Chapter 6 Tourism Policy and Organizations

Learning Objectives 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.

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

Reasons for government involvement in tourism Political reasons Travel across national boundary--entry and exit--overseas destination approved by CNTA. 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.

Government roles in tourism Coordination Among many government bodies concerned with different aspects of tourism. Among government agencies at different levels. Among the government, 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

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

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

Tourism Organizations

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

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.world-tourism.org

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

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

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

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

World Travel and Tourism Council It is a global coalition of the top 100 chief executive officers from all sectors of the industry. These include accommodations, catering, cruises, entertainment, recreation, transportation. It was established in 1990, WTTC is led by a 15—member executive committee. It meets twice a year and reports to an annual meeting of all members. Day-to-day operations are carried out by the President and a small staff based in London, Brussels, and Washington,D.C. WTTC has done more to create awareness of the economic importance of tourism than any other organizations. WTTC works with government to make tourism a strategic economic development and employment priority, pursue sustainable development. WTTC does many researches and proposes for an international standard Satellite Accounting System.

Global Organizations International Civil Aviation Organization ICAO was established in 1944. It is an organization of governments joined to promote civil aviation on a worldwide scale. The ICAO Web site is http://www.icao.int

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

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

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

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

National Organizations Office of Travel and Tourism Industries (OTTI) International Trade Administration, U.S. 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. http://tinet.ita.doc.gov Travel Industry Association of America (TIA) leading private tourism organization in U.S. Represents the whole U.S. travel industry Promotes and facilitates increased travel to and within the U.S. http://www.tia.org and http://www.seeamerica.org Canadian Tourism Commission (CTC) Public-private partnership Plans, directs, manages, and implements programs to generate and promote tourism in Canada. http://www.CanadaTourism.com China National tourism Administration (CNTA)

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, whether they visit for business, pleasure, or both. (membership) International Association of Convention and Visitor Bureaus (IACVB) Most city CVBs belong to this organization. http://www.iacvb.org

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

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

China’s Tourism Policies Recognition: from a diplomatic activity to an industry of importance. Politics only. 1949-1978. Tourism was treated as people-to-people diplomacy, seeking no economic returns. Politics plus economics. 1978-1985. Eg. Discriminatory pricing policies. Economics over politics. In 1986, the national government declared tourism to be a comprehensive economic activity with the direct purpose of earning foreign exchange. 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.

China’s Tourism Policies Administration: from micromanagement and control to macromanagement and service. From 1949 to the mid-1960s, 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. All aspects of tourism were tightly controlled by the national government. CNTA was set up in 1981 with the rapid growth of tourism in the late 1970s. It became China’s national tourism organization (NTO), and concentrated on the macromanagement of the tourism industry.

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

China’s Tourism Policies Business: from monopoly to standardization in tourism business operations. Travel agency: from three magnates (CITS, CTS,CYTS) to 7000 travel services (international and domestic categories) in 1999. Hotels: There are 203 hotels and 76,192 bed spaces in 1978; 7035 hotels with 889,430 rooms in 1999, 61% of rooms were state owned while 15.8% were owned , partly or wholly, owned by overseas investors.

China’s Tourism Policies Actions: from a product-oriented to a market-oriented mode, from a seller’s market to a buyer’s market. In the late1970s and early 1980s,China’s tourism was a seller’s market. China exercised a product-oriented management policy and showed little interest in marketing or market research. From 1986 to 1990, CNTA’s promotional budget was only US$1.4million per year, and this included the operating cost of its overseas offices. After 1989, the seller’s market was replaced by a buyer’s market. China realized the importance of the tourism market. By 1991, CNTA’s promotional budget increased to US$3.2 million, representing more than a 100 percent increase compared to 1990. Between 1991 and 1993, CNTA actively engaged in tourism promotion, and the promotion budget doubled from US$3.2 million to 6.4 million.

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

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.