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Chapter 6 Tourism Policy and Organizations

Learning Objectives
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Identify the reasons for government involvement and the roles of government in tourism. Describe the elements of a tourism policy model and how they are used to form a tourism policy for a destination. Explain the roles of global tourism organizations, including the WTO. Explain the roles of multi-country regional organizations. Explain the roles of national tourism organizations. Explain the roles of state, provincial, and territorial government tourism organizations. Explain the roles of regional and local tourism organizations.

Reasons for government involvement in tourism  Government roles in tourism  Tourism policy formulation  Tourism organizations

 Enhance the national and international image.  Environmental reasons  Carrying capacity-sustainable development  Economic reasons  Japan trade surplus in 1980s-encourage outbound trips-balance of payment.Reasons for government involvement in tourism  Political reasons  Travel across national boundary--entry and exit-overseas destination approved by CNTA. .

 Among the government.Government roles in tourism  Coordination  Among many government bodies concerned with different aspects of tourism. the private sectors and nonprofit organizations.    Tourism policy-setting Tourism planning Tourism legislation and regulation  The number of paid vacation days  Policies on passports and visas .  Among government agencies at different levels.

state-owned airlines… Tourism development stimulation and control  Tourism marketing and research  Tourism training and education  . historic sites.Government roles in tourism Tourism infrastructure development  Tourism operations   National and state park system.

Tourism policy formulation Destination Area Needs Economic Social Cultural Environmental Tourism Goals Economic Government operations Human resource development Market development Resource protection and conservation Social and cultural External Climate Economy Energy Market Constraints Internal Availability of investment Availability of land Local resident use Manpower availability Quality of attractions and facilities Tourism Objectives Tourism policy Programs Strategies Priorities actions Tourism Model Policy .

Tourism Organizations World & National Travel Industry Associations State and Provincial Travel Industry Associations World & National Government Tourism Offices State and Provincial Government Tourism Offices Local & Regional Tourism Assoc iations/ Convention & Visitor Bureaus Local & City Government Tourism Departments .

tour wholesalers. By ownership: government. educators. By industry: transportation.Tourism Organizations Tourism organizations can be viewed in the following ways: 1. travel agencies. . provincial organizations Regional tourism organizations Local tourism organizations 2. 5. By function: suppliers. 4. lodging. professional associations . quasi-government. attractions. development. By motive: profit and nonprofit. and recreation. 3. Geographically: Global organizations Multi-country regional organizations National tourism organizations State. or private. consultants. marketers. publishers.

org .world-tourism.Global Organizations World Tourism Organization (WTO) • Most widely recognized organization in tourism • Serves as a global forum • Transfers tourism know-how • Produces statistics and market research • Develops tourism human resources • Works to facilitate travel • Promotes sustainability • Creates special projects WTO Web site http://www.

And the headquarters is in Madrid. Its membership includes 138 countries and territories and more than 350 affiliate members. Then it was renamed the International Union for Official Tourism Organizations after World War II and moved to Geneva. History Its beginnings is the International Union of Official Tourist Publicity Organization. set up in 1925 in the Hague. IUOTO was renamed the world tourism organization.The World Tourism organization The World Tourism Organization is the most widely recognized and leading international organization in the field of travel and tourism today.and its first General Assembly was held in Madrid in May 1975. .

visas. Research is the one of its most important contributions.Here WTO contributes decades of experience in tourism to the sustainable development goals of nations throughout the world. 5)They are also involve in regional promotion projects.For example.Activities 1)The transfer of Tourism know—how to development countries is a major task .and so forth. . 3)Human resource development is another WTO goal. 4)WTO attempts to facilitate world travel through reduction of government measures for international travel as well as standardization of requirements for passports. 2)WTO is well known for its statistics and market research.WTO sets standards for tourism education. the Silk Road and the Slave Route projects.

Association members pay a fixed annual contribution of U. .S. Full members pay an annual quota calculated according to the lever of economic development and the importance of tourism in each country.Financial Support WTO is primarily financed by members contributions.1700dollars a year.S.20000dollars and affiliate members pay U.

3.Global Organizations World Travel and Tourism Council Some goals of WTTC are: 1. Eliminate barriers to growth in the industry. 4. Wed site . Pursue sustainable development. Work with governments to make tourism a strategic economic development and employment priority.wttc. 2. Move toward open and competitive markets.

WTTC is led by a 15—member executive committee.D. cruises. Day-to-day operations are carried out by the President and a small staff based in London. WTTC works with government to make tourism a strategic economic development and employment priority. catering. recreation. and Washington. Brussels. entertainment. WTTC has done more to create awareness of the economic importance of tourism than any other organizations. . These include accommodations. It meets twice a year and reports to an annual meeting of all members.World Travel and Tourism Council It is a global coalition of the top 100 chief executive officers from all sectors of the industry. pursue sustainable development.C. It was established in 1990. WTTC does many researches and proposes for an international standard Satellite Accounting System. transportation. . It is an organization of governments joined to promote civil aviation on a worldwide scale. The ICAO Web site is http://www.Global Organizations International Civil Aviation Organization ICAO was established in 1944.

Global Organizations International Air Transport Association It is the global organization for all the international air carriers. Their market research helps the industry develop its strategic and marketing . IATA’s mission is to represent and serve the world airline industry. IATA is a valuable information source on the world airline industry. The IATA Web site is at http://www. Its principle function is to facilitate the movement of person and goods from everywhere to everywhere.iata.

Multi-country Regional Organizations • Organization for Economic Cooperation and Development.  http://www. • Pacific Asia Travel Association (PATA)  Represents nations in Asia and the Pacific.oecd.  Mostly European membership. but the United States. Japan and Australia are also members.pata.  http://www. . Paris.

PATA has gained a reputation for outstanding accomplish among similar world organizations. education. . namely. and marketing. Its work has been to promote tourism through programs of research. development.Pacific Asia Travel Association The PATA represents countries in the Pacific and Asia that have united to achieve a common goal. excellence in travel and tourism growth in this vast region.

Developmental Organizations Examples: • World Bank • United Nations Development Program • Asian Development Bank .

org and  Canadian Tourism Commission (CTC)  Public-private partnership  Plans.doc. and implements programs to generate and promote tourism in Canada.  http://tinet.S. directs.S.ita. Department of Commerce  Research and Policy  Mission statement: OTTI is dedicated to helping US businesses gain access to and compete in the global market place.S.seeamerica.S.National Organizations  Office of Travel and Tourism Industries (OTTI)  International Trade Administration.  China National tourism Administration (CNTA)  Travel Industry Association of America (TIA)     leading private tourism organization in U.  http://www. http://www. Represents the whole U. manages. travel industry Promotes and facilitates increased travel to and within the U.

or both. (membership) • International Association of Convention and Visitor Bureaus (IACVB) • Most city CVBs belong to this . pleasure. • http://www.iacvb. whether they visit for business.Other Tourism Organizations • Convention and Visitor Bureaus (CVBs) * Not-for-profit umbrella organizations that represent a city or urban area in the solicitation an servicing of all types of travelers to that city or area.

CNTA Management System National level tourism administration bureau. (NTO) China National Tourism Administration — CNTA  Province and municipality level tourism administration bureau. eg.Tianjin  City or county level tourism administration bureau.  .

Organizational Structure Of CNTA Chairman Vice chairman General Administration Office Planning and Financial Department Marketing & Communications Department Policy and Legal Department Human Resources Department Industry Management Department New York office Los Angeles office London office Paris office Frank -fruit office Zurich office Marid office Tokyo office Osaka office Singa -pore office Sydney office Toronto office Asia Tourism Exchange Center Limited Hong Kong .

tourism serving politics. and tourism serving the economy.China’s Tourism Policies Policy serves politics.  National tourism policy in China has experienced two major changes.  The change of national tourism policy. namely. reflects changes in the country’s political and economic systems. to some extent.  .

1978-1985. the national government declared tourism to be a comprehensive economic activity with the direct purpose of earning foreign exchange. Tourism was treated as people-to-people diplomacy. 1949-1978. Discriminatory pricing policies.China’s Tourism Policies Recognition: from a diplomatic activity to an industry of importance. In 1986. Since 1998 tourism was considered as a new growth point of the national economy and most provinces have made tourism one of the pillar industries in their local economic development planning.  Politics only.  Politics plus economics.  Economics over politics. seeking no economic returns. Eg. .

travel to China by overseas Chinese was treated as a foreign affairs activity and was controlled by the office of Overseas Chinese Affairs under the State of Council. and concentrated on the macromanagement of the tourism industry.China’s Tourism Policies Administration: from micromanagement and control to macromanagement and service.  CNTA was set up in 1981 with the rapid growth of tourism in the late 1970s.  From 1949 to the mid-1960s. All aspects of tourism were tightly controlled by the national government. It became China’s national tourism organization (NTO). .

China’s Tourism Policies Priority: from inbound only to both international and domestic travel.  Inbound tourism - domestic tourism - outbound tourism .  The mode of China tourism development is quite different from that in most of the development countries.

61% of rooms were state owned while 15.CYTS) to 7000 travel services (international and domestic categories) in 1999. .430 rooms in 1999. 7035 hotels with 889. owned by overseas investors.8% were owned . partly or wholly. CTS.  Travel agency: from three magnates (CITS.China’s Tourism Policies Business: from monopoly to standardization in tourism business operations.  Hotels: There are 203 hotels and 76.192 bed spaces in 1978.

By 1991. and the promotion budget doubled from US$3.4 million. and this included the operating cost of its overseas offices. From 1986 to 1990. CNTA’s promotional budget increased to US$3. .  In the late1970s and early 1980s.  After 1989. China realized the importance of the tourism market.China’s Tourism Policies Actions: from a product-oriented to a market-oriented mode. the seller’s market was replaced by a buyer’s market. China exercised a product-oriented management policy and showed little interest in marketing or market research. CNTA actively engaged in tourism promotion.2 million to 6.2 million. Between 1991 and 1993. representing more than a 100 percent increase compared to 1990. from a seller’s market to a buyer’s market.4million per year. CNTA’s promotional budget was only US$1.China’s tourism was a seller’s market.

individual government agencies. replaced by the Regulation on the Administration of Travel Agencies in 1996. and individual persons to invest in the tourism industry . local governments. collectives. Successfully implemented 1988 Hotels 1992 Tourist attractions Successfully implemented 1993 “Provisional methods on the Administration of Hotel Management Companies” “Provisional Regulations on the Administration of Quality Service Guarantee Funds of Travel Agencies” Regulation on the Administration of Tour Guides Hotels Successfully implemented 1995 Travel agencies -service quality and customer satisfaction Successfully implemented but with resistance at the initial stage 1996 Travel agencies -qualification and licensing of tour guides Successfully implemented 1996 Regulation on the Administration of Travel Agencies Travel agencies Successfully implemented The “Five Together” policy decision allows tourism administrations.Major tourism policies and regulations implemented in China since 1978 Year 1979 Policy and Regulation Introduction of foreign investment Target Area Initially in the hotel but expanding to travel agency sector Investment in tourism industry Travel agencies Status of Implementation Successfully implemented 1984 1985 “Five together” “Provisional Regulation on the Administration of Travel Agencies” “Regulations on the Star Standard and StarRating of Tourist Hotels of People’s republic of China” Development of State-level Resorts Successfully implemented Not well implemented.

.Assignment  Each group is required to select an organization or a tourism related policy/regulation. make an analysis and do a 10 to 15 minutes presentation next week.