Week 3 the study of tourism

School of Hospitality Management

The study of Tourism: Disciplinary Approaches


Basic Approaches

• Institutional Approach• Product Approach• Historical Approach• Managerial Approach• Economical Approach• Sociological Approach• Interdisciplinary approaches


Institutional Approach

• Considers the various intermediaries and institutions that perform tourism activities.

• Gives emphasis to institutions.• Requires an investigation of the

organization.


Product Approach

• Involves the study of tourism products and how they are produced, marketed and consumed.

• Creation until consumption assessment

• Repeated to each tourism product until one gets the entire picture.


Historical Approach

• Involves an analysis of tourism activities and institutions from an evolutionary angle.

• Early beginnings until current state.• searches for the cause of innovation,

growth or decline and shift in interest.


Managerial Approach

• Firm oriented. Focuses on the management activities necessary to operate a tourist enterprise.

• Focuses on planning, research, pricing, advertising, control and the like.


Economic Approach

• Focus on supply, demand, balance of payments, foreign exchange, employment, expenditures, development multipliers, and other economic factors.

• Useful in providing a framework for analyzing tourism and its contributions to a country’s economy.

• Doesn’t pay too much attention to the environment, cultural, psychological, sociological and anthropological factors.


Sociological Approach

• Tourism IS A Social Activity.• Analyzes the tourism behavior of

individuals and groups of people and its impacts to society.

• Examination of social classes, customs and habits of both hosts and guests.


Geographical Approach

• Sheds light on the tourist areas, the movements of people created by tourism locales, the changes that tourism brings to the landscape in the form of tourism facilities, dispersion of tourism development, physical planning and economic, social and cultural problems.


Interdisciplinary Studies

• Tourism embraces all aspects of our society.

• Because of this tourism can also be studied via: – Anthropology– Physiology– Political Science– Legal Approach– Transportation Apporach


Interdisciplinary Studies

• Tourism is so complex, you need different approaches to study this field.

School of Hospitality Management• Tourism Course

• Department

• or Discipline

• Management of Tourism Organiz

ations

• Tourism Studies

•Policy

Issues

•Recreation M

anagem

ent

•So

ciol

ogy

of

Tour

ism

•Tourism

Education•

Transportation Studies•

Host-

Guest

Relation

ship

•

Touri

sm

Motiva

tion

•Ec

ono

mics

•of

To

uris

m

•Rural Tour

ism

• Geography of Tourism

•Tourism

Law

•

Marketi

ng o

f To

urism

•To

urism

Pl

anni

ng

and

Deve

lop

men

t•

Soci

olog

y•

Parks and Recreation

•Political Science

• Business

•Ec

onom

ics

•

Anthropol

ogy

• Geography

•Archit

ecture

•Agriculture

•

Transportation

•Hotel

and Restaura

nt Administ

ration

•Education

•Law

•

Marketi

ng

•Ur

ban

an

d Re

gion

al Pla

nni

ng

•New Venture•

Development

• Entrepreneurship

•

Heritage and Environment Manage

ment •Environmental

Studies

•

History

of Tourism

•

Histor

y

•Casino

•Management

•Gaming

• Sports Tourism

• and Medicine

• Kinesiology

•Ps

ycho

logy

•

La

nd

sc

ap

e

•

De

sign

•Hospital

ity

•Studies

• Source: adapted from Jafar Jafari, University of Wisconsin-Stout, Study of Tourism: Choices of Discipline and Approach.


Systems Approach

• System: a set of interrelated groups coordinated to form a unified whole and organized to accomplish a set of goals

• Integrate different approaches in order deal with both macro and micro issues.


THE ECONOMICS OF TOURISM


The Economics of Tourism

• The role of tourism in economic development– Using tourism as an alternative to help

economic growth.• Due to continuous demand for travel• Income in developed countries increases-

demand for tourism increases in a faster rate.• Developing countries need foreign exchange

to aid their economic development.


The role of tourism in economic development

• Using tourism as an alternative to help economic growth.– Due to continuous demand for travel– Income in developed countries

increases- demand for tourism increases in a faster rate.

– Developing countries need foreign exchange to aid their economic development.



• The Organization for Economic Cooperation and Development concluded that tourism opportunities for countries in the intermediate stage of economic development to grow.



• Tourism is seen as an invisible export.– Consumer collects the product from the

exporting country.– Demand for pleasure or vacation travel

is largely depended on non economic factors.

– Tourism is a mutli-faceted sector that directly affects several sectors in the economy.


Economic Benefits of Tourism

• Foreign Exchange Earnings– Travel and Tourism expenditures– Generate income to the host economy

and can stimulate the investment necessary to finance growth in other economic sectors.

– accelerate this growth by requiring visitors to bring in a certain amount of foreign currency for each day of their stay.



• Foreign Exchange Earnings– Tourism is one of the top five export

categories for as many as 83% of countries and is a main source of foreign exchange earnings for at least 38% of countries.



• Contribution to Government Revenues– Direct contributions– Indirect contributions



• Generation of Employment Opportunities – Direct Employment– Indirect Employment– Induced Employment



• Infrastructure Investment– Tourism can induce the local

government to make infrastructure improvements such as better water and sewage systems, roads, electricity, telephone and public transport network

– This can improve the quality of life for residents as well as facilitate tourism.


Economic Costs of Tourism

• Inflation– Increase in prices of land, houses and

food that can occur as a result of tourism.



• Inflation– Increase in prices of land, houses and

food that can occur as a result of tourism.

– Lies heavily on the demand.



• Opportunity Costs– the cost of engaging in tourism rather

than another form of economic activity.



• Dependency– a place becomes over-dependent on

tourism that other industries are abandoned.

– Over-reliance on tourism carries risks to tourism-dependent economies.



• Seasonality– One of the major disadvantages in

tourism– Its effect to jobs, investments and

tourism-related enterprises



• Leakage– Goes out of the local economy to pay for

imported items, expatriate salaries or franchise fees.



• Leakage– occurs through;1. Repatriation of profits generated from

foreign capital investment;2. Vertical integration;3. Not sourcing goods and services locally.



• Enclave Tourism– Remain for their entire stay at the same

cruise ship or resort, which provides everything they need and where they will make all their expenditures, not much opportunity is left for local people to profit from tourism.



• Seasonal Character of Jobs– Job (and therefore income) insecurity– No guarantee of employment from one

season to the next– Difficulties in getting training,

employment-related medical benefits, and recognition of their experience

– Unsatisfactory housing and working conditions.



• Prostitution and the Underground Economy– Sex Sector, prostitution, which many

regard as a by product of tourism, has been estimated to contribute between 2%-14% of the GDP of Indonesia, Malaysia, Thailand and the Philippines.

– 2% - earnings of the prostitute themselves– 14% - incomes of people indirectly

benefiting from prostitution


Tourism Multiplier

• Describes the total effects of an external source of income introduced to the economy.

• Also Called the Multiplier effect.• Describes how an initial expenditure in a

destination ripples down to other businesses.

• Relates the way secondary and tertiary industries benefit from the primary tourism industry.


Tourism Multiplier

Economy & Finance

Week 3 the study of tourism