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Explain the key historical developments in the travel and tourism sector. You should provide a concise outline of key developments from the pilgrimages to the current day and conclude with future developments. You need to refer to the growth of the package holiday as a key development and explain its current position within the sector.
With use of industry examples explain the structure of the travel and tourism sector including the concepts of chain of distribution and the roles of the sectors: government organisations, transport, accommodation, tour operators, travel agents and visitor attractions. You should explain the meaning of horizontal and vertical integration and how this has affected the industry structure. Provide an explanation of Leipers’ tourist system and explain the difference between public, private and voluntary sectors. The definition of tourism is a journey and stay in an area different to that of where one lives and works.
If someone owns a holiday property or moves to work in the area on a paid or voluntary basis, this cannot be referred to as tourism. Tourism began in Roman times; with holidays to the seaside and spa areas dating back as early as 1300BC. During this time, wealthy and educated members of society set off to explore other cultures and visit the ancient world’s wonders. Popular places of interest to visit were the Acropolis in Athens and the Pyramids in Egypt. Part of the reason for tourism being introduced was the fact that the first Roman Emperor Augustus had rid the Mediterranean of pirates, thus making travel safe.
Some tours taken could have had duration of two to five years. This is comparable to the Grand Tour of the 18th and 19th century when well-educated and wealthy people considered this as part of their education to go. This was a British invention and generally the privilege of young upper class gentlemen, which by the late 19th century became an American phenomenon. As opportunities for travel became more common-place travel to places in search of spiritual satisfaction became popular, thus the increasing popularity of pilgrimage travel.
Pilgrimage travel destinations vary greatly in accordance to individual’s religious beliefs. Using the Christian religion as an example, there is an interest to visit sites connected to the birth, life, crucifixion and resurrection of Jesus Christ. Members of the Roman Catholic denomination have travelled to Lourdes in large numbers since 1858 when reported sightings of ‘Virgin Mary’ took place perceiving destination to be ‘a place of pilgrimage and miraculous healings’ Nowadays Lourdes attract 5 000 000 pilgrim tourists each year. (Wikipedia).
A good description of the tourism system is one described by Lepier in his basic tourism system where he identified three geographical regions:- * Traveller generating regions * Transit destination regions * Transit route regions “(Leiper 1995). A closer look at the three geographical regions shows that the traveller generating region is the places, or market, that the tourists and tourism is coming from, it can provide the ‘push’ factors that motivate people to travel. It is from the region, people will research information on the destinations, make the booking and depart.
The tourist destination area is where the tourist is a tourist, this is where the tourism takes place, it is at the destination that the managers put their plans and strategies into effect. The ‘pull’ factor of the destination, which varies from place to place, is what creates the demand for the travellers to that region. The transit route region is all the places visited on the way as well as going from A- the traveller-generating region to B- the tourist destination region. (Cooper et al 1993). This goes to show that without one part of the system, the whole system would not work. The 1940’s brought about the introduction of annual leave entitlement. By 1974,the law stated that workers were entitled to four week’s annual leave. This led to more leisure time being available and people looking to use this time to travel. Along with this came the standard five day working week, giving people even more leisure time.
Between 1989 and 1994 in Britain, more than half of all men (two-thirds of those in professional occupations) and a third of women retired before the state pension age of 65. Of these around ten per cent , 14 per cent were either voluntary or involuntary early retirement instigated by the employer, and around 30 percent were on health grounds. Evidence that is more recent suggests that only 37 per cent of British men are still working at the were at the normal retirement age of 64 compared with 57 per cent as recently as 1979.
In each successive generation the tendency has been for retirement to take place at an earlier and earlier age, and those not yet retired often hope to be able to do so in their 50s . (source:http://www. bis. gov. uk/files/file11528. pdf). This along with the fact that people are living longer all play a part in the growth of tourism. Other factors were when women started to enter the workforce during the second world war as the mend who traditionally held factory and labour jobs went to fight in the war. Gradually women in the workplace became common-place, leading to two wage- earner families.
Due to woman looking on careers as an important part of their life, couples began having less children leading to more disposable income. The development of the package holiday market began back in the 1850’s . Thomas Cook a 32-year old cabinet-maker from Leicester began offering tours of Scotland at a much more affordable rate. His motivation was the belief that Victorian social problems were related to alcohol and people’s lives could be greatly enhanced if they replaced alcohol with education. Cook expanded and organised trips throughout the UK.
He gave the travellers a booklet of information, a forerunner for the modern day holiday brochure produced by Tour Operators. The success of these led to Cook opening up opportunities for middles classes to travel to various parts of the world by the 1870’s . The success of Thomas Cook has continued to the present day and they represent an excellent example of how vertical and horizontal integration benefit a growing company. Horizontal Integration occurs when an organisation buys another company on the same level in the chain of distribution.
Vertical integration is when an organisation buys a company at a different level on the chain of distribution. Diagram illustrated below:- Source: http://www. hotelmule. com/forum/viewthread. php? tid=1076 (accessed 09/12/11) Horizontal and vertical integration have changed the structure of the travel industry dramatically. Integration has a positive and negative impact on the industry. When a tour operator is integrated with a travel agent, this gives the tour operator control over what the travel agency sells, therefore ensuring their own products are given priority.
This can have a negative impact on the independent agent as the tour operator controls the commission levels payable and will aim to make their own agency more competitive to the consumer in an attempt to increase their market share. To combat this, several independents have turned to niche markets to survive. Horizontal integration gives the ‘multiple’ agencies such as Thomas Cook an even greater advantage as they gained more control of the retail market by buying other travel agency chains such as ‘Going Places’ and Co-op Travel’. Airlines have integrated over the years in order to gain control of the market.
Sometimes in the interest of the consumer, governing bodies do not permit this to go ahead. An example is when British Airways wanted to merge with American Airlines. The governing body IATA declined their proposal as this would have enabled them to dominate the pricing of transatlantic flights from the UK. The sectors making up the structure of the travel and tourism sector include government organisation, transport, accommodation, tour operators and visitor attraction. Their roles are:- 1. Government organisations: – “UNWTO plays a central and decisive role in promoting the development of responsible.
The transport sector is made up of the following:- Airport and port authorities Airports and port authorities are not only in existence to make a profit, but they have very serious responsibilities to society. In the words of Sir Michael Bishop, chairman of BMI stated “Transport is the backbone of a sustainable economy; it brings people together, facilitates trade and sustains tourism”. Running an airport is a complex, lucrative operation. An airport provides products and services to various groups of people and businesses: ? Airlines are provided with the infrastructure and services to operate their flights ?
Customers are provided with facilities, such as restaurants, toilets and shops ? Other businesses get a location in which to operate their business, for example car hire. Airports can be part of the private or public sector, for example BAA, who own six airports including Heathrow, Gatwick and Stansted was bought by an international consortium in June 2006 and subsequently delisted from the London Stock Exchange in August of the same year; whereas Manchester airport is public sector, being owned by the City of Manchester and none other Greater Manchester councils.
The ideal view of privatisation is that it enhances individual freedoms, encourages and improves efficiency, makes industry more responsive to the demands of the customer, decreases the public debt, and reduces the potential stranglehold of trade unions by forcing management to face the realities of the market place. Vickers and Yarrow (1989) report that in an investigation of the relative performance of private and public enterprises, the evidence does not clearly establish the clear-cut superiority of private ownership with respect to cost efficiency.
They do make the point, however, that privately owned firms tend, on average, to have lower costs (more internal efficiency) when competition in product markets is effective. Port authorities The main role of port authorities is to provide a service to ships and cargo. With the increase in activity in this sector along with the cruise sector growth, ports have become a good location for value-added services which have evolved from customer needs and demands.
The UK’s leading ports group, Associated British Ports (ABP) owns and operates 21 ports in England, Scotland, and Wales, and handles approximately a quarter of the country’s seaborne trade. One of the ports owned by this private sector company is Southampton whose success has been greatly increased by the increase in cruising options available due to its unique double-tide and deep-water. . The Port of Southampton is the cruise capital of the UK, serving more than one million passengers each year.
Southampton boasts the finest cruise passenger facilities from dedicated terminals through to extensive car parking, and including the opportunity to arrive from door-to-port by rail. Airlines None of the airlines in the UK are government owned, but some are owned by their shareholders and are therefore Public Limited companies such as British Airways. Airlines can be broken down into the following sectors:- 1. Scheduled These run on a regular timetable which is updated twice a year to produce a winter and summer schedule. An example of a scheduled airline is British Airways.
Depending on the aircraft type and routing, scheduled airlines will offer different classes of travel such as economy, business and first class in order to meet the needs of all prospective customers. All scheduled airlines will give a free baggage allowance and most will offer a full inflight service of complimentary beverages, meals and in-flight entertainment (depending on length of flight) 2. Low Cost The introduction on ‘low cost’ or ‘no frills’ offered a significant change to the industry where passengers can be offered a low fare but will be charged for extras such as baggage, seat allocation in-flight services.
They work on a system of ‘yield management’ which means that prices are constantly monitored and prices adjusted accordingly, therefore in high season, or other periods of high demand fares can be more expensive than traditional airlines. These airlines operate their timetables in the same way as scheduled airlines. Examples of low cost airlines are Easyjet and Ryanair. Since seeing the success in this sector some traditional airlines have formed low-cost airlines such as BMI who formed Bmibaby in 2002. 3. Charter Tour operators contract (charter) an aircraft for specific holiday seasons or day-trips.
The services on-board chartered aircraft vary greatly depending on the airline the company has chartered. Once the tour operator has committed to the chartering of an aircraft for a period then they are committed. This can lead to reduced prices of package holiday’s off-season or if a flight is not fully booked. Some tour operators are integrated with airlines. Major tour operator ‘Thomas cook ‘are horizontally integrated with ‘Thomas Cook Airlines and will therefore use their own aircraft first when arranging chartering services for their holiday programme.
Charter airlines are constantly changing their pricing structure and whilst some will include an in-flight meal and luggage allowance like scheduled airlines do, others have followed suit with low cost airlines begun to charge the customer for all ancillaries. Cruise and shipping companies The cruise sector has been the fast growing sector in the travel and tourism industry over the past ten years due to increase in demand and the creation of new cruise ships. Whilst niche markets still exist in this sector, many companies have expanded their portfolio to reach new markets such as
families and young people rather than the older groups who were the traditional cruisers. Companies have also targeted the market of those who do not want a fly-cruise and wish to avoid flying altogether, hence the success and development of Southampton port. River cruises are another popular and increasing market, who offer cruising on rivers such as the Danube, Rhine and Nile. The rivers sector is now the fastest-growing part of the UK cruise market with 8 per cent growth in 2010 to 134,000 passengers.
The PSA (Passenger Shipping Association) stated in the leading trade journal TTG that “Cruise holidays grew by 6% in 2010 despite the total number of foreign holidays continuing to decline, new figures from the Passenger Shipping Association revealed today. The independent body’s 2010 Cruise Review showed that cruising accounted for a 4. 5% share of all the 36. 1 million foreign holidays taken last year and 11. 5% of the package holiday market of 14 million”. Coach Companies Approximately nine million people take coach tours each year. Coach tourism contributes ? 2.5 billion to the UK economy.
Coach companies have adapted their products to meet customer’s ever-changing needs and demands. There is an increasing demand for day excursions, short breaks and holidays by coach which companies need to respond to. Companies also offer fly/coach holidays where customers have the benefit of touring areas of interest such as California. In response to this , major coach companies have excellent working relationships with airlines, ferry companies and accommodation providers. A few companies have integrated with tour operators to give better control of the market.
An example is ‘Tourama’ who are now owned by the tour operator ‘Cosmos’. Railways There are 24 train companies that serve the length and breadth of the UK. The national rail network in the UK is owned by ‘Network rail’, whose role is to maintain the infrastructure and when necessary renew the tracks. There are also Train Operating Companies, known as TOC’s who lease trains from rolling stock companies. The Strategic Rail Authority issues issue the franchises and monitor the train operating companies to ensure rail passengers are protected. Examples of TOC’s Virgin Trains and Central Trains.
These are commercial profit-making companies who do not receive any government funding. Transport for London (TFL) are responsible for the running of the London Underground and Docklands Light railway . They operate a driverless system and aim to create an additional 4 million daily journeys by 2025. Their sophisticated computerised system is closely managed 24 hours a day, 365 days a year. A massive breakthrough in rail travel was the introduction of Eurostar in1993, the passenger train service for the channel tunnel operating from London to Paris, Lille and Brussels.
They are public sector and owned by London and Continental Railways. Car Rental Companies Major car hire companies such as Hertz and Avis operate internally and have representation at international airports and work in conjunction with airlines to offer travellers exclusive deals. They also offer online and telephone pre-booking service and have met demands of customers by offering a wide range of vehicles, including comprehensive insurance and offering pick off and drop off in airport and downtown locations, including one way rentals.
Reservations and sales staff Reservations and sales staff play a key role in the success of the travel and tourism industry. Whilst opportunities increase for the customer to book directly online, many consumers prefer to deal with people either face to face or by telephone. The quality of the staff reflects directly in the success of the company. The role of reservations and sales staff is to give advice and correct information, sell and administer bookings.
The influence of local and national governments and international agencies on the travel and tourism sector Task 2 – LO2: For the country i live in provide an analysis of the function of different levels of government. In your answer you need to discuss the range of government national and international agencies, and government sponsored bodies and their main roles. Local and national economic policy can influence the success of the sector, provide examples how this is done using an area you or familiar with or have researched.
VisitBritain formed in 1993 and are the national tourism agency who are responsible for marketing Britain worldwide. They are non-departmental public body who are funded by the Department for Culture, Media and Sport. Although they primarily market Great Britain as opposed to the whole of the UK, Visit Britain work with the Northern Ireland Tourist Board and assist in the marketing of NI as a tourist destination. The public sector plays a significant role in tourism and has traditionally provided funding, staff resources and the organisational capacity to create and manage campaigns on behalf of the whole sector.
For many years this was restricted primarily to local authorities typically in those areas of the country with a well-established tradition of hosting visitors and and a network of Regional Tourist Boards which were established through the Development of Tourism Act (1969). Following the creation of the Northern Ireland Assembly in 1998, it was agreed that the promotion of tourism should be an area of co-operation. At this point a new publically owned company was established by the two governments in Ireland to promote increased tourism to the island of Ireland as a whole, working closely with Bord Failte.
The Northern Ireland Tourist Board is currently receives ? 13. 88 million annually in government funding. ( Source:http://www. publications. parliament. uk/pa/cm200001/cmselect/cmcumeds/430/1042614. htm) Current Responsibilities for Tourism Development in Northern Ireland:- Department of Enterprise, Trade and Investment (DETI) Lead Government Department for tourism in Northern Ireland. Responsibilities include: • Development of tourism policy (including targets and priorities); • Bringing forward, and amending, enabling tourism legislation; • Securing funding for tourism;
Tourism Ireland Responsible for the overseas promotion of the island of Ireland as a tourism destination and supports Northern Ireland to realise its tourism potential. Invest Northern Ireland Responsible for tourism accommodation grants and business support to the tourism sector for ‘client companies’. LOCAL TOURISM DELIVERY Local Councils Take the lead on tourism strategy and development within their council boundaries. This includes: • local marketing, • local product development; and • local infrastructure development and enhancement.
Regional Tourism Partnerships and Other Bodies Co-ordinate some of the marketing and product development efforts on behalf of various local Councils and the private sector. Private Sector Provision of all those facilities and services essential to tourism eg accommodation, things to see and do, standards of service etc. Belfast is the capital of Northern Ireland and to assist in marketing it as a major and leisure and business destination, the Belfast Visitor and Convention Bureau was established in 1999. to promote Belfast as a major leisure and business tourism destination.
The Bureau works in partnership with the industry in promoting the city, and currently represents over 300 businesses in the Greater Belfast area. The implications of political change Task 3 LO2:- Using the area you live, and the UK, and a country of your choice explain the implications of political change on the travel and tourism industry. Consider the reasons for government involvement in travel and tourism, the influence of government and how the industry has been impacted by a political change eg change in political party, or a change in the level of stability.
This report will investigate Northern Ireland, the UK and Mexico, explaining implications political change had on the travel and tourism industry. Northern Ireland How political change in Northern Ireland affected the tourism of the country has been extraordinary. Since the ceasefire in 1994, fear of visiting the province has decreased and there has been a steady growth of interest in Northern Ireland as a tourist destination. Despite scepticism, especially from the unionist party members, this was a significant breakthrough.
In 1998, there was another major political development in the Northern Ireland peace process, namely the ‘Good Friday’ agreement. This set out provisions relating to areas such as the relationship between Northern Ireland and institutions in the Republic of Ireland and United Kingdom; human rights; respecting each other’s traditions within their communities; the decommissioning of arms by paramilitary groups; release from prison of political prisoners and changes in British security arrangements in Northern Ireland.
Tourism has continued to grow at a steady pace and the predicted spin off of the MTV Europe Awards which Belfast hosted in November 2011 combined with the planned events marking the centenary of the Titanic disaster predict to put Northern Ireland on the global tourism map. Northern Ireland has high ambitions since it’s transformation and aim to ensure the next ten years create even more tourism that the past ten years. Their tourism strategy compiled by NITB states that they aim to double tourism figures.
This is an amazing achievement as progress of tourist numbers was very slow in the years preceding 1994 and Northern Ireland was thought of as an unsafe place to travel to as opposed to a holiday destination. The table below demonstrates how poor tourism figures were pre 1994 and how this increased rapidly from 1994 onwards. Source: UK Occupancy Study / Failte Ireland The growth in tourism has been assisted by the improvement of accessibility to Northern Ireland with the introduction of low cost airlines and new routes being added. Various other factors have affected tourism in Northern Ireland in a positive way.
In 2009, there was a 30% increase in the number of tourists from the Republic of Ireland . This was due to residents of ROI feeling safer and not under threat and also the fact that value for money was better due to ROI being in the Eurozone and cost of living soaring. Also the multi-million pound road improvements on the main N1 motorway completed in 2007 made travel from South to North very comfortable and easy. Previously, ROI residents may have feared travelling north as they would have been easily recognised by their accent and car registration number which may have led to them being targeted and harmed by extremists.
This development was welcomed and changed the tourism mix due to a fall in numbers from international and Great Britain markets – this being due to the international global economic crisis. Government must work in conjunction with the tourist board to ensure potential tourist feel safe and welcomed when visiting the country. Quality of life in Northern Ireland is being enjoyed at a much higher level than the dark days before any significant tourism existed with the social skills being developed of those working in the hospitality industry conversing with different cultures and the creation of extra jobs in the sector.
United Kingdom Leading market research company ‘BCC Research’ recently stated “the sharp decline in tourism cannot be wholly attributed to recessionary factors, rather the lack of heavyweight support given to the tourism industry within government” and “poor decision making and allocation of resources”. The current recession is a result of financial mismanagement on behalf of the British government. As the economy was booming and there was plenty of money in circulation, the government responded by lowering interest rates instead of raising rates to control inflation.
This led to the newly appointed government introducing massive cuts and the marketing budget for ‘Visit Britain’ being cut by 18 per cent. At a time when other countries are increasing their marketing budgets and much needed tourist spend is required in the UK this strategy may lead to a downturn in tourism. With the weakening of the pound it could be argued that the UK would make an attractive choice for tourists, but this is not reflected in tourism numbers to date. Tourism is the fifth largest industry in the UK and employs 1. 4 million people directly and 1.3 million people indirectly.
A recent report by ‘Deloitte’ suggested that tourism was worth 8. 2 per cent of GDP; so in the current economic climate the UK cannot to afford this, but there are fears the government are doing little to help increase tourism. MEXICO The Current government of Mexico has been waging a five year battle with drug trafficking gangs in the hope of dismantling them and creating a stable society. Combined with the drug-related violence, reports of car-jacking and theft, Mexico’s adverse publicity has led to a drop in the number of tourists from US tourists crossing the border.
Surprisingly, according to Mexican government officials, tourism in general has only been marginally affected, but the most likely reason for this is major price cuts which have been applied to Mexican cruises to increase tourist numbers. Since 2006, the year that the military offensive was launched against drug cartels, government statistics report that more than 28000 people have been murdered in Mexico. Both US State Department and British Foreign Office have issued warnings concerning the violence in Mexico.
The government continue their efforts to increase tourism as this is one of Mexico’s most important industries, generating 9% of their GDP. The foreign office website states the following advice on travelling to Mexico:- “Millions of foreign visitors, including approximately 300,000 British nationals, safely visit Mexico each year. This includes tens of thousands who cross the border with the US every day for study, tourism or business and at least one million foreign residents who live in Mexico. However, crime and violence are serious problems in Mexico.
While most victims of violence are Mexican citizens associated with criminal activity, the security situation does pose risks for British nationals as well. The Mexican government makes efforts to protect foreign visitors to major tourist destinations. Resort areas and tourist destinations in Mexico such as Cancun, Playa del Carmen, Cozumel, Los Cabos and Puerto Vallarta have historically not seen the levels of drug-related violence and crime reported in the northern border region and in areas along major drug trafficking routes. ” Source:- www. fco. gov. uk – date accessed 31 Jan 2012)
The current President has taken a stand on the drug trade and it has increased the violence between the military/police and the drug distributors. It used to be that the politicians and police were all tipped off to look the other way. The situation has impacted tourism to mexico dramatically as due to apparent danger and political unrest their highest target market of tourist – USA – are not travelling to Mexico in the high numbers they previously did. Data released by “SecretarAa de Turismo” (Ministry of Tourism, Sectur) indicated that tourist arrivals continued to fall in 2009, totalling 12. 6mn in the first seven months of the year, a fall of 6. 6% year-onyear.
This will inevitably lead to Mexico’s economy suffering if these figures do not improve therefore pressure is with the government to tackle the issues and increase potential for tourism. Investigate the effects of supply and demand on the travel and tourism sector Task 4 LO3:- Explain the factors which affect tourist demand. Using the course text book (Cooper) and the ilearn to research the theory of demand explain how this applies to the travel and tourism sectors using examples.
The definition of tourist demand can vary from the point of view of various groups of people. Economists base their definition of demand on specifics of price people are prepared to pay within a price range during a specified time, however psychologists will view demand from the perspective of motivation reasons and behavioural patterns. The gravity model based on Newton’s law below demonstrates forecasting the flow between markets and generations. This can be used to forecast tourism based on size of a generating market, the attractiveness of a destination and distance between them.
Source: http://hotelmule. com/wiki/Gravity-model Tourist demand is affected by economic decisions such as a consumer’s disposable income and factors like responses of the market providers to adapt to the needs of the individual consumer. Taking these into consideration helps us to understand the customer decision process which is broken into four basic elements:- 1. Energisers – what motivates the consumer to go on holiday. 2. Effectors – how the consumer’s ideas have developed on a destination based on the promotion of a destination or their knowledge of it.
Roles and decision making – this could involve a travelling companion, travel agent or a family member who is involved in the purchase process. 4. Determinants – this refers to all areas of consideration which a consumer uses to determine their requirements, for example income and motivational factors. Places of tourism demand are closely linked to a person’s age-group and family circumstances. Major tour operators have responded to these demands by ensuring they have a wide portfolio of products to meet individual needs.
Although chronological age would appear to be the most obvious way to categorise, the fact that others travelling in the party is a major consideration. Children can have a significant influence on a parent’s decision, who may then in turn invite the grandparents to join them. A good example of how tour operators recognised this and met this demand was the offer from ‘First Choice’ of free child places and also free grandchild places for selected family properties. Principals have based their entire portfolios on demands of their targeted markets and therefore study consumer behaviour and tourist trends on a continual basis.
An example is the ferry companies, Stena line and P+O Ferries who offer free student travel at beginning of term to promote their product to parents of students who may be taking their children to university by car. Major Principals will monitor school closure dates and price their holidays accordingly, which is the reason why special offers appear only to be on off-peak dates. Ski operators also hike their prices on mid-term breaks and holiday times. Demand for tourism gives airlines, hotels and tour operators the opportunity to charge inflated prices at periods when they are aware demand is high and availability is limited.
Demonstrate how the industry has had to respond to changes in demandin: effects of the global recession, an ageing population, use of home computers/mobile technology, media influences. Explain how the industry has responded by changing their products/services to meet these changes in demand. Global recession The response of airlines to the global recession has been to cut back in areas such as call centres and sales managers, marketing their product cost-effectively on-line.
Airlines have cut fares, even though unit costs such as in-flight catering and fuel have risen dramatically. They depend on volume of sales to make a profit. The Charter market responded to the recession by no longer offering a full service on-board flights, and began to make additional charges for ancillary services such as baggage and in-flight meals. On the other hand, countries less affected by the recession such as UAE are expanding by ordering a further 144 planes costing $48 billion. An ageing population
Due to the fact that a quarter of the UK population is over 55 and this age-group is forecast to increase by 15% over the next decade, Tour Operators have responded by acknowledging this segment of the market needs to be specifically targeted. Major tour operators Thomson and Thomas Cook have both added products to their portfolio to meet these customer’s needs. ‘Forever Young’ and ‘Golden Circle’ by Thomas Cook and ‘Thomson Gold’ by Thomson take advantage of the needs of this age group in the knowledge that they generally have more disposable income and leisure time.
Tour operators have taken into consideration that this age group prefer a good standard and will mainly prefer serviced accommodation and this is reflected in their products offered in their brochures. Coach tours popular with this age group now offer a superior product keeping in line with customer demands. The ever expanding cruise market operators also offer the incentive of reduced prices to the over 55’s age-group, and the operator ‘Silverseas’ market their luxury product to this age group. Use of home computers/mobile technology
The use of home computers has not only given potential tourist the ability to study their chosen destination, but also to book and pay for their holiday without the need of a travel agent. Although convenient and at times cost-effective for the consumer, there is a danger that they are not financially protected in the event of company failure. All airlines and tour operators have websites, but there are an increasing number of companies operating with different websites under one parent company who offer either limited or no financial security. This can make booking on-line a risk for the consumer.
The Wireless Application Protocol (WAP) was introduced by mobile manufacturers in 1997. This enabled users to browse the internet, use email and connect to specific providers eg weather, but the breakthrough in how the industry was affected with mobile technology cane with the introduction of the I-Phone. Not only can holidays and flights be booked, but airlines such as British Airways have developed an application which can be downloaded and offers on-line check-in and the downloading of boarding passes which can be scanned at the departure gate.
Ten billion apps have been downloaded in the past three years. According to the local daily newspaper, Belfast Telegraph (17th February 2011)There are 17,000 travel apps on the market and 160 million app-compatible devices are owned worldwide – which are iPhones, Androids, Blackberrys and tablet devices. Airlines responded to advances in technology by realising there was no longer any demand for paper tickets and all now operate an e-ticket system. Media influences There are various ways in which television and newspaper media can influence reports on events that have taken place.
Positive effects (eg South Africa who hosted the World Cup in 2010) or negative impacts (eg Thailand when the tsunami disaster hit in 2004) can influence tourist behaviour to particular areas. When choosing resorts and accommodation consumer behaviour has changed and social media due to the familiarity of sites such as ‘Facebook’ and there is a tendency to take advice from review websites like ‘Trip Advisor’. This is a new trend in society whereby consumers tend to trust opinions of unknown people who have posted opinions and may not be posting an honest or accurate review.
Task six L O 4 Using destinations selected from the UK, Caribbean, Europe and Africa and evaluate and report on the main economic, environmental and social aspects of tourism and how they inter-relate. Provide an accompanying explanation to explain strategies that can be used to minimise the negative impacts of tourism whilst maximising the positive impacts. London Economic According to Wikipedia, “London is the world’s leading tourism destination, and the city is home to an array of famous tourist attractions”.
London attracts 30 million international visitors per year, making it the world’s most visited in terms of international visits. The Tourist Board for London is called Visit London. The Government Office for London states that tourism revenues constitute 10 per cent of London’s GVA (gross value added) and contributes to the employment of up to 13 per cent of London’s workforce. According to the London Development Agency, visitors to London spend around ? 15bn each year. Environmental Tourism is both a contributor to, and in some locations, at risk from, environmental problems, proving the need for a sustainable tourism policy.
However, in many cases these can be turned into opportunities as demonstrated in the strategies of both the BTA who work closely with ‘Visit London’. Green Tourism for London, launched by the London Development Agency in 2007 (the mayor of London’s agency responsible for sustainable tourism) and with the support of Visit London, is the new scheme for hotels, guesthouses, attractions and venues in the capital, giving incentives for hotels and attractions to ‘go green’. Many have been independently audited and accredited by the national Green Tourism Scheme Social
The challenges tourism present for social equity can be turned into opportunities can be demonstrated in strategies of the BTA and ETC. The mayor of London has developed a plan which includes taking into consideration the mutual needs of the tourist and habitant of London. He has stated in his vision that “Growth of the visitor economy must therefore also be managed to create, in the long term, a city that is better for Londoners and that people will want to visit – a city that is fair, accessible, safe, supports a high quality of life and respects the need for sustainable development.
” For those living in the city, he has also promised to “Provide opportunities for disadvantaged communities to acquire skills and achieve progression in the tourism sector through work-based learning opportunities, mentoring, placements and traineeships”. ‘Green Tourism for London’ holds the mission statement “To improve the quality of life for all Londoners, by working to create jobs, improve skills and promote economic growth”. Antigua and Barbuda The tourist industry in Antigua and Barbuda was among the first to be developed within the Eastern Caribbean, and is presently ranked as one of the largest in the region.
The geographical position of the island makes it a strategic first stop or last landfall for both aircrafts and pleasure yachts crossing the Atlantic. Economic Tourism is Antigua’s most important productive sector, and was in 2007 estimated to account for 40 % of all employment, and 70 % of GDP. Tourism is still the largest contributor to Gross Domestic Product, despite the fact that in 2009 Antigua’s economy was severely hit by the global economic crisis. It suffered from the collapse of its largest financial institution and saw a steep decline in tourism.
Positive growth returned in 2011 and tourism is on the increase again. For Antigua and Barbuda, economic growth in the medium term will continue to depend on income growth in their tourist markets, which are mainly the UK, USA and other islands in the Caribbean. According to statistics printed by the Antigua Tourism authority Cruise lines supply the largest number of visitors totalling 60%. The Antigua and Barbuda Investment Authority reported that in 2007 Antigua and Barbudas tourism arrivals totalled 261,785 stay over visitors and over 500,000 cruise passengers from 440 cruise calls.
Environmental In spite of the fluctuations in the actual numbers of passengers, the cruise lines still supply the largest group of visitors. Unfortunately there can be negative environmental consequences of the tourism cruise ships bring to the islands. They can leave large amounts of pollution in the ecosystem every year. Ships also dump large amounts a waste, sometimes illegally, into the Caribbean Sea to which has damaging effects to coral reefs and marine wildlife. The Caribbean had made several lawsuits towards cruise lines for ‘illegal, environmentally unsafe actions’.
Cruise ship pollution is now currently being monitored and regulated by the MARPOL to ensure all waste is disposed of properly; thereby protecting the local environment. Tourism in the Caribbean had began to damage local ecosystems. The increased demand for electricity, seafood and water had caused prices for these resources to reach record high price levels and have led to Antigua being listed as “water scarce” due to the large consumptions due mainly to tourist resorts.
Caribbean Action For Sustainable Tourism’ has created a plan of action for the tourism industry which contains ten important areas, waste minimization, energy efficiency, conservation and management, management of fresh water resources, waste water management, hazardous substances transport, land-use planning and management, design for sustainable tourism. The aim of the organisation is that the plan will help preserve the ecosystem, which is clearly at risk from tourism. Social The current population of Antigua is 68,000.
The importance of tourism in society is crucial as the industry generates approximately 48% of All Jobs. Antigua tourism authority estimated that it requires a visitor expenditure of around 64,350 East Caribbean Dollars (approximately ? 250,000)to create a single full-time job. The government have recognised the importance of effective tourism management and have therefore implemented strategies to help the people living in Antigua to become adequately trained in all aspects of working in the tourism industry.
The Ministry of Tourism has launched a tourism cadet programme that seeks to develop a cadre known as the Antigua and Barbuda Tourism Cadet Corps with a knowledge and understanding of the needs, problems and opportunities within the tourism sector and also to provide hands-on training and development within the tourism business. There is training provision in Antigua in both the public and private sector through the ABHTI(Antigua and Barbuda Hospitality Training Institute)training for all service employees, customs, immigration, taxi drivers and private sector companies are incentivised to release employees for training.
Although tourism can create a demand for western lifestyles and attitudes and threaten the local culture of these Caribbean islands , the need for tourism in order for the islands to survive is obvious, hence the government taking steps to sustain it. Some citizens may feel excluded from their own island, but in order to survive tourism must be sustained. Barcelona Economic Barcelona is one of the richest regions in Southern Europe and accounts for more than a quarter of Spain’s GDP, ten per cent of which is directly attributed to income from tourism.
Barcelona enjoys booming tourism with it’s uniqueness of being a city which has a beach. It is not only a popular cruise port and a city renowned for it’s architecture, but also a gateway for many other attractions such as Portaventura theme park, Montserrat, trade exhibition facilities, sporting activities such as football and racing and accessible skiing in the winter months. Since Barcelona hosted the Olympic Games in 1992, the city has experienced steady growth in tourist numbers, while continuing to specialise and diversify its supply and demand.
Taking advantage of this event, Turisme de Barcelona was set up as the result of an agreement and the close relationship between Barcelona City Council and the Barcelona Chamber of Commerce and has since developed and identified a number of programmes and actions to promote the city as a tourist destination, making Barcelona the European city that has experienced the greatest proportional growth in terms of the tourism sector. Their vision is:
Barcelona will still be recognised as the most vibrant and dynamic tourist destination in the Mediterranean and one of the world’s leading destinations, and has established its position as a destination that has gone way beyond its administrative boundaries. It is a city where tourism is fully integrated into its economic, retail, social and cultural dynamic and where the community recognises all kinds of visitors as other (temporary) citizens.
The hospitable character of the locals makes it a friendly, different city that people are fond of. A metropolitan city which is distinguished by its environmental sustainability, its excellent service, its continuous ability to surprise and its groundbreaking initiatives. Culture, creativity and knowledge are the engines of the city and its territory. The real city, its identity and dynamism form the basis of its appeal and there is no room for “ghettos” or neighbourhoods that cater exclusively to tourists.
In order to balance the needs of tourists whilst conserving the environment, the government have introduced sustainable projects to manage the environmentally negative impacts of tourism. Projects have included making more areas in the city pedestrianised in order to reduce pollution by traffic and congestion. Also the development of cycle lanes and bus lanes encourage tourist to use more environmentally friendly modes of transport. Alongside this, walking tours are very popular and create an environmentally friendly method of sight-seeing.
The environmental impact of cruising has led to the need for responsible tourism being addressed at government level with the introduction of ‘The City of Barcelona Strategic Tourism Plan’ and includes the introduction of regulations that must be adhered to by cruise lines who operate in and out of Barcelona. Social Barcelona’s status as a tourist city has led to many social adaptations which have been viewed at times as an inconvenience to the local community and can create a feeling of unease and anti-tourist sentiments.
The introduction of low cost airlines has seen Barcelona become an accessible destination for sometimes unwelcome stag and hen parties. The infiltration of multi-national chains such as McDonalds and Starbucks are threatening local businesses and causing closure and changing the culture as tourists are supporting these familiar outlets instead of experiencing the authentic Spanish cafes. This has led to many locals reluctantly moving from the city centre to avoid the high numbers of tourists.
Crime level with regards to pick-pocketing is high in Barcelona as thieves take advantage of the mass tourists on a daily basis. Kenya Economic Kenya’s services sector, which contributes about 63 percent of GDP, is dominated by tourism. In the late 1990s, tourism declined due to increasing violence and suffered a further downturn following the bombing of the US Embassy in Nairobi. This led to western governments advising against travel to Kenya.
The government and tourist industry organisations took steps such as establishing a tourist police and launching marketing campaigns in an attempt to address the security problem and reverse negative publicity tourism saw substantial recovery over the following years and is the now Kenya’s largest foreign exchange earning sector. Kenya currently receives about 1 million tourists per year as compared to about 70,000 at the time of independence in 1973.
Tourism has become one of the most vital sectors of Kenya’s economy and a major foreign exchange earner as well as offering employment to well over 138,000 segments in direct employment and 360,000 in indirect employment. Environmental “Despite the country’s policy advocating spatial distribution of tourists in the country, tourism marketing has continued to focus on the traditional attractions, thereby perpetuating concentration. Impacts are most severe in crowded attractions – beaches have been polluted, coral reefs destroyed, marine species adversely affected and vegetation degraded.
Environmental regulations are either ignored or not effectively implemented. Mitigation efforts are constrained by weak institutions, corruption, mismanagement, inadequate political and administrative capacity”. New environmental guidelines for tourism were introduced by the Minister of Tourism in Kenya in 2007. In many places in Kenya, natural systems and biological resources such as the game reserves, water resources, beaches, forests etc are threatened by tourism that was not backed by well regulated development guideline.
These posed a risk to the attractions and services that are dependent for tourism to be sustainable. As a result of this environmental dependency, tourism has had adverse effects on the environment. Examples include pollution of water resources through waste disposal, trampling of vegetation and congestions in game reserves, and the pollution of beaches. Social Most forms of ecotourism are owned by foreign investors and corporations and offer very few benefits to the local communities in Kenya.
The majority of the profits are not reinvested into the local economy. Residents are frustrated at the limited employment provided in these areas and the small wages paid by those that are employed. An example of the resentment of local people was the highly publicised case when Maasai nomads killed wildlife in national parks to demonstrate their disapproval at their displacement from traditional lands. This action followed communities being ordered out of their homes in order to create national parks and game reserves for the purpose of tourism.
Local and national governments took advantage of the Maasai’s ignorance on the situation and robbed them of huge chunks of grazing land, putting to risk their only socio-economic livelihood. In Kenya the Maasai also have not gained any economic benefits. Despite the loss of their land, employment favours better educated workers. In some cases game reserves can be created without informing or consulting local people, who come to find out about the situation when an eviction notice is delivered (Kamuaro, 2007). Another source of resentment is the manipulation of the local people by their government.
“Eco-tourism works to create simplistic images of local people and their uses and understandings of their surroundings. Through the lens of these simplified images, officials direct policies and projects towards the local people and the local people are blamed if the projects fail” (West, 2006). Clearly tourism as a trade is not empowering the local people who make it rich and satisfying. Instead ecotourism exploits and depletes, particularly in African Maasai tribes. It has to be reoriented if it is to be useful to local communities and to become sustainable (Kamuaro, 2007).
There are many positive and negative aspects of tourism socially, environmentally and economically. Social costs may be that individual behaviour and family values may be altered as they are influenced by the behaviour of tourists, but this can also bring the positive cultural experience between hosts and tourists. Another example is the overcrowding issues brought about by tourism can have a positive effect as countries react by improving the infrastructure which can also be of great benefit to the residents. Economically, the positive impacts are the money spent by the tourists strengthening the economy.
When new money is brought into the economy, tourist money is returned to the local economy and spend over and over again , creating the multiplier effect. This should outweigh the negative aspects of mass tourism, especially in a country dependent on it. Environmentally, whereby mass visitor’s footfall may be of concern to natural areas, this in turn puts economic value on unspoilt natural resources and encourages the establishment of national parks and protected areas.