Lesson 1.

1.1 What is tourism?

Tourism has been one of the major economic and social phenomena of the past
century. Total international tourist arrivals grew from a mere 25 million in
1950 to 840 million in 2008.
According to a study by WTO*, the growth of international tourist arrivals is
likely to increase by about 4 percent a year, to reach nearly 1600 million by the
year 2020 [Fig1.]

[Fig .11] International tourist arrivals, 1950-2020 (million a year )

Tourism is already the largest sector of international trade in service, In 2008,

7,5 percent of the worldwide export value of goods and services came from
tourism, surpassing such leading industries as automatic products and
chemicals.
The world”s top 15 tourism destinations are shown in table 1. france is
number one in tourism arrivals, with 73.0 milion. France is followed by
the united states, spain, itali, and china. These five leading. Destinations
account for 35.5 percent of the world volume of tourismflows. The top
10 countries account for about 50.0 percent of the flows. While this is a
heavy geographical concentration, the trend is toward a gradual
diversification with the emergence of new destinations in the asia-pacific
regions. China, Poland, and the gzech republic have all made sizable
gains in their world ranking. Table 1..

A similar concentration pattern emerges if countries are classified

according to their tourism receipts.. Table 1.2. shows the rank of
countries by international tourism receipts, with the united states leading,
followed by spain, france, Italy, united kingdom, germany, china,
Austria, Canada, Greece, mexico, hong kong(china), Thailand, Australia,
and the Russian federation. For world tourism statistics, a visit to the
world tourism organizations”s web site is a must: http://www.world-
tourism.org.
Tourism is French word which derives from Tour, Tourisme and means
travel.
 Tourism can be defined as the science, art, and, business of attracting
visitors, transporting them, accommodating them, and graciously catering to
their needs

Tourism is alive with dynamic growth, new activities, new destinations, new
technology, new markets and rapid changes. Record numbers of tourists are
traveling the globe, attracted by an increased variety of tour packages, cruises,
adventure experiences and independent itineraries. The tourism industry is
global. It is big business and will continue to grow.
When we think of tourism, we think primarily of people who are visiting
friends and relatives, taking a vacation and having a good time. These visitors
use all forms of transportation, from hiking in a wilderness park to flying in a
jet to an exciting city.
Any attempt to define tourism and to describe 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. Four different
perspectives of tourism can be identified: [Fig.2]

Communi Tourist
ty

Tourism

Governm
ent Business

[fig2] Components of tourism.

1. The tourist. The tourist seeks various physical experiences and

satisfactions. The nature of these will largely determine the destinations
chosen and the activities enjoyed.
2.The business providing tourism goods and services. Businesspeople see
tourism as on opportunity to make a profit by supplying the goods and
services that the tourist market demands.
3.The government of the host community of area. Politicians view
tourism as a wealth factor in the economy of their jurisdictions. Politicians also
consider the foreign exchange receipts from international tourism as well as the
receipts collected from tourism expenditures, either directly or indirectly.
4 The host community. Local people usually see tourism as a cultural and
employment factor. Of importance to this group, for example, is the effect of
the interaction between large numbers of international visitors and residents.
This effect may be beneficial of harmful, of both.
Tourizm is a activities, servisis, and industries that deliver a travel
experriens; transportation, accommondations, eating and drinking
establishments, shops, activity facilities, and other hospitality servisis
availably for individuals or groups that are traveling away from home. It
encompasses all providers of visitor and visitor-related servisis. Tourizm
is the entire world industre of travel, hotels, transportation, and all other
components that, including promotion, serve the needs and wants of
travelers. Finally, tourism is the sum total of tourist expenditures within
the borders of a nation or a political subdivision or a transportation-
centered economic area of contiguous states or nations. This economic
concept also considers the income multiplier of these tourist expenditures
(discussed in the folloving Chapter).
One has only to consider the multidimensional aspects of tourism and its
interactions with other activities to understand why it is difficult to come
up with a meaningful definition that will be universally accepted. Each of
the many definitions that have arisen is aimed at fitting a special situation
and solving an immediate problem, and the lack of uniform definitions
has hampered the study of tourism as a discipline. Development of a field
depends on (1) uniform definitions, (2) descriptions, (3) analysis, (4)
predictions and (5) control. [ Fig3]

Moderns tourism is a discipline that has only recently attracted the

attention of scholars from many fields. the majority of studies have been
conducted for special purposes and have used narrow operational
definitions to suit particular needs of researchers or government officials;
these sduies have not encompassed a systems approach. Consequently,
many definitions of tourism and the tourist are based on distance
traveled, the length of time spent, and the pupose of the trip. This makes
it difficult to gather statistical informations that scholars can use to
develop a database, describe the tourism phenomenon.and do analyses.
WTO has taken the councept of tourism beyond a stereotypical image of
“holiday-making.’’ The officially accepted definition is: “tourism
comprises the activities of person traveling to and staying in places
outside their environment for not more than one consecutive year for
leisure, business, and other purposes.” The term usual environment is
intended to sxclude 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.
There are the folloving typs of tourism;
1. International tourism
a.Inbound tourism: visits to a contry by nonoresidents
 b.Outbound tourism: visits by residents of a country to
another country
2. Internal tourism: visit by residents of a country to their own
country
3. Domestic tourism: internal tourism plus inbound tourism
(the tourism market og accommodation facilities and attractions within a
country)
4. National tourism: internal tourism plus outbound tourism
(the resident tourism market for travel agents and airlines)

Treveler terminology for international tourism

Underlying the foregoing conceptualization of tourism is the overall

Concept of traveler, defined as “any person on a trip between two or
more countries or between two or more localities within his/her country of
usual residence.’’ All types of travelers engaged in tourism are described
as visitors, a term that constitutes the basic concept of the entire system of
tourism statistics. International visitors are persons who travel for a
period not exceeding 12 months to a country other than the one in which
they generally reside and whose main purpose is other than the are
person who travel to a destination within their own country, that is
outside their usual environment, for a period not exceeding 12 months.
All visitors are subdivided into two further caterories:

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
2.Tourists: visitors who stay in the country visited for at least one
night—for example, a visitor on a two-week vacation

There are many purposes for a visit—notably pleasure, business, and

other purposes, such as family reasons, health, and transit.

Thus, tourism may be defined as the processes, activities and outcomes

arising from the relationship and the interactions among tourists, tourism
suppliers, host governments, host communities and surrounding
environments that are involved in the attracting and hosting of visitors.
WTO has the concept of tourism a stereotypical image of “holiday-making”.
The officially accepted definition is “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”

The main types of travelers are indicated in figure 1.1 shown is

the fundamental distinction between residents and visitors and the
interest of travel and tourism practitioners in the characteristics of
nontravelers as well as travelers. It also reflect the apparent
consensus that business and same-day
Travel both fall within the scope of travel and tourism.
Placed to one side are some other types of travelers
generally regarded as being outside
The area of interest, although included in some travel surveys.
Foremost among these exclusions are commuters, who seem to fall
outside the area of interest to all in the travel and tourism community.
Other travelers generally excluded from studies on travel and tourism are
those who undertake trips within the community, which for convenience
are described arbitrarily as trips involving less than a specific one-way
distance, such as 100 miles. These ‘other travelers ‘ have been focused
on in the Nationwide Personal Transportation Surveys conducted by the
U.S. Department of Transportation. The board class of travelers
categorized as migrants, both international and domestic, is also
commonly excluded from tourism and travel research. They are excluded
on the grounds that their movement is not temporary, although they use
the same facilities as other travelers, albeit in
.

.Tourism definitions
The mean definitions of tourism are:

• Tourism – the free-will voluntary and temporary moment of

humans from their residences to other places in order to rest or
recover, to see historical or cultural monuments, or the movement
with other purposes.

• Tourist - a person, being out of his or her place of residence at least

for 24 hours, in order to rest or recover, to see historical or cultural
monuments or with other purpose.

• Medical tourism – the use of health resorts for the treatmd medical
examination, as well as for other medical services.

• Resources of tourism – the unity of Georgia’s infrastructures and

natural and domestic resources, meeting demands of tourist.

• Natural medical (health resort) resources – mineral waters,

medicinal muds, karst caves fit for the treatment, sea, forest, medical
climate and other natural resources used for the treatment and
prophylaxis.

• Area of healthy resorts the territory with natural medical resources

fit for target-orients exploitation when there are not appropriate
buildings on it.

• Health-resort - the area of health-resort, where the medical or

rehabilitation or building, or other object of infrastructure is located.

• Sanitary zone – the area especially protected under the laws of

Georgia, when this area is in need of the prevention of pollution,
damage or pre-term exhaustion of natural resources.
• Subject of tourism and health-resort activities (subject of the secort)
- natural person or legal entry carrying out activities in the field of
tourism and health-resorts.

• Activities in tourism-services rendered by the subject of the secort

in order to inform accommodate, feed transport and recover the
tourists, as well as the services for rehabilitation, advertising or tour-
operative mesures, also for excursions, entertainment and cultural or
sporting event. These services and directed to meet the demands of
tourists.

• Activities related to the health-resort organizing of the use of

natural medical resources, buildings and equipment (drill-hole, pump-
room, mud-care-room, gallery, bathroom, beach, climatic pavilion,
aerosolarium) and other objects of infrastructure (hotel, resthouse,
sanatorium, holiday hotel, sporting and cultural objects) for the
purpose of treatment, rehabilitation, recovery or prophylactics.

• Industry of tourism and health-resorts – the aggregate of the

subjects and objects of the sector of tourism and health-resorts.

• Product of tourism – a complex of services in tourism essential to

meet the demands of tourists while traveling or resting.

• Voucher – a document confirming the status of a tourist, category of

service to be rendered and the guarantee of service according to the
category.

• Tour – travelling according to the special route, defined purpose

and concrete term, provided by the product of tourism.

• Unorganized tourist – a tourist traveling independently without the

contract, voucher or fixed-route book.

• License for the activities in the sector of tourism and health-resorts

– a special permission confirming the right of its owner to the
mentioned activities.
 • Certificate of correspondence – a document, confirming the quality
of services in the sector of tourism and health-resort, as well as the
comliance of these services with the specific standard or with other
statutory act

•
Comprehensive classification of travelers

Lesson 3-4
Passenger transportation
Tourism involves the movement of people from one
place to another, both domestically and abroad.
Legislation in several European countries (France and
Italy) include transportation services to major services
provided by the traveler, along with a hosting service.
 In the framework of tourism statistics refers to the
transport medium, which uses a visitor to travel from
his residence in the place visited, however, many
transport companies and companies not only to
transport tourists, but also provide the transport of
ordinary passengers, cargo and mail, is not relevant to
tourism. Therefore, the seasonal nature of tourism is
creating serious problems for transport companies.

Standard International Classification of transport,

for both internal and external tourism consists of 2 x
level category (mode) and the discharge, which
determines the vehicle.

On air transport aircraft, there are flights operated

by scheduled air passenger transportation on the
specified routes. Non-scheduled flights (mostly charter,
Scheduled passenger air transport) as well as rental of
aircraft with crew. In this case, under the charter
means any passenger vehicle (air, sea) are fully leased
at the carrier's travel agency, to transport tourists.
Water transport includes the marine and coastal
and inland waterways. Maritime transport of special
interest cruise ships. The main emphasis in the
organization of cruises is on the receipt of positive
emotions from stay of tourists on board, rather than on
the rate of arrival of tourists to the destination.
In some cases, are used to attract tourists and ferry
vessels carrying not only the tourists and their
vehicles.
 Land transport is divided by railway, bus and car
(with up to 8 people). Movement of land transport must
comply with a schedule of regular traffic, but can carry
out transport and non-scheduled (special guided tours).
There is also a dedicated road transport, carrying
tourists along the routes of the airport-city train
station, city (transfer). Widely distributed hire vehicles
in the host country.
Tourism is totally dependent on transport, safety,
speed and convenience offered by the tourist during
the movement.
Understanding the basics of relationships with
transportation companies, of rules of interaction with
them in ensuring the safety of passengers and their
property, maintenance, use of appropriate discounts
and benefits for sales is important both for tourists and
for the tour. Tourism development is constrained by the
fact that the transport system in some countries do not
meet world standards in terms of convenience,
efficiency and safety, and the projects of construction
of new airports, roads and railways require for their
implementation of a huge investment and time.
Most turperevozok by interna ¬ ¬ GOVERNMENTAL
race and national airlines - carriers that have acronyms
- codes (AA American Airlines, AF, BA).
In the world are about 100 international companies.
In practice (depending on rebates and other
measures), there are about 20 varieties of classes of
service. Depending on the duration of the flight change
and shape of food on board (B, L, D, S, X - more then
one). Most airlines adhere to the following scheme.
During the flight duration of 2 - 2.5 hours - cold snacks
from 3-6 hours - hot meals and more than 6 hours - 2
hot food, ultra-long flights over 12 hours - 2 hot food, a
cold. Past 10 years, practiced a "special" food,
depending on the state of health, habits, or nationality
of passengers.
Ticket price depends on the type of airline, range
and direction of flight (route), the country and length of
stay in it, booking conditions, age of passengers. On
class of service depends on the order of registration,
meals during the flight and baggage allowance (20 - 40
kg).
For all classes there are the so-called basic rates
for flights there and back, which some airlines vary
depending on the season.
For this card I-st class business for sale for a year with
an open or a fixed date.
While tickets bought on the base rates are exchanged,
and when they return the value returned in full. When
buying a ticket is a contract of carriage, on his aviation
business (carrier) undertake to carry the luggage to
your destination, providing a place on an aircraft, flight
specified on the ticket, and in the event of the
passenger's baggage and deliver it to your destination
and give the person authorized to receive. Passengers
are obliged to pay extra for sverhnormenny baggage.
Every contract of carriage and its conditions of carriage
shall be certified document issued by the airline or its
authorized organizations or agencies.
Transport documents: a ticket for carriage of persons,
baggage check in baggage transportation. Thus, the
ticket is a contract of carriage by air.
Each airline defines the rules for moving people and
goods on their own - these rules must be consistent
with national laws of the country, involving itinerary
and international bilateral and multilateral treaties. If
they conflict with national legislation, the State's
territory, they are valid only to the extent not contrary
to law.
Listen

Chapter 1 focus on the operating sectors of the tourism

industry,starting with transportation.

These sectors represent a critical segment of the tourism

phenomenon shown in Figure 1.2. It is the operating sectors that
deliver the tourism experience and tend to be viewed by the media,
public, and visitors as the “tourism industry.”

Turning our attention to the transportation sector, we find

since the beginning of time, people have been traveling by various
modes – from on foot to riding in a supersonic aircraft.

Tourism and transportation are inextricably linked. As world

tourism increases, additional demands will be placed on the
transportation sectors (see table.3.1).
 Looking at the position occupied by the various modes of
passenger transportation, one finds that air travel dominates long-
distance and middle-distnce tourism.

The private automobile dominates for shorter trips and is the

most popular means of travel for most domestic journeys. The
automobile is also very important in regional and international
tourism.

Rail travel now plays amore limited role than it did in the past.
The development of high-speed trains and the opening of the
Channel Tunnel will increase rail traffic. Motorcoach transportation
reaches many communiies that are not served by any other public
mode.

An increase in traffic due to world tourism growth pyts pressre

on trans portation facilities, and this can have adverse
effects.Situations in the world vary widely within
regions,countries,states, and provinces.Those needing the urgent
attention of policymakers are so follows:

1. Congestion. Serious congestion affects most passenger

transportation modes, particularly on roads and at airports during
peak periods.In major cities there is danger of reaching
gridlock.Congesion means delays that are a serious waste ot time
and anergy.

2. Safety and security. Ensuring safety and security in

transportation is a basic requirement for tourism.
3. Environment. An increase in traffic may harm the environment if
an area does not have the carrying capacity for additional
tourists.Transportation planning must take economic, social,
cultural, and natural resources cost into account when designing
expanded gacilitise.

4. seasonality. Seasonal patterns of travel demand create

overcrowding at certain times. Conversely, low occupancies and
load factors will occur at other periods. At peak travel periods the
problems of congestion, security, and the environment become
much more server.
All of problems are challenges

THE AIRLINE INDUSTRY

In the span of fifty years the airline industry has grown from
infant to giant. The world’s airline industry now carries over 1.4
billion passengers per year.
There are about eight hundred air carries in the world. They
range from huge companies such as British Airways with
hundreds of planes to small one-plane airlins.
According to THE TRAVELL INDUSTRY YEARBOOK, the worlds
airlines employ more than three million people and fly from 14,000
airports.Airlines all over the world are currently showing strong
growth in both traffic and profits because of a passenger boom,
lower distribution cost, and increased cooperation through
alliances.
 In 2000 the U.S. airline industry launched iver 24,600 flights a
day, employed more than 679,967 people, carried 1.6 million
people each day, and recorded $129.5 billion in
revenues.Fortunately,these numbers hav resulted in positive
financial results as the airlines achieved profits of $2.6 billion in
2000.
The airlines have revolutionized travel, and the range and speed
of travel have greatly expanded what tourists or business travelers
could once accomplish with the equivalent time and funds at their
disposal.Today, for example, it is possible to fly aound the globe
in less time than t takes to drive across the United States.
The logistics than make it happen are complex, but the system
works well. For example, United Airlines offers over 2200 flights a
day to 139 destinations in 30 countries and combine to make a
total system that blankets the world.
Deregulation and Alliances
Under deregulation, the airlie industy has undergone dramatic change.
It is hard to believe that the twentieth anniversary of U.S. airline
deregulation has come and gone(Octobe 1998). Looking back we can
see that it has ked to significant consolidation, hub systems, low
airfares in competitive situations, and airfares where competition is
lacking.
The future holds more concentration as a wave of alliances has taken
place and more are proposed.
Are more alliances the wave the future of the aviation industry? Will
alliances benefit the consumer through greater choise, more seamless
travel, lower fares, greater convenience, and frequent-flyer miles? Or
will alliances create oligopoly and monopoly, higher fares, and a
noncompetitive situation?Only time and govermment action will answer
these questions.
 The expectation is that the alliance trend will continue for several
uears unless regulatory agencies stop it. Authorities in both the United
States and European Union are analyzing how to deal with major airline
alliances. The decisions made will shape the future of airlines around
the world.
U.S. air cariers providing scheduled service have an enviable safety
record. Table 5.1. shows accident statistics and indicates that being in
the air is one of the safest places you can be.
World and U.S. air transportation is expected to grow at a steady rate
in the future. The stronger the world economy, the greater will be the
rate of growth.
Becauze of the aftermath of the events of September 11,2001, the
FAA is revising its forecasts to show slower growth in the near term.
The FAA is projecting a return to normal rates of growth in fiscal year
2004. From that year forward, the FAA is projeqting traffic to grow at an
average annual rate of 4.0 percent.

Air Transport Association of America

The airline industry is supported by three major organizations.IATA

and ICAO have alredy been discussed under international
organizations; they are two key assotiations controlling air travel.There
major U.S. organization is the Air Transport Association of America.
In 1936, 14 fledgind airlines met in Chicago to form the Air Transport
Association (ATA) “to do all things tending to promote the betterment of
airline business, and in general, to do everything in its power to best
serve the interest and welfare of the members of this association and
the public at large.”
 ATA is the meeting place where the airlines cooperate in
noncompetitive areas to improve airline service, safety, and effecienc.
The mission of the ATA is to support positions, conducting designated
industrywide programs, and ensuring public understanding.
Thus while the carriers are intensely competitive among themselves
and with other forms of transportation in their individual promotion of
airline service for the travelingand sshipping public,they are equally
intense in their mutual cooperation on matters of industrywide
importance, such as safety, teqnological progress, and passenger
service improvement.
While ATA’s agenda of issues continuously changes, its major priorities
remain unchanged.They include:
• Assisting the airline industry in continuing to provie the world’s safest
system of transportation
• Advicating the modernization of the Federal Aviation Administrarion’s air
traffic control system, in order to improve service for airline customers
and ato benefit the environment.
• Increasing the security of airline passengers and cargo against treats
directed at the United States
• Seeking to prevent legislative and regulatory actions that would penalize
airlines and their customers by imposing rate, rute, service, or schedule
controls on the industry
• Endeavoring to reduce the disproportionate share of taxes and fees paid
by airlines and their customers at the federal, state, and lical levels
• Improving the industry’s ability to attract capital
• Helping to share international aviation policy, to ensure that U.S. and
foreign carriers can compete on equal terms

During its more than sexty years of existence , the ATA has seen the
airline industry grow from the small, pioneering companies of the 1930s
into key players in the world’s economy. ATA members continue to play a
major role in shaping the future of air transportation.

THE RAIL INDUSTRY

 Rail passenger transportation, once the major mode of travel in the United
States, reached its peak volume in 1920. Major railroads wished to rid
themselves of the passenger business, and today the survival of service
(other than commuter service) depends largery on Amtrak. In Canada the
situation has been similar and future rail travel depends on VIA Rail Canada.

Outside North America, where passenger rail service is less limited, rail
transportation assumes a more important role. Ultramodern railway systems
with high-speed trains operated in many countries, handling passenger
traffic in an economical and efficient manner and providing an alternative to
air travel. France and Japan are well known for their high-speed trains.
France has been willing to subsidze its rail system. The French government
has taken responsibility for rail infrastructure of the state-owned SNCF rail
company. Japan continues to improve and expand its famous “bullet train.”
Some of the largest railways in the world are found in the former Soviet
Union, India, and China.

THE MOTORCOACH INDUSTRY

The American Bus Association (ABA) reports that there are about 44,000
commercial motorcoachs in use for charters, tours, regular route service,
and special operations in North America. The buses carry about 800 million
passengers a year. Carriers involved in the regular-route part of the industry
operate approximately 8,000 to 10,000 over-the-road intercity coaches.

As reported at the 1993 White Hous Conference on Global Climate Change,

tercity bus service is the most energy-efficient passenger transportation
mode. In 1991, it was twice as efficient as Amtrak service three times as
efficient as automobiles and mass transit, and four times as efficient as
commercial aviation. In comparing data from large bus companies, the
carriers consume 997 Btu per passenger mile, compared to 1995 for Amtrak,
3325 for passenger cars, and 4457 for certificated air carriers domestic
iperations.

Charters and Tours

 Both domestic and international trevelers are heavy users of motorcoaches
because coache trevel gives them time to see and experience sights with a
group of friends without having to deal with traffic and road maps. About
one-third of U.S. motorcoach and tour operators polled by ABA report an
increase in overseas visitors.

The National Tour Association’s NTA 2000 Packaged Travel in North

America study provides information that enables tourism professionals to
determine the economic impact of a motor coach visiting a destination.

The impact to the local economy is $192 per paseenger, per day, or $7,680
per day, if the motorcoach has forty passengers. Expenditures include such
items as meals, lodging, shopping, admission fees, souvenirs, and local
taxes.

Motorcoach Organizations

The AMERICAN BUS ASSOCIATION (ABA) is the national organization of

the intercity bus industry and serves as the prime sourse of industry
statistics. ABA represents approximately seven hundred motorcoach and
tour companies in the United States and Canada.

The United Motorcoach Association (UMA), founded as the United Bus

Owners of America in 1971, is a trade association with nearly a thousand
motorcoach company members and motorcoach industry manufacturers,
suppliers, and vendors spread across North America.UMA member
companies provide a broad variety of charter motorcoach services, much of
it for preformed groups. Other member services include tours,schools,
intercity transit, and shuttle or commuter lines.

THE AUTOMOBILE

Most of the travel in the world takes place in the automobile. In the United
States, the TIA, using full-year results from the Natioal travel survey, reports
that about 80 percent of the person-trips are made by auto (includes rental
cars, truks, and RVs) compeard to 17 percent by air, 1 percent by bus, and 1
percent by train.Afforbadility, flexibility, and convenience make auto travel
the most popular mode of transportation all over the world.Because
passenger car registrations continue to increase worldwide, motor vehicles
will continue to be the dominant mode of transportation for decades to
come.

Taxi and Limousine Service

Taxi and Limousine companies play an exceedingly important part in

tourism. Local transportation companies perform vitalservices for bus, rail,
and shipping lines. Businesspersons and tourists alike would have a
difficult time getting from place to place if these services were not
available.Inclines andaerial trams serve as a form of taxi service and are of a
special interest to visitors in scenic tourist destination areas as a form of
recreation and sight-seeing.

THE CRUISE INDUSTRY

Cruise Lines International Association (CLIA) states that cruising is

currently the fastest-growing segment of the travel industry. It is
experiencing a surge of growth in passengers, sheps, and ship passenger
capagity.Cruise lines are expanding their fleets and adding new amenities
and mwe ports of call. As with other sectors of travel suppliers, a great deal
of consolidation is taking place.

Scince 1980, the industry has had an average annual growth rate of 8.4
percent. In 1980, 1.43 million passengers cruised; in 1997, a new record was
set with 5.05 million passengers (see Table 5.5). every year since, a new
record has been set,with 6.88 million passengers in 2000. The average
length of a cruise in 2000 was 6.5 days.
LESSON 5-6

Key indicators of the hotel

and models of organization. Food services.

It is hard to underestimate the tremendous role of infrastructure that the economy

is the services sector in the form of transportation, communication, and health
care, education, recreation, etc. As the economy develops, the role of the service
sector even stronger and more people are involved in its various industry.
Foreign scholars studying the role of the service sector in the development of
world economy, build a variety of experimental models in which they concurred.
The economic activities of the society starts from agriculture and then through the
industrialization of the economy is moving towards services. Last, they divide into
3 groups:
1. Business services - consulting, finance, bank;
2. Commercial services - retail trade, repair support;
3. Infrastructure services - communications, transportation, social, personal
service, and education.
In industrialized societies, produc ¬ nye firms often involve different specialized
firms for some, the so-called business services (marketing, advertising, financial
services, etc.), which costs them less than if they engaged in them, and banking
industry provides a modern translation tools, providing consulting services.
The hospitality industry covers a variety of organizations, including hotels, motels,
guesthouses, restaurants, cafes, shops, tourist goods, theme parks, clubs and
other areas related to tourism and recreation that provide social and personal
services.
The hotel industry - the kind of economic activity, which includes the provision of
hotel services and the organization reward short-term accommodation in hotels,
campgrounds, motels, schools and student hostels, guesthouses, etc. These
activities include services and restaurants. In international practice the standard
classification of tourist accommodation. According to her all the accommodation
facilities are divided into two categories: collective and individual.
For accommodation facilities include hotels and similar accommodation specialists
exist ¬ ¬ doped institutions and other enterprises.
Hotels have the following characteristics:
1) consist of numbers, which number exceeds a certain minimum (in Italy - 7
rooms, in Russia - 10) have a unified leadership, offer different accommodation
services, which list is not limited to daily dressing the bed, clean rooms and toilets
are grouped into classes and categories according to the services provided,
existing equipment and standards of the country;
2) do not fall into the category of special schools. Similar establishments include
boarding houses, furnished apartments, tourist residences and other
accommodation facilities, which consist of numbers and provide limited hotel
services including daily bed, dressing, cleaning rooms and bathrooms.
Special companies - in addition to providing accommodation services to perform
any other special features.
Among the enterprises of this type include: health, holiday camps, convention
centers and others. Other accommodation facilities provide limited services hotel,
except for daily dressing rooms and household cleaning. They can not take place
in rooms, and is a unit of type "housing area for camping," or "collective
dormitories.
All accommodation facilities are classified in separate groups:
Group - hotels and similar businesses, including hotels apartment, motels,
roadside and beach hotels, clubs with accommodation, boarding houses, rooming

rooms, tourist hostel.

Group of "special business" consists of resorts, holiday camps, etc.
The group "Other collective accommodation facilities" includes complexes of
houses arranged as housing, recreation rooms, enclosed areas for tents,
caravans, motor homes, harbor for small vessels, as well as youth hostels, etc. to
the individual accommodation facilities are own homes, apartments, villas,
mansions, cottages used by visitors, residents (including timeshare), rooms rented
by private individuals or agencies, facilities provided by relatives or
acquaintances.

OPERATING SECTORS

Accommodations
 For successful tourism, accommodations must be available in
sufficient quaintly to match the demand of the travelers who
arrive at the destination. Given access to the destination,
accommodations should precede any other type of development
their importance cannot be overemphasized.

The hotels must provide the physical facilities, price ranges,

locations, and services that meet the expectations, wants and
needs of the travelers. Should the quality of facilities and
services drop, demand will fall off a serious blow to the tourism
industry in the area.

Types of Accommodations

Hotels are of several types: commercial, resort, motor, airport

and residential. In relation to tourism, residential hotels are
probably not important, although there are usually some rooms
available to tourists in most residential hotels. The primary
type is the resort hotel situated in attractive surroundings and
usually accompanied by a large mix of services, including
entertainment and recreational activities for the traveler and
vacationer. The commercial hotel is usually a downtown
structure located conveniently for the business traveler,
convention attendee and vacationer.

The motor hotel is of primary importance for tourists

traveling by car and is of major importance in the United
States, Canada and Mexico. Suitable accommodations should be
available for all segments of the market.

Condominium Apartments

Individual buyers of condominium units typically use the

apartment for their own enjoyment, or they rent it to tourists
for all or part of the year. This from of accommodation has
become increasingly important and in some resort areas,
constitutes considerable competition to the resort hotels.
 Timesharing

Timesharing is a technique for the multiple ownership and/or

use of resort and recreational properties. Timesharing has
been applied to hotels, motels, condominiums, town houses,
single-family detached homes, campgrounds and even boats
and yachts.

The attraction of timesharing is simple: it permits purchasers

to own or have occupancy rights at a resort accommodation for
a period of time each year for a fraction of the purchasing price
of the entire unit.

Hotel Management

The management of a hotel should ideally be the same group

that was involved in the planning construction of the hotel.

All decisions pertaining to the management of the hotel

should begin with the customers and guests. What is the likely
reaction to each management decision implementation of such
a policy favors success for the hotel as the policy is most likely
to produce a high measure of guest satisfaction.

Success in hotel management also depends on organization

and the functioning of each department. Each of his or her own
department.

Hotel Classification

Hotels are classified using a number of different systems.

Then, too many tourist countries have no classification system
whatsoever. Many in the industry prefer the five-star rating
system, which grades hotels according to specific Criteria
(usually by the national tourist organization) from the highest
(five stars) to the most modest accommodations (one star)
suitable for travelers. Countries such as Spain also classify
nonhotel accommodations, such as pensions. Criteria used for
star ratings are public rooms, bathrooms, climatization,
telephone, bar, dining rooms and other characteristics.

Other classifications are deluxe, superior and good; or

superdeluxe and first-class reasonable. Still another
classification is A, B, C, D or E. because many classification
schemes are confusing or not useful, a uniform worldwide
classification truly indicative of the grades of hotels in any
country would be a real plus to tourism. Of course, differences
in general standards of development in various countries would
be understood. A five-star hotel in a highly developed country
would likely be more deluxe than would a five-star hotel in a
less developed area.

Promotion through Referral and Franchise groups

Accommodations firms can also hold a franchise, such as

Holiday inns or Hilton Hotels. All members of the franchise
encourage their guests to make free reservations at another
property in the group. Franchise companies operate sales
offices (called hotel rep firms) in major cities and also provide
national and international reservations services. All of this
effort is aimed at increasing members annual volume of
reservations.

Activities of the company placing ¬ characterized by the following indicators:

number of rooms (seats), klassnosti (categorization), load factor, a set of services
and their cost.
Distinguish big and small hotels. WTO (World Tourism Organization) recommends
that a small number of hotels with rooms to 30. Another view is that a small hotel -
this is who can be serviced and administered by members of one family. Small
hotels, mostly independent, ie not part of the hotel chain.
Based on international experience can distinguish the following types of
accommodation: a high-class, middle class, Aparthotels and Hotels in economy
class.
City Hotel-class is characterized by a large number of staff and a very high level of
service.
Typical characteristics of the hotel include the size (small to medium number of
rooms), location in the city center, highly skilled personnel, expensive furnishing,
high technology and equipment. Operated hotel management company.
Consumers of hotel services - business leaders, the conference, workshops,
individual tourists.
Another type of Hotels - the middle class with a wide range of services and tariffs
at the level of average prices in the region.
Apart-Hotel - hotel with service apartments, equipped with a set of dishes,
household appliances.
Economy class hotel - a hotel with a limited set of services, location, usually on
the outskirts of the city, on highways, allowing easy enough to reach the city
center. Price for 25% -50% below the average for the region, with well equipped
room. Meals - breakfast only. This type of hotels designed for tourists with
average incomes. Basically, the hotel industry, the following concepts.
Rental - property complex (building, part of the building, equipment), which
provide food and accommodation to any person.
Place (bed) - the area with a bed designed and suitable for use by one person.
Room - the room consisting of one or more persons (the identity element of
booking). Size and number notation is made in the tourist tour.
Key financial indicators:
1. general revenues of hotels - income from exploitation;
2. costs of operation. Development of recreational network has always been
closely linked with political and economic situation. Past recent dramatic changes
in these environments have a direct impact on the modern development of the
hospitality industry in Georgia. Organized recreation is becoming increasingly
accessible only to wealthy segment of the population, which prefers to foreign
countries. For the majority of people it becomes more and more inaccessible.
A significant role in reducing the demand is constantly increasing cost of
hospitality services (accommodation and meals), as well as higher prices of
transport. One of the main conditions for lifting the hotel industry - the revival of
domestic tourism.
Exploring the state of Georgia, the hotel industry should note the insufficient
number of hotels that meet international standards, poorly trained staff, outdated
infrastructure and complexity with the means of communication.
In the hotel management to distinguish between the reception guests, maid
service and technical service, service, marketing and supply. Recently, much
attention is paid to the security service.
The organizational structure of management of hotels worldwide hospitality
industry with a 50-s approval of the two main models of Hospitality Management.
Ritz model is associated with the name of a Swiss businessman Cesar Ritz. Many
prestigious hotels in the world bear his name. The basic rate of these hotels was
made to the European tradition of elegance and gentility. Currently, this model is
in crisis. Over the past 25 years with the global market descended more than 2
million hotel rooms in the style of "Palace". This model is associated with the
name of an American businessman Kemonsa Wilson (chain of hotels "Holliday
Inn"). In this model relies on a lot of flexibility to meet customer (regardless of
what country the hotel is located). Combined with the high standard of service,
much attention is paid to the interior, from the hall. The basic requirements are
organized on this model, converge to the following:
• unity of style of architecture, interior design, unity of notation and the external
into;
• spacious and functional hall quick registration of the client;
• Rooms are provided for regular customers, breakfast / buffet;
• availability of a conference hall, a flexible system of tariffs
• unified management of marketing and service communications.
Under the supervision of hotel chains, constructed from the second model, there
are about 50% of the rooms in the world. Such circuits, controlled by one owner,
the chief holding company, are essentially financial and economic empires. There
is a third model of organizations - the so-called "voluntary hotel chain" type
"Romantic Hotel". In this case, under a single brand hotels combine for some - or
homogeneous characteristics to withstand certain standards and a set of services,
regardless of country of domicile. Hotels that are members of the chain to pay in a
single fund, which diverges on advertising and marketing activities, promotes the
product. In this case, is completely preserved their financial - economic and
administrative autonomy. In essence, these goals represent something like the
association of hotels, united by a common agreement. Perhaps a combination of II
and model III. An example of this chain of hotels, "Accor". When joining the hotel
chain does not necessarily become its property. In this case, under a contract
entered into by large hotel chains (the franchisor) and enters into a chain of
independent hotels, the latter shall be entitled to use the commercial logo chain,
technical and commercial information, information systems, reservations,
technical assistance, training and other opportunities, available to the franchisor.
Franchise company pays for a contract governing compensation. System
frashiiznyh contracts received a large spread in the world. Statistics show that
members of the chain hotels have 60% more contracts and 8% higher occupancy
than the enterprises themselves. Under the contract the user is granted the right
to borrow the brand name of the business into, and the trademark owner for a fee
(one-time or periodic).
Western Europe remains the bastion of the Ritz model. In early 1995, 50
operating in Europe chains combined 3,000 hotels and more than 400,000 rooms.
However, in Europe ceased to dominate the traditional hotels, which would rather
the creation of voluntary chains than on the occurrence of a major hotel empire. At
the bottom are ten global hotel chains, which are classified by number of rooms:
1. Hospitality Franchise System Blanstone pant., USA -
490000;
2. Holiday Inn World Wide, Argentina - 386,323;
3. Best Western Interhotel, USA - 295 305;
4. Accor, France - 279,145;
5. Choice Hotel International, USA - 271 812;
6. Marriott International, USA, 251,425;
7. ITT Sheraton Corp, USA - 170 528;
8. Promus Corp, USA - 105 930;
9. Hilton Hotel Corp, USA - 101 000;
10. Carlson Hospitality World Wide, U.S. - 91 177.
IAH - International Association of Hotels. According to MAG, the income of the
world gost industry in 1994 amounted to $ 247 billion in the world completely,
there are about 307,683 hotel rooms with the number 11333909, the greatest
concentration is in Europe and North America (70%). At every hotel room has an
employee, just 11.2 million. More than 4 million people are employed in the
hospitality industry of the USA, the average employment numbers of the hotels of
the world amounted to 67,7%, average revenues of $ 84.4 million decisive in
determining the income of hotels are indicators of the load level and the tariff
value of 1 day stay.
The construction and maintenance of a hotel away from $ 15 thousand to $ 30
thousand hotel industry development world is through increasing specialization
and hotel enterprises. Offers traditional hotels with a wide range of services,
hotels with a reduced set of services, specialized hotels (Congress - malls, hotels
resort-style golf - hotels, etc.).
The main terms of marketing is the allowance for local conditions, policy sales and
service strategy development revenue management system of continuous service
improvement, development of pricing policies. It should be noted that there should
be three main indicators: demand, supply and outcome of work.
Demand includes the assessment of market prospects for its growth and
structure. Proposal - the number of hotels and hotel rooms, the prospects for their
growth.
The outcome of the hotel include a load factor and gross profit margins.
In recent years the world was widespread and non-commercial accommodation -
staying with relatives or friends.
Temporary accommodation on a commercial basis is practiced in some countries,
youth organizations, educational institutions for the holidays. It provides young
people visit different regions of the world with minimal costs.
The services provided by tourists on tour often includes food. There are three
main forms of service:
• food, paid by tourists;
• meals not included in the price of tour packages and provided for an additional
fee;
• self-service.
Paid for food means that all charges for meals are included in the cost of a hotel
room or tour. This can only be breakfast (continental or full), breakfast and dinner
(half board), or 3 meals a day (full ration).
Sometimes the cost of meals and drinks included. If food is not included in the
tour price, then for him to pay extra in the seat.
Self-service means that the tourists themselves or cook their own food (most often
in systems timeshare vacation), or eat in restaurants, cafes and other food
establishments, as an ordinary visitor.
Round trips on the form specified type of food:
P (FB), full board (Z.O.U.)
PP (HB) - HB (either or)
W (BB) - breakfast only.
Buffet and snack bar offer a choice of dishes from all the tourist exhibited in the
hall in any quantity.
Tabloid - a form of tourist service of one type with a limited number of dishes.
Alyalyart - free choice of the proposed menu (for individuals or groups).
In connection with the development of club-for-service, tourists can combine on
vacation all forms of food service for 24 hours a day.

Homework

a) Discussion on the topic: The importance of the tourism industry, socio-

economic development. Hotel operations and a model of its organization.
b) Test number 1. The tourist industry and its components.
c) Homework: The evaluation criteria of tourist potential of the country.

Literature:
1. Mundt, Jorn "Einfuhrung in den Tourismus" Munchen-Wien, 1998;
2. Butarova NV "Management and marketing of international tourism." Tutorial -
Moscow: Finance and Statistics, 1998.;
3. Quarterly VA "Tourism: A Textbook for educational institutions tourist profile.
M.;
4. Senin, VS "The Organization of International Tourism", Moscow, 1999.
 Lesson 5.
Considering that
experience, it is im
quantity of these d
In Chapter 1 (fig
of activities, polici
experience.
Recreation Vehicles

The recreation vehicle (RV) segment deserves special mention because,

according to the Recreation Vehicle Industry Association (RVIA), there are
currently 9.3 million RVs on the road in the United States, enjoyed by some
30 million enthusiasts. One in ten vehicle-owning households has an RV
,with ownership predicted to in crease 21 percent by the year 2010.

Slide-out teqnology introduced during the mid-1990s, has advanced to

become available in living rooms, dining rooms, bedrooms, and kitchens. It
is a mechanism that, at louch of a button, lets a portion of the room and the
objects in it, such as a couch, tables, or refrigerator, slide outward up to
about 3 ½ feet. Slide-outs are available in a wide variety of RVs: motor
homes, mini-motor homes, travel trailers, fifth-wheel trailers, and even
folding camping trailers.

Travel agencies around the world are responding to the demand by

including RV rental information in their customer brochures. Also available
from some rental dealers are comprehensive tour packages that include
services such as airline and railway connections for fly/ dricve and rail/
drive plans, one-way packages, off-season rates, vacation planning, guided
escort tours, and campground discounts. The recent surge of foreign
visitors has helped increase the RV rental market. Arrivals from Japan,
Australia, New Zealand, and the United Kingdom are major customers. An
estimated half million overseas visitors a year rent RVs.

Visit the Recreation Vehicle Industry Association Web site:

http://www.rvia.org.

Taxi and Limousine Service

Taxi and Limousine companies play an exceedingly important part in

tourism. Local transportation companies perform vitalservices for bus, rail,
and shipping lines. Businesspersons and tourists alike would have a
difficult time getting from place to place if these services were not
available.Inclines andaerial trams serve as a form of taxi service and are of a
special interest to visitors in scenic tourist destination areas as a form of
recreation and sight-seeing.

THE CRUISE INDUSTRY

Cruise Lines International Association (CLIA) states that cruising is

currently the fastest-growing segment of the travel industry. It is
experiencing a surge of growth in passengers, sheps, and ship passenger
capagity.Cruise lines are expanding their fleets and adding new amenities
and mwe ports of call. As with other sectors of travel suppliers, a great deal
of consolidation is taking place.

Scince 1980, the industry has had an average annual growth rate of 8.4
percent. In 1980, 1.43 million passengers cruised; in 1997, a new record was
set with 5.05 million passengers (see Table 5.5). every year since, a new
record has been set,with 6.88 million passengers in 2000. The average
length of a cruise in 2000 was 6.5 days.
Lesson 5-6.

Considering that is a composite of activities, services, and industries

that deliver a travel experience, it is important to identify and
categorize its supply components. The quality and quantity of these
determine tourism’s success in any area.

In Chapter 1 (figure 1.2) you observed that tourism was a complex

phenomenon the composite of activities, policies, services, and
industries involving. Many players that deliver the travel experience.

Supply components

Tourism supply components are classified into four broad categories

for discussion in this chapter.

1. Natural resources and environment. This category constitutes

the fundamental measure of supply the natural resources that
any area has available for the use and enjoyment of visitors.
2. The built environment. This includes the infrastructure and
superstructure discussed in chapter 1. One of the most base
elements of the built environment is the infrastructure of the
region. The tourism superstructure includes facilities constructed
primarily to support visitation and visitor activities. Primary
examples are airports, railroads, roads, drives, parking lots, parks,
marinas and dock facilities, bus and train station facilities, resorts,
hotels, motels, restaurants, shopping centers, places of
entertainment, museums, stores, and similar structures.
3. Operating sectors. The operating sectors of the tourism industry
represent what many of the general public perceive as ‘‘tourism’’
First and foremost, the transportation sector comprised of airlines,
cruise lines, motorcoach companies, taxis, limousines, automobiles,
aerial tramways, and so on typify the movement of people in travel.
4. Spirit of hospitality and cultural resources. Pervading all of
the foregoing the built infrastructure and superstructures is the
social foundation of the destination its culture, which consists of the
language, customs and religions of the residents of the region, as
well as their work and leisure-related behaviors.
A wide range of tourist resources is created by combining cultural
resources. Such examples would be sports events and facilities,
traditional or national festivals, games and pageants.
 Natural resources

A great variety of combinations of natural resource factors can

create environments attractive to tourism development.

Productivity of the natural resources of the area for tourism is a

function of the application of labor and management.

Built environment

Another supply component is the built environment that has been

created by humans. It includes the infrastructure and superstructure
of the destination.

Infrastructure and superstructure

The ground and service installations described as infrastructure are

of paramount importance to successful tourism.

Hotel or lodging structures are among the most important of the

super structure.

A tourist is often more attracted by a facility designed in

conformance with local architecture as a part of the local landscape
then by the modernistic hotel that might be found at home. Attention
must be given to this subject because people of ten travel to
immerse themselves in an environment totally different from their
own. Modern amenities such as air-conditioning, central heating and
plumbing, how ever, should be used in buildings otherwise
characteristic of a particular region.

Auto Traveler services

In developed countries, automobile transportation is most common. As

the economy of a country develops the usual pattern progresses from
walking, to using horses or other working animals, to bicycles, to
motorcycles.
 Road Planning and Road Signs

In the planning of new roads, long-term consideration must be given to

‘‘tourist’’ or ‘‘scenic routes’’ that present the most impressive scenery.
A good example is the scenic Mississippi River route in the Unites
States. Such routes should have specially colored markers and be
indicated on road maps as ‘‘scenic tourist routes’’ or same similar
designation.

Roadside Parks

Auto tourists use and enjoy roadside parks, picnic tables, rest areas,
scenic turnouts, and similar roadside facilities.

OPERATING SECTORS

Accommodations

For successful tourism, accommodations must be available in

sufficient quaintly to match the demand of the travelers who arrive at
the destination. Given access to the destination, accommodations
should precede any other type of development their importance cannot
be overemphasized.

The hotels must provide the physical facilities, price ranges, locations,
and services that meet the expectations, wants and needs of the
travelers. Should the quality of facilities and services drop, demand will
fall off a serious blow to the tourism industry in the area.

Types of Accommodations

Hotels are of several types: commercial, resort, motor, airport and

residential. In relation to tourism, residential hotels are probably not
important, although there are usually some rooms available to tourists
in most residential hotels. The primary type is the resort hotel situated
in attractive surroundings and usually accompanied by a large mix of
services, including entertainment and recreational activities for the
traveler and vacationer. The commercial hotel is usually a downtown
structure located conveniently for the business traveler, convention
attendee and vacationer.

The motor hotel is of primary importance for tourists traveling by car

and is of major importance in the United States, Canada and Mexico.
Suitable accommodations should be available for all segments of the
market.

Condominium Apartments

Individual buyers of condominium units typically use the apartment for

their own enjoyment, or they rent it to tourists for all or part of the year.
This from of accommodation has become increasingly important and in
some resort areas, constitutes considerable competition to the resort
hotels.

Timesharing

Timesharing is a technique for the multiple ownership and/or use of

resort and recreational properties. Timesharing has been applied to
hotels, motels, condominiums, town houses, single-family detached
homes, campgrounds and even boats and yachts.

The attraction of timesharing is simple: it permits purchasers to own or

have occupancy rights at a resort accommodation for a period of time
each year for a fraction of the purchasing price of the entire unit.

Hotel Management

The management of a hotel should ideally be the same group that was
involved in the planning construction of the hotel.

All decisions pertaining to the management of the hotel should begin

with the customers and guests. What is the likely reaction to each
management decision implementation of such a policy favors success
for the hotel as the policy is most likely to produce a high measure of
guest satisfaction.
 Success in hotel management also depends on organization and the
functioning of each department. Each of his or her own department.

Hotel Classification

Hotels are classified using a number of different systems. Then, too

many tourist countries have no classification system whatsoever. Many
in the industry prefer the five-star rating system, which grades hotels
according to specific Criteria (usually by the national tourist
organization) from the highest (five stars) to the most modest
accommodations (one star) suitable for travelers. Countries such as
Spain also classify nonhotel accommodations, such as pensions. Criteria
used for star ratings are public rooms, bathrooms, climatization,
telephone, bar, dining rooms and other characteristics.

Other classifications are deluxe, superior and good; or superdeluxe

and first-class reasonable. Still another classification is A, B, C, D or E.
because many classification schemes are confusing or not useful, a
uniform worldwide classification truly indicative of the grades of hotels
in any country would be a real plus to tourism. Of course, differences in
general standards of development in various countries would be
understood. A five-star hotel in a highly developed country would likely
be more deluxe than would a five-star hotel in a less developed area.

Promotion through Referral and Franchise groups

Accommodations firms can also hold a franchise, such as Holiday inns

or Hilton Hotels. All members of the franchise encourage their guests to
make free reservations at another property in the group. Franchise
companies operate sales offices (called hotel rep firms) in major cities
and also provide national and international reservations services. All of
this effort is aimed at increasing members annual volume of
reservations.

Types of Transportation
 All factors concerning transportation should be considered in
developing tourism, beginning with taxis, limousines and bus service
from the place of lodging to the departure terminals. Such services
must be adequate and economical.

Air

Motorcoach

Ship and Boat

Rail

Lesson 6.

Spirit of Hospitality and Cultural Resources

The development of hospitality resources is perhaps the most

important factor in tourism. The finest physical facilities will be
worthless if the tourist feels unwelcome, for example, we suggest
having a welcoming sign and a special reception area for visitors at
airports and other entry points. A favorable attitude toward the visitor
can be created through programs of public information and
propaganda. Public relations and publicity designed to convince local
citizens of the importance of tourism are helpful.

Activities Tourists Enjoy Most

One of the most important functions of a tourism promotion

organization is to ascertain what activities visitors would enjoy. When
substantial data are accumulated, the findings should be reported to
those who accommodate and entertain. Thus, they are guided into
more successful methods and programs. Table 12.1 shows some
tourists favorite things.

The best method of obtaining this information is by interviewing both

the visitors and their hosts. Questionnaires can also be placed in guests
rooms. Public contact employees can be instructed to inquire politely as
to guest’s interests and entertainment preferences.

Shopping

Shopping is an important tourist activity and thus an essential

element in the tourism supply because it affects the success of the
tourist destination area. The most important single element in shopping
is the authenticity of the products offered for sale as they relate to the
local area. A product that is supposedly a “native handicraft” should be
that. If it is an import, the purchaser may be disappointed if he or she
expected an authentic, locally made item.

Tourists who are shopping are particularly interested in handicraft

items that are typical or indigenous to the particular locale or region.

Recreation and Other Activities

The recreation and other activities engaged in by tourists at their

destination comprise a major component of tourism. Thus,
considerable thought and effort should be devoted to the type of
activities that visitors are likely to enjoy.

Special Events
 Museums and Art Galleries

Sports

Matching Supply With Demand

Infrastructure factors in supply will be determined largely by the

number of guest rooms as well as restaurants, stores and similar
installations. Infrastructure appropriate to the size of the development
is an engineering problem and is readily ascertained as the plans are
developed. Transportation equipment is generally supplied by
commercial firms as well as publicly owned or quasi-public
transportation facilities and services.

Regarding hospitality resources the recruiting and training of staff for

the various elements of supply is a critical one.

Task Analysis

The procedure used in matching supply with demand is called a task

analysis. Suggested steps are as follows.

1. Identification of the present demand

a. By mode of transportation and by seasons of the year
b. For various forms of tourism such as activities, attendance at
attractions and similar categories
c. For special events such as conventions, celebrations, fairs
d. Group and tour visitors
e. Family and individual visitors
f. Business visitors

2. A quantitative and qualitative inventory of the existing supply

3. The adequacy of present supply with present demand
a. Natural resources
b. Infrastructure
c. Transportation and equipment
d. Hospitality and cultural resources
4. Examination of present markets and the socioeconomic trends
a. Geographic market segmentation and orientation
b. Demographic market segmentation and orientation
 i. Population age, sex, occupation, family life stages, income and
similar data
ii. Leisure time and work patterns
c. Psychographic market segmentation
i. Motivations, interests, hobbies, employment orientation, skills,
professional interests
ii. Propensity to travel, responsiveness to advertising
5. Forecast of tourism demand
a. Computer systems simulation method
b. Trend analysis
c. Simple regression-linear least squares
d. Multiple regression-linear least squares
e. Executive judgment or Delphi method
6. Matching supply with anticipated demand
a. If adequate, no further action necessary
b. If inadequate, inauguration of planning and development
procedures.

SUMMARY

Certain broad classifications of supply components must be provided

by any area that is attractive to tourists. The components consist of
natural resources the built environment, operating sectors, and the
spirit of hospitality and cultural resources. These factors may be
combined in many ways to create the environment facilities and
services that the planners hope will attract and please the customers.

Creation of supply components necessarily involves financing-a

critical element. Ideally, all the supply components perfectly match
the demand at any given time. However, this is unrealistic. Too much
supply means unused facilities, which is uneconomic. Too little supply
results in overcrowding with resultant depreciation of the vacation
experience. A moderate supply level is recommended.

Supply can be matched with demand using a mathematical formula.

When confronted with a supply problem, the proper level of supply to
meet the anticipated demand can be estimated by using the formula
provided in this chapter. The process is refined and completed by a
six-step task analysis.
 KEY CONCEPTS

Accommodations infrastructure
sopping

cultural resources multiple use

superstructure

entertainment, recreation natural resources

supply components

and other activities peaks and valleys of demand

task analysis

hospitality resources price differentials

timesharing

hotel management seasonality

transportation

INTERNET SITES

The internet sites mentioned in this chapter are repeated here for
convenience, plus some selected additional sites. For more
information, visit these sites. Be aware that Internet addresses change
frequently, so if a site cannot be accessed, use a search engine. Also
use a search engine to locate many additional sites that are available.

American Automobile Association

http://www.aaa.com

American Hotel and Lodging Association

http://www.ahla.com

American Public Transportation Association

http://www.apta.com
American Resort Development Association

http://www.arda.org

Avis Rent A Car System, Inc.

http://www.avis.com

Cruise Lines International Association

http://www.cruising.org

QUESTIONS FOR REVIEW AND DISCUSSION

1. In planning supply components for a development in an

entirely new area, which one of the four components should be
considered first? Last? Why?
2. When a gorgeous new hotel is opened for business, are the
attractive physical facilities more important than the quality
and training of the staff?
3. As a resort hotel manager, do you believe your guests need to
be educated about environmental protection? Do you need to
educate your staff?
4. In a poor, developing country a world-class hotel uses about
half of the community’s water supply. this requires rationing of
water by the local people, which creates resentment. Suggest
a partial solution to this problem.
5. For new developments, should the access roads be supplied by
a government agency, the developer or both? If both, who
should supply what?
6. What might be appropriate costumes and uniforms for waiters
and waitresses in various localities?
7. A motor hotel manager states, “I can’t sell any souvenirs that
cost over $5.” How could this situation be improved?
8. The sports director of a large resort hotel has been instructed
to upgrade the hotel’s physical fitness program. Provide some
suggestions as to how this might be done.
9. Is changing the prices of hotel rooms, meals and
entertainment the best way to mitigate fluctuating levels or
demand? Are there nonprice methods? Could combinations of
methods be used?
SUMMARY

Transportation services and facilities are an integral component of

turism.In fact, the success of practically all forms of travel depends on
adequate transportation.Transportation services and facilities are the
arteries through which the lifeblood of the trevelindustry flows. Travel by air
dominantes long-and middle-distance travel in the United States. But
private automobiles carry the bulk (about 80 percent) of all travelers on
short trips. Automobiles are also very important on long and international
trips. Rental cars are popular, because they supplement air travel.Rail travel
in the United States has declined substantially since the 1950s but is still
important is available at far more places than either air or rail, butt it
constitutes a rather small percentage of total vehicle miles. Vacationing on
cruise ships has become the fastest-growing segment of the U.S. travel
industry. New and refurbished cruise ships are appearing regularly.

ABOUT THE READING

 The reading in this chapter discusses the Sydney, Australia, Olimpic Park
Station and rail link. This ground transportation facility served the crowds at
the Olimpics, and now transports visitors to this sporting and cultural
center because it has been designed as an integral part of the Sydney
metropolitan rail system. It is a good example of using a megaevent to
improve infrastructure for local citizens.

KEY CONCEPTS

Airline industry

Air Transpot Association

Alliances

American Automobile Association

American Bus Association

Amtrak

Automobile

Cruise lines rental cars

Highways and Scenic safety and security

Byways program taxi and limousine

service

Motorcoachse transportation
(importance of)
Oil companies United Motorcoach
Association

Rail travel

Recreation cehicles

INTERNET SITES

The internet sities mentioned in this chapter are repeated here for
convience, plus some additional sities. For more information, visit these
sites. Be aware that Internet addresses change frequently, so if a site cannot
be accessed, use a search engine. Also use a search engine to local many
additional sities that are available.

Airport Council International-

North America

http://www.aci-na.org

Air Transport Association of America

http://www.air-transsport.org

American Automobili Association

http://www.aaa.com
American Bus Association

http://www.buses.org

American Highway users alliance

http://www.highways.org

American Public Transportation

Associatiom

http://www.apta.comion

Civil Aviation Authority, UK

http://www.caa.co.uk

Cruise Lines International Association

http://www.cruising.org

Europe by Eurail

http://www.railpass.com

Federal Aviation Administration

http://www.faa.gov

International Air Transport Association

http://www.iata.org
Internacional Council of Cruise Lines

http://www.iccl.org

National Association of railroad

Passengers

http://www.narprail.org

Recreation Vehicle Industry

Association

http://www.rvia.org

Regional Airline Association

http://www.raa.org

Taxicab,Limusine, and Paratransit

Association

http://www.tlpa.org

Travel Industry Association of America

http://www.tia.org

United Motorcoach Association

http://www.uma.org
Chapter 1 foc
transportation.
the tourism phe
the tourism exp
the “tourism ind
Turning our att
time, people ha
supersonic airc
tourism increas