CHAPTER ONE
CONCEPT OF TRAVEL AND
TOURISM
Compiled by Asnakew (MA in Tourism
& Heritage management)
Wollo University
Learning objectives
• Able to understand meaning and nature of
tourism
• Able to conceptualize the characteristics of tourism
industry
• Understand purpose of travel
• Underpin tourism system
• Identify forms of tourism
• Types of tourism
CONCEPT OF TRAVEL AND
TOURISM
What is tourism?
1.1 Meaning and Nature of Tourism
• Leisure: It is the measure of time;
– The time remaining after work, sleep &
essential house hold have been completed
– Discretionary time
• Recreation: wide variety of activity undertaken
during leisure time; it can be participatory or non
participatory
• Different scholars and organizations give their
own definition and in different ways
• In 1976, the Tourism Society of England's definition was:
"Tourism is the temporary, short-term movement of
people to destination outside the places where they
normally live and work and their activities during the
stay at each destination. It includes movements for all
purposes."
Cont…
• Another definition for tourism by the World trade
Organization is that “tourism comprises the
activities of persons traveling to and staying in
places outside their usual environment for not
more than one consecutive year for leisure,
business, and other purposes.”
• According to WTO (1993), “Tourism is the activity
of persons traveling to and staying in places outside
their usual environment for not more than one
consecutive year for leisure, business,VFR or other
purpose without any activities remunerated”
From the above definitions, one may deduce the
following distinct elements of tourism;
– Involvement of travel by non-residents
– Stay of temporary nature in the area visited
– Stay not connected with any remunerated
activity or an activity involving earnings in the
destination.
Nature of Tourism
• Tourism is considered as an industry, an
activity, an experience, an art, a science, a
system etc.
• Basic characteristics of the tourism
industry
• Tourism is inter disciplined/integrated
industry
Tourism as an Integrated Discipline
Religious
studies
• Cultural tourism
Geography,
Economics, History
Accounting
• The business of tourism
Tourism • Destination
development
• History of tourism
Studies
Information
Social studies technology
• Tourist behavior • GDS
Cont’d
Dominated by private sector enterprises
Dynamic and entrepreneurial
Many small and medium sized enterprises
Serves domestic and international markets
Thrives on face to face communication
Makes extensive use of new technology
Vulnerable to external pressures
Have positive and negative impacts.
1.2 The Tourist Terminology
• Travel: a movement of people from one place to another
• Traveller: any person on a trip between two or more
countries or between two or more localities within his/
her countries.
• Visitor: a person who travels to a country other than the
usual residence, not exceeding 12 months, not for
remuneration purpose
• Visitor can be of two types
1. Same day visitor/excursionist: temporary visitors staying
less than 24 hours in the place visited
2. Tourist: a person traveling to a new destination, stay for
at least one night in the place visited for leisure,
business or VFR
Class discussion
Identify the visitor/non visitor. Why?
– Border workers
– Students for a short term course
– Nomads
– Participant to annual conference
– Crew staff on an international flight
– Traveler crossing the country en-route to other
country for medical purpose
– Traveler staying in a transit zone
– Football players in QATAR world cup
Growth of leisure: The increase in the amount of
leisure time available is due to a number of
factors:-
o Working hours have been reduced.
o There is provision of holiday with pay.
o Life expectancy has increased.
o Technological developments like washing machines,
dishwashers, computers, telephone, internet and
automobiles are widely used.
1.3 Purpose of Travel & Tourism
• Based on statistical and analytical purposes, tourism is categorized
as leisure tourism, business tourism and visiting friends and
relatives (VFRs).
• Leisure includes holidays, health and fitness, sport, religion and
education
– Takes place in free or leisure time
– Travelers choose their destination
– More flexible in schedule
– High price elastic
• The other purpose is business tourism. It includes conferences,
meetings, exhibitions, trade fairs, incentive travel
– primarily concerned with business activities
– takes place in working time
– less flexible, price inelastic
• VFR
1.4 The Tourism System
• The tourism system is an organizing
framework of tourism industry dealing
with the linkage of tourism components.
• The system is suggested by Leiper in 1979
and updated in 1990.
1. The tourist
2. The geographic elements of tourism
3. The tourism industry
The geographic elements of tourism
1.5. Forms of Tourism
• Basically, there are three forms of tourism.
A. Domestic tourism: It involves residents of a given
nation traveling only within their country. (E.g. from A.A
to Hawassa, Arabamich to Lalibela)
B. Inbound tourism: It involves nonresidents (e.g.
Indians, Italians, Germans, British) traveling in Ethiopia
C. Outbound tourism: It involves Ethiopians (residents)
traveling in another country. E.g. Ethiopians travelling
to USA, Dubai, Australia
• Other forms of tourism
1.International tourism: outbound +
inbound
2.National: domestic + outbound
3.Internal: domestic + inbound
Recreation Tourism
• To escape the routine of daily life, such as
camping or going to a beach.
Religious Tourism
• Involves visiting a place of spiritual significance.
Health / Medical Tourism
• To improve one’s health, such as a visit to a
health resort or weight-loss camp.
Cultural Tourism
• To experience the history, folklore, and culture
of a people.
CHAPTER TWO
HISTORICAL BACKGROUND OF
TRAVEL & TOURISM
Group discussion
• Make a group of three members each and
take 5 minutes to discuss on the following
issues
A. Discuss when tourism was started?
B. Discuss the reasons for travel during
ancient time?
C. What are the technological advancements
made for tourism?
Introduction
• Travel was started with the origin of human
being, however, there were no exact time for the
emergency of tourism.
• Some agreed that the origins of tourism can
however traced back to pre-Egyptian times.
• And the purpose was for religious activities and
trade
Travel in ancient Times
Travel in Prehistoric Period
• The main task of man from +/-32,000 to 10,000 BC
was to find food, water and shelter.
• So people were constantly move to hunt their food
Travel in Neolithic Times
• Around 10,000 BC, primitive people started to
settle in more permanent areas and formed
agricultural communities.
• Therefore, innovations were made that changed
the history of travel
Cont’d
• Around 4,000 BC, sailing ships were built in
ancient Egypt
• Animals (e.g. donkeys, camels) were
domesticated and trained to carry supplies.
• Another big development was the invention of
the wheel by the Sumerians around 3,500 BC
• One traveled mostly for reasons of trade, but also
travel for religious and spiritual purposes came to
see the light.
Travel during the Ancient Civilizations
• The civilizations of great powers, long duration
and extensive territories were known for their
sophisticated levels of commerce.
• And as commerce grew, more people become
rich and travel for pleasure become possible for
certain groups of people
• specializations of labor contributed to the growth
of trade and travel e.g. craftsmanship
• The oceans and seas provided major routes of
travel, and road was also built by Romans
• The ‘tourist infrastructure’s were also developed
• The main purpose of travel were for
military and commercial goals,
• The rich and powerful people of ancient
civilizations also started to travel for
pleasure.
• The other reason was for religious purpose
and cultural events (like Olympic games in
Greece and famous circus games in the
coliseum in the capital city of Rome).
Travel in the medieval times
• The fall of Roman Empire around 400-500 A.D.
caused travel to diminish.
• Travel were no longer there, only limited travel
for trade and military reasons remained.
• Later on the Roman Catholic Church becomes an
important and powerful force in Europe.
• So that the major travel activities of this period
were the crusades (took place between 1095 &
1291) and pilgrimages.
• Pilgrimage voyages were made for the purpose
of forgiveness, to get cure for their health
problems
• Inns provided accommodation, food and drinks,
even a ‘souvenir-industry’ was developed and
games were organized
• Religious artifacts and tourist guide books were
sold and there were also guides available to assist
the traveler in understanding the major sacred
attractions.
• Later on travel for education become common.
Travel in the Renaissance
• It was a time of enlightenment, change and exploration, which
lasted from the 14th to the 17th century.
• Grand tour in Europe were organized by the upper class for
educational experiences and probably the modern tourism was
emerged.
• The main travel motivations were Culture, health, pleasure, career
development and art.
• In the late 1700s admiring the beauty and splendor of nature, it
was known as the Romantic Period.
• By 1800, the Grand Tour had changed and was no longer
exclusively made by members of the upper class, but also by the
middle classes.
Travel in the Industrial Age
• The economy shifted from being a rural /agricultural
society to becoming an urban industrial society.
• The most important travel developments during the
industrial age were transportation
• By 1770s nearly all cities in England were connected by
coach service and roads
• In addition to roads, ship transport started first by sailing
ships, later steamships were developed.
• The development of the steam engine made also rail
roads the symbol of mass travel by land.
• Thomas Cook was the first to develop the inclusive group
tour, in England around 1842.
Travel in modern times
• A series of important technological, political and
social events during the first 50 years of the 20th
century finally made tourism a major worldwide
business. However, the two world wars affects
travel
• Automobile was one important technology
• Airplanes were at first mainly used during the
wars and for limited business travel.
• modern ‘jet’- and airline- companies started their
businesses.
Era Motivation Ability Mobility
Pre- Exploration, business, Few travellers Slow and
industrial pilgrimage, education, (wealthy and
treacherous
influential)
health
Industrial Positive impact of education, Higher, income, more Lower transportation
escape from city colonial leisure time and cost and reliable public
organized tour transportation
empires
Consumer Positive impact of visual Shorter works, more Growth of personal
society discretionary, more transportation, faster
communication and escape
income mass marketing
and more efficient
from work routine and package tours
transportation.
future Self-catering, Alternative fuels, more
Vacations a right and
smaller families, two efficient transportation,
necessity combined with greater use of public
wage earners per
transportation and
business and learning house hold
package deals.
Reasons for the rapid development of tourism in the
twenty-first century
o Increase in income, and leisure time
o Advance in the transportation industry & fair pricing
o Enormous growth in international business/MICE
o Improved use of package tours
o Similar climatic and weather conditions in abroad
destinations
o Ease access to the international tourism market
o Market prominence and stronger branding of
destinations
o Growth of government involvement
o Globalization and international participation
CHAPTER THREE
Components of the Tourism
Industry
Brain storming questions
“The attorney is my brother”, stated the
accountant. However, the attorney testified that
he has no brother.
Then who is liar?
Unit objectives
At the end of this chapter you are
expected to:
– Identify the components of tourism industry
– Define attraction, accommodation,
accessibility, amentias and activities
– Able to distinguish the types of attractions
and accommodation
• Tourism does not exist in isolation. It has
multidisciplinary nature. It is necessary to know
the various components of tourism industry.
1. Attractions
Attractions are the “main springs” that drive much of
humanity to travel.
It is the features of the destination which draws the
tourist to visit the area.
Underdeveloped attractions are only potential resources
and do not become attractions unless some type of
development can be made
The success of particular attractions may change through
time as travel motivation and fashion changes.
Types of Tourist Attractions
Attractions can be divided in to two types: manmade and
natural attractions.
o Natural attractions
• Climate
• Landscape beauty,
unusual character
and unique feature
• Beaches and
shoreline
• Marine environment
• Flora and
fauna
• Parks and
reserves
(officially
protected)
Manmade Attractions
• Cultural patterns and
lifestyle
• Archaeological and
historic sites and
monuments
• The art
• Museums
• Sport activities and
events
• Entertainment
• Shopping
• Dinning and cuisine
Discussion (5 minutes)
Mention and describe the
tourism resources /attractions
in your localities
2. Accommodation
• It is an essential component of tourism, given
that any definition of tourism involves a stay
away from home.
• Accommodation may be defined as an
establishment whose primary business is
providing lodging, food and beverage services.
• Accommodation in itself may be an attraction.
• A large number of tourists visit a particular
destination or town simply because there is a
first class luxury hotel or resort which provides
excellent services and facilities.
A. serviced/self- catering: e.g. staying at an inn/in
an apartment in a self- catering villa.
B. Commercial/noncommercial: e.g. paying for a
room in a hotel or staying free of charge with
friends.
C. chain/independent: e.g. belonging to a hotel
chain such as intercontinental hotels or trading
independently.
D. static/mobile: e.g. a holiday villa or rented
camps van.
E. urban/rural-e.g. a city center youth hostel or a
forest camping ground.
Commercial or Non Commercial Accommodations
• Accommodation established for the purpose of making
profit is called commercial accommodation e.g. hotel
• Noncommercial accommodations e.g. industrial
caterings, health care caterings, old age homes,
orphanages, educational establishments…
Classification of Hotels
By location Sizes of Hotel On the basis of plan
• Downtown • Small • Continental plan
• Sub urban • European plan
• Medium • American plan
• Resort hotel
• Motel • Large • Modified
• Transients • Very large American plan
• Bermuda plan
Based on length of stay
• Transient hotel
• Residential hotel
• Semi residential hotel
3. Accessibility/Transportation
• It is ‘the means to reach the destination and also
the means of movement at the destination’.
• Accessibility is the functional element of
transportation services; that is passenger
movements from point A to point B.
• It also includes the related infrastructure that
supports the means of travel such as roads, motor
ways, ferry terminals, airports, railways etc.
• Connectivity is very vital for tourism development
• Airplane, motor car, coach, ship, train or animals
Different modes of transportation
Choice of the Modes of Transportation
• The choice of the visitor for the mode of transport is
affected by the following;
o Distance and time factor
o Status and comfort
o Safety and utility
o Comparative prices of service offered
o Geographical location and isolation
o Range of services offered
• Basic elements of transportation
o The way
o The terminal
o Carrying unit
o Motive power
4. Amenities/Facilities
• Amenities are the services and facilities added
with attraction, accommodation and accessibility
to create tourism.
• It is the facilities available at the destination
which help in meeting the needs and also the
wants of tourist.
• Tourist amenities include food and beverage
facilities, local transport, a good communication
network, automatic teller machine (ATMs)
drinking water, medical facilities, etc.
• It is the soul of tourism which gives life to
tourism. Without amenities, a destination will be
a place, accommodation will be a local hotel, a
transport will be local transport etc.
5. Activities
• It includes
those
activities that
a destination
offers.
• For example,
boating, spas,
etc.
• Different types of activities at attraction,
accommodations and transportation
Discussion
• Discuss how amenities are important and
the soul of tourism
CHAPTER FOUR
DETERMINANTS OF TOURISM
DEMAND AND MOTIVATION TO
TRAVEL
Learning objectives
Definite tourism demand clearly
Identify the components of tourism demand
Identify determinants of tourism demand
Motivational factors
4.1 THE CONCEPT OF DEMAND FOR TOURISM
• Demand: “the amount of any product or service that
people are willing and able to buy at each specific price
during some specified period of time”.
• Tourism demand, therefore, is “the total number of
persons who travel, or wish to travel, to use tourist
facilities and services at places away from their places
of work and residence”(Cooper et al, 1993).
• According to Prosser (1994), the character of
tourism demand will continue to change.
• According to Buhalis (2004), demand for
tourism consists of three components:
1. Effective/actual demand: the actual
participants in travel and using services
2. Suppressed demand: comprises the population
who do not travel for some reason.
Potential demand: due to problems in travel
origin
Deferred demand: due to scarcity at the
destination
3. No demand: There will always be those who do
not wish to travel
Other ways of viewing tourism DD
• Substitution of tourism demand-is when the demand
for one activity (say a self-catering holiday) is
substituted by another activity (staying in serviced
accommodation).
• Redirect of tourism demand-is where the
geographical location of demand is changed. For
example, a trip to Ethiopia will be redirected to Kenya
because the flight/ the accommodation in Ethiopia
were fully blocked.
• The opening of new tourism service- Redirect
demand from similar facilities in the area
– Substitute demand from other facilities
– Generate new demand
Demand Indicators
1. Effective Demand
o Travel propensity: the percentage of population who
actually engage in tourism or take up travel
o This measure simply considers the penetration of tourism
trips in a population.
o There are two forms of travel propensity
A. Net travel propensity/NTP/: the percentage of the
population who take at least one tourism trip in a given
period of time.
B. Gross Travel Propensity/GTP/: It gives the total
number of tourism trips taken as a percentage of the
population.
• There are also a number of factors, which will
determine the propensity of a population to travel
to particular destinations.
o Economic distance: time and cost involved in traveling
from the origin to the destination area and back.
o Cultural distance: the extent of the cultural difference
between the host and the guest
o Cost at the destination: cost of services
Case study
• Mr. Young and his family from China has traveled and
took part on Ethiopian epiphany last year while his
nephew Dr. Emi was absent because his flight to
Ethiopia was cancelled by Ethiopian airline (over
booking). Since then, his wife Abeba hardly plan to
come to Ethiopia. On the other hand, the friend of
Young, Elisabeth wish to visit Ethiopia. However, her
trip was unsuccessful due to time constraint.
Discussion/Identify their demand
• Mr. Young
• Dr. Emi
• Abeba
• Elisabeth
• And which demand will easily changed in to
effective demand? why?
• Take a position and argue whether social distance
increase or decrease travel propensity? why?
Generally travel propensity will increase:
• Income increase
• Level of urbanization
• Education level
• Mobility level
On the other side, travel will decrease due to
• Large house hold size
• Increasing age
• Low income
2. Suppressed Demand
• There are a number of reasons why people do not
travel extensively, or do not travel at all.
• REASONS
o Travel is an expensive activity
o Lack of time
o Physical limitations
o Family circumstances
o Lack of interest and awareness
o Government restrictions
o Fear and safety
4.2.DETERMINANTS OF TOURISM DEMAND
1. Socio economic factors
• Higher living standard: With more income and saving,
more holidays could be offered.
• Changing demographic structure: In the population
pyramid of tourist generating countries, the share of
working population is the biggest.
• Occupation, social security etc.: Lots of modern
occupation requires frequent travel to learn. On the
other hand, security during unemployed period,
ageing, sickness
• Education and awareness: Education creates curiosity
towards different culture, landscapes etc.
…cont’d
2. Development of technology
• Development of new means of transportation and
its network paved the way for the expansion of
tourism.
• Since the industrial revolution, every new invention
in transportation system has been adding a new
dimension in tourism
• ICT development like software for transportation
3. Development of tourist services
• Essential tourist services like accommodation, food
and beverages, information system etc. are also serve
as an determinant of tourism.
4. Promotion of tourism
• With the development of media and
modern means of promotion,
information about any tourist
destination can be attained abundantly.
• Tourism expos, TV channels,
publications, internet and last but not
least „mouth to mouth‟ talking helps for
the tourism demand.
• Moreover, according to Louis Erdi the most
comprehensive list of factors influencing the
growth of tourism demand are:
o Greater affluence and leisure time
o The liberation of the young, and the relatively higher
wages they possess
o Transportation facilities
o An enormous growth in international business,
necessitating travel
o Relief from adverse climatic conditions
o Travel has become a status of symbol
o Ideological pressure groups (political, cultural, scientific,
etc.) hold more and more annual conferences.
4.3 MOTIVATIONS FOR TOURISM
• Motivations are the inner state of a person, or
certain needs and wants of a person, which forces
them to act or behave in a specific way(George,
2004).
• A motive can also be defined as internal forces
and external goals and incentives, that guide,
direct and integrate a person’s behavior for
future, potential satisfaction.
• Several studies concerning psychology and
motivation for tourism have shown that
individuals normally travel for more than one
reason
Then……
• What is the difference
between tourism demand and
motivation for tourism?
• According to Professor Gray from the prime
motivation, two principal and distinct motivations
may stipulate as dominant.
• Wander lust: the desire to exchange the known for
the unknown or the familiar for the unfamiliar, to go
and see different place
• Sun lust: a type of travel to destination which has
better amenities and facilities for a specific purpose
than are available in the home country of the
traveler.
• According to Mc. Intosh, Goeldner and
Ritchie motivations for travelling has the
following points.
1. Physical motivators: to refresh their body
and mind, to health purposes, sport or
pleasure, to reduce tension.
2. Cultural motivators: the desire to know
others culture, lifestyle, religion, music….
3. Interpersonal motivators: desire to meet
new people, visit friends or relatives and to
seek new and different experiences.
4. Status and prestige motivators: personal
development, education, recognition
• These type of motivations seen to be concerned
with the desire for recognition and attention
from others, in order to boost the personal ego.
This includes trips related to business,
convention, and study e.t.c.
Push vs. pull model of tourist motivation
• Push factors: These are origin-related factors
that motivate or create a desire to satisfy a need
to travel.
• Example, escape, rest and relaxation, health and
fitness, adventure, social interaction.
• Socio economic variables like (income, education,
occupation, etc.), demographic variables (age,
gender, family structure, size and race/ethnic group,
etc.) can be also push factors
• Push factors are demand driven in origin of
the traveler
• Pull factors: are destination attributes that respond to
and reinforce push factors of motivations. It is the
drawing power to the destination.
• It is the supply side found in the destination to be visited.
• Crompton (1970) also identified socio-psychological and
cultural motives.
• Socio psychological/pull motives
Escape from perceived routine environment
Exploration and evaluation of self
Relaxation
Prestige
Enhancement of kinship relations
Facilitation of social interaction
• Cultural/pull motives: motive explain the actual
destination choice
Novelty and
education
• Leiper (1984) distinguishes between recreational
leisure, which restores, and creative leisure,
which produces something new.
Rest (which provides recovery from physical or mental
fatigue)
Relaxation(recovery from tension)
Entertainment (recovery from boredom)
Maslow theory of motivation (1943)
Factors Affecting Future Tourism Demand
1. Demographic trends
2. Technological developments
3. Emerging economies
4. Political stability
5. Changing work patterns
6. Increased environmental awareness
7. Globalization of the industry
1. Justify how travel motivation
increase from bottom to top
based on Maslow hierarchy of
need motivation
CHAPTER FIVE
MEASUREMENT OF TOURISM
AND TOURISM STATISTICS
Learning objectives
• To define measurement in tourism
• To identify the significance of measurement in
tourism
• Identify the methods and categories of statistical
measurements in tourism
• Understand the statistical figures in the world and
Africa
What to measure?
• Tourism is a social phenomena with a significant
economic consequences.
• Statistics can be defined as a science by which data of
various observations are collected, summarized, and
presented.
• Tourism statistics is, therefore, the collection of tourism
data including the figurative growth, the
contribution/volume of tourism, distribution, impacts
and future implications.
5.1 Significance of Measurement in Tourism
1. To evaluate the magnitude and significance of
tourism to a particular destination.
2. To plan and develop physical facilities and for
infrastructural requirements
3. For marketing and promotion
4. For understanding changes in tourist fashions
5. For legislative and administrative purposes like
security, immigration, health ….
5.2. Measurement methods
The statistical measurement of tourist flows and
its impacts are generally obtained by surveying the
visitors or the tourism production
• Place of visit or destination
• Points of travel between the destination and the origin
• The usual place of residences
1. Surveys/studies at destination
•Surveys of visitors at tourist sites
•Census and registration of accommodation units
•Survey tourism production units
2. Survey at points of travel (between the
destination and origin)
o Survey of passengers at entry points
o Survey of passengers along their long journey
3. Survey at usual place of residence
o Household surveys of residents in the country
o Surveys of companies, public administration
units and institutions
o Survey of tourism intermediaries like tour
operators, tourist transport operators etc.
5.3 Categories of Tourist Statistics
• The tourist statistics are basically concerned with
the estimates of arrivals and departures, more
particularly the former.
• It has important implications for the country‟s
economy and its balance of payments account
• The main categories of tourist statistics (for both
domestic and international tourism) are as follows:
1. Volume statistics
2. Expenditure/value/statistics
3. Characteristics/visitor profile/ statistics
A. International Tourism Measurement
1.Volume statistics
In the volume statistics we can measure:
• Inventory at the arrival and departure points:
counting procedures at entry and exit points to a
country. E.g. checking passports, visas,
disembarkation cards and the like
• Registration at hotels and other accommodation
units: using registration form
• Sample surveys: samples of the population may
be interviewed or through questionnaire
I. Tourist Arrival/departure Statistics
o The most obvious measure of volume is that of
the total number of international tourist
arrivals/departures in a given time period
o The counting is the number of arrivals, trips or
visits and not the number of tourists/individuals.
No. of trips= No. of individuals *
Average no. of trips taken per
individuals
II. Length of stay statistics
• The length of stay is measured in terms of days or
nights spent by a tourist at the destination and is
normally expressed as the average length of stay.
Total tourist nights= No. of tourist trips *
average length of stay
Example
1. Five Portuguese tourists (A, B, C. D & E) have made a visit to
Ethiopia in 2019, though the frequency of travel for each
individual varies, it was found that the average number of trips
taken per individual was 4. Calculate the total number of trips
made by the tourists.
2. Assume that the average length of stay of each of
the above tourists in Ethiopia is as follows. Mr. A,
stays for 3 days, B for 5 days, C for 2 days, D for 3
days and, E for 2 days. Calculate the total tourist
nights.
First we need to calculate average length of stay
• 3+5+2+3+2/5=3
Then total tourist nights= No of tourist
trips*average number of stay
• 20*3=60nights
2. Expenditure/value/ statistics
• It measures the monetary value of tourist movements with
a given nation/destination
• Expenditure statistics are very difficult to collect but
important, it shows the contribution of tourism
• It commonly covers all tourist expenditures in a country
and expenditure on shopping.
• Exclude payment to international carriers and on a journey
to the destination
• Mostly found from accommodation, food and drink,
entertainment, shopping, and travel within the destination
Tourism Satellite Account (TSA)
• The TSA allows for the harmonization and
reconciliation of tourism statistics from an economic
(National Accounts) perspective.
• This enables the generation of tourism economic
data (such as Tourism Direct GDP) that is comparable
with other economic statistics.
• Exactly how the TSA does this relates to the System
National Account logic of contrasting data from the
demand-side (the acquisition of goods and services
by visitors while on a tourism trip) with data from
the supply-side of the economy (the value of goods
and services produced by industries in response to
visitor expenditure).
How the information is collected?
• Indirectly using foreign currency estimates from
banks/ exchange figures from banks and other
financial institutions,
• Using information from suppliers of tourism
services and facilities- such as hotels, shops,
domestic transport sector….
• Through collecting information directly from the
tourists themselves, through sample surveys of
foreign tourists as they leave the country(after the
event), and from nationals as they return from a
foreign trip
3. Characteristics/visitor profile/ statistics
• Profile statistics of tourists can be found through
sample surveys during arrival, or at their stay
• Tourists will be asked to complete a detailed
questionnaire which elicits the information-the survey
including places visited, length of stay, age-sex profile,
marital status, monthly income, nationality and
similar information.
• Very essential for those concerned with marketing
and development of tourism.
B. Measurement of Domestic Tourism
1. Household Surveys
o are based on knowledge of the resident population, and
provide a balanced view of domestic tourism for pleasure
or business purposes
o Questions normally relate to past behavior, covering trips
already made, although studies of intentions are
sometimes undertaken.
2. En route Surveys
o surveys of travelers during the course of their journey
3. Destination Surveys: limited to areas with high levels of
tourist activity
4. Surveys of suppliers: occupancy rates, numbers of
overnight stays, visitor numbers
Challenges in Tourism measurement
• The industry itself is not well defined
• Depends on the visitors cooperation to provide
information & Honesty
• Difficult to measure the impact of DT (VFR, use
of tents, religious travel…)
• Double counting
• Difficulty of differentiating between tourists and
other travelers, and between them and the
resident and working population.
• Generalization from inconvenient representative
Most visited destinations
Rank country 2019 2018
1 France - 89.4
2 Spain 83.5 82.8
3 United states 79.3 79.7
4 China 65.7 62.9
5 Italy 64.5 61.6
6 Turkey 51.2 45.8
7 Mexico 45.0 41.3
World largest receipt by 2019
R International
tourist Change Change
a (2018 to (2017 to
Destinatio arrivals
2019) 2018)
n (%)
n 2019 2018 (%)
k
1 United States 79.3 m 79.7 m 0.6 3.3
2 Mexico 45.0 m 41.3 m 9.0 5.1
3 Canada 22.1 m 21.1 m 4.8 1.2
4 Argentina 7.4 m 6.9 m 6.6 3.4
Dominican
5 6.4 m 6.6 m 1.9 6.2
Republic
6 Brazil 6.4 m 6.6 m 4.1 0.5
Most visited destinations in Africa
International Internatio
R Change Change
nal
a Destina tourist (2018 to (2017 to
tourist
n tion arrivals 2019) 2018)
arrivals
k (2019) (%) (%)
(2018)
1 Egypt 13.0 million 11.3 million 14.8 36.8
2 Morocco 12.9 million 12.3 million 5.2 8.3
South
3 10.2 million 10.5 million 2.3 1.8
Africa
4 Tunisia 9.4 million 8.3 million 13.6 17.7
5 Algeria 2.4 million 2.7 million 10.8 8.4
6 Zimbabwe 2.3 million 2.6 million 10.8 5.9
Largest tourism receipt in Africa (2019)
International tourism
Rank Region receipts (US$ million)
(2019)
1 Egypt 13,030
2 South Africa 8,384
3 Morocco 8,179
4 Tanzania 2,605
5 Tunisia 2,116
6 Mauritius 1,779
7 Uganda 1,463
8 Nigeria 1,449
9 Ghana 1,425
10 Kenya 1,072*
Note: Number for Kenya is for 2018
COMPETITIVENESS INDEX;
Ethiopia is ranked 116th globally and 16th in Africa, 2017.
Top five African countries / 2017
Country Rank in Rank in Number of
world Africa tourists
South Africa 53 1 8,903,773
Mauritius 55 2 1,151,252
Morocco 65 3 10,171,762
Egypt 74 4 9,139,104
Kenya 80 5 1,114,100
Ethiopia 116 16 864, 000
Why Ethiopia is located at the
bottom in the competitiveness
index?
Chapter 6
Impacts of Tourism
Learning Objectives
• To identify and internalize the impacts of
tourism (economic, socio-cultural &
environmental)
• To put the tackling mechanisms to minimize
the negative impacts
Positive vs negative impacts
• Tourism has both positive and negative impacts
o In both developed and developing nations, world
tourism has been a catalyst for economic growth.
o Countries that rely on tourism as their principal
industry, there are problems so that they have to
work hard to rectify the problem quickly.
• The main impacts of tourism can be
seen in three ways
1. Economic impacts
2. Socio-cultural impacts
3. Environmental impacts
Positive economic impacts
• Employment opportunities
• Multiplier effect/direct, indirect and induced
• Increase in foreign exchange
• Infrastructure & facilities development
• Growth in income: Tourism leads to growth of
income for individuals and a country
• Catalyst for other sectors
Tourism Leakage
• Does tourism really brings
foreign exchange?
• The socio cultural impacts arise when
tourism brings changes in value systems /
behavior, threatening indigenous identity.
• Changes often occur in community structure,
family relationships, collective traditional life
styles, ceremonies and morality.
• Socio-cultural impacts are ambiguous: the
same objectively described impacts are seen
as beneficial by some groups and as negative
by others.
• The impacts can be seen after long period of
time and difficult to measure
Negative impacts
1. Loss of identity: over commercialization, lose
of authenticity, lose of native language,
adaptation to tourist demand….
2. Cultural clashes/ acculturation
3. Create inequality among the people
4. Job level friction
5. Increased crime
6. Tourists disturb the life of the locals
7. Community conflict and tension/resentment
8. Prostitution
9. Changes in cultural products and festivals
10. Demonstration effect
Positive socio cultural impacts
• Destination image improved
• Sense of pride and identity
• Cultural understanding
• Preservation of heritage, culture & local
customs
• Improved cultural facilities
• Tourism as a force for peace
• Strengthening communities relationship
• Facilities developed for tourism can benefit
residents
• Revaluation of culture and traditions
• Encourages civic involvement and pride
Environmental impacts of tourism
• It is all about the quality of the environment:
both natural and man made
• however, tourism relationship with the
environment is complex and many activities
can have adverse impacts
• Mostly the problems are raised from the
construction of tourist facilities
• On the other side, tourism can have the
potential to create beneficial effects on the
environment
Positive environmental impacts
• Conservation of natural environments:
Revenue and profits generated from tourism
can contribute to conservation of natural
environments, preservation of archaeological
& historical sites
• Beautification of the area
• Preservation of the heritage infrastructure
and development of parks
• Enhancement of the environment
• Increase environmental awareness
• Improvement of environmental quality
Negative impacts
• Increased congestion: Popular areas can attract large
number of tourists. Some attractions in remote
locations cannot handle the amount of traffic
• Vandalism: The deliberate act of defacing and
damaging cultural, historical and natural sites
belonging to other people
• Pollution and littering: Caused by improper waste
management
• Destruction of habitats: Natural environments can be
overwhelmed by the large number of tourists
• Loss of Biodiversity
• Resource depletion
• Discussion questions
Is Tourism smokeless?
Tackling mechanisms
• Despite, the importance of tourism from
its positive impact is always on the
economic aspect.
• On the other hand, there is also greater
concerns on the negative impact of
tourisms.
• Negative impacts can be reduced or
avoided by effective use and
implementation of, for example the tool of
Environmental Assessment.
• Several effective ways or measures in order
to reduce the impact of tourism are
1. Diversification of product range.
2. Reduce the tourist numbers in some areas.
3. Shifting from mass tourism to alternative
tourism
4. Implementation of strict law.
5. Application of land use zoning, designing
standards
6. Environmental impact assessment (EIA)
7. Controlling pollution
Quiz (5%)
1. How to minimize and manage the
negative impacts of tourism???
2. Argue whether tourism is
smokeless?
3. How can we minimize tourism
leakage?
Chapter Seven
International, National &
Regional Tourism
Organizations
Learning Objectives
• Identify the role and functions of different
types of travel & tourism organization
(International, regional and national).
• Distinguish the different categories of travel &
tourism organization
Brian storming
Do you know any international,
national or regional tourism
organization?
Introduction
• For any industry or discipline to develop, an
organization is an essential prerequisite as it plays a
vital role in its proper planning, development and
growth.
• The history of cooperative endeavor in tourism can be
traced back to the year 1908.
• Three countries-France, Spain and Portugal felt the
need of pooling their resources in the interest of
promoting tourism and founded the ‘Franco-Hispano-
Portuguese Federation of Tourist Association’.
• This might perhaps be the 1st international tourist
organization.
….cont’d
• After WWI, in 1924, ‘International Union of
Official Organizations for Tourist Propaganda’ was
founded.
• The 1st congress of the organization was held at
Hague, Holland in 1925.
– The aim was to exchange information on tourist
publicity,
– to obtain international customs concessions for the
export and import of tourist publicity materials and
– alleviate frontier formalities or other obstacles to free
international tourist traffic.
• In 1947, the international union of travel organization
(IUOTO) was founded at the head quarter Geneva,
Switzerland.
• The organization made a pioneering effort in the
stimulation and coordination of tourism development
at the global level.
• On 2nd January, 1975, IUOTO got transformed into World
Tourism Organization (UNWTO), with headquarters set
up in Madrid, Spain.
• This was due to the fact that, the shift expansion of
travel had created the need for world body to deal with
tourism problems at the governmental levels
Cont’d
• In 1946 UNESCO existed to build peace
through international cooperation in
education, science and culture.
• And safeguarding heritages of
outstanding universal value (World
Heritage sites)
7.1. Need and Importance of Organizations in
Tourism
• play an important role in planning, development and
growth of tourism industry.
• It provides a sense of belongingness and prestige.
• It provides an international forum to voice the
problems and finding solutions to those.
• It helps in marketing and promotion.
• It helps in collection of relevant statistical data and
information on tourist trends and technological
developments.
• It helps in giving training and spreading awareness.
• It helps in business development.
• Collaborate resources
7.2. Categories of Tourism Organizations
A. In terms of structure/formation/makeup
Official and or semi official organization
Private voluntary organizations
B. In terms of scope/coverage and function
Sectorial organization (are limited to a particular sector
of tourism industry). E.g. Association of tour guides
Large organizations (serving global tourist interests) e.g.
National Tourist Organizations
C. Based on geography: international, regional;
national, Local…
D. In terms of ownership- governmental, quasi-
governmental, and private.
7.3. Some International Tourism
Organizations
World Tourism Organization (UNWTO)
• Established in 1975
• Recognized as the worlds most important
tourism organization
• Located in Madrid, Spain
Roles and Duties
• Serves as a global forum
• Transfers tourism knowhow
• Promotes sustainability
…Cont’d
• Promote tourism throughout the world
particularly in developing countries
• Produces statistics and market research, collect
information and issuing publications
• Dealing with issues such as world tourism trends,
approaches to marketing and the protection of
natural and cultural resources
• Work to ease foreign travel in a variety of ways
by:
– reducing the number of passport and visa
requirements and
– by standardizing travel signs
United Nation Educational, Scientific and
Cultural Organization (UNESCO)
• Established in 1946 in Paris
• Aimed with promoting international collaboration
in education, science and culture in the cause of
peace and security.
• UNESCO’s involvement in tourism has included
studies of tourism’s social and cultural impacts
and registration of sites.
• Protection and safeguarding heritages with
outstanding universal value, for example, in 1954
save Abu Simbel temple, then Venice….
International Air Travel Association (IATA)
• Established in 1945 to cope up with the expansion
of civil air services after WWII
Roles and functions
• Scheduling airlines flights and coordinate their
effort to serve the passengers, share their
expertise, and analyze their problems
• Coordinating international commercial airline
industry activity to ensure standardization
• Promote worldwide travel and promote air safety
• The training of travel agents and freight agents
• Coding airlines and airports, cities,…..
International Civil Aviation Organization (ICAO)
• Established in 1944 to address the issue of
flight safety in civil aviation
• Joined to promote civil aviation worldwide
scale
• Develop and adopt new amended standards
and recommended practices
• Strengthen the legal framework governing the
aviation
• Ensure the currency, coordination and
implementation of regional air aviation plans
• Respond to major challenges
World Travel and Tourism Council (WTTC)
7.4 Regional organizations
Organization for Economic Cooperation and
Development (OECD)
o Created in 1961 , head quarter in Paris
o Aim to achieve the highest sustainable economic growth
and employment and a raising standard of living in member
countries
o Advance freedom of travel
o Contribute to sound economic expansion in member
countries
o Contribute to the expansion of world trade on a multilateral
and nondiscriminatory basis
o There is a tourism committee that serve as a forum of
exchange for monitoring tourism policies and structural
changes.
European Travel Commission
o established in 1948 as a nonprofit organization
o A strategic alliance that provides for the
collaboration between 31 European national
tourism organizations
o Serves as a national tourism office for Europe,
with goal to attract people to Europe
o foster international tourism cooperation in
Europe
Africa Travel Association (ATA)
• founded in the year 1975 in New York City as
nonprofit, nonpolitical professional travel industry
association.
• Its objective is to promote tourism to Africa
• It publishes a magazine “Africa Tourism Magazine”
• it organizes Annual International Marketing
Conference in Africa, Biannual Symposium on
environmental and cultural preservation.
National Tourism organizations
(Organizations operating in Ethiopia)
Ministry of Tourism (MoT) formerly known as MoCT
MoT helps in facilitating travel across the country.
produces series of booklets on Ethiopian culture and
attraction
Development of all over tourism policy and
development plan
Promotion of the country in various trade fairs,
conferences and exhibition.
standardization of travel agencies and hotels
Collection and analysis of tourism related statistics
National Tour Operation and Travel Agency
Enterprise Ethiopia(NTO)
• Established in 1982
It offers the following services:
• transfer services
• ticketing and air booking
• taxi services
• car hire
• professional guide service
• safari tours
Ethiopian tourism organization (ETO)
• Currently known as Tourism Ethiopia
• Develop the country tourist destinations in
collaboration with various stakeholders, market and
promote the destination at national and
international level through employing competitive
marketing and promotional strategies.
• Making Ethiopia among the top five tourist
destinations in Africa by 2025.
• Ethiopian tourism professionals association
• Ethiopian hotel association
• Regional tourism and hotel associations
• Regional tourism offices
• Zonal and local tourism offices
Chapter 8
Introduction
• Tourism is a dynamic and varied activity, where both the
industry and the public have proven extremely adaptable to
new situations.
• Travel and tourism industry is becoming futuristic by
inculcating new travel trends in its ecosystem making it more
feasible for the public.
• Every year travel trends come and go, however, 2021 is set to
be one of tourism’s most significant years to date.
• As the world slowly recovers from COVID-19 and borders
gradually start to open, we expect travel to look a little
different than it did pre-pandemic.
• Niche market
EMERGING TRENDS IN TOURISM
A. Travel for different purposes will continue
Leisure travel
VFR
Transformative travel: more participatory to
change the life of the host community.
o Cross boarder health workers
Bleisure travel: growing tourism trend where
people extend their business travel to leisure
activities
Longer trips: For instance, according to Evolve's 2022
travel forecasts, the average trip will likely be longer in
length (5-7 nights in 2022, compared to an average of 3.8
nights in both 2020 and 2021).
Active tourism
Experience tourism
B. socio-demographics changes
• Certain demographic changes are significant in
planning and promoting products and services.
• Age, Gender, Work
• Personalization, less group or more FIT itineraries
• Travel certificate: COVID Test
• Detailed and timely sharing of information
• Market popularity may change
• Becoming better listeners
• A shift in traveler expectation
• New travel style
C. Political changes
Increased Recognition: recognition from
Academic community-schools are beginning to focus
more on practical skills that will have a direct application
in the practical world.
Government-governors around the world are recognizing
the benefits of tourism especially inbound tourism to
their country’s economy.
The effects of the development of neo-liberalism on
tourism development at the global level;
Continued deregulation
– The level of service and safety in airline industry
– The trend towards concentration
– The inequitable spread of savings among travelers
cont’d
• East Africa and the potential for tourism from the
coordination several neighboring countries and the
combining of visas for tourists;
• New material on effects of politics in tourism in South
America;
• The changing patterns of tourism in North Africa and
Arab world and the potential implications of political
uncertainty and regime change in that region;
• The implications for tourism from the formal
involvement of indigenous nations and organizations in
tourism planning and development;
• Issues of political involvement in tourism development
and subsequent corruption and mismanagement of
projects.
D. Technological changes
• Automation: chatbots, robots and automation are
becoming an important part of travel and tourism industry
so is artificial intelligence.
– For instance, one of the most eye-catching trends in the
tourism trends is Connie, a Hilton hotel chain’s robot
concierge
• Machine learning technology is now firmly entrenched in
the marketing of tourism sector.
• Mobile Booking and reservation system.
• Tech-Empowered travel
– Mobile applications that provide on-trip notifications and
alerts (44%)
– Self-service check-in (41%)
– Contactless mobile payments, e.g., Apple Pay (41%)
– Automated and flexible cancellation policies (40%)
– Mobile boarding (40%)
Cont’d
• Internet of things (IoT)
– Internet of things is relevant to many tourism trends. It is a
microprocessor with a form of digital connectivity,
therefore allowing them to connect to and controlled from
the internet.
– The basic idea of IoT is to make the experience “smart”.
That is allowing guests to book spa sessions through the
touch on their smartphone.
• Augmented Reality (AR)
– Augmented reality means combining real world with the
virtual world. In tourism industry this can be very useful as
an AR smartphone app can give information to the tourists
about the place they are going to explore
– Lalibela
• Transportation
E. Environmental changes
• Today, there is a strong trend towards
increased environmental awareness and
sensitivity i.e. the future of tourism is
expected to be more sustainable.
• Recently, green movement of tourism is on
the track.
Generally the future of tourism will be aimed at:-
• Making a positive contribution to the global
environment.
• Accepting responsibility for the environmental
consequences and minimizing any adverse
environmental impact.
• Conducting all the activities in the spirit of being
custodies of the environment.
• Enabling guests and employees to experience the
process of environmental care at first hand, so that
they will be encouraged to make contributions in
their daily lives.
• To show that sustainable tourism development is
achievable.
F. Increased Education and Professionalism
• For the industry as a whole (it adds value), and it
raises the quality of personnel and influences a sense
of professionalism and ownership.
• To make stake holders better understand the
industry and its relationships and then begin to
perceive business opportunities.
• Training in skills and practical knowledge which boost
performance and productivity
• Education and training helps to retain staff, provide a
carrier path for employees and, over all, achieve
better use of human resource in the tourism
industry.
• Deliver quality service
The end; Thank
you!!!