Introduction to Tourism Business

1. INTRODUCTION TO
TOURISM BUSINESS
MUHAMED ALI
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2. First usage
 One of the first recorded uses of the word
“tourism” is reported by the Oxford English
Dictionary(OED1971: 3363) as appearing in
England’s Sporting Magazine in 1811.
 The word ”tourism” has been part of the English
lexicon for nearly two centuries and traditionally
had a negative connotation.
 A derogatory article in the magazine on the
growing tendency of working class English
families to travel for pleasure referred to sublime
Cockney tourism.

3. First Definition
 The definition of tourism given by Guyer Feuler in
1905.
 Guyer and Feuler defined tourism as “a
phenomenon unique to modern time which is
dependent on the people's increasing need for a
change and relaxation, the wish of recognizing the
beauties of nature and art and the belief that
nature gives happiness to human beings and
which helps nations and communities approach
each other thanks to the developments in
commerce and industry and the communication
and transportation tools' becoming excellent.”

4. Hunziker and Krapf’s Definition
 Hunziker and Krapf, in 1941, defined tourism
as
"the sum of the phenomena and relationships
arising from the travel and stay of non-
residents, in so far as they do not lead to
permanent residence and are not connected
with any earning activity”

5. WTO Definition
 The most widely accepted definition
 Approved by United Nations Statistical
Commission in its twenty-seventh session held
from 22 February to 3 March 1993
 As Per WTO
 “Tourism comprises the activities of persons
travelling to and staying in places outside their
usual environment for not more than one
consecutive year for leisure, business and
other purposes”

6. DIFFERENCE BETWEEN TRAVEL AND
TOURISM
 Travel = journeys undertaken from one place to another
for any purpose including journeys to work and as a part
of employment, as a part of leisure and to take up
residence;
WHEREAS,
 Tourism includes the journey to a destination + stay at
a destination outside one’s usual place of residence +
activities undertaken for leisure and recreation.
 THEREFORE,
 All tourism includes some travel, but not all travel is
tourism .A person may often travel for a wide variety of
purposes of which tourism is only one.

7. Distinguishing Features
 Some of the characteristics that distinguish
tourism from travel are:
 Tourism is:
 1. Temporary, to distinguish it from the
permanent travel of the tramp and nomad
 2. Voluntary, to distinguish it from the forced
travel of the exile and refugee
 3. Round trip, to distinguish it from the one-
way journey of the migrant

8. Requirements of Tourism
 What are the basic requirements to make
tourism possible?
 Discretionary income, i.e. money to spend
on non-essentials
 Sufficient health and of course the
inclination to travel.
 Infrastructure in the form of
accommodation facilities and means of
transport.
 Leisure and recreation time

9. Characteristics of Tourism
 Five main characteristics of tourism are:
1. Tourism arises from movement of people to,
and their stay in, various destinations.
2. Therefore there are two elements in all
tourism: the journey to the destination and the
stay including activities at the destination.

10. Characteristics Contd…
3. The journey and the stay take place outside the
usual place of residence and work, so that tourism
gives rise to activities, which are distinct from
those of the resident and the working population
of the places, through which the tourist travels and
in which they stay.
4. The movement to destinations is of temporary,
short-term character, with the intention of
returning to the usual environment within a few
days, weeks or months.
5. Destinations are visited for purposes other than
taking up permanent residence or employment

11. Leisure and Recreation
 Scope and significance of leisure activity
heavily depends upon the available time and
available time determines the mode and
destination of travel.
 Division of Time
Time
Active and
Passive
Maintenance work Leisure
(weekdays, weekends, Vaccation)

12. Tourist
 The principal character in the phenomenon
called Tourism is the ‘Tourist’ and without his
being around the tourism phenomenon is
meaningless.
 Derived from the Latin word ‘TORNUS’ which
means a tool, a circle or a turner’s wheel.
Therefore, tourist is a person who undertakes
a circular trip, i.e., ultimately comes back to the
place from where he sets about his journey.

13. History and Evolution of Tourism
 The history of tourism begins with the history of
man – of man travelling on foot in search of food
and shelter from the forces of nature or wild
beasts.
 Early travel was undertaken mainly for the
purpose of trade, waging wars and conquering
new lands
 Travel for treatment at natural springs or healing
centres gained popularity in the mid 17th century
when doctors advocated the healing powers of
mineral water

14. Early civilizations
 Agriculture developed in 8000 BC in the middle
east leading to formation of settlements
 Civilizations also developed simultaneously in
India, China and Egypt
 In the 5000 BC water transports in the form of
rafts and canoe were developed for use in rivers,
lakes and streams
 The Sumerians invented wheel in 3500 BC
 In 3200 BC Egyptians developed sailboats
 Phoenicians invented money in 3000 BC
 The first merchant fleets developed by
Phoenicians in 1000 BC which sailed along with
coastline for Spain

15. The Imperial Era
 Travel as a pleasure activity emerged during the
roman empire. Road systems with bridges, aqueducts
constructed for military purposes became an excellent
tourism infrastructure.
 The Romans were also the first to pave roads made of
stone and gravel of 80000 km length
 Wealthy Greeks and Romans travelled to Athens,
Rome, and other cities to participate in or observe
sporting competition events.
 The Roman empire was prosperous and pleasure
loving. Inns were built and the business of renting
various modes of transport began to pick up

16. Imperial Era Contd…
 Spectator sports such as gladiator contests were
organised. Pilgrimage, sightseeing and Health
tourism in the form of bathing in mineral springs
were popular activities.
 Some travelled to oracles to pay homage to
numerous Gods
 The Olympic games were held in Olympia,
Greece to honour God Zeus
 The downfall of Roman empire by the end of 4th
Century AD brought a set back to Tourism
development and up to 15 centuries tourism

17. Developments in Asia
 Unlike in the west, where people believed in extending
their territories by conquering land, the Chinese
preffered to live within their own territory the Great
wall of China (in 214 BC)
 India’s wealth was exposed to the world only after the
Persian and Macedonian invasion
 The Mauryan Emporer Ashoka developed travel
facilities mainly for spreading Buddhism. Grand Trunk
Roads were improved further. Trees were planted
along the sides of the roads. Rest Houses were
constructed alongside GT routes for comfort of
travellers

18. Asia Contd..
 Caravanserais or walled rest houses were
built by the moguls as trade tours became
popular.
 Education was another major reason for
travel. Residential schools and colleges
known as Madarsas were developed by
Akbar.
 Travel was the privilege of upper class,
royalty who travelled for pleasure and

19. The Silk Route
 Began in 2000 BC. Most important link in the
movement of people from east to west. A major
trade route for caravans carrying silk and other
luxury items like muslin, porcelain, tea, rice and
spices from china to India and the middle east.
 Silk spices and ointments left Indian ports in ships
bound for the roman empire. Rome sent back gold
coins, Greek wine and harem girls.
 Navigation was done by looking at the stars or the
course of a river or stream.
 Flourished during the khushan empire from 50 AD
to 200 AD. The Khushan emperors opened and
protected the silk route.
 Ideas and customs were exchanged along these
routes between the people of central Asia, China,

21. European Renaissance
 Great cultural movement that began in Italy in
early 1300 AD.
 Spread to England, France, Germany, Spain
and other countries in the late 1400s and
ended about 1600 AD. It was a period of
revival of Greek and Roman cultures.
 European scholars and artists, especially
those in Italy, studied the learning and art of
ancient Greece and Rome.
 Famous works or art of Italian artists Leonardo
da Vinci, Michelangelo, and Raphael inspired

22. Concept of Holidays – Early
Period
 In the Middle Ages there were no holidays in the
modern sense. People travelled for work, for war
or for religious reasons.
 People were allowed to rest on Holy days (from
which we get our word holiday).
 In the late Middle Ages people in England
celebrated Christmas for 12 days (25th December
- 6th January).
 All work stopped except looking after animals,
spinning was even banned as this was the most
common occupation for women and flowers were
placed around the spinning wheels. People would

23. Concept of paid holidays
 Then in 1871 the Bank Holiday Act gave workers a
few paid holidays each year.
 Also in the 1870s some clerks and skilled workers
began to have a weeks paid annual holiday.
 In the early 19th century everyone had Sunday off.
 In the 1870s some skilled workers began to have
Saturday afternoon off.
 In the 1890s most workers gained a half day
holiday on Saturday and the weekend was born.
 In the late 19th century when some skilled
workers began to have paid holidays they often
went to stay at the seaside
 Poor people could not afford to take time off work

24. Holidays in the 20th century
 The first holiday camp in Britain opened in
1906. Holiday camps reached their heyday in
the 1950s and early 1960s. However they
declined once foreign holidays became
common.
 In 1939 a new law in Britain said that everyone
must have one weeks annual paid holiday. By
the 1950s two weeks were common and by
the 1980s most people had at least 4 weeks
annual holiday.
 New Years Day was made a bank holiday in

25. The Grand Tour
 The 18th century is conventionally considered, the
golden age of the grand tour , especially the 30
years between 1763 and 1793
 It was said to be en essential part of education of
men and women of high birth to undertake travel
to Italy for education and pleasure accompanied
by a mentor or guardian. They were expected to
learn arts, science, music, literature and culture of
Europe and apply the knowledge gained on their
return.
 The duration of the tour was generally three
years.
 The origins of Modern Tourism Industry are
believed to have begun with the Grand Tour.

26. Industrial Era
 Industrial revolution occurred during the late
18th and early 19th century when major
changes occurred in Agriculture,
manufacturing and transportation.
 It started in Britain and subsequently spread to
Europe and America
 The first product to affect tourism was the
development of steam engine. Steam powered
ships and railways hastened the speed of
travel
 Rail locomotive with steam engines was used

27. Birth of Organised Travel
 The birth of organised travel came in the year 1841.
 570 members of the “Temperance Society” of
Derbyshire travelled by “Midland Countries Railway at
a specially reduced return fare of 1 shilling per
passenger.
 The man behind the idea was none other than
Thomas Cook, who later on came to be known as
“father of organised travel”
 In 1843, 3000 school children were taken on a trip
from Leicester to Derby.
 From 1848 to 63, Cook conducted circular tours of
Scotland with 5000 travellers a season

28. Industrial Era Contd..
 The Industrial revolution created working class
with some disposable income.
 The greater disposable income led to the
formation of a middle class in the society. Even
today they make up majority of the tourists.
 The invention of Automobiles and their mass
production in 1903 is regarded as a technological
advance which allowed people to move at their
will. (Henry Ford launched people’s car in 1908.
 Before world war – I luxury liners were used by
the rich for transatlantic journeys
 Transatlantic cruises received a setback when
luxury liner Titanic sank in North Atlantic Ocean in

29. Modern Day Tourism
 Air travel began with the use of hot air balloon
in 1783 by the French.
 The Wright brothers Orville and Wilbur flew the
first prototype airplane in December 1903.
 Air travel became commercial in 1919 shortly
after world war – I offering daily flights
between London and Paris.
 1914 – Passports introduced
 International air travel open to public. The first
commercial jet airline services started in 1950.

30. Modern Tourism
 Cost of air transport and travel time reduced with
the development of jet engine and larger aircrafts
 Jumbo jets with more travellers per plane and
lower fares
 Air travel became fast, comfortable, safe and
affordable with Boeing 747 services in 1970.
 In 1976 Concorde, the first supersonic passenger
airliner begins service between Europe and USA

32. Other related Definitions
 Traveller: A general term used for any person
who travels, irrespective of the purpose of
travel, distance travelled or duration of the
stay.
 All travellers are not tourists but all tourists are
travellers.
 Visitor: ‘Any person visiting a country other
than that in which he has his usual place of
residence for any reason other than being
interested in an occupation remunerated from
within the country visited. Visitors are of two

33. Classification of a Visitor
 Can be classified into two types - Excursionist
and a Tourist.
 Excursionist - is a temporary visitor staying for
a period of less than 24hours in the destination
visited. (Including travellers on the cruises).
 Tourist - Is a temporary visitor staying for a
period of at least 24 hours in the country
visited and the purpose of whose journey can
be classified under one of the following heads
:
 a) Leisure (recreation, holiday, health, study, religion andsport)
 b) Business, family-mission, meeting.

34. WTO Definition - Tourist
 The most popular and widely
accepted definition of tourism,
revised at WTO Conference held in
Ottawa in 1991.
 “The activities of a person travelling
to a place outside his/her
environment for less than a specified
period of time and whose main
purpose in travelling is other than the

35. Therefore, tourist are: -
 Persons travelling for pleasure, for
domestic reasons, for health etc.
 Persons travelling for meetings or in
representative capacity of any kind
(scientific, administrative, religious etc.)
 Persons travelling for business purposes.
 Persons arriving in the course of sea
cruises, even when they stay for less than
24 hours (in respect of this category of

36. Characteristics of a Tourist
Based on the various definitions of a
Tourist here are some of the characteristics
of a Tourist
 He takes up his journey of his own free will.
 He takes up the journey primarily in search of
enjoyment.
 The money spent on the visit is the money
derived from home, not money earned in the
places of visit.
 He finally returns to his original starting point.

37. Who is not a tourist?
 i) Persons arriving to take up an occupation or to
engage in any business activity in that country.
 ii) Residents in a frontier zone i.e persons
domiciled in one country and working in an
adjoining country.
 iii) Students and young persons in boarding
establishments of schools/colleges.
 iv) Travellers passing through a country without
stopping, even if the journey takes more than 24
hours.

38. Some other types
 Transit Visitor: A visitor who passes through a
country without breaking his journey for taking
connection transport is called a transit visitor.
Their destination is always another
country/place.
 Max. time of stay – 48 to 72hrs. Differs from
the policy of country to country.
 Min. time 4 to 6 hours

39.  Cruise Passenger- a visitor who arrives in the
country aboard cruise ships and who does not
spend a night in an accommodation
establishment in the country.
 Domestic Tourist- A person who travels within
the country to a place other than his usual
place of residence and stays at hotels or other
accommodation establishments run on
commercial basi s or in dharamshalas or
stays with friends and relatives and uses
sightseeing facilities, or goes on a pilgrimage
for a duration of not less than 24 hours or one
night and not more than 6months at a time for
any of the following purposes:
 Pleasure(holiday, leisure, sports and so on)

40. Forms of Tourism
 The United Nations classified three forms of
tourism in 1994 in its Recommendations on
Tourism Statistics:
 Domestic tourism, which involves residents of
the given country traveling only within this
country;
 Inbound tourism, involving non-residents
traveling in the given country; and

41. Categories arising out of basic
forms
 Categories of Tourism
 The UN also derived different categories of
tourism by combining the 3 basic forms of
tourism:
 Internal tourism = domestic + inbound
 National tourism = domestic + outbound
 International tourism = inbound + outbound

42. COMPONENTS OF TOURISM

43. Components of
Tourism To understand tourism systematically, it is
necessary to know the basic components which
together make tourism Industry, which are:
 Accessibility, Attractions and Accommodations
 Attractions: Attractions are what draw individuals
to a specific destinations. There are attractions
designed to meet the needs of everyone.“They
may be based on natural resources, culture,
ethnicity or entertainment”. Attractions can be
manmade and natural.
 Accessibility: Transportation has been a vital
component to the success of tourism Industry. As
different modes of travel were invented and
improved on, travel became more prominent. Rail
transport and motor transport play a major role in

44.  Accommodation: People travelling for pleasure
or for business needed a place to sleep. The
accommodation sector is extremely important
component of the tourism industry.
Accommodation categories can include hotels,
motels, conference centers, resorts, youth
hostels etc.
 Along with these components amenity, ancillary
services and activities forms the 6 A’s of Tourism:
Amenity, Accessibility, Attractions, Ancillary
Services, Accommodation, Activities
Of the basic components of a tourist
product, attractions are very important. Peter
and Robinson have further categorized

45.  Peter has drawn up an inventory of the various
attractions known as Inventory of Tourist
Attractions which are of significance in tourism.
 Cultural: Sites and areas of archaeological
interest, Historical buildings and Monuments,
Places of historical significance, Museums,
Modern Culture, Political and Educational &
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.

46. Robinson’s Classification of
Tourism Attractions
The attractions of tourism are, to a very
large extent, geographical in character.
 Location and accessibility
 Physical space
 Scenery or landscape
 Climate conditions
 Animal life
 Settlement Features
 Culture

47. LEIPER’S MODEL OF
TOURISM SYSTEM
501: Tourism Business
SEM -1, STS MGU

48. Approaches to the study of Tourism
 Economic Approach
Managerial Approach
Geographical Approach
Historical Approach
Sociological Approach
Institutional Approach
Interdisciplinary Approach
SYSTEMATIC APPROACH

49. Leiper's Model
Based on Systems Approach, Neil Leiper
suggested a model in 1979 which was later
updated in 1990.
Reviews previous attempts to define Tourism
Develops a new definitional Framework
Bridges gap between 2 Buck's camps

50. Two Academic field of studies (Buck 1978)
Business Enterprise Camp
Charting Growth and
Business Profits
Impact & Externalities Camp
Documenting Consequences of tourism
Enterprise in the host Nation
Leipers Model
Bridges gap between 2 Buck's camps

51. The three Elements in Leiper’s Model
I. The Human Element:
The Tourist
II. The Geographical Element:
The Generating Region (TGR)
The Destination Region (TDR)
Travel En-route
III. The Industrial Element

52. I. Human Element -
The Tourist
Focal element of tourism.
Second concept defining tourists is that they are net
consumers of resources within the regions visited.
Final concept is that their trips are circuits, returning to
the points of origin and involves 2 components “journey
and stay” (Burkart & Medlik 1974).
From the circular pattern of their behaviour it is possible to isolate
the geographical elements fundamental to the system.

53. The Geograpical Elements
I. Tourist generating regions
permanent residential bases of tourists
Has the basic geographical setting, together with the necessary
behavioral factors pertaining to motivation termed as the " p u s h "
factors (Dann 1977)
 The generating region is the location of the basic market of the
tourist industry, the source of potential tourism demand.
II. Transit routes
paths linking tourist generating regions with tourist destination
regions, along with tourists travel. They include stopover points
which might be used for convenience or because of the existence of
attractions.

54. The Geograpical Elements
III. Tourist destination regions
 Tourist destination regions can be defined as locations which
attract tourists to stay temporarily,
In this context the attraction can be regarded as the anticipation by
the tourist of some qualitative characteristic, lacking in the tourist
generating region, which the tourist wishes to experience
personally collectively known as the “p u l l” factors.
It is also the location of many parts of the tourist business:
accommodation establishments, services, entertainment and
recreational facilities.

55. Departing Tourists
rist Generating Region (TGR) Transit Route
Returning Tourists
stopover points /points of attraction
Tourist Destination Region
TDR
Push Factors
Pull Factors
The Geograpical
Elements
Spatially, tourism involves three elements.
Permanent residence of
prospective tourists
Push Factors Present
Location of basic Market
Temporary residence of
tourists
Pull Factors Present
Location of amenities and
services

56. III. The Industrial ElementConsists of firms, Organisations and facilities intended to
serve the specific needs and wants of tourists. Is divided
into 6 functional sectors
.
 Marketing: Travel Agencies, Tour operators, promotional
travel writers and Publishers
Tourist Carriers: Air, rail, sea and road transports
Accommodation: Hotels, motels, homestays, resorts,
guest houses
Attractions – sights, events, activities providing
experiential opportunities
 Miscellaneous Tourist Services: duty free soveniour
shops, travel insurance agents, taxis etc, specialising in
tourist market
Tourism Regulations: Associations of firms as a sectoral,
regional, governmental and non governmental bodies
AND
Vocational Education Institutions

57. Leiper's Model–Diagrammatic Representation
ENVIRONMENTS: PHYSICAL, TECHNOLOGICAL,
SOCIAL,CULTURAL, ECONOMIC, POLICTICAL
Departing Tourists
Tourist Generating Region Transit Route
Returning Tourists
Tourist Destination Region
Ticketing Services
Tour Operators
Travel agents
Marketing & Promotional
Activities
Channels of
Transport and
Communication
Accommodation
Entertainment Industry
Tourist Attraction
Shopping
Tourist Services
Push Factors
Pull Factors

58. Applications
Academic: Serves as a reference point for
general and specific studies; for designing
curricula for program of vocational studies
Business: Tourist Industry Management,
marketing planning for identifying functional
elements.
As a guide for planning and assessing
governmental policies in some areas of Tourism
Can serve as an analytical basis for creative
policy formation in widely different situations.