Unit I

Tourism Product
The world ‘tour’ is derived from the Latin word tornus, meaning ‘a tool for making a
circle’. Tourism may be defined as the movement of the people from their normal place of
residence to another place ( with the intention to return) for a minimum period of twenty-four
hours to a maximum of six months for the sole purpose of leisure and pleasure.

According to WTO (1993) ” Tourism encompasses the activities of persons traveling and staying
in places outside their usual environment for not more than one consecutive year for leisure,
business, and other purposes.”

The Rome conference on tourism in 1963 defined tourism as ‘ a visit to a country other than
one’s own or where one usually resides and works’. This definition, however, did not take into
account domestic tourism, which has become an important money-spinner and job generator
for the hospitality industry.

The UNWTO defines tourists as ‘ people who travel to and stay in place outside their usual
environment for not more than one consecutive year for leisure, business and other purposes
not related to the exercise of an activity

According to the Tourism Society of Britain,” tourism is the temporary short-period movement
of people to destination outside the places where they normally live, work; and activities during
their stay at these destinations.” This definition includes the movement of people for all
purposes.

Tourism Products

A tourism/tourist product can be defined as the sum of the physical and psychological
satisfaction it provides to tourists, during their ‘traveling and sojourn’ en route at the
destinations.

Since travel and tourism industry is an agglomeration of too many sectors that promote travel
related services. These sectors are referred to as travel vendors and their services and goods
are called ‘travel products’. A tourism product includes five main components such as physical
plant, services, hospitality, freedom of choice, and a sense of involvement.

Thus, whatever the natural and man-made resources, services brought about the consumption
of tourists is called tourism products.
The development of technology and transportation infrastructure, such as jumbos jets, low-cost
airlines, and more accessible airports have made tourism affordable and convenient. There
have been changes in lifestyle – for example, now retiree-age people sustain tourism around
the year. The sale of tourism products on the internet, besides the aggressive marketing of
the tour operators and travel agencies, has also contributed to the growth of tourism.
September 27 is celebrated as world tourism every year. This date was chosen as on that day in
1970, the Statutes of UNWTO were adopted. The purpose of this day is to raise awareness of
the role of tourism within the international community.

Types of Tourism
Tourism has two types and many forms on the bases of the purpose of visit and alternative
forms of tourism. Tourism can be categorized as international and domestic tourism.
International tourism can be further divided into inbound tourism and outbound tourism.

International Tourism
When people visit a foreign country, it is referred to as International Tourism. In order to travel
to a foreign country, one needs a valid passport, visa, health documents, foreign exchange, etc.

Inbound Tourism

This refers to tourists of outside origin entering a particular country. When people travel
outside their host/native country to another country, then it is called inbound tourism for that
country where he/she is traveling. For example when a tourist from Indian origin travels to
Japan then it is Inbound tourism for Japan because foreign tourist comes to Japan.

Outbound Tourism

This refers to tourists traveling from the country of their origin to another country. When
tourists travel a foreign region than it is outbound tourism for his own country because he/she
is going outside their country. For example when a tourist from India travel to Japan then it is
outbound tourism for India and Inbound tourism for Japan.

Domestic Tourism

The tourism activity of the people within their own country is known as domestic tourism.
Traveling within the same country is easier because it does not require formal travel documents
and tedious formalities like compulsory health checks and foreign exchange. In domestic
tourism, a traveler generally does not face many language problems or currency exchange
issues.

Forms of Tourism
Tourism has various forms on the basis of the purpose of visit and alternative forms. These are
further divided into many types according to their nature. Forms of tourism are following as :
Some most important forms of tourism are following as:

1. Adventure Tourism
2. Atomic Tourism
3. Bicycle Tours
4. Beach Tourism
5. Cultural Tourism
6. Ecotourism
7. Geotourism
8. Industrial Tourism
9. Medical Tourism
10. Religious Tourism
11. Rural Tourism
12. Space Tourism
13. Sports Tourism
14. Sustainable Tourism
15. Virtual Tourism
16. War Tourism
17. Wildlife Tourism

Classification of Tourism
Tourism can be classified into six distinct categories according to the purpose of travel. These
are following as:
1) Recreational: Recreational or leisure tourism takes a person away from the humdrum of
everyday life. In this case, people spend their leisure time at the hills, sea beaches, etc.
2) Cultural: Cultural tourism satisfies cultural and intellectual curiosity and involves visits to
ancient monuments, places of historical or religious importance, etc.
3) Sports/Adventure: Trips have taken by people with a view to playing golf, skiing and hiking,
fall within this category.
4) Health: Under this category, people travel for medical, treatment or visit places where there
are curative possibilities, for example, hot springs, spa yoga, etc.
5) Convention Tourism: It is becoming an increasingly important component of travel. People
travel within a country or overseas to attend conventions relating to their business, profession
or interest.
6) Incentive Tourism: Holiday trips are offered as incentives by major companies to dealers and
salesmen who achieve high targets in sales. This is a new and expanding phenomenon in
tourism, These are in lieu of cash incentives or gifts, Today incentive tourism is a 3 billion dollar
business in the USA alone.

Nature of Tourism
Tourism as a socio-economic phenomenon comprises the activities and experiences of tourists
and visitors away from their home environment and serviced by the travel and tourism industry
and host destination. The sum total of this activity experience and services can be seen as a
tourism product.

The tourism system can be described in terms of supply and demand. Tourism planning should
strive for a balance between demands and supply. This requires an understanding not only of
market characteristics and trends but also of the planning process to meet the market needs.

Often tourist from core generating markets are identified as the demand side; the supply side
includes all facilities, programmes, attraction, and land uses designed and managed for the
visitors. These supply-side factors may be under the control of private enterprise, non-profit
organizations, and government. New and innovative forms of partnerships are also evolving to
ensure the sustainable development and management of tourism related resources.

The supply and demand side can be seen to be linked by flows of resources such as capital,
labor, goods and tourist expenditures into the destination, and flows of marketing, promotion,
tourist artifacts and experiences from the destination back into the tourist generating region.
In addition, some tourist expenditures may leak back into the visitors generating areas through
repatriation of profits of foreign tourism investors and payment for improved goods and
services provided to tourists at the destination. Transportation provides an important linkage
both to and from the destination.
For planning purposes, the major components that comprise the supply side are:

 Various modes of transportation and other tourism-related infrastructure.

 Tourist information.
 Marketing and promotion.
 The community of communities within the visitor’s destination area.
 The political and institutional frameworks for enabling tourism.

The tourism system is both dynamic and complex due to many factors linked to it and because
of the existence of many sectors contributing to its success. These factors and sectors are linked
to the provision of the tourist experience and generation of tourism revenue and markets.

The dynamic nature of tourism system makes it imperative to scan the external and internal
environment of the destinations on a regular basis so as to makes changes when necessary to
ensure a healthy and viable tourism industry.
Thus, it is now an accepted fact that tourism development can no longer work in isolation of
the environment and the local communities, nor can it ignore the social and cultural
consequences of tourism.
Importance of Tourism
Tourism and hospitality, which are inextricably linked to each other, are among the major
revenue-earning enterprises in the world. They happen to be among the top employers too.
There has been an upmarket trend in tourism over the last few decades as travel has become
quite common. People travel for business, vacation, pleasure, adventure or even medical
treatments.
With several business-related activities associated with tourism, the industry has a tremendous
potential of generating employment as well as earning foreign exchange. There are many
countries in the world, such as Mauritius, Malaysia, Singapore, Fiji, and the Caribbean, whose
economies are primarily driven by tourism. Tourism can contribute to the economic growth of a
country in the followings ways:

Employment Generation

It creates a large number of jobs among direct services providers (such as hotel,
restaurants, travel agencies, tour operators, guide and tour escorts, etc.) and among indirect
services providers (such as suppliers to the hotels and restaurants, supplementary
accommodation, etc.)
Infrastructure Development

Tourism spurs infrastructure development. In order to become an important commercial or

pleasure destination, any location would require all the necessary infrastructure, like good
connectivity via rail, road, and air transport, adequate accommodation, restaurants, a well-
developed telecommunication network, and, medical facilities, among others.

Foreign Exchange

The people who travel to other countries spend a large amount of money on accommodation,
transportation, sightseeing, shopping etc. Thus, an inbound tourist is an important source of
foreign exchange for any country.
The World Travel and Tourism Council (WTTC) predict in 1997 that the twenty-first-century
economy would be dominated by three industries: telecommunications, information
technology, and tourism. The travel and tourism industry has grown by 500 percent in the last
25 years.
Now withstanding this bright outlook and prospects, the tourism and hospitality industries are
very vulnerable to the fluctuations of national economies and happenings in the world,
especially terrorist attacks that have at times dealt severe blows to business.
In recent years, there have been a few setbacks in tourism, such as Covid – 19 in the year 2020,
the terrorist siege of the Taj and Oberoi in Mumbai, India (26 November 2008); the attack of
the World Trade Centre in the United States of the America (11 September 2001); bombing in a
hotel on the Indonesian island of Bali (12 October 2002); tsunami in Southeast Asia and South
Asia on 26 December 2004, in which thousands of the lives where lost and consequently
tourism was hit. Nonetheless, the sector is now getting back to business.

Impacts of Tourism
Establishing or developing a tourism industry involves expenditure as well as gains, costs, and
benefits. If these impacts are taken into consideration from the outset of planning, strengths
and opportunities can be maximized while weaknesses and threats can be minimized.
Each destination will be different in terms of tourism characteristics. The cost and benefits of
tourism will vary in each destination and can change over time, depending on tourism and
other activities in a destination’s local and regional context.

Economic Impacts

Tourism activities impact the economy of the country as well as the local economy of the
destination.

Economics Benefits

 Tourism generates local employment, directly in the tourism sector and in support and
resource management sectors.
 Tourism stimulates profitable domestic industries, hotels and other lodging facilities,
restaurants and food services, transportation systems, handicrafts, and guide services.
 Tourism generates foreign exchange for the country and injects capital and new money
into the local economy.
 Tourism helps to diversify the local economy.
 Improved tourism infrastructure.
 Increase tax revenues from tourism.

Economic Costs

 Higher demand created by tourism activity may increase the price of land, housing and a
range of commodities necessary for daily life.
 Demands on health services provision and police service increase during the tourist
seasons at the expense of the local tax base.

Social Impacts

Tourism also affects the society of the destination in good as well as bad ways. It benefits and
costs the local communities.

Social Benefits
  The quality of a community can be enhanced by economic diversification through
tourism.
 Recreational and cultural facilities created for tourism can be used by local communities
as well as domestic/international visitors.
 Public spaced may be developed and enhanced through tourism activity.
 Tourism Enhances local community’s esteem and provides an opportunity for greater
understanding and communication among people of diverse background.
Social Costs

 Rapid tourism growth can result in the inability of local amenities and institutions to
meet service demands.
 Without proper planning and management, litter, vandalism, and crime often
accompany tourism development.
 Tourism can bring overcrowding and traffic congestion.
 Visitors bring with them material wealth and apparent freedom. The youths of the host
community are particularly susceptible to the economic expectations these tourists
bring and can result in complete disruption of traditional community ways of life.
 The community structure may change, e.g. community bonds, demographics, and
institutions.
 The authenticity of the social and cultural environment can be changed to meet tourism
demands.

Cultural Impacts

Tourism activities also affect the culture of the host country. There are many positive and
negative cultural impact of tourism.
Cultural Benefits

 Tourism can enhance local cultural awareness.

 Tourism can generate revenue to help pay for the preservation of archaeological sites,
historic buildings, and districts.
 Despite criticism about the alteration of cultures to unacceptable levels, the sharing of
cultural knowledge and experience can be beneficial for hosts and guests of tourism
destinations and can result in the revival of local traditions and crafts.

Cultural Costs

 Youth in the community begin to emulate the speech and attire of tourists.
 Historic sites can be damaged through tourism development and pressures.
 There can be long-term damage to cultural traditions and the erosion of cultural values,
resulting in cultural change beyond a level acceptable to the host destination.

Environmental Impact
Tourism impacts on the environment in positive as well as negative way. These impacts are
following below.

Environmental Benefits

 Parks and nature preserves may be created and ecological preservation supported as a
necessity for nature-based tourism.
 Improved waste management can be achieved.
 Increased awareness and concern for the environment can result from nature-based
tourism activities and development.

Environmental Costs

 A negative change in the physical integrity of the area.

 Rapid development, over-development, and overcrowding can forever change the
physical environment and ecosystems of an area.
 Degradation of parks and preserves.

Industries Related To Tourism

Over the years, tourism has become a popular global activity. Depending upon the nature and
purpose of their travel, tourists, need and demand certain facilities and services. This has given
rise to a wide range of commercial activities that have acquired industry proportions. Thus
travel and tourism now days represent a broad range of related industries.

Hotels

Hotels are the commercial establishment that provides accommodation, meals, and other guest
services. In travel and tourism industry, the hotel industry plays a very significant role, as all
tourists need a place to stay at their destinations, and require many more services and facilities
to suit their specific needs and tastes.

Restaurants

Restaurants are retail establishments that serve prepared food and beverages to customers. In
the travel and tourism industry, restaurants and other food and beverage outlets are very
important as tourists like to experiment with local cuisines of the places they are visiting.

Retail and Shopping

The retail industry is very important as tourists shop for their day to day necessaries as well as
look for mementos and souvenirs. In the recent years, some cities in the world have been
promoted as shopping destinations to attract people with a penchant for shopping by offering
various products, such as garments, electronic goods, jewelry, and antiques. New York, Paris,
London, and Milan in Italy are famous as fashion havens of the world.

Transportation

It is the movement of people and goods from one place to another. A well-developed transport
industry, as well as infrastructure, is integral to the success of any travel and tourism
enterprise.

Travel Agencies

A travel agency is a retailing business that sells travel related products and services, particularly
package tours, to customers on the behalf of suppliers such as airlines, car rentals, cruise liners,
hotels, railways, and sightseeing.
Travel agencies play a very important role as they plan out the itinerary of their clients and
make the necessary arrangements for their travel, stay, and sightseeing, besides facilitating
their passport, visa, etc.

Tour Operators

A tour operator assembles the various elements of a tour. It typically combines tour and travel
components to create a holiday. Tour operators play an important role in the travel and
tourism industry.

Tourist Destinations

A tourist attraction is a place of interest for tourists, typically for its inherent or exhibited
cultural value, historical significance, nature or build beauty or amusement opportunities.
These are the basic fundamentals of the tourism industry.

Cultural Industries

Cultural or creative industries are responsible for the creation, production, and distribution of
goods and services that are cultural in nature and usually protected by intellectual property
rights. As tourists like to visit places of cultural significance and soak in the culture of the area,
the cultural industry is very important to travel and tourism.

Leisure, Recreation, and Sport

Leisure or free time is a period of a time spent out of work and essential domestic activity.
Recreation or fun is spending time in a manner designed for therapeutic refreshment of body or
mind. While leisure is more like a form of entertainment or rest, recreation requires active
participation in a refreshing and diverting manner.

As people in the world’s wealthier regions lead an increasingly sedentary lifestyle, the need for
recreation has increased. These play a significant role in the travel and tourism sector.

Charecterstatics Of Tourism Products

1) Intangible: Tourism is an intangible product means tourism is such kind of product which can
not be touched or seen and there is no transfer of ownership, But the facilities are available for
specified time and for a specified use. For e.g. a room in the hotel is available for a specified
time.
2) Psychological: The main motive to purchase tourism product is to satisfy the psychological
need after using the product, by getting experience while interacting with a new environment.
And experiences also motivate others to purchase that product.
3) Highly Perishable: Tourism product is highly perishable in nature means one can not store
the product for a long time. Production and consumption take place while a tourist is available.
If the product remains unused, the chances are lost i.e. if tourists do not purchase it.
A travel agent or tourism operator who sells a tourism product cannot store it. Production can
only take place if the customer is actually present. And once consumption begins, it cannot be
stopped, interrupted or modified. If the product remains unused, the chances are lost i.e. if
tourists do not visit a particular place, the opportunity at that time is lost. It is due to tourism
reason that heavy discount is offered by hotels and transport generating organizations during
the offseason.

4) Composite Product: Tourist product is a combination of different products. It has not a single
entity in itself. In the experience of a visit to a particular place, various service providers
contribute like transportation The tourist product cannot be provided by a single enterprise,
unlike a manufactured product.

The tourist product covers the complete experience of a visit to a particular place. And many
providers contribute to the tourism experience. For instance, airline supplies seats, a hotel
provides rooms and restaurants, travel agents make bookings for stay and sightseeing, etc.

5) Unstable Demand: Tourism demand is influenced by seasonal, economic political, and other
factors. There are certain times of the year that see greater demand than others. At these times
there is a greater strain on services like hotel bookings, employment, and the transport system,
etc.