LECTURE EIGHT

INTERNATIONAL TRAVEL & TOURISM ORGANIZATIONS

8.1 Introduction
8.2 Objectives
8.3 The Main International Travel and Tourism Organizations
8.3.1 The United Nations World Tourism Organization (UNWTO)
8.3.2 World Travel and Tourism Council (WTTC)
8.3.3 Skål International
8.3.4 International Air Transport Association (IATA)
8.3.5 International Civil Aviation Organization (ICAO)
8.4 International Developmental Organizations
8.4.1 Large Financial Organizations
8.4.2 The Organization for Economic Cooperation and Development (OECD)
8.5 Regional International Organizations
8.5.1 The Pacific Asia Travel Association (PATA)
8.5.2 The European Travel Commission (ETC)
8.6 Summary
8.7 Terminal Questions
8.8 References

8.1 Introduction

In the previous lecture we examined the environmental concerns of international tourism and their
associated social and economic concerns. Today, our focus shifts to international tourism organizations
and enterprises. But before we proceed, there are a few general things you need to know about tourism
organizations and enterprises.

1. Although this lecture focuses on international tourism organizations, we also have national
tourism organizations (but these are not the focus of this lecture).
2. There is a difference between public sector organizations and private sector organizations.
Whereas public sector organizations are owned by Governments or state parties, private sector
organizations are owned by non-governmental organizations (NGOs).
3. As you may recall from Lecture 6 on International Tourism and the Global Economy, Government
is involved in tourism for various reasons, among them: helping the balance of payments for a
country, generating employment opportunities, diversifying the economy, increasing income
levels in a given region, opening up neglected areas for development, protecting the
environment, and conserving natural and cultural resources.
4. On their part, private sector bodies engage in travel and tourism for various reasons of their own
– some of them engage in for profit-making ventures whilst some others are involved in
non-profit making causes.

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 5. Although tourism organizations (both public and private) are based at the international level (the
focus of this lesson), they are also based at the national level (both local and central levels).
6. Examples of public organizations at the national level in Kenya include the central Government
Ministry in charge of tourism (currently it is called the Ministry of Tourism, Wildlife and Heritage
under Peninah Malonza); the Kenya Tourist Board (KTB); the Kenya Wildlife Service (KWS); and
the Kenya Tourist Development Corporation (KTDC).
7. Examples of private sector national organizations in Kenya include the Kenya Association of Tour
Operators (KATU), Kenya Association of Travel Agencies (KATA), Kenya Tourism Federation (KTF)
and the ECO- Tourism Society of Kenya (ETSK).

Given this background, the aim of this lecture is to assess the role played by the various international
organizations and enterprises involved in the travel and tourism industry. To this end, the lecture is
organized into three parts: the main International organizations, international developmental
organizations; and regional international organizations.

8.2 Objectives By the end of this lecture, you should be able to:

1 Explore the main international travel and tourism organizations and

enterprises.
2 Examine the role played by international developmental organizations.
3 Discuss the role of regional international organizations.

8.3 The Main International Organizations

There are five main international travel and tourism organizations, for example: the United Nations
World Tourism Organization (UNWTO), the World Travel and Tourism Council (WTTC), Skål International,
the International Air Transport Association (IATA), and the International Civil Aviation Organization
(ICAO). Below we explore the role played by each of these organizations.

8.3.1 The United Nations World Tourism Organization (UNWTO)

The United Nations World Tourism Organization (UNWTO) is currently the most widely recognized and
the leading international organization in the field of travel and tourism. It serves as a global forum for
tourism policy issues and a practical source of tourism know-how. Its membership includes 150 countries
and territories and more than 300 affiliate members representing local government, tourism
associations, educational institutions, and private -sector companies, including airlines, hotel groups, and
tour operators. With its headquarters in Madrid, UNWTO is a specialized agency of the United Nations
(UN). UN specialized agency status entitles UNWTO to participate as a full member in the United Nations
System Chief Executives Board for Coordination (CEB), which elaborates system-wide strategies in
response to overall intergovernmental directives on economic cooperation and development. UNWTO’s

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participation will enable it to highlight the role of tourism in support of socioeconomic development and
the achievement of the Millennium Development Goals.

The specialized agencies function on an autonomous basis, with their own charter, budget, governing
boards, staff, and publishing operations. They make annual or biennial reports to the Economic and
Social Council. The General Assembly can examine their budgets and make recommendations; however,
each specialized agency exercises final control over its operations.

Thus, UNWTO is vested by the UN with a central and decisive role in promoting the development of
responsible, sustainable, and universally accessible tourism, with the aim of contributing to economic
development, international understanding, peace, prosperity, and universal respect for and observance
of human rights and fundamental freedoms. In pursuing this aim, UNWTO pays particular attention to
the interests of the developing countries in the field of tourism.

The United Nations World Tourism Organization had its beginnings as the International Union of Official
Tourist Publicity Organizations set up in 1925 in The Hague. It was renamed the International Union for
Official Tourism Organizations (IUOTO) after World War II and moved to Geneva. IUOTO was renamed the
World Tourism Organization (WTO), and its first General Assembly was held in Madrid in May 1975. The
Secretariat was installed in Madrid early the following year at the invitation of the Spanish government,
which provides a building for the headquarters. In 1976, UNWTO became an executing agency of the
United Nations Development Program (UNDP); in 1977, a formal cooperation agreement was signed with
the United Nations. In October 2003, UNWTO became a specialized agency of the United Nations and
reaffirmed its leading role in international tourism.

UNWTO is engaged in many activities. The transfer of tourism know-how to developing countries is a
major task. Here UNWTO contributes decades of experience in tourism to the sustainable development
goals of nations throughout the world. UNWTO projects are based on the policy of sustainability,
ensuring that the economic benefits of tourism development are not offset by damage to the
environment or to local cultures.

In addition to these global activities, UNWTO engages in regional activities. Each region of the world —
Africa, the Americas, East Asia and the Pacific, Europe, the Middle East, and South Asia — receives
special attention from that region ’ s UNWTO representative. The representatives meet with top tourism
officials from each of the countries in their region to analyze problems and help seek solutions, act as a
liaison between tourism authorities and the UNDP to create specific development projects, organize
national seminars of topics of particular relevance to an individual country, such as tourism promotion in
Mexico or ecotourism in Kyrgyzstan, and hold regional conferences on problems that are shared by many
countries so that members can exchange experiences and work toward common goals, such as safety
and security in Eastern Europe or aviation and tourism policy in the Caribbean.

They are also involved in regional promotion projects. The Silk Road is a project being implemented in
cooperation with the United Nations Educational, Scientific, and Cultural Organization (UNESCO).
Launched in 1994, UNWTO ’ s Silk Road project aims to revitalize through tourism the ancient highways
used by Marco Polo and the caravan traders who came after him. The Silk Road stretches 12,000

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kilometers from Asia to Europe. Sixteen Silk Road countries have joined forces for this project: Japan,
Republic of Korea, Democratic People’ s Republic of Korea, China, Kazakhstan, Kyrgyzstan, Pakistan,
Uzbekistan, Tajikistan, Turkmenistan, Iran, Azerbaijan, Turkey, Georgia, Greece, and Egypt. Joint
promotional activities include a brochure and video, familiarization trips, and special events at major
tourism trade fairs. Key projects that UNWTO is currently working on are poverty alleviation and
elimination through sustainable tourism, protecting children from sexual exploitation in tourism, crisis
management, ecotourism, and safety and security.

8.3.2 World Travel and Tourism Council (WTTC)

The World Travel and Tourism Council (WTTC) is the forum for global business leaders in travel and
tourism. It is comprised of the presidents, chairs, and chief executive officers of 100 of the world’s
foremost companies. These include accommodation, catering, cruises, entertainment, recreation,
transportation, and travel- r elated services. WTTC is the only body representing the private sector in all
parts of the industry worldwide. Established in 1990, WTTC is led by a nineteen - member executive
committee, which meets twice a year and reports to an annual meeting of all members. Day - to - day
operations are carried out by the president and small staff based in London.

The mission of the council is to raise awareness of the economic and social contribution of travel and
tourism and to work with governments on policies that unlock the industry’s potential to create jobs and
generate prosperity. Their vision of travel and tourism is that of a partnership among all stakeholders,
delivering consistent results that match the needs of national economies, local and regional authorities,
and local communities with those of business, based on:

1. governments recognizing travel and tourism as a top priority;

2. business balancing economics with people, culture, and the environment; and
3. a shared pursuit of long - term growth and prosperity.

The activities of the council can be summarized under three broad themes:

(1) Global Activities. WTTC addresses challenges and opportunities that affect all sectors of the
global travel and tourism industry. It is empowered by its members to provide an effective voice
for the industry in its dialogue with governments around the world. The council actively
promotes public and private sector examples of best practices in tourism. A number of case
studies from different parts of the world can be found on their Web site.
(2) Regional Initiatives. Regional initiatives are set up in countries and regions that have huge
potential for travel and tourism development but lack the framework or resources to achieve
growth. The objective of these initiatives is to translate WTTC’s mission into action by working
with governments, local leaders, and WTTC global members with a regional presence to identify
and eliminate barriers to growth.
(3) Economic Research. WTTC now uses Oxford Economics and Accenture to undertake extensive
research to determine travel and tourism ’ s total size and contribution to world, regional, and
national economies. The WTTC forecast is the primary vehicle used to convey the message that
tourism is the world ’ s largest industry, that it has been growing faster than most other

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 industries, that it will continue to grow strongly, and that it can create jobs and increase gross
domestic product (GDP). WTTC plans to continue publishing this forecast and enhance its
methodology. In fact, they continue to increase the number of economic impact reports, and
under the auspices of the UNWTO, they have developed proposals for an international standard
Satellite Accounting System. Their 2008 forecast covers 176 national economies and shows that
the tourism industry currently generates 238.2 million jobs and contributes over 9.9 percent of
global GDP. WTTC has done more to create awareness of the economic importance of tourism
than any other organization.

8.3.3 Skål International

Skål is a professional organization of tourism leaders around the world, promoting global tourism and
friendship. Skål, founded as an international association in 1934, has approximately 22,000 members in
500 locations in 90 countries. Skål headquarters is in Torremolinos, Spain.

Skål International is an affiliate member of UNWTO and supports UNWTO’s mission to promote the
development of responsible, sustainable, and universally accessible tourism. Skål has adopted the Global
Code of Ethics in tourism and is a sponsor of the Code of Conduct for the Protection of Children from
sexual exploitation in tourism. Following the United Nations declaration of 2002 as the Year of
Ecotourism and the Mountains, Skål launched their Ecotourism Awards to highlight and acknowledge
best practices around the globe. Skål is a powerful force in the tourism industry to initiate change and
encourage the conservation of the environment to promote tourism.

8.3.4 International Air Transport Association (IATA)

The International Air Transport Association (IATA) is the global organization for virtually all the
international air carriers. The principal function of IATA is to safely facilitate the movement of persons
and goods from any point on the world air network to any other by any combination of routes. This can
be accomplished by a single ticket bought at a single price in one currency and valid everywhere for the
same amount and quality of service. The same principles apply to the movement of freight and mail.

Resolutions of IATA standardize not only tickets, but waybills, baggage checks, and other similar
documents. These resolutions coordinate and unify handling and accounting procedures to permit rapid
interline bookings and connections. They also create and maintain a stable pattern of international fares
and rates. In effect, they permit the linking of many individual international airline routes into a single
public service system.

While developing standards and procedures for the international airline industry to support interlining
and enhance customer service continues to be a principal aim, IATA is involved in many other areas, such
as industry support, the environment, consumer issues, regulatory monitoring, legal support, corporate
communications, scheduling, facilitation, safety, security, and services.

IATA is a valuable information source on the world airline industry. Their Airline Product Database
provides a comparison of the product across thirty major carriers. Their annual publication, World Air

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Transport Statistics, is an authoritative source of international airline data. In addition, IATA makes
passenger and freight forecasts. Their market research helps the industry develop its strategic and
tactical marketing plans.

In summary, IATA’s mission is to represent and serve the world airline industry. They serve four groups
interested in the smooth operation of the world air transport system: (1) airlines, (2) the public, (3)
governments, and (4) third parties, such as suppliers and travel and cargo agents. IATA works closely with
the International Civil Aviation Organization. IATA’s head office is in Montreal; its executive office is in
Geneva, Switzerland; and it has regional offi ces around the world.

8.3.5 International Civil Aviation Organization (ICAO)

The International Civil Aviation Organization (ICAO), a UN specialized agency, is the global forum for civil
aviation. The organization was established in 1944. ICAO works to achieve its vision of safe, secure, and
sustainable development of civil aviation through cooperation of its member states. To implement this
vision, the organization has established six strategic objectives for the period 2005 to 2010:

(1) To enhance global civil aviation safety.

(2) To enhance global civil aviation security.
(3) To minimize the adverse effect of global civil aviation on the environment.
(4) To enhance the efficiency of aviation operations.
(5) To maintain the continuity of aviation operations.
(6) To strengthen law governing international civil aviation.

Intext Question
What is the difference between IATA and ICAO?

Whereas IATA is an effectively powerful lobbying body for international air carriers, ICAO is an
inter-governmental organization which deals with regulatory aspects of national civil aviation oversight.
ICAO makes recommendations and sets standards (although it has no enforcement powers) which are
(generally) followed by national civil aviation authorities.

8.4 International Developmental Organizations

Financing is always a major problem in tourism development.

8.4.1 Large Financial Organizations

Large financial organizations are willing to make developmental loans. Examples include the World Bank
(United States), International Finance Corporation (IFC) (United States), the OPEC Fund for International
Development (Austria), African Development Bank (Côte d’ Ivoire), East African Development Bank

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(Uganda), Inter-American Development Bank (United States), Caribbean Development Bank (Barbados),
Asian Development Bank (Philippines), European Investment Bank (Luxembourg), European Regional
Development Fund (Belgium), European Bank for Reconstruction and Development (United Kingdom),
Islamic Development Bank (Saudi Arabia), and the Arab Fund for Economic and Social Development
(Kuwait).

Take Note

Examples of national organizations developmental organizations are

FONATUR (Mexico) and Embratur (Brazil). Further sources include
governments of countries that want additional hotel development or other
supply components and are willing to make low- interest loans or grants or
offer other financial inducements for such types of development.

8.4.2 The Organization for Economic Cooperation and Development (OECD)

The Organization for Economic Cooperation and Development (OECD) was set up under a convention,
signed in Paris on December 14, 1960, that provides that the OECD shall promote policies designed to:

(1) To achieve the highest sustainable economic growth and employment and a rising standard of
living in member countries while maintaining financial stability, and thus to contribute to the
development of the world economy;
(2) To contribute to sound economic expansion in member as well as nonmember countries in the
process of economic development; and
(3) To contribute to the expansion of world trade on a multilateral, nondiscriminatory basis in
accordance with international obligations.

Members of OECD are Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France,
Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, Netherlands, New
Zealand, Norway, Poland, Portugal, Slovak Republic, Spain, Sweden, Switzerland, Turkey, the United
Kingdom, and the United States.

OECD’s Tourism Committee acts as a forum of exchange for monitoring policies and structural changes
affecting the development of international tourism. It encourages further liberalization of tourism
activities, both within and outside the OECD area, and has undertaken the development of innovative
statistics to improve the understanding of the role of tourism in the economy.

8.5 Regional International Organization

Good examples of regional international tourism organizations are the Pacific Asia Travel Association
(PATA) and the European Travel Commission (ETC).

8.5.1 Pacific Asia Travel Association (PATA)

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Founded in Hawaii in 1951 to develop, promote, and facilitate travel to and among the destination areas
in and bordering the Pacific Ocean, the Pacific Asia Travel Association (PATA) brings together
governments, airline and steamship companies, hoteliers, tour operators, travel agents, and a wide
range of other tourism- r elated organizations. Today, PATA is the global leader in Pacific Asian tourism.
Members exchange ideas, seek solutions to problems, and participate in shaping the future of travel in
Asia and the Pacific area. Membership totals over two thousand organizations worldwide. Since its
founding, the association has become an important source of accurate, up - to - date information for its
members in the fields of marketing, development, information, education, sustainability, and other travel
- related activities. PATA’s activities and long - range plans are examined and adjusted each year at the
association’s annual conference.

The future of the tourism industry depends on protecting the region’s environmental, heritage, and
cultural resources. PATA develops industry - wide initiatives and sponsors conservation conferences to
ensure sustainable growth. The association also honors significant accomplishments in this arena under
its Gold Awards program.

The work of the official PATA organization is greatly augmented by thousands of travel professionals who
belong to a global network of PATA chapters. PATA’s operational headquarters is in Bangkok, Thailand;
the association’s administrative headquarters is located in Oakland, California. Other offices are located
in Sydney, Beijing, Dubai, and Frankfurt.

8.5.2 European Travel Commission (ETC)

The European Travel Commission (ETC) is the strategic alliance that provides for the collaboration
between national tourism organizations (NTOs) of thirty - six member countries. Founded in 1948, the
ETC fills a unique role functioning as a “National Tourism Office of Europe.” Its goal is to attract millions
of potential and existing overseas customers from the major overseas markets to come to Europe. This is
done through promotional campaigns and industry trade shows. The headquarters of the ETC is located
in Brussels, Belgium.

8.6 Summary International travel and tourism organizations and enterprises fall into three
major categories: first, we have the main international travel and tourism
organizations; second, we have international developmental organizations; and
third, we have regional international organizations.

There are five major international travel and tourism organizations and
enterprises. These comprise the United Nations World Tourism Organization
(UNWTO), the World Travel and Tourism Council (WTTC), Skål International, the
International Air Transport Association (IATA), and the International Civil
Aviation Organization (ICAO).

International developmental organizations come in two forms. Firstly, we have

large financial organizations willing to make developmental loans, including the

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 World Bank, International Finance Corporation (IFC), the OPEC Fund for
International Development, the African Development Bank, the East African
Development Bank (Uganda), Inter-American Development Bank, among
others. Secondly, we have an international developmental organization known
as The Organization for Economic Cooperation and Development (OECD) that
promotes among its member states policies towards achieving the highest
sustainable economic growth and employment, sound economic expansion in
member as well as nonmember countries in the process of economic
development, and the expansion of world trade on a multilateral,
nondiscriminatory basis in accordance with international obligations.
Therefore, in general, international developmental organizations play a very
important role in tourism – that of funding, given that financing is always a
major problem in tourism development.

Good examples of regional international tourism organizations are the Pacific

Asia Travel Association (PATA) and the European Travel Commission (ETC). PATA
plays an important role in that it develops, promotes, and facilitates travel to
and among the destination areas in and bordering the Pacific Ocean. The
organization brings together governments, airline and steamship companies,
hoteliers, tour operators, travel agents, and a wide range of other tourism-
related organizations. PATA is currently the global leader in Pacific Asian
tourism. On its part, the European Travel Commission (ETC) is the strategic
alliance that provides for the collaboration between national tourism
organizations (NTOs) of thirty - six member countries. The ETC plays a unique
role as a “National Tourism Office of Europe.” Through promotional campaigns
and industry trade shows, the ETC attracts millions of potential and existing
overseas customers from the major overseas markets to Europe.

8.7 Terminal Question 1

Questions
Identify the various international travel and tourism organizations and discuss
their respective roles.

Question 2

(a) Explore the role of the UNWTO, WTTC and IATA and ICAO in travel and
tourism.
(b) Describe the role of large financial organizations and the OECD in
promoting international tourism development.
(c) Explain the role of the PATA and ETC regional international tourism
organizations.

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8.8 References
Cooper, C. (2016) Essentials of Tourism. 2nd edn. Harlow, UK: Person.

Goeldner, C.R. and Ritchie, J.R.B. (2009) Tourism Principles Practices,

Philosophies. 11th edn. New Jersey: John Wiley and Sons.

Healy, N. and Carvao, S. (2016) “World Tourism Organization”, in Jafari, J. and

Xiao, H. (eds.), Encyclopedia of Tourism. London: Springer, p. 1027.

Sharply, R. (2006) Travel and Tourism. London: SAGE Publications.

Theobald, W.F. (ed.) Global Tourism. 3rd edn. Amsterdam:

Butterworth-Heinemann, pp. 5-24.

UNWTO (2012) Statutes of the World Tourism Organization. Madrid: World

Tourism Organization.

World Tourism Organization (2003) WTO News, 2003 (3). Madrid: World Tourism
Organization.

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