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Chapter 14 Public Sector and Policy

Chapter 14 Public Sector and Policy. This Lecture will give you. A knowledge of the key organizations globally with an interest in and influence upon tourism;

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Chapter 14 Public Sector and Policy

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  1. Chapter 14Public Sector and Policy

  2. This Lecture will give you A knowledge of the key organizations globally with an interest in and influence upon tourism; An understanding of the key functions of NTOs and an insight into how such offices might be structured and how responsibilities are divided;

  3. This Lecture will give you An overview of the role of the public sector; and A knowledge of the instruments available to governments in order to manipulate demand for tourism and control the supply of it.

  4. Public Policy Framework The context for government involvement in tourism: • International agencies such as the World Tourism Organisation, the World Bank and the United Nations; • Regional agencies and banks such as the Pacific Area Travel Association and the European Bank for Reconstruction and Development

  5. Functions of the WorldTourism Organisation (1) - Helping member countries, tourist destinations and businesses maximize the positive economic, social and cultural effects of tourism; - Identifying markets; - Assisting in tourism planning as an executing agency of the United Nations Development Programme (UNDP); - Advising on the harmonisation of policies and practices; - Sponsoring education and training, and identifying funding sources;

  6. Functions of the WorldTourism Organisation (2) - Promoting the broader relationship of visitors to the physical and social environment, by defining sustainability as development which meets the needs of present tourists and host regions while protecting and enhancing opportunities for the future; - Encouraging the implementation of a Global Code of Ethics for Tourism for the observance of human rights and fundamental freedoms.

  7. The PublicAdministration of Tourism

  8. Reasons for Government Involvement in Tourism (1) - Foreign exchange earnings and their importance for the balance of payments; - Employment creation and the need to provide education and training; - Large and fragmented industry requiring careful coordination of development and marketing; - Maximize the net benefits to the host community; - Spread the benefits and costs equitably;

  9. Reasons for Government Involvement in Tourism (2) - Building the image of the country as a tourist destination; - Market regulation to protect consumers and prevent unfair competition; - Provision of public goods and infrastructure as part of the tourist product; - Protect tourism resources and the environment; - Regulate aspects of social behavior, for example, gambling; - Monitor the level of tourism activity through statistical surveys.

  10. Structure of aNational Tourism Organisation

  11. Functions of aNational Tourism Organisation Marketing • Advertising and promotion; • Relations with the travel trade and media; • Information provision; • Business tourism; • Tourism services. Development • Strategic planning; • Project assistance; • Research.

  12. Functions of aNational Tourism Organisation Administration • Internal operations; • Tourism legislation; External relations • Representing government; • Tourism sector liaison; • Enquiries and public relations.

  13. Demand and RevenueManagement - Marketing and promotion; - Information provision and network development; - Pricing; - Controlling access; - Security and safety.

  14. Supply and Cost Management - Land-use planning and environmental control; - Building regulations; - Market regulation; • Market research and planning; • Taxation; - Ownership; - Education and training; - Investment incentives.

  15. Principles of Taxation - Equity; - Efficiency; - Simplicity.

  16. Categorisation ofInvestment Incentives - Reduction of capital costs; - Reduction of operating costs; - Investment security.

  17. Conclusions - The complex nature of the tourist product makes it unlikely that private markets will satisfy all the tourism policy objectives of a country; - The role of governmental organizations, particularly the NTO is critical in the shaping of the tourism system; - Tourism is a truly global business that has reduced the power of national governments to shield themselves from outside events.

  18. End of Chapter Slides

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