TPAD Module 2 PDF

PHILIPPINE CHRISTIAN UNIVERSITY
COLLEGE OF BUSINESS AND TECHNOLOGY

Dasmariñas City, Cavite
S.Y. 2020-2021
BS TOURISM MANAGEMENT
MODULE IN TOURISM POLICY PLANNING AND DEVELOPMENT
CHAPTER 2: TOURISM DEVELOPMENT
Learning Objectives
At the end of this chapter, you are expected to:
1. Explain the goals of tourism development
2. Discuss the hindrances to the development of supply
3. Describe the political aspects of tourism development
4. Be acquainted with the management of tourism
5. Understand the development of tourist potential
6. Explain government regulation and assistance
7. Describe tourism development and policy formulation
Tourism is a large and complicated industry. Every period and every area of a country are
directly involved with tourism business and should be concerned with its successful
development.
GOALS OF TOURISM DEVELOPMENT

The following are the aims of tourism development:
1. Provide a framework for raising the standard of living of the people through the
economic benefits of tourism.
2. Develop the infrastructure and provide recreation facilities for tourists and local residents.
3. Establish types of development within the tourist centers and resorts that are suitable to
the purposes of these areas.
4. Provide a development program that is in accordance with the cultural, social and
economic philosophy of the government and the people of the host country of destination.
Disclaimer: This module is adapted and modified from the source materials listed in the references list. This is an exclusive
property of Philippine Christian University-Dasmariñas College (CBT) and is provided only to enrolled students for their academic
use. This module is provided for free by the school through softcopy and/or printed media. Reproduction of this module without
official permission is prohibited.
HINDRANCES TO THE DEVELOPMENT OF SUPPLY
To charge potential supply to actual supply, the first obstacle is the lack of transportation
and access routes to the tourist center. The second obstacle is the lack of accommodation. The
third obstacle is inadequate financing of infrastructure such as water supply, sanitation, power
supply. The last obstacle is the lack of sufficient number of trained personal.
INTERNAL HINDRANCES
Internal obstacle is those found within the destination area that can be corrected or
removed by direct or voluntary means. The first internal obstacle is price fluctuation is general
as well as price fluctuations in tourist supply in particular. The increasing price of tourism has
the same effect as the decrease in the income of the potential tourist. Therefore, when planning a
holiday, the tourist will choose a tourist destination where his money will go to the farthest.
Another major obstacle is the lack of effective publicity. Effective publicity is an
important means to increase demand. If publicity is poorly planned or inadequately financed, it
will hamper tourist demand development.
POLITICAL ASPECTS OF TOURISM DEVELOPMENT
The following are the political aspects of tourism development:

1. Land use (zoning)
2. Construction and maintenance of infrastructure
3. Promotional programs
Land Use (Zoning)

Zoning ordinances specify the legal types of land use. Zoning ordinances are determined
by a government zoning administrator and a politically appointed or elected zoning abroad.
Hence, the government decides how land is to be used. It also decides on request for changes in
the zoning districts or rezoning to accommodate a proposed development. The attitudes of the
government agencies toward tourism development will be influenced by the perception of the
general public regarding the desirability of a specific tourism development. The developer and
the managers of tourism supply components are responsible for creating a favorable public
image. The government tourism promotion organizations share the same responsibility. If the
principles of tourism planning and development are faithfully implemented, the result will be
well-planned projects that are sources of employment and revenue.
Construction and Maintenance of Infrastructure
Any tourism development needs infrastructure. Infrastructure is provided by the
government agencies, private developer or both. Those who are greatly concerned about tourism
must realize that it is their responsibility to convince the public that government expenditure on
roads, water system, sewage, airports, marinas and parks benefit the local economy. One way to
do this is through intelligent lobbying. Another approach is to give lectures to service clubs and
social organizations. A third approach is to show how much money was spent by tourist or
conventions participants.
Infrastructure needs maintenance. Maintenance policies are a significant factor in successful
tourism development. An example is the adequacy and quality of water and sewage systems.
Both government and private sector must cooperate to achieve a successful tourism
development.
Promotional Programs
Promotional programs which are founded by the government are important to the tourism
industry. To convince law-makers and local government officials regarding the significance of
tourism accurate data on employment, income multipliers, additional investments, preservation
and improvement of local industries such as arts and crafts should be produced.
THE MANAGEMENT OF TOURISM

Although the government may be responsible for the promotion of tourism in the country and
for the formulation of a tourist program of development, it has also responsibilities with regard to
its implementation. Governments are involved in such matters as passports and visas, customs
regulations, foreign currency allowances, statutory holidays, the number of weekly working
hours which are likely to affect the development of tourism. With the great expansion in tourism,
governments are becoming increasingly concerned with the industry. In countries where the
tourism sector forms an important part of the national development plan, the government
involves itself directly in the actual management of tourism over and above its general regulatory
functions.
A basic issue which the government will have to determine is the division of responsibilities
between the public and private sectors. Much will depend on the degree of development of the
country concerned. In a well-developed country where there is a prosperous private sector, less
direct government intervention will be needed than in a developing country where the private
sector is weak and inactive.
There are five functions which are the responsibility of the government in assisting tourism
development. These are:
1. Basic market research into future tourist demand. Private investors are not aware of the
market prospects. It is this uncertainly about the demand factor which prevent them from
investing in tourism.
2. The publicity promoting the country and its tourist assets and creating the conditions of
goodwill, interest, ease of entry etc. which will not only attract tourist but make sure that
he will go away with a good impression and wish to return.
3. The regulation and control of the various services which constitute the industry the
success of which will depend on the mutual cooperation and confidence between the
public and private sectors.
4. The economic and social implications of tourism development in relation to the
community making sure that the interests of the resident population are not jeopardized.
5. Making arrangements that are necessary for tourism promotion with other governments
whether it be establishing cordial relationships, facilitating exchange movements or
cooperation with neighboring governments to attract a regional market.
Development of Tourism
Potential Official Tourism Organization
A tourism body or organization should be established to take charge of socioeconomic

developments in several market areas and provide an early forecast of the size, type and structure
of possible tourist demand.
Since tourism is a complex phenomenon, there are several distinct departments that are
responsible for solving developmental problems. Coordination should be strengthened so that
recommendations are carried out once they have been decided upon.
The stabilization of internal prices in general and tourist prices in particular should be a
continuous objective because rising prices automatically reduce the volume of demand. Land
speculation should be discouraged.
The inventory of potential national tourist resources should be kept up to date so that
these resources may be incorporated into actual tourist trade in line with the quantity forecasts of
demand.
Tax pressures that directly affect operating costs also influence prices. Because of the
export value of tourism, a fiscal policy similar to that applied to the conventional export trade
should be worked out.
Publicity campaigns should be organized and carried out every year according to
forecasts. They should be detailed and constructive and should emphasize the socioeconomic
developments and activities in the market. Financing publicity campaigns should be taken from
annual tourist earnings and other funds at a rate of not less than 1 percent and not more than 4
percent of total earnings.
Customs facilities should be lenient but ensuring the maintenance of order and avoiding
fraud and other crimes since this is an important factor in the promotion of international tourism.
Receiving countries should make sure that tourist demand is met by making the journey
very agreeable. However, if customs are too liberal, undesirable persons enter the country whose
behavior will have a negative effect on tourism or damage public or private property. Hence, it is
necessary to demand proof that person entering the country have enough financial resources to
support their stay in the country.
The seasonal nature of mass tourism causes congestion in the use of services required by
tourists. There are some specific services such as accommodation that cannot easily adapt to
seasonal fluctuation. However, there are some services such as transport and communications
that can easily adapt to seasonal fluctuation. Government support for these services is needed
because these public services are important for development.
Because of the role and influence of transport on tourist development, the following
measures are recommended:
1. Continuous, detailed study of transport used for tourism including adequate
planning of necessary improvements and extensions.
2. Establishment of national and international plans of roads that are in a deficient
state and improve road sign systems. These activities should be included in the
general road plans. Priorities should be based on economic necessity and
importance of road transport in tourism.
3. Improvement of road frontier posts, extend their capacity to produce smoother
crossings, organize easier movement of ingoing and outgoing tourist flows.
4. Provision of adequate airport services to meet demand. Reasonable forecasts are
made possible due to the fast progress of technology.
5. Establishment of car services for tourist who arrive by air or sea.
Government Regulation and Assistance

The government can do much to create a favorable climate for investment by a
prudent system of regulation. The government should first consult the industry before making the
regulation since the regulatory system can encourage investment only if it has the confidence of
the industry.
Since most private investors expect a rapid return on capital, special financial
incentives are necessary to make tourism investment attractive. The government will need to
offer special concessionary arrangements to use capital for the priority areas designated by the
national tourism plan.
The following are the government financial incentives:
1. Subsidies - it is the most attractive incentive from the investor’s point of view. It
is a means of initiating investment in a new development area. Usually, the
government subsidy is restricted to a fixed percentage of the total investment with
the idea that the private investor should have the maximum participation.
2. Credits – the government encourages tourism investment by providing special

credits for investment in areas declared to be of national tourist interest.
a. Guaranteed Credits: interest rebates – the government may guarantee
credits obtained through normal banking arrangements. Government may also
grant an interest rebate for tourism investment by making up the difference
between the commercial rates and that proposed for the hotel trade.
b. Technical Advice – the staff of the credit institution should be able to guide
the investor in the management of the project. For countries that are beginning
to build up experience in the tourist industry, technical assistance is necessary
in the preparation of worthwhile projects by helping to evaluate them and by
advising on their implementations.
3. Preferential Rates of Interest – the government may offer capital for investment
at lower than market rates of interest. The selective use by the government of the
preferential rate is a means of directing investment towards the priority zones of
the national tourism plan.
4. Special Facilities for Land Purchase – this is a strong incentive to tourist

development especially in new tourist areas, although there is always the danger of
the leading to land speculation. The problem of land speculation which results in
inflation and social injustice is particularly serious in the tourism sector where the
value of land is very high in relation to the value of the building in it. However,
there are a number of ways the government can meet this risk. One way is to set
the price of land at its value before the zone for tourism development is classified.
Another is to oblige the buyer to develop the tourist installation within a specified
period and to participate in an agreed proportion of the cost of development.
5. Fiscal Aids – most government recognize tourism as an export industry and give it
the same concessionary arrangement as other export industries. These include
reduced customs duties on imported construction materials and equipment needed
for tourism services, remission of purchase or other taxes on imports, and special
facilities for buying foreign exchange needed for imports.
6. Reliefs on Operating Costs – the government can make tourism investment
attractive by offering special concessions at the operating stage in order to increase
the profitability of the project. These include tax reliefs which aim to facilitate the
renewal of equipment and reduction of property and municipal taxes.
7. Recruiting and Training Employees – a very important function of the

government is to help recruiting employees. This is often accomplished through an
employment service. The establishment of tourism and hotel schools of excellent
quality and the offering of night courses and other educational opportunities at all
levels of employment are important.
Tourism Development and Policy Formulation
Tourism can be a polluting activity. Its overdevelopment brings about soil, water and
even people pollution if there are many tourists at one place at the same time. Land values will
go down if the area becomes unattractive.
Too many tourists can have a harmful effect on the host country and on the visitors
themselves. A beautiful landscape can suffer through thoughtless and unwise land development
and constructive methods. The quality of arts and crafts may be lowered by overemphasizing
quantity and cheap prices.
These unwholesome results can be avoided if tourism development is guided by a
carefully planned policy. It should be a policy built not on balance sheets and profits and loss
statements alone but on the ideals and principles of human welfare and happiness. A sound
development policy can result in a growing tourist business and the preservation of the natural
and cultural resources.
REFERENCE:
Tourism Planning and Development by: Zenaida Lansangan. Cruz, Ph.D. (Rex Bookstore)
PREPARED BY:
MS. GEESELLI M. TOLENTINO


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PHILIPPINE CHRISTIAN UNIVERSITY

COLLEGE OF BUSINESS AND TECHNOLOGY

MODULE IN TOURISM POLICY PLANNING AND DEVELOPMENT

CHAPTER 2: TOURISM DEVELOPMENT

GOALS OF TOURISM DEVELOPMENT

POLITICAL ASPECTS OF TOURISM DEVELOPMENT

The following are the political aspects of tourism development:

Land Use (Zoning)

THE MANAGEMENT OF TOURISM

A tourism body or organization should be established to take charge of socioeconomic

Government Regulation and Assistance

2. Credits – the government encourages tourism investment by providing special

4. Special Facilities for Land Purchase – this is a strong incentive to tourist

7. Recruiting and Training Employees – a very important function of the

Tourism Development and Policy Formulation

MS. GEESELLI M. TOLENTINO

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