIONS 2010
Source: UNWTO
International
Tourist Arrivals
Rank, (million) % Change
2010 Country 2010 2010/09
1 France 76.8 0.0
2 United States 59.7 8.7
n3 China 55.7 9.4
4 Spain 52.7 1.0
5 Italy 43.6 0.9

24. © 2012 John Wiley and Sons, Inc.
All Rights Reserved
WORLD’S TOP 10 TOURISM
DESTINATIONS 2015-16

25. © 2012 John Wiley and Sons, Inc.
All Rights Reserved
International
Tourism Receipts
Rank, (US$ billion) % Change
2009 Country 2009 2009/08
1 United States 93.9 -14.6
2 Spain 53.2 -9.0
3 France 49.4 -7.9
4 Italy 40.2 -7.2
5 China 39.7 -2.9
Source: UNWTO
WORLD’S TOP 5 TOURISM
EARNERS 2009

26. © 2012 John Wiley and Sons, Inc.
All Rights Reserved
International
Tourism Receipts
Rank, (US$ billion) % Change
2010 Country 2010 2010/09
1 United States 103.5 9.9
2 Spain 52.5 -1.2
3 France 46.3 -6.2
4 China 45.8 15.5
5 Italy 38.7 -3.6
Source: UNWTO
WORLD’S TOP 5 TOURISM
EARNERS 2010

27. © 2012 John Wiley and Sons, Inc.
All Rights Reserved
WORLD’S TOP 10 TOURISM
EARNERS 2015-16

28. © 2012 John Wiley and Sons, Inc.
All Rights Reserved

29. © 2012 John Wiley and Sons, Inc.
All Rights Reserved
TOURISM:
WHAT IT MEANS TO THE U.S. ECONOMY
• Travel spending in U.S. is projected to total $738.5
billion in 2010.
• Tourism is the nation’s third largest retail industry.
• Tourism is the nation’s largest service export.
• Over 7.4 million Americans employed directly in the
travel industry, 9 million indirectly for a total of over 16
million jobs.
• Tourism provides more than 684,000 executive level
positions in each year.
• Travel industry provides a disproportionate number of
jobs for the traditionally disadvantaged.
Source: U.S. Travel Association

30. © 2012 John Wiley and Sons, Inc.
All Rights Reserved
BENEFITS OF TOURISM -
ECONOMIC
• Provides employment
opportunities
• Generates foreign
exchange
• Increases Incomes
• Increases GNP
• Can be built on existing
infrastructure
• Develops an infrastructure
that will also help stimulate
local commerce and
industry
• Can be developed with
local products and
resources
• Diversifies the economy
• Tends to be compatible
with other economic
activities
• Spreads development
• High multiplier impact
• Increases governmental
revenues

31. © 2012 John Wiley and Sons, Inc.
All Rights Reserved
BENEFITS OF TOURISM -
SOCIAL
• Broadens educational and cultural horizons
• Improves quality of life - higher incomes and
improved standards of living
• Justifies environmental protection and
improvement
• Provides tourist and recreational facilities that
may be used by a local population

32. © 2012 John Wiley and Sons, Inc.
All Rights Reserved
BENEFITS OF TOURISM -
CULTURAL
• Reinforces preservation of heritage and tradition
• Visitor interest in local culture provides employment
for artists, musicians and other performing artists
enhancing cultural heritage
• Breaks down language barriers, sociocultural
barriers, class barriers, racial barriers, political
barriers, and religious barriers
• Creates a favorable worldwide image for a
destination
• Promotes a global community
• Promotes international understanding and peace

33. © 2012 John Wiley and Sons, Inc.
All Rights Reserved
DISADVANTAGES OF TOURISM -
ECONOMIC
• Develops excess demand
• Results in high leakage
• Creates difficulties of seasonality
• Causes inflation
• Can result in unbalanced economic
development
• Increases vulnerability to economic and
political changes

34. © 2012 John Wiley and Sons, Inc.
All Rights Reserved
DISADVANTAGES OF TOURISM -
SOCIAL
• Creates social problems
• Degrades the natural physical environment and
creates pollution
• Degrades the cultural environment
• Threatens family structure
• Commercializes culture, religion, and the arts
• Creates misunderstanding
• Creates conflicts in the host society
• Contributes to disease, economic fluctuation, and
transportation problems