UNIT ONE Travel and Tourism Sector

Balwant Dhaliwal

Enclave tourism

• Sandals Resorts and Club Med villages are typical

examples. The enclaves can be defined as political

geography, as pieces of land totally surrounded by a

foreign territory, like West Berlin from 1949 to 1990.

• According to Lomine & Edmunds (2007), enclave

tourism is characterised by a high level of leakage –

with few interactions between tourists and locals

(with the exception of low-paid resort staff (

• Tourists hardly ever leave the resort, except for pre-

organised excursions.

Can in your groups consider the

advantages to enclave tourism?

• High investment in small projects focuses specifically on

traveller demand

• Use the profile of a resort as a strong marketing tool

• Creates employment of local people

• Can also limit potential environmental damage, cultural

erosion or political influence

Can you consider the disadvantages of

enclave tourism?• Economic dependence on foreign businesses

• High levels of leakage

• Seasonality of employment

• Local goods and services not readily used and are limited

to pockets of business

• Tourists experience of the region may be inaccurate

Leakage defined.

•The direct income for an area is the

amount of tourist expenditure that remains

locally after taxes, profits, and wages are

paid outside the area and after imports are

purchased; these subtracted amounts

are called leakage.

Negative economic impacts - leakage

In most all-inclusive package tours, about 80%

of travellers' expenditures go to the airlines,

hotels and other international companies,

and not to local businesses or workers.

Negative impacts of leakage WTO

A study of tourism 'leakage' in Thailand

estimated that 70% of all money spent by

tourists ended up leaving Thailand.

Estimates for other Third World countries

range from 80% in the Caribbean to 40%

in India.

Leakage

• There are two main ways that leakage occurs:

Import leakage

• This commonly occurs when tourists demand

standards of equipment, food, and other

products that the host country cannot supply.

Leakage

• Food and drinks must often be imported, since local

products are not up to the hotel's (i.e. tourist's) standards

or the country simply doesn't have a supplying industry.

Export leakage

Often, especially in poor developing destinations, large

corporate companies are the only ones that possess the

necessary capital to invest in the construction of tourism

infrastructure and facilities.

leakage

An export leakage arises when overseas investors who

finance

the resorts and hotels take their profits back

to their country of origin.

Can you think of any examples?

Private Landowners.

• In developing countries, land owned by local people is

often bought up cheaply by developers.

• If local authorities are powerful enough they can prevent

this happening and ensure that local people are involved

in development.

• Where locals own the land they can make money from

tourism and stop the advent of large hotel chains

Bahamas.

• The government policy is to extend the economic benefits

derived from tourism and to have a hotel sector that is

private sector led.

• In the UK it is the norm for hotels to be privately owned

but in 1992 in the Bahamas 20% of hotels were

government owned.

• In the last 10 years, most of these have been privatised.

Many hotels were bought and refurbished by

international investors and developers. New hotels

have also been built and redevelopment of resorts has

taken place.

TO.

• Travel and tourism organisations have a part

to play in tourism development.

• Airlines and tour operators often instigate development by

introducing services and package holidays to a

destination.

• They are also represented by their industry bodies

allowing them to have a voice in government policy

decisions.

• Go to TUI and Thomas Cook Sustainable Tourism.

National and Regional Organisations

• The Department for Culture, Media and Sport (DCMS) set

down its strategies for tourism in

the UK.

• ✱ A blueprint for the sustainable development of tourism.

• ✱ Initiatives to widen access to tourism.

• ✱ More money for a more focused and

• aggressive overseas promotion programme.

• ✱ New Internet systems to deliver more worldwide tourist

bookings for Britain.

Activity.

Theory into practice

Summarise the role of the DCMS in relation to tourism

development. What evidence can you find of a commitment to

responsible tourism? Discuss with your colleagues.

www. culture.gov.uk will help you.

Voluntary Organisations

• Many voluntary sector organisations are charities and

pressure groups. Probably the best known in tourism is

the National Trust. There are several voluntary

organisations related to tourism development and

responsible tourism.

Tourism Concern Activity

• 1. Visit the Tourism Concern website and choose one

current campaign.

• 2. What is the role of Tourism Concern in this

campaign?

• What other partners are involved in the campaign?

• What sector does each of the partners belong to?

• Extension task: How do the objectives of Tourism Concern

in your chosen campaign conflict with those of

government or developers?

Voluntary Organisations

• English Heritage works in partnership with the central

government departments, local authorities, voluntary

bodies and the private sector to:

• ✱ Conserve and enhance the historic environment

• ✱ Broaden public access to the heritage

✱ Increase people's understanding of the past.

• Source: www.english-heritage.org.uk

Maximise Positive Impacts

• Retention of visitor spending

• Where tourist facilities are owned by local people, more of

the income from tourism is retained in the community.

This can be achieved in various ways:

✱ Regulation on ownership of hotels so that they cannot

be entirely foreign owned.

✱ Encouraging the development of small businesses.

✱ Encouraging partnerships between local people.

Widening Accessibility

• There are many examples of good practice

where the proceeds of tourism are used to bring improved

facilities and a better standard of living to local people.

• Turtle Island is a privately owned resort in Fiji. It has

Green Globe status and it has implemented projects to

aid local people.

Staff training and development.

• The benefits of training staff include a more satisfied staff

who are more likely to remain in their job. This leads to

lower staff turnover and costs.

• If the staff are satisfied with their work this will lead to

better customer relations and in turn customers will

be more likely to remain loyal.

• Training may take many forms from induction to specific

job training.

Training and employment for Host

• First Choice, the tour operator, whose sustainable policy

you noted on page 20, claim to employ local people

where possible.

• Their company, Paradise Management, in the Specialist

Holidays sector in Egypt employs 98% of its staff from the

local area.

See company sustainable policy.

Invest in community projects.

• Income from tourism should be reinvested in social and

public projects.

• Tourism taxes are often in place for such purposes

Minimise negative impacts

• Visitor and traffic management

• It should not always be assumed that the

objective of tourism is to maximise visitors.

• Where resources and space are limited then the aim is

to manage visitors and prevent negative impacts which

occur through erosion of paths, buildings and over-

development.

• Can you think of any examples?

• . Examples of such visitor management occur in many

historic towns and at historic sites such as Stonehenge

Planning control

• How many tourists are too many?

• Some small islands in the Mediterranean have begun to

try and reduce tourist numbers in order to minimise the

negative effects of tourism.

• Visitor management is needed to stop locations being

flooded with tourists. Carrying capacity.

• In Majorca tourism has become the most important

source of revenue to the economy. Parts of the island

became over developed due to mass tourism.

• Eventually action had to be taken to try and reverse the

decline in the island’s image as a cheap destination for

low spending, heavy drinking tourists.

Activity

• Choose a UK tour operator and find out what they are

doing to encourage responsible tourism.

• Find out if they have a sustainable tourism

policy and how it is implemented.

• Find out how they communicate the policy to customers

and encourage customers to practice responsible tourism.

• Present your findings to your group.

Investigate…Homework.

• The Brundtland Report 1987

• The Commons Of Tragedy

• Agenda 21