Lesson 5 : Tourism Economics By: Ms. Jinky Rose Gino-gino
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Lesson 5 : Tourism Economics
By: Ms. Jinky Rose Gino-gino
Tourism demand & supply
Tourism Demand
*Number of person who travel or wish to travel & use tourist facilities & services at places away from their places of work/ residence.
( Cooper et.al, 1993)
Tourism Supply
*Key elements of tourism industry by the host governments & destinations.
6 Components of Tourism
By: Edward Innskeep
Components of
tourism By: Edward
Innskeep
Attractions &
Activities
1. Attractions & Activities
*Natural
*Historical
*Cultural
*Events
*Recreation or Special Interest
*Entertainment Attractions
* Golf, Swimming, Tennis, Hiking, Biking, Snow Sports, Sight-seeing, Mountaineering, Spelunking, Bird watching, Whale watching, Scuba diving.
Attractions &
Activities
Transportation
2. Transportation
* Types
*Passenger
*Tourist
* Modes
-Land
-Water
- Air
Infrastructure
3. Infrastructure
Water supplyElectric power
Proper waste disposalTelecommunications
RoadsAirportsSeaports
Accommodation
4. Accommodations
*Hotel
*Motel
* Bed & Breakfast
*Hostels
* Apartelles
*Resorts
*Home stay
* Campgrounds
Tourist Facilities & Services
5.Other Tourist Facilities & Services
*F&B
*Postal Services
*Medical Facilities
*Banking & Money Exchange Services
* Personal Services
* Retail Shops
* Souvenirs & Crafts
Institutional Elements
6. Institutional Elements
* Education & training of persons working in tourism
industry
*Government & Tourism Agencies
9 Pillars of Tourismby: Ritchie & Goeldner
9 Pillars of Tourism
by: Ritchie & Goeldner
Attraction Sector
Transportation Sector
Accommodation Sector
Food Service/ F& B Sector
Travel Trade Sector
Tourism Sector
Events Sector
Entertainment Sector
Adventure &
Recreation Sector
Systems approach
Whole Tourism Systems & Their EnvironmentsHow they help us
understand tourism
What are “whole tourism systems”?
Real WTS are people, places, organisation that interact in certain roles when tourism happens.
Models of WTS are representations of real WTS, frameworks for researching and studying tourism in a comprehensive and systematic manner.
What are models?
A model is a representation of reality,
used to guide thoughts, and often action,
in relation to some sort of
ideal or actual phenomena.
The Matterhorn, in Europe,
& a model of it, in Disneyland
Examples of types of models
“Fashion” models represent designed styles in body shapes, clothing, hairdressing
These are normative models – ideals for observers’ aspirations, dreams or distractions
What are systemic models?
They show the elementary components necessary for a particular system
to exist.
Not all models are systemic, even some that are described as “systems”
What is a System?
“A system is a set of parts, of elements, that are connected to one another by at least one
distinguishing principle”
(Jordan 1981, p 24)
A simple whole tourism system & its environments (Leiper 1979, 2004)
The reasoning in Leiper’s model for identifying the elements in whole tourism systems
What is necessary for tourism to occur?
Whatever is necessary can be thought of
as an element in WTS. Anything not necessary is not an element.
The reasoning for identifying elements in Leiper’s model of WTS
Are hotels necessary for tourism to occur?
No. Without hotels, tourism would occur, although in different forms.
Therefore, hotels are not elements in WTS
Many things are not necessary for tourism to exist, thus not elements in WTS Theme parks, travel agents, tour operators Airlines, motor vehicles, cruise ships Motels, caravan parks, casinos Annual leave, long weekends, holiday pay Ecological awareness Hospitality National tourism organisations Governmental Ministers of Tourism Professors of Tourism, Schools of Tourism Research Advertisements, marketing campaigns, TV Brands
When tourism occurs, at least one of each of these items exists, in an interrelated process.
a person who becomes a tourist
who departs from a tourist generating place
travels along a transit route
and visits a tourist destination place using services of a tourism industry
Five elements in every WTS
At least one tourist
One tourist generating place (where trips begin and end)
At least one tourist destination place At least one transit route
At least one tourism industry
At least one touristis necessary for tourism to occur.
A tourist generating place is necessary for tourism to occur
A transit route (a place where travelling, not visiting, is the major activity of tourists) is necessary for tourism to occur
A tourist destination, with some “attractive” attribute, is necessary for tourism to occur
At least one tourism industry is necessary for tourism to occur
A tourism industry is a collection of at least three organisations, which have (i) strategies for targeting tourists and (ii) industrial strategies for cooperating with one another to some extent.
Tourism industries promote tourism and provide many of the services and goods consumed by tourists.
Organisations in tourism industries: Disneyland in USA, Louvre in France
Are tourism industries really necessary for tourism to occur?
From one perspective, no.
Fully independent tourists might make no use of any service on offer from tourism industries. This is DIY tourism.
However …
Independent tourism occurs when tourists normally want to avoid:
being with dependent touristsusing services on offer from tourism-
related businesses
Thus, tourism industries are factors shaping all tourism, to some extent and in different ways – dependence or avoidance.
It’s the connection of tourists with places that makes a place a tourist destination
A place becomes a tourist destination only if a tourist visits
If no tourists ever visited Bondi Beach, it would not be a tourist destination
When tourism occurs, at least one of each of these five items exists, in an interrelated process.
a tourist,
a tourist generating place - where trips begin and end,
a tourist destination place, a transit route,
a tourism industry.
How can these elements be described in models?
One way is to begin by describing,
in a diagram,
the abstract of a tourist’s itinerary,
which will show geographical elements,
then adding human
and organisational elements
Eight geographical elements in a trip
with two destinations (Leiper 2004)
A simple whole tourism system & its environments (Leiper 2004)
Ockham’s Razor,
a useful principle for theories
When stating a theory, do not include more details than are needed to understand the theory.
Keep to essentials
Environments
Tourism systems are open systems, they interact with environments
Environments are surrounding conditions, which may affect a system and/or be affected by it.
Physical, social, cultural, economic, political, technical, legal etc.
Examples of environments affecting WTS
Spectacular scenery, a feature of the physical environment, can be vital for a place’s role as a tourist destination
Political policies of governments can be vital in determining flows of tourists out of generating regions and into destinations.
Examples of WTS affecting environments
International tourists returning to their home countries bring new information & changed attitudes that affect social and culture environments there.
Expenditure by tourists in Australia supports more than 200,000 jobs
Too many tourists walking on sand have damaged ancient rock art at Uluru (Ayers Rock)
Uses of this model of WTS
It reminds us of all the elementary things that make up tourism.
It enables us to see how the elements interrelate to make tourism happen.
It reminds us that environments help shape the elements of WTS and are, in turn, affected by those elements.
Uses of this model of WTS
The model can be overlaid on a map for applications to actual places in itineraries
A place can be viewed and studied as (i) a generating place, (ii) a point in transit and/or (iii) a destination
The model reminds us that one place can have three different roles as geographical elements in different WTS
Uses of this model of WTS: as a theoretical construct for general studies and research on tourism
A model for interdisciplinary studies of tourism
Uses of this model of WTS
It enables any discipline or mix of disciplines to be applied in research or studying tourism
By not favouring any particular aspect of tourism, the model facilitates unbiased and objective research
Limits or weaknesses in Leiper’s model of WTS
It ignores differences among different forms of tourism
It ignores the major differences occurring in WTS with different levels of industrialisation (i.e. packaged tourism as against DIY independent tourism)
Limits or weaknesses in Leiper’s model of WTS
It leaves out most of the details that characterise all real world
examples of tourism.
However, this is a limit, not a weakness
Other models of tourism from …
Gunn (1972 etc)
Mill & Morrison (1985 etc)
Stear (1992 etc)
Cooper et al (1992 etc)
… and others
Clare Gunn’s model of “The Tourism System”
Gunn’s Model
It’s a linear model, is not systemic
Gunn described tourism as “a closed system”, which is not the case.
It is however a valuable model for emphasising the vital function of attractions.
Five elements in a WTS
TouristsTraveller (or tourist) generating regionsTransit routesTourist destination regionsTourism industries
The five elements interact with each other to form a WTS, and also interact with environments: they are affected by, and have effects on, their environments.
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