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Chapter 3

Chapter 3. The Role of Government P olicy and Tourist T ransport. The role of government policy and tourist transport. The term 'policy ' is frequently used to denote the direction and objectives an organisation wishes to pursue over a set period of time .

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Chapter 3

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  1. Chapter 3 The Role of Government Policy and Tourist Transport

  2. The role of government policy and tourist transport The term 'policy' is frequently used to denote the direction and objectives an organisationwishes to pursue over a set period of time. Thepolicy process is a function of three interrelated issues: • the intentionsof politicalandotherkeyactors • the way in which decisions and non-decisions are made • the implicationsof these decisions.

  3. The role of government policy and tourist transport • Policy-making is a continuous process and Figure 3.1 outlines a simplified model of the process that is applicable to the way tourism transport issues are considered by government bodies • National policy is normally formulated by government organisations with economic and social factors in mind, without an explicit concern for tourism, even though transport networks are used for tourist and non-tourist travel.

  4. Figure 3.1: Policy Making Process Policies are determined and implemented by both government bodies, public autorities and private organisations, such as firms , associations, NGO’s etc.

  5. The role of government policy and tourist transport • The development and shape of transport policy is partly affected by the existing infrastructure, which has resulted from major public and private sector investmentto achieve general andspecific transport objectives. • Transport policy is a reactive element of government activity as changes in society and the demand for tourist and non-tourist travel needs.

  6. The role of government policy and tourist transport • National transport policieshave been characterised by a range of approachesthat span a spectrum from a free market orientation to those based on planned resource allocation. • The market-oriented view has beenpursued on the premise that centralisedstatecontrolof transportproducesan unwieldy(useless) andoften unresponsiveservice requiringunnecessarilyhigh subsidies from state taxation.

  7. The role of government policy and tourist transport • In contrast, supporters of the regulated planned response towards state involvement in transport have pointed that, in a free market economy, supply imperfections result. • State intervention in the market economy is justified to rectify(correct) supply imperfections on socialefficiencyand environmental grounds to avoid inequalitiesin accessibility.

  8. Interpreting transport policy: implications for tourist travel In Europe and North America, transport policy has affected the tourist transport system in a number of ways, although it is based on 2 underlyingeconomic principles: • Allocative efficiency (the use of resources and the price mechanism to achieve efficient access to transport and travel) • Political obligations (the need for the state to protect the public interest in transport provision)

  9. Interpreting transport policy: implications for tourist travel • These principleshavehad an importanteffecton the provisionof transport for touristtravelin terms of the development, expansion and regulationof different modes of transport • Technologicalinnovationsandtheir commercial exploitation (e.g. the motor car), and their diffusion to different social groups during the late 19th and 20th centuries, have been shaped by transport policy.

  10. Ford Model T

  11. Interpreting transport policy: implications for tourist travel In historical terms, the principles of allocative efficiency and political obligations havebeeninterpretedin differentwaysbygovernments, Four distinct phases in transport policy: • The Railway Age, which, in the UK, led to heavy investment in the provision of infrastructure that made seaside resorts accessible to the working classes after the 1870s.

  12. First Metropolitan Railway in UK - 1870

  13. Interpreting transport policy: implications for tourist travel • The Age of Protection, which characterised the 1920s and 1930s, saw theemergenceof road transport, particularly the rise of the private car and coach travel in an unplannedmanner. • The Age of Administrative Planning, which emerged in the post-warperiod and superseded the Age of Protection, saw the private car emerge as a potent force for tourist and recreational travel.

  14. Cars 1920

  15. Interpreting transport policy: implications for tourist travel • The Age of Contestability has characterised the period since the early 1970s in the USA & UK, based on the pursuit of the principle of deregulation to achieve ‘allocative efficiency in transport policy' • More recent developments in transport policyin the late 1990s have contributed to a new era, the public-private partnership (PPP) approach

  16. Cars 1970s

  17. Interpreting transport policy: implications for tourist travel The policy changes since the 1980s are characterised by: • transferring transport fromthe public sector to the private sector throughprivatisationor denationalisation • the introduction of competition into public transport services and greaterregulatory reform • the pursuit of greater levels of private capital in the large transport infrastructure projects.

  18. Towards a common transport policy for theEuropean Union - Aviation • In the case of aviation, the EU policy has changed dramatically over the last decade after a move from aviationmarketsbeing a series of heavily regulated, discrete bilateral cartels, dominated byflagcarriers, to a structure which promises by the end of the century to have become a liberalised multinational civil aviation market.

  19. Towards a common transport policy for theEuropean Union - Aviation Changes have occurred in the EU aviation market: • Individual countries (e.g. the UK) did not free the market entirely; instead theprocedurefor allocating licences was moreliberal. • Since the mid-1980s bilateral agreements have been liberalised between member states • External changes, such as the USA's 'open skies' policy, have assisted EU member states in developing bilateralagreements.

  20. Towards a common transport policy for theEuropean Union: the case of rail travel • Rail transport and rail networks are state owned in all member states of the EU, and they receive subsidies to assist with the operation of uneconomic services. • Yet there are certain governments (UK and Sweden) that have sought to introduce greater competition, aspects of privatisation and a more explicit market orientation for rail passenger transport.

  21. Towards a common transport policy for theEuropean Union: the case of rail travel The EU has made little progress towards developing a common rail policy due to two principal objectives of EU transport policy : • the desire to liberaliserail transport to achieve free trade policies in the movetowardsthe Single European Market • the need to harmonisetheconditionsof competitionin rail services in pursuit of social interventionpolicies.

  22. The EU and rail travel In the EU, rail travel has experienced a relative loss of market share to road since the 1970s. With the decline in infrastructure for railoperations, theEU Common Transport Policy set out a number of goals that subsequent directives needed to meet: • to open up EU markets for rail • to develop interoperability of high-speed and conventional rail systems • to set out the conditions within which state aid could be provided

  23. The EU high-speed rail network In 2001 the EU outlined its priorities for TENS(Trans European Network System)rail projects to foster trans-European cooperation in passenger services. Some of the wider TENS objectives of: • maximising transportefficiency • improving transport safety • environmental improvement • strategic mobility and environmental, economic improvement • implementation of the Single Market • contribution to external dimensions, such as network development, integration and cooperation

  24. Formulating state-level Tourist Transport policy • OECD Tourism Committee, formed in 1948, pursued tourism as a vehicle for economic cooperation and development. • One of its principal objectives is to provide advice and information to member countries. • The OECD has argued that effective state policies for tourist transport should be integratedso that tourism and transport concerns work in harmony.

  25. Formulating state-level Tourist Transport policy Integration in transport can be achieved by integrating : • the policy instruments used across different modes of transport • policy instruments associated with the provision of infrastructure, management, pricing and information • land use planning with different transport schemes and measures • linking policies not currently aligned with transport such as health, education and other areas (tourism) • the activities of different public bodies and authorities in large urban areas.

  26. Formulating state-level Tourist Transport policy Where countries do formulate a tourist transport policy, the following issues should be taken into account in its implementation through planning measures: • The management of tourist traffic in largeurban areas • The managementof tourist and recreational traffic in rural areas • The promotion of off-peak travel by tourists to spread the seasonal and geographical distribution of tourist travel.

  27. Formulating state-level Tourist Transport policy • Maximising the use of existing transport infrastructure and the use of more novel forms of tourist transport • Integration of transport modesas evident from the Department for Transport move towards an integrated transport strategy. • More integration between the public and private sector rather than the fragmentation that has arisen from privatisation

  28. Privatisation and Tourist Transport policy The pre-privatisationera and tourist use of rail There is a broad overview of the various factors that affected the organisation and management of pre-privatisation passengerservices. Authors identified the main determinants of the demand for rail travel as: • Speed • Cost • Comfort • Convenience • Access to stations • The image of the service.

  29. The pre-privatisation era and tourist and leisure use of rail • In terms of tourist demand, the Long Distance Travel Survey found that rail had a 20 % share of all long-distance trips (those over 40 km). • According to some authors, the number of domestic tourists using rail to reach their holiday destination in UK dropped from 13 % in 1971 to 10 % in 1985 and 8 % in 1989.

  30. The tourist rail experience post-privatisation

  31. The tourist rail experience post-privatisation Prior to privatisation, InterCity had been able to reach Levels 1-3in terms of service delivery (Figure 3.5), But post-privatisation it is apparent that innovations in service delivery assisted with reaching Level 4 in models of rail service delivery with improvement on the principles in Levels l-3.

  32. The tourist rail experience post-privatisation Under privatisation,developments at each stage of that model occurred, including the pre-train experience: • e-travel options (i.e. booking via the Internet or via Trainline.com) • National Rail Inquiry call centre • more approachable staff to help at stations for long-distance services • clearer branding of the rail product offered by each franchise.

  33. The tourist rail experience post-privatisation The on-board rail experience offered: • a redesignedteamapproachon long-distance services • greater information during service interruptions to keep passengers informed and to maintain satisfaction • the introduction of packages to offer more on-board value in restaurant and buffet cars • investment in new and refurbishedtrains • more interaction with passengers to generate-repeat business.

  34. The tourist rail experience post-privatisation The post-train experience included: • increased attention to customer ratings, with a quarterly National Rail Survey • monitoring of customer services • expansion of services to meet service demands.

  35. The tourist rail experience post-privatisation The following points summarise the key findings of the discussion of rail privatisation : • Marketing research has become an important part of the strategic planning process • Government has adopted a long-term policy favouring privatisation under the form of improving consumer choice and service quality • In the 1970s and 1980s tourist use of railways declined, but there is potential for increasing the number of journeys involving air and rail for distances of 500-1000 km.

  36. The tourist rail experience post-privatisation • The introduction of the passenger charter is a direct consequence of government policy and has led to a greater emphasis on service quality. • For international tourists, the changes since privatisation arecomplex, confusing and not visitor friendly

  37. Policy measures to improve the trade in tourismand transport: GATS – (Optional) • One of the principal problems which continue to affect the development of a global transport and tourism sector is the existence of obstacles to free trade. • Trade liberalisation in tourism services has become part of the multilateral trade agenda as part of the General Agreement on Trade in Services (GATS) where tourism and travel-related services represents the first multilateral agreement to have an impact upon the sector

  38. Policy measures to improve the. trade in tourismand transport: GATS • The issue of GATS is complex but its ultimate purpose is to liberalise trade in services by the elimination of trade barriers,enhancing trade between countries. • In tourism, the market access focus is particularly important, covering 4 dimensions of tourism supply:1) cross-border trade, 2) consumption abroad, 3) commercial presence, 4) natural persons

  39. End of Chapter Slides

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