Tourism Part 2: Process, Problems, and Solutions

1. Tourism Part 2: Process, Problems, and Solutions Som Karamchetty 10816 Terrier Court Columbia, MD 21044 somk@comcast.net 7 October, 2000 - 9 February, 2003 SK touristpart2.ppt

2. In Part 1, we defined and analyzed Tourism.Now, in Part 2, you will see what a country has to do to benefit from it. SK touristpart2.ppt

3. Let us recap some items first. SK Reference: http://www.icann.org/tlds/travel1/sectionc2.htm

4. Providers in Travel & Tourism The Travel & Tourism Industry consists of vendors/suppliers who aim to support and/or provide the end customer with enjoyable and memorable experiences. SK Reference: http://www.icann.org/tlds/travel1/sectionc2.htm

5. Travel & Tourism Trends Increased competition through globalization (new players coming from abroad) Through deregulation (competitors coming from other industries) Changing customer demands (different lifestyles, for instance the look for specialized trips such as adventure or edutainment and different demographics with increasing numbers of seniors) Increased expectations (more convenience and value, getting used to the customization of offerings). At the same time, customers are becoming ever more knowledgeable (direct marketing is certainly one of the drivers) and growing accustomed to automated technologies (such as phone-based systems, various travel websites and multimedia kiosks). SK Reference: http://www.icann.org/tlds/travel1/sectionc2.htm

6. Travel & Tourism Trends Looking at the trends of international tourist arrivals during the decade 1989-1998, the growth rate of arrivals worldwide slowed in the second half of the decade to 3.5% from 5% in the first half. For the ten-year period 1989-1998 overall, the annual average was 4.3%. East Asia and the Pacific performed the best throughout, registering 6.8% growth a year on average over the 10 years. South Asia was the only region of the world which recorded faster growth (6.8%) in the second half of the decade, whereas the Middle East exhibited stable growth during the whole period (6.4% growth a year). Growth in Europe, Africa and the Americas slowed significantly during the second half of the decade. Nevertheless, Europe performed better than expected due to the significant increase in tourism to Central and Eastern Europe. In volume, the total number of tourists worldwide increased by 209 million between 1989 and 1998. SK Reference: http://www.icann.org/tlds/travel1/sectionc2.htm

7. Historical Perspective Historically, the industry has been an early adopter of new technologies, for instance Computer Reservation systems (CRS). As technology becomes more pervasive, traditional consumers begin to use tools formerly reserved for travel professionals. In the case of CRS, consumers who have access to similar systems through their home computers and open networks can now take over some functions traditionally performed by travel agents. SK Reference: http://www.icann.org/tlds/travel1/sectionc2.htm

8. Overview of the Travel & Tourism Process Segment #1: The traveler (customer) contacts the ‘Travel Vendor’ to make arrangements for his travel. Segment #2: The travel vendor makes the necessary reservations for the traveler using a variety of available ‘Tools’ Segment #3: The travel vendor sells the travel product offered by the ‘Travel Suppliers’ Segment #4:The vendor also relies on the ‘Support Facilities’ available in order to obtain additional information and settle the transaction once completed. Segment #5: The customer then ultimately enjoys the ‘Travel/Tourism Experience’ SK Reference: http://www.icann.org/tlds/travel1/sectionc2.htm

9. Common Titles of TourismTechnicians (1 of 2) tour escort tour guide site guide guide-chauffeur site hosts groundhandler reservations clerk customer service clerk reception agent reception services coordinator information clerk Reference:. http://www.unepie.org/tourism/draft_principles.html http://www.dfat.gov.au/media/speeches/trade/2000/000817_tourism.html http://www.clasalle.com/tourism.html SK

10. Common Titles of TourismTechnicians tourism development agent marketing agent sales representative commercial representative promotion and marketing agent convention coordinator special events coordinator tourism or festival coordinator technical operations agent rate agent tour operator tour wholesaler These are the people that need to be trained and educated to derive benefits from tourism. Reference:. http://www.unepie.org/tourism/draft_principles.html http://www.dfat.gov.au/media/speeches/trade/2000/000817_tourism.html http://www.clasalle.com/tourism.html SK

11. Definition of Visitors • Visitors are those individuals traveling • away from home or • away from their usual place of work, • for business or pleasure, • who also seek • leisure, • entertainment, • recreational, • cultural, • historical, or • retail purchasing experiences. SK

12. Now we will address the problems and suggest a solution methodology. SK

13. Problems • Countries look at tourism as a good business, but have not analyzed a variety of factors that affect tourists and tourist business. • Treatment tourists does not get utmost attention. • Tourist’s total experience receives little attention. SK

14. Approach to Solution Perform a systematic analysis of the various factors that affect tourist interest and tourist experience. A brief analysis with information from selected sources is presented in the following charts. SK

15. Stages of a Tourist • Interest • Intention and decision • Information gathering • Planning, budgeting, goal development • Firming up, preparing, booking, packing • Insurance, and precautions • Travel (Overseas, country, region) • Experience • Conclusion • Reminiscence, evaluation, appraisal It is essential to create a positive experience at each and every stage to promote a growing tourist business. SK

16. Products, and ServicesImpacting on Tourist’s Experience • Food, water, medicines • Hotels, rest houses stay Sanitation • Transportation • Health and care • News, events, back home contacts • Return transport • Information (timeliness, accuracy, confidence) • Record of experiences (photos, souvenirs, mental records) • Shopping, shipping, packing • Safety, security • Queues, lines, delays • Feedback, reaction, image generation, and propagation • Thank you and gratefulness SK

17. Interactions Impacting on Tourist’s Experience • Cost ($cost, Time cost) • Costs (expectations, actual, value) • Cost, consistency, image, quality • Advertised expectation versus realization (frustration) • Goal satisfaction Interactions • operators • officials • service providers • co-tourists • Residents, local people • Persistent and pestering hawkers SK

18. Benefits and Market Tourism is a trillion dollar business and a country can benefit economically and socially from tourism provided it plans and creates a suitable environment. Such an environment is described in a briefing titled: VIP Zones and Environment SK

19. Summary • Tourism can provide a host country great • economic benefits • A host country has to plan and take • appropriate measures • All stakeholders have to be involved in • the effort SK

20. VIP Zones and Environment In order to succeed in high-risk high-payoff ventures like that described here, an environment has to be created and a sea-change of host attitudes are necessary. See my briefing entitled ... SK