Intro to Tour 14

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Slide 14.1
Chapter 14
Public Sector and Policy
Cooper et al: Tourism: Principles and Practice, 3e
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Slide 14.2
This Lecture will give you
A knowledge of the key organisations globally with
an interest in and influence upon tourism;
An understanding of the key functions of NTOs and
an insight into how such offices might be
structured and how responsibilities are divided;
An overview of the role of the public sector; and
A knowledge of the instruments available to
governments in order to manipulate demand for
tourism and control the supply of it.
Cooper et al: Tourism: Principles and Practice, 3e
Pearson Education Limited 2005, © retained by authors
Slide 14.3
Public Policy Framework
The context for government involvement in
tourism:
– International agencies such as the World
Tourism Organisation, the World Bank and the
United Nations;
– Regional agencies and banks such as the
Pacific Area Travel Association and the
European Bank for Reconstruction and
Development
Cooper et al: Tourism: Principles and Practice, 3e
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Slide 14.4
Functions of the World
Tourism Organisation (1)
Helping member countries, tourist destinations and
businesses maximize the positive economic, social and
cultural effects of tourism;
Identifying markets;
Assisting in tourism planning as an executing agency of the
United Nations Development Programme (UNDP);
Advising on the harmonisation of policies and practices;
Sponsoring education and training, and identifying funding
sources;
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Slide 14.5
Functions of the World
Tourism Organisation (2)
Promoting the broader relationship of visitors to the physical
and social environment, by defining sustainability as
development which meets the needs of present tourists and
host regions while protecting and enhancing opportunities
for the future;
Encouraging the implementation of a Global Code of Ethics
for Tourism for the observance of human rights and
fundamental freedoms.
Cooper et al: Tourism: Principles and Practice, 3e
Pearson Education Limited 2005, © retained by authors
Slide 14.6
The Public
Administration of Tourism
Figure 14.1 The public administration of tourism
Cooper et al: Tourism: Principles and Practice, 3e
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Reasons for Government
Involvement in Tourism (1)
Slide 14.7
Foreign exchange earnings and their importance for the
balance of payments;
Employment creation and the need to provide education and
training;
Large and fragmented industry requiring careful
coordination of development and marketing;
Maximise the net benefits to the host community;
Spread the benefits and costs equitably;
Cooper et al: Tourism: Principles and Practice, 3e
Pearson Education Limited 2005, © retained by authors
Reasons for Government
Involvement in Tourism (2)
Slide 14.8
Building the image of the country as a tourist destination;
Market regulation to protect consumers and prevent unfair
competition;
Provision of public goods and infrastructure as part of the
tourist product;
Protect tourism resources and the environment;
Regulate aspects of social behaviour, for example,
gambling;
Monitor the level of tourism activity through statistical
surveys.
Cooper et al: Tourism: Principles and Practice, 3e
Pearson Education Limited 2005, © retained by authors
Structure of a
National Tourism Organisation
Slide 14.9
Figure 14.2 Structure of a national tourism organisation
Cooper et al: Tourism: Principles and Practice, 3e
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Functions of a
National Tourism Organisation
Slide 14.10
Marketing
–
–
–
–
–
Advertising and promotion;
Relations with the travel trade and media;
Information provision;
Business tourism;
Tourism services.
Development
– Strategic planning;
– Project assistance;
– Research.
Cooper et al: Tourism: Principles and Practice, 3e
Pearson Education Limited 2005, © retained by authors
Functions of a
National Tourism Organisation
Slide 14.11
Administration
– Internal operations;
– Tourism legislation;
External relations
– Representing government;
– Tourism sector liaison;
– Enquiries and public relations.
Cooper et al: Tourism: Principles and Practice, 3e
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Slide 14.12
Demand and Revenue Management
Marketing and promotion;
Information provision and network
development;
Pricing;
Controlling access;
Security and safety.
Cooper et al: Tourism: Principles and Practice, 3e
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Slide 14.13
Price Controls
Figure 14.3 Price controls
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Slide 14.14
Supply and Cost Management
Land-use planning and environmental control;
Building regulations;
Market regulation;
Market research and planning;
Taxation;
Ownership;
Education and training;
Investment incentives.
Cooper et al: Tourism: Principles and Practice, 3e
Pearson Education Limited 2005, © retained by authors
Slide 14.15
Economics of Consumer Protection
Figure 14.4 Economics of consumer protection
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Slide 14.16
Principles of Taxation
Equity;
Efficiency;
Simplicity.
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Slide 14.17
Distributive Effects of a Tourist Tax
Figure 14.5 Distributive effects of a tourist tax
Cooper et al: Tourism: Principles and Practice, 3e
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Slide 14.18
Categorisation of
Investment Incentives
Reduction of capital costs;
Reduction of operating costs;
Investment security.
Cooper et al: Tourism: Principles and Practice, 3e
Pearson Education Limited 2005, © retained by authors
Slide 14.19
Impact of Financial Incentives
Figure 14.6 Impact of financial incentives
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Slide 14.20
Conclusions
The complex nature of the tourist product makes it
unlikely that private markets will satisfy all the
tourism policy objectives of a country;
The role of governmental organisations, particularly
the NTO is critical in the shaping of the tourism
system;
Tourism is a truly global business that has reduced
the power of national governments to shield
themselves from outside events.
Cooper et al: Tourism: Principles and Practice, 3e
Pearson Education Limited 2005, © retained by authors
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