The Travel and Tourism Sector

The Travel and Tourism Sector

Contents
Q 2.1 Explain the role of government, government sponsored bodies and international agencies on the travel and tourism sector 2
Role of the Government in Tourism 2
Role of the government bodies 4
Roles of International Agencies 5
United Nations (UN) 6
United Nations World Tourism Organization (UNWTO) 6
World Travel and Tourism Council (WTTC) 6
 Driving the Agenda - raising awareness of travel and tourism industry as a revenue generator. 7
 The Facilitator: educating industry participants. 7
 The Networking Forum 7
Q 2.2 Illustrate how local and national economic policy has an effect on the success of the travel and tourism sector 8
GOVERNMENT ECONOMIC POLICY AND TOURISM 8
• Direct Influence 8
Taxation (remove money) 8
Infrastructure investment and maintenance (inject money) Government spending on tourism 8
Tourism development 9
• Indirect Influence 9
Q 2.3 Analyse the implications of political change on the travel and tourism sector in various countries 10
Impact of political change on the travel and tourism industry 10
IRAN 10
CHINA 11
Reference and Bibliography 12
Q 2.1 Explain the role of government, government sponsored bodies and international agencies on the travel and tourism sector
Role of the Government in Tourism
The role of the government, according to traditional political theory, is concerned with maintaining law and order, defence, internal communication and transport infrastructure, and economic redistribution. All of these affect tourism. There are two levels in the role of government in tourist industry which can be MARCO and MICRO
MACRO: is the establishment of overall Tourism Strategy and Policies to ensure sustainable growth and development of the sector at social, economic and environmental levels, and alignment of sector efforts to the greater national and regional growth mandate.
MICRO: Brand Leadership of the destination, ensuring creative, coordinated, competitive and compliant of marketing, promotion and innovation of the destination.
Roles of government in tourism includes
Governments have tended to become involved in tourism because it helps improve the balance of payments, encourages regional development and diversification of the economy, increases revenue, improves income levels and creates employment. The following are some of the most important roles of the government in tourism:
 Passing laws and formulating policy affecting tourism
This may include laws about national tourism organizations, and also general economic and regulatory policies that affect tourism
 Setting up government administrative bodies to regulate tourism
These are state institutions responsible for policy advice and implementation, like the Ministry of Tourism in India. They are also often concerned with promotion of tourism. Other responsibilities of state regulatory bodies for tourism include: research, information and promotion within the country, publicity overseas, regularization of standards of lodgings and restaurants, control of private travel agencies, technical and juridical problems, international relations, development of selected tourist areas, and overall tourism policy and promotion.
 The judiciary and law enforcement
Even though these are not directly connected with tourism, they play a role in interpreting and implementation of laws affecting tourism, like those concerning environmental protection. The police and law enforcement agencies maintain law and order, which is essential for tourism.
 The structure and philosophy of the government
Whether the government is federal or unitary, and whether it is involved in commercial activity or not, affects the tourism industry.
 Other regulatory and non-commercial statutory bodies
Aviation and transport boards, labour boards, and regulatory bodies for hotels and resorts, are important in formulating policies which may affect tourism. Other bodies like political parties, trade unions, and industry associations, may also affect tourism with their decisions.
 Coordination
This is the most important job of the government. The government needs to coordinate within various levels of its own bodies, as well as with the private sector, to avoid duplication of resources and conflicts over objectives
 Planning
The government may plan for development, infrastructure, promotion and marketing of tourism; it may plan for structures to regulate tourism, and it may plan the scale of tourism in a destination. Planning helps to coordinate demand and supply, and also environmental, economic and social considerations. It helps control some of the negative effects of tourism.
 Legislation and regulation
Government laws on passports, visas, international transport agreements, industry regulatory laws, taxation policy, and environmental protection rules, directly affect the tourism industry
 As entrepreneur
Most governments provide infrastructure for tourist development - roads and sewage, for example. Some governments are also involved in operating tourist ventures like airlines and hotels. Sometimes the government may subsidise part of the cost of production of a tourism project.
 Stimulation
The government can stimulate tourism by financial incentives such as low-interest loans sponsoring research for the general benefit of the tourism industry, and by marketing, promotion and visitor services. Governments have especially been involved in promotion.
 Promotion of social tourism
The government can encourage travel by economically weaker sections. In India, this used to happen through the leave travel concessions provided to employees of central enterprises. However, governments have recently moved from this role.
 Interest protection
Government protects the local and national interests against narrow and sectarian interests. { }
Role of the government bodies
The Department's Tourism Division sets national tourism policy, providing the strategic direction required to support the growth of a competitive and sustainable tourism industry, through the development, implementation and influencing of a range of policy actions and programmes by the Department, its Agencies and other Government Departments, in consultation with industry partners. The tourism agencies, operating under the aegis of the Department, have been established to deal with the administration of that policy. And they includes;
Fáilte Ireland was established under the National Tourism Development Authority Act 2003, following the amalgamation of Bord Fáilte Éireann and CERT, to encourage, promote and support tourism as a leading indigenous component of the Irish economy. Tourism Ireland was formally incorporated on 11 December 2000 following the designation of tourism as an area for cooperation under the Good Friday Agreement (1998), to carry out the overseas promotion of tourism to the island of Ireland. Tourism Ireland is accountable to the North South Ministerial Council, with funding being provided by the Department of Transport, Tourism and Sport and the Department of Enterprise, Trade and Investment in Northern Ireland.
Shannon Development has responsibility for the promotion and development of tourism in Ireland’s mid-West region. In May 2012 the Government decided that Shannon Development’s tourism functions should transfer to Fáilte Ireland. Planning and preparations for this transfer are ongoing.
Fáilte Ireland's principal functions are the development of quality tourism product, domestic tourism marketing, tourism standards, enterprise support, capability building and human resource development for the tourism industry. Tourism Ireland's primary remit is to promote the island of Ireland as a tourist destination in overseas markets.
There is a wide range of other bodies, some with direct roles in developing tourism facilities and some whose role, while not specifically focused on tourism, is critical to the quality of the tourist experience in Ireland. These include:
 National and local bodies involved in planning, providing and managing environmental and transport infrastructure;
 National and local heritage organisations, who are responsible for key attractions;
 Locally-based tourism groups and LEADER companies, and their parent or funding bodies, who are directly involved in supporting small-scale developments
 The Irish Naturalisation and Immigration Service and Garda National Immigration Bureau; and
 Public and private transport operators – from airlines to local bus operators.
Roles of International Agencies
 SET STANDARDS FOR THE TOURISM PRODUCT
 AGREE INTERNATIONAL CODES
 ESTABLISH STATISTICAL DEFINITIONS
United Nations (UN)
It is an international organization which is headed by Ban Ki- Moon its Secretary General and was founded by 1945 after World War 2, to stop wars between countries. Its main aim is to facilitate co-operation in international law, security, social progress, human rights and achieving world peace. Peace is necessary to avoid terrorism attack so that people are in peace when they travel and know the places they are visiting are safe.
United Nations World Tourism Organization (UNWTO)
The UNWTO is has its headquarters in Spain, Madrid but is a UN agency which deals with tourism. It plays a important role in promoting the development of responsible, sustainable tourism specially paying attention to the interests of developing countries.
It encourages the implementation of the Global Code of Ethics for Tourism, which ensures that positive economic, social, cultural effects of tourism in member countries, tourist destinations and businesses are maximized, while minimizing its negative social and environmental impacts.
World Travel and Tourism Council (WTTC)
The WTTC was established in 1990 when a group of CEO's realized that travel and tourism was one of the largest and fastest growing industry in the world and biggest provider for jobs.
The main of WTTC is to raise awareness of travel and tourism industry as one of the largest and economically benefit industry. It works together with the government to raise awareness of the economic and social importance of the industry across the world. It focuses on three main areas which are:
 Driving the Agenda - raising awareness of travel and tourism industry as a revenue generator.
 The Facilitator: educating industry participants.
 The Networking Forum
Q 2.2 Illustrate how local and national economic policy has an effect on the success of the travel and tourism sector
GOVERNMENT ECONOMIC POLICY AND TOURISM
The effect of economic issues is mostly touchable in domestic and outbound tourism not inbounds. Cutting taxes is an encouraging policy offered by government in order to increase privet sector role in tourism.
Only after the great depression, which took place in 1930's the states began to realize the importance of tourism to save the country from economic decline. Before during the 19th and early 20th century ports, railways stations, roads, hotels were built only when and where they were necessary. When the country is in a state of recession, the government makes policies for tourism so that foreign Currency can earn a bit of revenue. Government policies may have a direct or an indirect influence in the travel and tourism industry.
Direct Influence
Taxation (remove money)
 Exit or travel taxes on residents going out of the country. This kind of taxation can be done to discourage outbound tourism and encourage domestic tourism which helps the government to keep the money within the region.
 Arrival tax on inbound tourists.
 Departure taxes on residents and tourists- the most famous kind of tax, some airlines due to the government instructions have to apply tax.
 Hidden taxation can be in the form of visas, polls, fines etc for e.g. cars owners and paid parking. This may also include entrance fee for many attractions.
Infrastructure investment and maintenance (inject money) Government spending on tourism
Investing in the infrastructure of the country is the role of the government and not of any private sector. This includes passenger transportation, roads, bridges, tunnels, etc. The amount of money government spends on infrastructure can be redeemed in from taxes charged to commercial agencies. They both share the amount of money spent on infrastructure. For e.g. in 1965 -1980, the French government invested a big amount of money on the infrastructure for Languedoc-Roussillon in southwest France. One third of the total amount was redeemed through private enterprises.
Tourism development
Tourism development is very important for tourism growth especially in the developing countries; this is managed by national and regional tourist boards. It funds hospitality ventures, tourism attractions, transportations and ports. It is done on many levels from research data to large multi-million dollar assistance programs. For e.g. in Dubai many projects are taking shape whish cost millions and millions of country's revenue from taxation.
Indirect Influence
Regional development: this includes; building of airports, attractions, and infrastructures in undeveloped areas to encourage tourism such as establishing direct flight to the undeveloped areas (example Shannon).
Social tourism: In the Ireland, the richer people are taxed and the taxes given by them are given to lower income groups so that they can travel and use leisure activities.
Price control: This includes minimum wages to be given to the workers in the travel and tourism industry.
Levies for training: Vocational training should be given to people who are interested in making a career in travel and tourism industry.
Q 2.3 Analyse the implications of political change on the travel and tourism sector in various countries
Impact of political change on the travel and tourism industry
Tourism growth in many countries has not been this high, in particular those countries were faced with a range of political unstableness that have made happen to hold back development in tourism.
The political aspects of tourism are interwoven with its economic consequences tourism is not only a "continuation of politics" but an integral part of the world's political economy. In short, tourism is, or can be, a tool used not only for economic but for political means" (Edgell, 1990) .
IRAN
Tourism in Iran before the accession of the theocracy was characterized by a significant numbers of visitors travelling to Iran for its diverse attractions, boasting cultural splendours and a diverse and beautiful landscape suitable for a range of activities. Tourism declined dramatically during the Iran-Iraq War in the 1980s but has subsequently revived.
Since the Iranian revolution in 1979, the majority of visitors to Iran have been religious pilgrims and businesspeople. Official figures do not distinguish between those travelling to Iran for business and those coming for pleasure, and they also include a large number of Diaspora Iranians returning to visit their families in Iran or making pilgrimages to holy Shia sites near Mashhad and elsewhere. Despite the international tensions, the government continues to project strong rises in visitor numbers and tourism revenue over the forecast period, and to talk of projects to build an additional 100 hotels, for example, to expand its currently limited stock.
In the early 2000s the industry still faced serious limitations in infrastructure, communications, regulatory norms, and personnel training. In late 2003 there were about 640 hotels in Iran and around 63,000 beds. Officials state that Iran has in recent years earned about US$1bn a year from tourism. Iran currently ranks 68th in tourism revenues worldwide. Iran with attractive natural and historical sites is rated among the 10 most touristic countries in the world. Close to 1.8% of national employment is generated in the tourism sector which is slated to increase to 10% in the next five years. Weak advertising, unstable regional conditions, a poor public image in some parts of the world, and absence of efficient planning schemes in the tourism sector have all hindered the growth of
CHINA
After Mao's death, one of the most senior officials who had advocated private plots in the early 1960s, Deng Xiaoping, initiated gradual market reforms that abolished the communes and collectivized industries of Mao, replacing them with the free-market system. Deng's reforms vastly improved the standard of living of the Chinese people, the competitiveness of the Chinese economy, and caused China to become one of the fastest growing and most important economies in the world. It also led to one of the most rapid industrializations in world history. For this achievement he is sometimes known as "The Venerated Deng". As a result of Deng's reforms, China is widely regarded as a returning superpower.
Tourism in China has greatly expanded over the last few decades. The emergence of a newly rich middle class and an easing of restrictions on movement by the Chinese authorities are both fueling this travel boom. China has become one of the world's most-watched and hottest outbound tourist markets. The world is on the cusp of a sustained Chinese outbound tourism boom.
China is the world's fourth largest country for inbound tourism. The number of overseas tourists was 55 million in 2007. Foreign exchange income was 41.9 billion U.S. dollars, the worlds fifth largest in 2007. The number of domestic tourists totalled 1.61 billion, with a total income of 777.1 billion Yuan.
According to the WTO, in 2020, China will become the largest tourist country and the fourth largest for overseas travel. In terms of total outbound travel spending, China is currently ranked fifth and is expected to be the fastest growing in the world from 2006 to 2015, jumping into the number two slot for total travel spending by 2015 

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