Chapter 2 Tourism system

Teaching purposes
 Understand the basic concept of a system
 Describe the fundamental structure and purpose of the basic whole tourism
system
 Discuss the external forces that influence tourism and are influenced by
tourism
 Describe the three criteria that are employed to define tourists
 Understand the various purposes for tourism-related travel, and the relative
importance of each
 Identify the four major types of tourist and the definition criteria that apply to
each
 Appreciate the importance of origin and transit regions within the tourism
system
 Understand the role of destination regions and the tourism industry within the
tourism system

Time allocation
Chapter 2 Tourism system A systematic approach to tourism 1 periods
(4 periods) The tourist 1 periods
Origin region, transit region and destination 1 periods
Distribution of tourism sectors 1 periods

Teaching procedure
2.1 Introduction
This chapter introduces the concept of the tourism system and discusses its key
components in an introductory way, establishing the basis for a more thorough
analysis in subsequent chapters.
2.2 A systematic approach to tourism
A system can be defined as a group of interrelated, interdependent, and
interacting elements that together form a single functional structure.

2.2.1 The basic whole tourism system

In its simplest form, five interdependent core elements must be present:
 at least one tourist
 at least one tourist generating region
 at least one tourist route region
 at least one tourist destination
 a travel and tourist industry
■ Figure 2.1 A basic tourism system

Additionally, there are any numbers of environments, external system and the
internal structure of the tourism system.

External system (sociocultural, economic political, political, physical, and so on.):

A: Tourist constitutes the primary flow of energy within this system, including
the oil industry, agriculture, and government, to name just a few.
B: The external factors can have a crucial effect on the formation of tourism
systems (e.g.: impermeable border situation).
C: Tourism system can also influence these external environments. (e.g.:
destination’s economy)
Internal system:
A: multiple destinations and transit region, and extensive travel within those
destination regions.
B: the tourism stakeholders in the system
C: a hyper dynamic structure that is in a constant state of flux (tourist,
accommodation, transportation)
2.3 The tourist
The definition of tourism is entirely dependent on the definition of the tourism.
Every tourist must simultaneously meet certain spatial, temporal, and purposive
criteria.

2.3.1 Spatial component

The travel must occur outside of the individual’s ‘usual environment’.—WTO

Domestic and international tourism

 domestic tourist
If a qualifying travel experience occurs within a person’s usual country of
residence, then that individual would be classified as a domestic tourist.
 international tourist
If the experience occurs outside of the usual country of residence, then that
person would be classified as an international tourist.
The border is the threshold that separates the person’s usual environment from
other space, no matter what its distance from their home.

Questions:
Which is more important for China’s tourism industry?
A: Domestic tourists far outnumber international tourists at a global scale
and within most countries.
B: Relatively little is known about domestic tourists compared with their
international counterparts, despite their magnitude and economic
importance.
C: When the tourism system incorporates geopolitical entities that are not
 part of a fully fledged country, the distinction is not entirely clear.

Outbound and inbound tourists

 outbound tourist (those leaving their usual country of residence)
 inbound tourist (those arriving in a country different from their usual country of
residence.)
A: Any international tourist is both inbound and outbound at the same time, with the
distinction being based on whether the classification is being made from the
perspective of the county of origin or the country of destination.
B: The cumulative number of inbound trips will always exceed the total number of
outbound trips at a global scale, since one outbound trip must translate into at least,
but possibly more than, one inbound trip.

2.3.2 Temporal component

A WTO threshold that sets a limit of one year as the maximum amount of time
that an inbound tourist can remain in the country and still be considered a tourist. For
domestic tourist this threshold is normally reduced to six mouths.

Stayover and excursionists

 stayover: The tourist (domestic and international) remains in the destination for at
least one night.
 excursionists: The trip does not incorporate at least one overnight stay, and then
the term excursionist is commonly employed.

Excursion-based tourism is dominated by two main type of activity.

Cruise ship excursionists (e.g.: Caribbean and Mediterranean)
Cross-border shoppers (e.g.: Canada and US)

2.3.3 Travel purpose

 leisure/recreation
It accounts for the largest single share of tourist activity at a global level,
includes vacation, pleasure and holiday.
 visiting friends and relatives
It is the second most important purpose for tourism. The destination decision is
normally predetermined by the place of residence of a person’s friends and relatives.
 business
It is a form of tourism only if the traveler is not paid from a source based in the
destination, including consulting, sales, operations, management and maintenance.
The largest category by far involves meetings, incentive travel, conventions and
exhibitions, all of which are combined in the acronym MICE.
 sport
A. Sport-related tourism involves the travel of athletes, trainers and others
associated with competitions and training.
B. Large numbers of participants generate an enormous amount of tourism-
related and other ‘spin-off’ effects. (e.g.: the 2000 Sydney Olympics)
C. It benefits to areas far beyond the actual venue, and long before they are
actually held.
 spiritual and health
Travel for religious purpose and health purpose including visit to spas, medical
treatment which is often blurred with pleasure/leisure motivations.
 study
Students have a very large relative impact on the host countries because of the
prolonged nature of their stay and the large expenditures, including tuition, that are
made during these periods of study.

 Multipurpose tourism

2.3.4 Major tourist categories

Four major types of tourist
 International stayovers are tourists who remain in a destination outside their
usual country of residence for at least one night.
 International excursionists remain in such a location without experiencing at
least one overnight stay.
 Domestic stayovers stay for at least one night in a destination that is within their
own usual country of residence, but outside of a ‘usual environment’ that is often
defined by special distance thresholds from the home site.
 Domestic excursionists undertake a similar trip, but without staying overnight.

■Figure 2.3 Four types of tourist with a broad travel context

WTO terminology
Tourist term used in this textbook tourist terms used by the WTO
Tourists = visitors
Stayovers = tourists
Excursionists = same-day visitors
Stopovers
Stopovers are travelers temporarily staying in a location while in transit to a
destination region. They do not clear customs or undergo any other border formalities
that signify an official visit to that location.

2.3.5 Definition and data problems

International tourism
A. The standardization and universality of tourist related data are relatively
recent developments, and this calls into question the validity of virtually any such data
collected prior to the mid-1990s.
B. There are some countries that have not yet become members of the WTO,
thereby it is not easy to get the validity of the resulting data.
C. The quasi-state situations cited earlier and the problems that may occur when
deciding if a tourist has experienced an overnight stay or not.
D. The highly suspect figure that is provided for 1950 is still used as the basis for
generating year data.
Domestic tourism
A. Reliable data results are dependent on appropriate sampling techniques and
all the other procedures that must be followed in the surveying process.
B. Even highly developed countries continue to experience many difficulties in
their attempts to understand the magnitude of their tourism system as a preliminary
step in their effective management.
2.4 Origin region
The region (e.g. country, state, city) from which the tourist originates, also referred to as the
market of generating region
■ Origin community: The residents of the origin region
■ Origin government: The government of the origin region
2.4.1 Origin community
There are numerous ways in which origin community impacts can occur
①Some major origin cities can resemble ghost towns ， when a substantial
number of residents travel to the nearest beach for recreational purposes
②Local businesses may suffer as a result while the local economy affected
by the associated outflow of caption
③Conversely, travel agencies can except to thrive as a result of outbound
tourist activity
④Significant effects can also be felt at the sociocultural level (returning
tourist may bring with them the fashion, foods and music of various
destinations)
⑤Other tangible sociocultural impacts (malaria and AIDS, and the marriage
of tourist to local residents)
2.4.2 Origin government
The crucial role of origin governments can be likened to a safety valve that
ultimately determines the amount of energy (i.e. tourist flow) that is allowed into the
system.
 ①Prohibitions on the travel imposed by the governments prevented the
development of tourism system. (Such as American government)
②In countries governed by totalitarian regimes such restrictions are more
normative, democratic and prosperous. (Such as South Korea and
Taiwan)
③Origin governments offer various services to outbound residents when
they are traveling within other countries.
2.5 Transit region
The places and regions that tourist pass through as they travel from origin to destination
regions

2.5.1 Management implications of transit

Management implications include
①The need to identify impacts is associated with the location’s transit role
(air transportation; the highway transit situations)
②A second management consideration is the extent to which the
transit region can, and wishes to, evolve as a destination
in its own right.
Pertinent questions include
①Whether the destination is accessible through multiple or single transit
routes or whether these involve one or more modes of transportation
access.
②A further consideration is the extent to which a transit link is fixed (as
with a highway) and can be disrupted if associated infrastructure, such as
a bridge, is put out of commission.
③Another factor that destination managers should take into consideration is
the possibility that one or more locations along a transit route could
become destinations themselves, and thus serve as intervening
opportunities that divert visitors from the origin destination.

2.5.2 Effects of technology

Technological changes have dramatically affected the character of transit regions
①One implication of these technological changes of highly or extended tourism
systems combining origin and destination regions that would not otherwise have
formed a single functional region (e.g. United Kingdom to Australia). Modern
aircraft also no longer require as many refueling stops on long haul fights.

②Another implication of technology is the use of otherwise inaccessible area as

transit regions.
2.6 Destination region
The places to which the tourist travel
■ Destination community: the residents of the destination region
■ Destination government: the government of the destination region

The distribution of destinations regions has changed dramatically during the

latter half of the twentieth century, and is constantly being extended through the
combination of technological change and consumer interest.
Some of this change has occurred as a result of internal factors, but much can
also be attributed to external factors associated with the broader tourism system or
with external environments.

2.6.1 Destination communities

 Host communities are now more commonly recognized as fully fledged in the
management of tourist destinations, and not just a convenient source of labor and
background colour.

2.6.2 Destination governments

Destination government can be likened to safety valves that control the amount
of energy absorbed by the destination components of that system.
Most countries encourage tourist arrivals; however some governments drastically
limit tourist entries.
Destination governments influence the development and management of their
tourism products through the establishment of tourism-related agencies.(tourism
boards; direction; tourism ministries)
2.7 The tourism industry
The sun of the industrial and commercial activities that produce goods and services wholly or
mainly for tourist consumption

The tourism industry can be defined as the sum of the industrial and commercial
activities that produce goods and services wholly or mainly for tourist consumption
(accommodation, transportation, food and beverages, tour operators, travel agencies,
commercial attractions and merchandisers of souvenirs and other tourism-related
goods)

CASE STUDY
Multifunctional Singapore
The Southeast Asian city-state of Singapore is remarkable for the extent to which
it has developed concurrently as an origin region, a transit region and a destination
region. This multiple identity poses a challenge to anyone who believes that this and
any other place can be neatly compartmentalized into some specific location within
the tourism system.
 Singapore’s status as an important origin region is associated with its stature as one
of the four Asian ‘tiger’ economies. From virtually no outbound tourists at all in the
early 1950s, Singaporeans now are among the most travel-experienced of all Asians.
In 1996, 3.3 million outbound trips are reported, or about one trip for each resident.
This compares with 2.7 million outbound Australians during that some year, or only
0.15 trips per resident (WTO 1998c). While the higher Singaporean figure is due in
large part to the proximity of Malaysia and Indonesia, longer-haul travel has also
elevated Singapore into the front ranks of inbound markets to countries such as
Australia and New Zealand. Thus, many bilateral tourism systems have evolved
where Singapore constitutes a core or emerging origin region.
At the same time, Singapore has developed as an important tourist transit region.
This status has its origins in oceanic travel: Singapore has long occupied strategically
important site on the trans-shipment lanes connecting Europe with eastern Asia.
Although no longer important as an oceanic transit stopover for tourists, Singapore
has now assumed a similar role as an air transportation hub. The city-state is, for
example, a routine stopover for Australians traveling from Sydney or Brisbane to
London. As of 1997, Singapore was directly linked by 68 airlines with 133 cities in 53
countries. The countries Changi airport accommodated 172672 flights and over 25
million passengers in that year, and is being expanded to accommodate 60 million
passengers by 2004. The decision to expand is a reflection of Singapore’s deliberate
plan to further consolidate its status as a primary transit hub, as is the negotiation of
air services and open skies arrangements with over 90 countries (Singapore Info map
1998).
Finally, Singapore has evolved as a major tourist destination in its own right. As
with the outbound flow, inbound traffic increased from a negligible level after World
War Ⅱ to 7.3 million in 1996, or 2.2 arrivals per Singapore resident. To achieve a
comparable ratio, Australia would have to host 40 million inbound tourists per year, or
about ten times the current volume (WTO 1998c). About 60 per cent of all inbound
tourists declare ‘holiday’ as the main purpose of their visit, though this revolves
largely around shopping rather than beach-based activities. The inbound traffic is
dominated by Asian markets, and this has made the country’s tourism sector
vulnerable to regional economic disruptions such as occurred in the late 1990s.
Another example of an influential external environment was the decision of the
Indonesian and Thai governments to impose stringent exit taxes on outbound tourists
during the mid-1990s (Poh 1997).
In terms of management priority, the government of Singapore is only peripherally
concerned with its status as an outbound region, and is more concerned by far with its
transit functions as well as its status as a final destination. The latter emphasis, typical
among most places, is due mainly to the economic impacts of inbound tourism, which
generated almost $ 13 billion in receipts during 1996, or over 10 per cent of the
country’s gross national product (WTO 1998c). To increase these revenues even
further, Singapore’s tourism planning and management has recently concentrated on a
number of focused strategies. These include the promotion of visitations from
emerging Asian markets such as China, and diversification of attractions to induce
longer visits. The Singaporean government is also upgrading its infrastructure and
enhancing its urban environment to reinforce its image as a modern, safe and clean
destination (Poh 1997). Singapore, more than most Asian states, is an example of a
destination where the national government has played a major intervening role in the
management and regulation of the national tourism sector (Richter 1993).

The destination region

The origin region

Singapore

The transit region

The origin, transit and destination functions of Singapore interact in a variety of

ways. For example, since 1994 large ongoing increases in the number of outbound
tourists relative to the inbound flow has resulted in a shrinking tourism trade surplus
(see table 2.2), and have provided an incentive for government to push even more
aggressively to expand its inbound arrivals. However, ironically, the prosperity
generated by inbound traffic is one of the factors that helps to induce further outbound
travel. Furthermore, the expansion of links with other cities, to increase the number of
inbound tourists, also provides Singaporean residents with more scope for direct
outbound travel. Linkages also exist between the transit and destination functions.
Many inbound visitors to Singapore received their first exposure to the city-state
through their earlier, involuntary presence there as stopovers or in-transit
excursionists. Similarly, improvements to the international airport, primarily intended
to enhance Singapore’s hub role, have also made the destination more attractive to
inbound tourists.
■ Table 2.2 Inbound and outbound revenues, Singapore, 1992-96
YEAR INBOUND OUTBOUND SURPLUS
(US $ million) (US $ million) (US $ million)
1992 5499 2489 3010
1993 6294 3019 3275
1994 7527 4076 3451
1995 8378 5039 3339
1996 7961 6139 1822

Questions
1. (a)How was Singapore’s location assisted its emergence as a major regional transit
hub?
(b)Why has the Indonesian city of Jakarta not attained anywhere near the same
status as a transit region?
2. (a) Why has Singapore become such a major tourist destination?
(b) Compare Singapore with Hong Kong and discuss which is more competitive as a
destination.
3. (a) How can the origin, transit and destination functions of a location interact?
(b) What are some of the management implications of these interactions?
4. (a) Determine the extent to which the community in which you are currently
studying is an origin region, a transit region and also a destination region.
(b) Identify the important tourism management issues that emerge from each of
these roles.