Tourism Policy and Organizations

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Chapter 6 Tourism Policy and

Organizations


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Learning Objectives

Identify the reasons for government involvement and theroles of government in tourism.

Describe the elements of a tourism policy model and how

they are used to form a tourism policy for a destination.

Explain the roles of global tourism organizations, includingthe WTO.

Explain the roles of multi-country regional organizations.

Explain the roles of national tourism organizations.

Explain the roles of state, provincial, and territorialgovernment tourism organizations.

Explain the roles of regional and local tourism organizations.


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Overview

Reasons for government involvement in

tourism

Government roles in tourism Tourism policy formulation

Tourism organizations


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Reasons for government

involvement in tourism Political reasons

Travel across national boundary--entry and exit--

overseas destination approved by CNTA.

Enhance the national and international image.

Environmental reasons

Carrying capacity-sustainable development

Economic reasons Japan trade surplus in 1980s-encourage outbound

trips-balance of payment.


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Government roles in tourism

Coordination Among many government bodies concerned with

different aspects of tourism.

Among government agencies at different levels.

Among the government, the private sectors andnonprofit organizations.

Tourism policy-setting

Tourism planning

Tourism legislation and regulation The number of paid vacation days

Policies on passports and visas


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Tourism infrastructure development

Tourism operations

National and state park system, historic sites,state-owned airlines

Tourism development stimulation and

control

Tourism marketing and research

Tourism training and education

Government roles in tourism


7/32Tourism Model Policy

DestinationArea Needs

EconomicSocialCulturalEnvironmental

Tourism Goals

EconomicGovernment operationsHuman resource developmentMarket developmentResource protection and conservationSocial and cultural

Constraints

External InternalClimate Availability of investment

Economy Availability of land

Energy Local resident use

Market Manpower availability

Quality of attractions and facilities

Tourism Objectives

Tourism policyPrograms

Strategies

Priorities

actions

Tourism policy formulation


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World & NationalTravel IndustryAssociations

World & NationalGovernment

Tourism Offices

State and ProvincialGovernment

Tourism Offices

Local & City

GovernmentTourism

Departments

Local & Regional

Tourism Associations/Convention & VisitorBureaus

State and ProvincialTravel IndustryAssociations

Tourism Organizations


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Tourism Organizations

Tourism organizations can be viewed in the following

ways:1. Geographically: Global organizations

Multi-country regional organizationsNational tourism organizationsState, provincial organizations

Regional tourism organizationsLocal tourism organizations

2. By ownership: government, quasi-government, or private.

3. By function: suppliers, marketers, development, consultants,

educators, publishers, professional associations .4. By industry: transportation, travel agencies, tour wholesalers,

lodging, attractions, and recreation.

5. By motive: profit and nonprofit.


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Most widely recognized organization in tourism

Serves as a global forum

Transfers tourism know-how

Produces statistics and market research

Develops tourism human resources

Works to facilitate travel

Promotes sustainability

Creates special projects

WTO Web site http://www.world-tourism.org

World Tou rism Organizat ion (WTO)

Global Organizations
http://www.world-tourism.org/http://www.world-tourism.org/http://www.world-tourism.org/http://www.world-tourism.org/


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The World Tour ism organization

History

Its beginnings is the International Union of Official Tourist

Publicity Organization, set up in 1925 in the Hague. Then itwas renamed the International Union for Official Tourism

Organizations after World War II and moved to Geneva.

IUOTO was renamed the world tourism organization,and its

first General Assembly was held in Madrid in May 1975.

The World Tourism Organization is the most widely

recognized and leading international organization in the field

of travel and tourism today. Its membership includes 138

countries and territories and more than 350 affiliate members.

And the headquarters is in Madrid.


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Activities

1)The transfer of Tourism knowhow to development countries is a

major task .Here WTO contributes decades of experience in tourismto the sustainable development goals of nations throughout the world.

2)WTO is well known for its statistics and market research. Research

is the one of its most important contributions.

3)Human resource development is another WTO goal.WTO sets

standards for tourism education.

4)WTO attempts to facilitate world travel through reduction of

government measures for international travel as well asstandardization of requirements for passports, visas,and so forth.

5)They are also involve in regional promotion projects.For example,

the Silk Road and the Slave Route projects.


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Financial Support

WTO is primarily financed by members contributions.

Full members pay an annual quota calculated according to

the lever of economic development and the importance of

tourism in each country. Association members pay a fixedannual contribution of U.S.20000dollars and affiliate

members pay U.S.1700dollars a year.


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Some goals of WTTC are:

1. Work with governments to make tourism a strategiceconomic development and employment priority.

2. Move toward open and competitive markets.

3. Pursue sustainable development.

4. Eliminate barriers to growth in the industry.

Wed site http://www.wttc.org

World Travel and Tou rism Counci l
http://www.wttc.org/http://www.wttc.org/


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World Travel and Tourism Council

It is a global coalition of the top 100 chief executive officers

from all sectors of the industry. These include accommodations,

catering, cruises, entertainment, recreation, transportation.

It was established in 1990, WTTC is led by a 15member

executive committee. It meets twice a year and reports to an annual

meeting of all members. Day-to-day operations are carried out bythe President and a small staff based in London, Brussels, and

Washington,D.C.

WTTC has done more to create awareness of the economic

importance of tourism than any other organizations. WTTC workswith government to make tourism a strategic economic development

and employment priority, pursue sustainable development.

WTTC does many researches and proposes for an international

standard Satellite Accounting System.


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Internat ional Civi l Aviat ion Organizat ion


ICAO was established in 1944.

It is an organization of governments joined to promotecivil aviation on a worldwide scale.

The ICAO Web site is http://www.icao.int
http://www.icao.int/http://www.icao.int/


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Internat ional Air Transport Association

It is the global organization for all the international air carriers.

Its principle function is to facilitate the movement of person

and goods from everywhere to everywhere.

IATA is a valuable information source on the world airline

industry. Their market research helps the industry develop its

strategic and marketing plans.

IATAs mission is to represent and serve the world airlineindustry.

The IATA Web site is at http://www.iata.org

http://www.iata.org/http://www.iata.org/


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Multi-country Regional Organizations

Organization for Economic Cooperation and

Development, Paris, France.

Mostly European membership, but the United States,

Canada, Japan and Australia are also members.

http://www.oecd.org

Pacific Asia Travel Association (PATA)

Represents nations in Asia and the Pacific.

http://www.pata.org
http://www.oecd.org/http://www.pata.org/http://www.pata.org/http://www.oecd.org/


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Pacif ic Asia Travel Association

The PATA represents countries in the Pacific and Asia that

have united to achieve a common goal, namely, excellence in

travel and tourism growth in this vast region.

Its work has been to promote tourism through programs of

research, development, education, and marketing.

PATA has gained a reputation for outstanding accomplish

among similar world organizations.


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Developmental Organizations

Examples:

World Bank

United Nations Development Program

Asian Development Bank


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National Organizations Office of Travel and Tourism Industries (OTTI)

International Trade Administration, U.S. Department of Commerce Research and Policy

Mission statement: OTTI is dedicated to helping US businesses gainaccess to and compete in the global market place.

http://tinet.ita.doc.gov

Travel Industry Association of America (TIA) leading private tourism organization in U.S. Represents the whole U.S. travel industry

Promotes and facilitates increased travel to and within the U.S.

http://www.tia.org and http://www.seeamerica.org

Canadian Tourism Commission (CTC) Public-private partnership Plans, directs, manages, and implements programs to generate and

promote tourism in Canada.

http://www.CanadaTourism.com

China National tourism Administration (CNTA)
http://tinet.ita.doc.gov/http://www.tia.org/http://www.seeamerica.org/http://www.canadatourism.com/http://www.canadatourism.com/http://www.seeamerica.org/http://www.tia.org/http://tinet.ita.doc.gov/


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Other Tourism Organizations

Convention and Visitor Bureaus (CVBs)

* Not-for-profit umbrella organizations that represent a city or urban area inthe solicitation an servicing of all types of travelers to that city or area,

whether they visit for business, pleasure, or both. (membership)

International Association of Convention and Visitor

Bureaus (IACVB)

Most city CVBs belong to this organization.

http://www.iacvb.org
http://www.iacvb.org/http://www.iacvb.org/


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CNTA Management System

National level tourism administration bureau.

(NTO)

China National Tourism Administration

CNTA

Province and municipality level tourism

administration bureau. eg.Tianjin

City or county level tourism administrationbureau.


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Organizational Structure Of CNTA

Chairman

Planning

and

Financial

Department

General

Administration

Office

Marketing

&

Communications

Department

Policy

and

Legal

Department

Human

Resources

Department

Industry

Management

Department

Vice chairman

New York

office

Los

Angeles

office

London

office

Paris

office

Frank

-fruit

office

Zurich

office

Marid

office

Tokyo

office

Osaka

office

Singa

-pore

office

Sydney

office

Toronto

office

Asia Tourism

Exchange

Center

Limited

Hong Kong


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Chinas Tourism Policies

Policy serves politics.

The change of national tourism policy, to

some extent, reflects changes in thecountrys political and economic systems.

National tourism policy in China has

experienced two major changes, namely,

tourism serving politics, and tourism

serving the economy.


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Recognition: from a diplomatic activity to an industry ofimportance.

Politics only. 1949-1978.

Tourism was treated as people-to-people diplomacy,seeking no economic returns.

Politics plus economics. 1978-1985.Eg. Discriminatory pricing policies.

Economics over politics.

In 1986, the national government declared tourismto be a comprehensive economic activitywith the direct

purpose of earning foreign exchange.Since 1998 tourism was considered as a new

growth point of the national economyand mostprovinces have made tourism one of the pillar industriesin their local economic development planning.



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Administration: from micromanagement and control tomacromanagement and service.

From 1949 to the mid-1960s, travel to China byoverseas Chinese was treated as a foreign affairs

activity and was controlled by the office ofOverseasChinese Affairs underthe State of Council. All aspectsof tourism were tightly controlled by the nationalgovernment.

CNTA was set up in 1981 with the rapid growth oftourism in the late 1970s. It became Chinas nationaltourism organization (NTO), and concentrated on themacromanagement of the tourism industry.



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Priority: from inbound only to both international

and domestic travel.

The mode of China tourism development is

quite different from that in most of thedevelopment countries.

Inbound tourism domestic tourism

outbound tourism



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Business: from monopoly to standardization in tourismbusiness operations.

Travel agency: from three magnates (CITS, CTS,CYTS)to 7000 travel services (international and domestic

categories) in 1999. Hotels:

There are 203 hotels and 76,192 bed spaces in 1978;

7035 hotels with 889,430 rooms in 1999, 61% of rooms

were state owned while 15.8% were owned , partly orwholly, owned by overseas investors.



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Actions: from a product-oriented to a market-oriented mode, from a sellersmarket to a buyers market.

In the late1970s and early 1980s,Chinas tourism was a sellers market.China exercised a product-oriented management policy and showed littleinterest in marketing or market research.

From 1986 to 1990, CNTAs promotional budget was onlyUS$1.4million per year, and this included the operating cost of its overseasoffices.

After 1989, the sellers market was replaced by a buyers market. Chinarealized the importance of the tourism market.

By 1991, CNTAs promotional budget increased to US$3.2 million,representing more than a 100 percent increase compared to 1990. Between1991 and 1993, CNTA actively engaged in tourism promotion, and the

promotion budget doubled from US$3.2 million to 6.4 million.



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Major tourism policies and regulations implemented in China since 1978

Year Policy and Regulation Target Area Status of Implementation

1979 Introduction of foreign investment Initially in the hotel but

expanding to travel agencysector

Successfully implemented

1984 Five together Investment in tourism industry Successfully implemented

1985 Provisional Regulation on the

Administration of Travel Agencies

Travel agencies Not well implemented; replaced by the

Regulation on the Administration of

Travel Agencies in 1996.

1988 Regulations on the Star Standard and Star-

Rating of Tourist Hotels of Peoples republic

of China

Hotels Successfully implemented

1992 Development of State-level Resorts Tourist attractions Successfully implemented

1993 Provisional methods on the Administration

of Hotel Management Companies

Hotels Successfully implemented

1995 Provisional Regulations on the

Administration of Quality Service Guarantee

Funds of Travel Agencies

Travel agenciesservice qualityand customer satisfaction

Successfully implemented but with

resistance at the initial stage

1996 Regulation on the Administration of Tour

Guides

Travel agenciesqualificationand licensing of tour guides

Successfully implemented

1996 Regulation on the Administration of Travel

Agencies

Travel agencies Successfully implemented

The Five Together policy decision allows tourism administrations, individual government agencies, local governments,

collectives, and individual persons to invest in the tourism industry


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Assignment

Each group is required to select an

organization or a tourism related

policy/regulation, make an analysis and

do a 10 to 15 minutes presentation next

week.

Documents

Tourism Policy and Organizations