Tourism – Definition, Types & Forms, History & Importance of

Tourism

Tourism is one of the world’s fastest-growing industries and a major foreign exchange and
employment generation for many countries. It is one of the most remarkable economic and
social phenomena.
The word ‘tour’ is derived from the Latin word tornus, meaning ‘a tool for making a
circle.’ Tourism may be defined as the movement of people from their usual place of
residence to another place ( with the intention to return) for a minimum period of twenty-
four hours to a maximum of six months for the sole purpose of leisure and pleasure.
According to WTO (1993), ” Tourism encompasses the activities of persons traveling and
staying in places outside their usual environment for not more than one consecutive year
for leisure, business, and other purposes.”

The Rome conference on tourism in 1963 defined tourism as ‘ a visit to a country other than
one’s own or where one usually resides and works. This definition, however, did not take
into account domestic tourism, which has become a vital money-spinner and job generator
for the hospitality industry.
The UNWTO defines tourists as ‘ people who travel to and stay in place outside their usual
environment for not more than one consecutive year for leisure, business and other
purposes not related to the exercise of an activity remunerated from within the place
visited.
According to the Tourism Society of Britain,” tourism is the temporary short-period
movement of people to destination outside the places where they usually live, work; and
activities during their stay at these destinations.” This definition includes the movement of
people for all purposes.
The development of technology and transportation infrastructure, such as jumbos jets, low-
cost airlines, and more accessible airports, have made tourism affordable and convenient.
There have been changes in lifestyle – for example, now retiree-age people sustain
tourism around the year. The sale of tourism products on the internet, besides the
aggressive marketing of the tour operators and travel agencies, has also contributed to the
growth of tourism.
27 September is celebrated as world tourism every year. This date was chosen as on that
day in 1970, the Statutes of UNWTO were adopted. The purpose of this day is to raise
awareness of the role of tourism within the international community.
History of Travel and Tourism
Travel is as old as mankind on earth. At the beginning of his existence, man
roamed about the planet’s surface in search of food, shelter, security, and
better habitat. However, with time, such movements were transformed into
wanderlust.

About five thousand years ago, climate changes, dwindling food and shelter
conditions hostile invaders made the people leave their homes to seek refuge
elsewhere like the Aryans left their homes in Central Asia due to climate
changes. Perhaps, this leads to the development of commerce, trade, and
industry.

Religion, education, and cultural movement began during the Hindu and
Chinese civilizations. Christian missionaries, Buddhist monks, and others
travelled far and wide carrying religious messages and returned with fantastic
images and opinions about alien people.
For centuries movement of people continued to grow due to the efficiency of
transport and the assistance and safety with which the people could travel. By
the end of the 15th century, Italy had become Europe’s intellectual and
cultural center. It represented the classical heritage both for the intelligentsia
and the aristocracy.

During the 16th century, travel came to be considered an essential part of the
education of every young Englishman. Travel thus became a means of self-
development and education in its broadest sense. The educational travel was
known as the ‘Grand Tour.’

The industrial revolution brought about significant changes in the pattern and
structure of British society. Thus, the economy of Britain was greatly
responsible for the beginning of modern tourism. It also created a large and
prosperous middle class. Because of remarkable improvement in
transportation systems in the latter half of the 18th century and the first
quarter of the 19th century, an increasing number of people began to travel
for pleasure.

Travel was inspired initially by the need for survival (food, shelter, and
security), the desire to expand trade, and the quest to conquer. As the
transportation system improved, the curiosity for transforming the vast and
virgin world into a close neighborhood created a new industry, i.e., Travel and
Tourism.

However, the developments of rails, roads, steamships, automobiles, and

airplanes helped to spread technology across the globe. Earlier travel was a
privilege only for wealthy people, but with the industrial revolution, the
scenario altogether changed. Transportation, as well as accommodation,
became affordable to middle and working-class citizens.
Essentially, with the development of jet travel, communication, new
technology, tourism, and travel became the world’s largest and fastest-
growing industry.
Travel and tourism have recently emerged as a dominant economic force on
the global scene, accounting for more than 12% of total world trade and
growing at 8 percent annually.

Types of Tourism
Tourism has two types and many forms based on the purpose of visit and
alternative forms of tourism. Tourism can be categorized
as international and domestic tourism.
Tourism has two types and various forms. Based on the movement of people,
tourism is categorized into two kinds. These are the following:

International Tourism
When people visit a foreign country, it is referred to as International Tourism.
To travel to a foreign country, one needs a valid passport, visa, health
documents, foreign exchange, etc.

International tourism is divided into two types; Inbound Tourism & Outbound
Tourism.
Inbound Tourism
This refers to tourists of outside origin entering a particular country. Traveling
outside their host/native country to another country is called inbound tourism
for the country where they are traveling. For example, when a tourist of Indian
origin travels to Japan, it is Inbound tourism for Japan because foreign tourists
come to Japan.

Outbound Tourism
This refers to tourists traveling from the country of their origin to another
country. When tourists travel to a foreign region, it is outbound tourism for
their own country because they are going outside their country. For example,
when a tourist from India travels to Japan, it is outbound tourism for India and
Inbound tourism for Japan.

Domestic Tourism
The tourism activity of the people within their own country is known
as domestic tourism. Traveling within the same country is easier because it
does not require formal travel documents and tedious formalities like
compulsory health checks and foreign exchange. A traveler generally does not
face many language problems or currency exchange issues in domestic
tourism.

Forms of Tourism
Tourism has various forms based on the purpose of the visit and alternative
forms. These are further divided into many types according to their nature.
Forms of tourism are the following:
Some most basic forms of tourism are the following:
1. Adventure Tourism
2. Atomic Tourism
3. Bicycle Tours
4. Beach Tourism
5. Cultural Tourism
6. Ecotourism
7. Geotourism
8. Industrial Tourism
9. Medical Tourism
10.Religious Tourism
 11.Rural Tourism
12.Sex Tourism
13.Space Tourism
14.Sports Tourism
15.Sustainable Tourism
16.Virtual Tourism
17.War Tourism
18.Wildlife Tourism

Classification of Tourism
Tourism can be classified into six distinct categories according to the
purpose of travel. These are the following:
1) Recreational: Recreational or leisure tourism takes a person away from the
humdrum of everyday life. In this case, people spend their leisure time in the
hills, sea beaches, etc.

2) Cultural tourism satisfies cultural and intellectual curiosity and involves visits
to ancient monuments, places of historical or religious importance, etc.
3) Sports/Adventure: Trips taken by people with a view to playing golf, skiing
and hiking, fall within this category.
4) Health: Under this category, people travel for medical, treatment or visit
places where there are curative possibilities, for example, hot springs, spa
yoga, etc.
5) Convention Tourism: It is becoming an increasingly important component of
travel. People travel within a country or overseas to attend conventions
relating to their business, profession, or interest.
6) Incentive Tourism: Holiday trips are offered as incentives by major
companies to dealers and salesmen who achieve high targets in sales. This is a
new and expanding phenomenon in tourism, These are in lieu of cash
incentives or gifts, Today incentive tourism is a 3 billion dollar business in the
USA alone.

Nature of Tourism
Tourism as a socio-economic phenomenon comprises the activities and
experiences of tourists and visitors away from their home environment and are
serviced by the travel and tourism industry and host destination. The sum total
of this activity experience and services can be seen as a tourism product.
The tourism system can be described in terms of supply and demand. Tourism
planning should strive for a balance between demands and supply. This
requires an understanding not only of market characteristics and trends but
also of the planning process to meet the market needs.

Often tourists from core generating markets are identified as the demand side;
the supply side includes all facilities, programs, attractions, and land uses
designed and managed for the visitors. These supply-side factors may be under
the control of private enterprises, non-profit organizations, and the
government. New and innovative forms of partnerships are also evolving to
ensure the sustainable development and management of tourism-related
resources.

The supply and demand side can be seen to be linked by flows of resources
such as capital, labour, goods, and tourist expenditures into the destination,
and flows of marketing, promotion, tourist artifacts, and experiences from the
destination back into the tourist generating region.
In addition, some tourist expenditures may leak back into the visitors
generating areas through repatriation of profits of foreign tourism investors
and payment for improved goods and services provided to tourists at the
destination. Transportation provides an important linkage both to and from
the destination.
For planning purposes, the major components that comprise the supply side
are:
  Various modes of transportation and other tourism-related
infrastructure.
 Tourist information.
 Marketing and promotion.
 The community of communities within the visitor’s destination area.
 The political and institutional frameworks for enabling tourism.

The tourism system is both dynamic and complex due to many factors linked to
it and because of the existence of many sectors contributing to its success.
These factors and sectors are linked to the provision of the tourist experience
and the generation of tourism revenue and markets.
The dynamic nature of the tourism system makes it imperative to scan the
external and internal environment of the destinations on a regular basis so as
to make changes when necessary to ensure a healthy and viable tourism
industry.
Thus, it is now an accepted fact that tourism development can no longer work
in isolation of the environment and the local communities, nor can it ignore
the social and cultural consequences of tourism.

Importance of Tourism
Tourism and hospitality, which are inextricably linked to each other, are among
the major revenue-earning enterprises in the world. They happen to be among
the top employers too. There has been an upmarket trend in tourism over the
last few decades as travel has become quite common. People travel for
business, vacation, pleasure, adventure, or even medical treatments.
Tourism constitutes an important industry today. It has opened up new vistas
for the play of economic emancipation. It provides a very potent contribution
by strengthening and developing the financial resources of a country.
Moreover, it is a process in which mutual material and mental benefits occur.
Furthermore,
 Tourism fetches foreign exchange in the form of invisible exports, which
results in the manifold progress of the nation.
  Tourism generates jobs. These employments are the main contribution
of tourism to generating national income. But one should remember
that employment in the tourism industry is often seasonal.
 Tourism often leads to the commercialization of art forms and especially
handicrafts. Art items with cultural or religious meaning are sought by
tourists as souvenirs. As more and more tourists visit a destination,
souvenir production has increased, often leading to mass production.
This production also generates income.

Importance of Tourism
With several business-related activities associated with tourism, the industry
has a tremendous potential to generate employment as well as earn foreign
exchange. Many countries, such as Mauritius, Malaysia, Singapore, Fiji, and the
Caribbean, whose economies are primarily driven by tourism. Tourism can
contribute to the economic growth of a country in the followings ways:

Employment Generation
It creates a large number of jobs among direct services providers (such
as hotels, restaurants, travel agencies, tour operators, guide and tour escorts,
etc.) and among indirect services providers (such as suppliers to the hotels and
restaurants, supplementary accommodation, etc.)

Infrastructure Development
Tourism spurs infrastructure development. In order to become an important
commercial or pleasure destination, any location would require all the
necessary infrastructure, like good connectivity via rail, road, and air transport,
adequate accommodation, restaurants, a well-developed telecommunication
network, and, medical facilities, among others.

Foreign Exchange
The people who travel to other countries spend a large amount of money on
accommodation, transportation, sightseeing, shopping, etc. Thus, an inbound
tourist is an important source of foreign exchange for any country.

The World Travel and Tourism Council (WTTC) predict in 1997 that
the twenty-first-century economy would be dominated by three
industries: telecommunications, information technology, and
tourism. The travel and tourism industry has grown by 500 percent in
the last 25 years.
Now withstanding this bright outlook and prospects, the tourism and
hospitality industries are very vulnerable to the fluctuations of
national economies and happenings in the world, especially terrorist
attacks that have at times dealt severe blows to business.
In recent years, there have been a few setbacks in tourism, such as
the terrorist siege of the Taj and Oberoi in Mumbai, India (26
November 2008); the attack on the World Trade Centre in the United
States of America (11 September 2001); bombing in a hotel on the
Indonesian island of Bali (12 October 2002); tsunami in Southeast
Asia and South Asia on 26 December 2004, in which thousands of the
lives where lost and consequently tourism was hit. Nonetheless, the
sector is now getting back to business.

Impacts of Tourism
Tourism is a multi-dimensional activity. The scope of tourism
activities is so wide and varied that it cannot be restricted to any
particular field of activity. Tourism has ramifications in almost all
sectors and is influenced by the performance of each of these sectors
directly or indirectly. Tourism in any country can be an apt reflection
of the nation’s economic and social endowment apart from its
natural wealth.
Tourism has vast potential to bring about changes in the country’s
economic, environmental, societal, and cultural edifice. Tourism has
two basics: the supply of facilities and the demand for participation.
The twin market forces of supply and demand interact to produce
tourism patterns. These patterns are associated with economic,
social, cultural, environmental, and ecological impacts.
Impact of Tourism

Establishing or developing a tourism industry involves expenditure,

gains, costs, and benefits. If these impacts are considered from the
outset of planning, strengths and opportunities can be maximized
while weaknesses and threats can be minimized.
Each destination will be different in terms of tourism characteristics.
The cost and benefits of tourism will vary in each destination and can
change over time, depending on tourism and other activities in a
destination’s local and regional context.
Economic Impacts
Tourism activities impact the economy of the country as well as the
local economy of the destination.
Economics Benefits
  Tourism generates local employment, directly in the tourism
sector and in the support and resource management sectors.
 Tourism stimulates profitable domestic industries, hotels and
other lodging facilities, restaurants and food services,
transportation systems, handicrafts, and guide services.
 Tourism generates foreign exchange for the country and injects
capital and new money into the local economy.
 Tourism helps to diversify the local economy.
 Improved tourism infrastructure.
 Increase tax revenues from tourism.

Economic Costs
 Higher demand created by tourism activity may increase the
price of land, housing, and a range of commodities necessary
for daily life.
 Demands for health services provision and police service
increase during the tourist seasons at the expense of the local
tax base.
Social Impacts
Tourism also affects the society of the destination in good as well as
bad ways. It benefits and costs the local communities.
Social Benefits
 The quality of a community can be enhanced by economic
diversification through tourism.
  Recreational and cultural facilities created for tourism can be
used by local communities as well as domestic/international
visitors.
 Public space may be developed and enhanced through tourism
activity.
 Tourism Enhances the local community’s esteem and provides
an opportunity for greater understanding and communication
among people of diverse backgrounds.
Social Costs
 Rapid tourism growth can result in the inability of local
amenities and institutions to meet service demands.
 Without proper planning and management, litter, vandalism,
and crime often accompany tourism development.
 Tourism can bring overcrowding and traffic congestion.
 Visitors bring with them material wealth and apparent
freedom. The youths of the host community are particularly
susceptible to the economic expectations these tourists bring
which can result in complete disruption of traditional
community ways of life.
 The community structure may change, e.g. community bonds,
demographics, and institutions.
 The authenticity of the social and cultural environment can be
changed to meet tourism demands.

Cultural Impacts
Tourism activities also affect the culture of the host country. There
are many positive and negative cultural impacts of tourism.
Cultural Benefits
 Tourism can enhance local cultural awareness.
 Tourism can generate revenue to help pay for the preservation
of archaeological sites, historic buildings, and districts.
 Despite criticism about the alteration of cultures to
unacceptable levels, the sharing of cultural knowledge and
experience can be beneficial for hosts and guests of tourism
destinations and can result in the revival of local traditions and
crafts.
Cultural Costs
 Youth in the community begin to emulate the speech and attire
of tourists.
 Historic sites can be damaged through tourism development
and pressures.
 There can be long-term damage to cultural traditions and the
erosion of cultural values, resulting in cultural change beyond a
level acceptable to the host destination.

Environmental Impact
Tourism impacts the environment in positive as well as negative
ways. These impacts are following below.
Environmental Benefits
 Parks and nature preserves may be created and ecological
preservation supported as a necessity for nature-based
tourism.
 Improved waste management can be achieved.
  Increased awareness and concern for the environment can
result from nature-based tourism activities and development.
Environmental Costs
 A negative change in the physical integrity of the area.
 Rapid development, over-development, and overcrowding can
forever change the physical environment and ecosystems of an
area.
 Degradation of parks and preserves.
Industries Related To Tourism
Over the years, tourism has become a popular global activity.
Depending upon the nature and purpose of their travel, tourists,
need and demand certain facilities and services. This has given rise to
a wide range of commercial activities that have acquired industry
proportions. Thus travel and tourism nowadays represent a broad
range of related industries.
Hotels
Hotels are a commercial establishment that provides
accommodation, meals, and other guest services. In the travel and
tourism industry, the hotel industry plays a very significant role, as all
tourists need a place to stay at their destinations, and require many
more services and facilities to suit their specific needs and tastes.

Restaurants
Restaurants are retail establishments that serve prepared food and
beverages to customers. In the travel and tourism industry,
restaurants and other food and beverage outlets are very important
as tourists like to experiment with the local cuisines of the places
they are visiting.
Retail and Shopping
The retail industry is very important as tourists shop for their day-to-
day necessities as well as look for mementos and souvenirs. In recent
years, some cities in the world have been promoted as shopping
destinations to attract people with a penchant for shopping by
offering various products, such as garments, electronic goods,
jewelry, and antiques. New York, Paris, London, and Milan in Italy are
famous as fashion havens of the world.
Transportation
It is the movement of people and goods from one place to another. A
well-developed transport industry, as well as infrastructure, is
integral to the success of any travel and tourism enterprise.
Travel Agencies
A travel agency is a retailing business that sells travel-related
products and services, particularly package tours, to customers on
the behalf of suppliers such as airlines, car rentals, cruise liners,
hotels, railways, and sightseeing.

Travel agencies play a very important role as they plan out the
itinerary of their clients and make the necessary arrangements for
their travel, stay, and sightseeing, besides facilitating their passport,
visa, etc.
Tour Operators
A tour operator assembles the various elements of a tour. It typically
combines tour and travel components to create a holiday. Tour
operators play an important role in the travel and tourism industry.
Tourist Destinations
A tourist attraction is a place of interest for tourists, typically for its
inherent or exhibited cultural value, historical significance, nature or
building beauty or amusement opportunities. These are the basic
fundamentals of the tourism industry.
Cultural Industries
Cultural or creative industries are responsible for the creation,
production, and distribution of goods and services that are cultural in
nature and usually protected by intellectual property rights. As
tourists like to visit places of cultural significance and soak in the
culture of the area, the cultural industry is very important to travel
and tourism.
Leisure, Recreation, and Sport
Leisure or free time is a period of time spent out of work and
essential domestic activity. Recreation or fun is spending time in a
manner designed for therapeutic refreshment of the body or mind.
While leisure is more like a form of entertainment or rest, recreation
requires active participation in a refreshing and diverting manner.

As people in the world’s wealthier regions lead an increasingly

sedentary lifestyle, the need for recreation has increased. These play
a significant role in the travel and tourism sector.
Tourism Products
A tourism/tourist product can be defined as the sum of the physical
and psychological satisfaction it provides to tourists, during their
‘traveling and sojourn’ en route at the destinations.
Since the travel and tourism industry is an agglomeration of too
many sectors that promote travel-related services. These sectors are
referred to as travel vendors and their services and goods are called
‘travel products’. A tourism product includes five main components
such as physical plant, services, hospitality, freedom of choice, and a
sense of involvement.
Thus, whatever the natural and man-made resources and services
brought about the consumption of tourists are called tourism
products.
Charecterstatics Of Tourism Products
By now, you must have understood what a tourism product is. Now
let us look at some of its characteristics:-
1) Intangible: Tourism is an intangible product means tourism is such
a kind of product that can not be touched or seen and there is no
transfer of ownership, But the facilities are available for a specified
time and for a specified use. For e.g. a room in the hotel is available
for a specified time.

2) Psychological: The main motive to purchase a tourism products is

to satisfy the psychological need after using the product, by getting
an experience while interacting with a new environment. And
experiences also motivate others to purchase that product.
3) Highly Perishable: Tourism product is highly perishable in nature
means one can not store the product for a long time. Production and
consumption take place while a tourist is available. If the product
remains unused, the chances are lost i.e. if tourists do not purchase
it.
A travel agent or tour operator who sells a tourism product cannot
store it. Production can only take place if the customer is actually
present. And once consumption begins, it cannot be stopped,
interrupted, or modified. If the product remains unused, the chances
are lost i.e. if tourists do not visit a particular place, the opportunity
at that time is lost. It is due to tourism reason that heavy discount is
offered by hotels and transport-generating organizations during the
offseason.
4) Composite Product: Tourist product is a combination of different
products. It has not a single entity in itself. In the experience of a visit
to a particular place, various service providers contribute like
transportation The tourist product cannot be provided by a single
enterprise, unlike a manufactured product.
The tourist product covers the complete experience of a visit to a
particular place. And many providers contribute to the tourism
experience. For instance, the airline supplies seats, a hotel provides
rooms and restaurants, travel agents make bookings for stay and
sightseeing, etc.

5) Unstable Demand: Tourism demand is influenced by seasonal,

economic political, and other factors. There are certain times of the
year that see greater demand than others. At these times there is a
greater strain on services like hotel bookings, employment, the
transport system, etc.