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An Introduction to the Business of Tourism

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Table of Contents

Acknowledgements SECTION A: TOURISM-AN OVERVIEW AN INTRODUCTION TO TOURISM Preface Introduction The Complexity of Tourism Tourism as a Global Phenomenon Economic Significance of Tourism Evolution of Tourism Defining Tourism Related Concepts Types of Tourism Tourist Typologies Pros and Cons of Tourism Conclusion CHAPTER 2 CONCEPTS AND TERMS Introduction Tourism Product and Industry Goods and Services Components of Tourism Industry Stakeholders in Tourism Tourism and Sustainability Sustainable Tourism Ecotourism `Rural' Tourism Special Interest Tourism Agritourism or Agrotourism Wine Tourism Lighthouse Tourism Cemetery Tourism Avitourism Photography Tourism Trekking Biking Architecture Tourism Military Tourism Spa Tourism Film Tourism Responsible Tourism Conclusion CHAPTER 3 DEMAND AND SUPPLY IN TOURISM Introduction Why Study Tourism Demand? Understanding Consumer Behaviour Motivation Maslow's Hierarchy of Human Needs Tourism Demand The Demand Curve Elements of Tourism Demand Factors Influencing Tourism Demand Changes in Demand Elasticity of Demand Demand Forecasting Tourism Supply/ Elements of the Supply Market Measurement of Tourism Decision-making Process Governments Promotion NGOs and Local Community What to Measure? Methods of Collection of Statistics Limitations Conclusion CHAPTER 4 ORGANIZATIONS IN TOURISM AND CULTURE Introduction Role of International Organizations United Nations World Tourism Organization Functions of UNWTO UNWTO and World Tourism Day International Civil Aviation Organization United Nations Educational, Scientific and Cultural Organization Advisory Bodies Industry or Sectoral Organizations Sustainable Tourism for Eliminating Poverty Foundation Conclusion SECTION B: THE TOURISM BUSINESS CHAPTER 5 DESTINATIONS Introduction Definition Is the Golden Triangle One Destination or Three? Components of a Destination Types of Destinations Core and Periphery Attractions Seasonality The Destination Life Cycle Managing Destinations Destination Management Organizations (DMOs) The Indian Scenario Regional Tourism Organizations and National Tourism Organizations Destination Marketing Impact of Tourism on Destinations Conclusion CHAPTER 6 ATTRACTIONS Introduction Definitions Categories of Tourist Attractions Management of Attractions Elements of Successful Tourism Attractions Visitor Management and Carrying Capacity Funding Strategies Entertainment Attractions Events Conclusion CHAPTER 7 ACCOMMODATION Introduction Categories of Accommodation Types of Accommodation Organizational Structure and Functions in Hotels Hotels in a Globalized World Operating Models in Accommodation The Accommodation Sector and the Economy Employment Generation and Accommodation Accommodation and Hospitality Classification of Hotels Alternatives to Hotels Capsule/Pod hotels Uncertainties in the Accommodation Sector Taxation in the Accommodation Sector Conclusion CHAPTER 8 TRAVEL AND TOUR OPERATIONS Introduction The College Tour The Tour Operator Types of Tour Operators Group Inclusive Tours and Free Independent Travel The Tour Operation Process Development of Tour Packages Research Field Visit Negotiations and Contracting Tour Costing and Pricing Brochure Production and Distribution Marketing Destination Management Company (DMC) Charter Operations MICE Tourism General Features The Significance of MICE Market for Destinations Exhibitions Incentive Travel The Travel Agency What Does a Travel Agent Do? Travel Management Company The Travel Agent and the Tour Operator Trends Blurring of Lines Electronic Intermediaries and E-Commerce Conclusion CHAPTER 9 TRANSPORTATION Introduction The Evolution of Transport Aviation in Tourism The Jet Age Civil Aviation in India Airports / Regulation of Civil Aviation Civil Aviation Policy Freedoms of the Air Ministry of Civil Aviation (MoCA) Rail Transportation Indian Railways Road Transportation Road Transport and Tourism in India Water Transport Cruise Tourism Conclusion CHAPTER 10 MARKETING Introduction Defining Marketing Sales and Marketing The Marketing Mix The 7 Ps of Service Marketing The Extended Ps Framework and Tourism From 4 Ps to 4 Cs? The Environment and Marketing Market Research Destination Marketing The Destination As a Brand Leisure Market Business Travel Market Role of Stakeholders in Marketing Marketing and Promotion Media and Public Relations Conclusion SECTION C: TOURISM IN INDIA CHAPTER 11 TOURISM SECTOR IN INDIA Introduction History India in International Tourism Arrivals Purpose of Visit India as a Source Market Domestic Tourism in India Recognized Tourism Industry Units Hotels Sector Hotel Classification System Federalism and Tourism Community Participation in Tourism Local Governments and Tourism Tourism Education Prospects for Employment Generation Outlook for Tourism Conclusion CHAPTER 12 CULTURAL HERITAGE OF INDIA Introduction Culture Cultural Tourism Heritage World Heritage Lists International Convention on Intangible Heritage Heritage of India World Heritage Sites in India Archaeological Survey of India (ASI) Tentative List Heritage Assets and Tourism Development Conservation, Tourism and the Community Management of Cultural Heritage Museums as Cultural Products Handicrafts Intangible Heritage of India Dances of India Representative List of the Intangible Cultural Heritage of Humanity Visual Arts of India Conclusion CHAPTER 13 NATURAL HERITAGE OF INDIA Introduction India: A Land of Biodiversity People within Protected Areas Management of Protected Areas Protected Areas and Wildlife Tourism Nature Tourism: Boon or Bane? Tiger-centric' Tourism Management of Tourism in PAs / Strategy for Managing Tourism in Protected Areas What Should Be Done? Communities and Ecotourism Nature-based Tourism Diving in India Conclusion CHAPTER 14 TOURISM BUSINESS IN INDIA Introduction Hotel Industry Major Hotel Chains Hotels and Rooms Inventory Beyond the Statistics Distribution of Hotels Trends in the Accommodation Industry Hotels in Public Sector / Indian Innovations: Palaces Heritage Hotels The Travel and Tour Sector Emerging Trends in Destination Management Business Development Looking to the Future Domestic Tourism MICE Tourism in India The India Outbound Travel Market Dubai: The Most Popular Destination Reasons for Increase in Outbound Travel Destination Marketing in India Outlook for the Outbound Market The New Attitude to Travel The Evolving Role of the Tour Operator Conclusion CHAPTER 15 GOVERNMENT BODIES IN INDIAN TOURISM Introduction History of Policy Making in Tourism Planned Tourism Development What Is Planning? Destination Planning Planning and the Ministry of Tourism Planning for Sensitive Destinations National, State and Local Governments Government and the Tourism Product Ministry of Tourism India Tourism Development Corporation (ITDC) Tourism Education State Governments and Tourism Conclusion SECTION D: TOWARDS THE FUTURE CHAPTER 16 IMPACTS OF TOURISM Introduction Economic Impacts Social Impacts Environmental Impacts Positive Impacts of Tourism Conclusion CHAPTER 17 SUSTAINABLE DEVELOPMENT OF TOURISM Introduction What Is Development? Sustainable Development in Tourism Charter for Sustainable Tourism Agenda 21 for Travel & Tourism Major Sustainable Tourism Initiatives Protect Children Campaign UNWTO World Tourism Network on Child Protection Responsible Tourism Guiding Principles of Responsible Tourism Kerala Declaration CHAPTER 18 CLIMATE CHANGE AND TOURISM Introduction Weather Climate Climate Change Tourism as a Contributor Mitigation Measures Transport Accommodation Tour Operation The Role of Tourists Destinations Adaptation Measures The UNDP Framework Towards a Framework for Adaptation Conclusion CHAPTER 19 TOWARDS THE FUTURE Introduction ICT and E-business Barriers to Adoption The Digital Divide in Tourism Social Media and Tourism ICT and India Demographic Shift The Future of `Family' Holidays Accessibility in Tourism Crises and Insecurity Conclusion Glossary Index

About the Author

Venu Vasudevan currently serves the Government of Kerala as the Principal Secretary, Tourism, and looks after three more departments. With over 15 years of experience in senior management positions, Dr Vasudevan is the longest serving officer in tourism in India. Dr Vasudevan joined the Indian Administrative Service (IAS) in 1990, and has served the Government of India and state Government of Kerala in various capacities. Born in 1964, Vasudevan earned a degree in medicine but later chose to take up a career in the civil services. He has served the sectors of Tourism and Culture in a variety of assignments. It was during his tenure as Director, Kerala Tourism, and later as Secretary, Department of Tourism, that Kerala transformed its market positioning and built up a strong private-public partnership, culminating in Kerala being recognized by the National Geographic Traveller as one of the 50 'must-see' destinations of the world. Kerala Travel Mart, the biggest international travel mart in India, is his brainchild. He served the Ministry of Tourism, Government of India, and played a pivotal role in formulating the 'Incredible India' campaign. Two projects designed by him have won international awards instituted by Pacific Asia Travel Association (PATA). Utsavam, a project to revive the traditional art forms of Kerala and provide income streams to artistes, won the PATA Gold Award 2008 ( update-from-past-winners). 'A Day with the Masters', a guided tour of Kerala Kalamandalam, a school for performing arts, won 'honourable mention' in 2005 (http://www.kalamandalam. org/adaywithmasters.asp). He served as Secretary, Cultural Affairs, Government of Kerala (2007-2011), during which period the International Theatre Festival of Kerala ( was established. He was instrumental in setting up and curating a new museum, Keralam ( He played a key role in the improvement and upgradation of the museums and archives of Kerala. Moving to the Union Government, he served as Joint Secretary, Ministry of Culture, with responsibility over apex cultural institutions, libraries, archives and Museums. As the Director General of the National Museum (from January 2013 to May 2015), he headed a team that worked on the revival of National Museum, initiating a range of projects that improved arrivals, enhanced visibility and involved stakeholders and the academic community. He was invited to be a participant in the Global Museum Leaders Colloquium of the Metropolitan Museum of Art, New York. He served as the Vice Chancellor, National Museum Institute of History of Art, Conservation and Museology. In the tourism sector, Dr Vasudevan has deep interest in community-based tourism. He organized the 2nd International Conference on Responsible Tourism, and was instrumental in establishing a robust model for Responsible Tourism in Kerala. He writes extensively on communities, responsible tourism and the changing role of public sector in the tourism sector. Apart from his official responsibilities, he is a keen theatre actor and an avid fan of Arsenal football club. Vijayakumar B. served as the Principal of Kerala Institute of Tourism and Travel Studies for ten years from 2007 to 2017. He joined the Collegiate Education Department, Government of Kerala as Lecturer of Economics in 1981, and also served as Senior Lecturer and Reader of Economics in various government colleges. He also served as visiting faculty in tourism in University of Kerala for seven years. Dr Vijayakumar is a post graduate in economics, tourism management and rural development and took degrees of MPhil and PhD in tourism from the University of Kerala. He is an accredited management teacher and life member of All India Management Association, editor of Indian Journal of Tourism and Hospitality Management, expert member of various committees of State Planning Board, vocational higher secondary education, Business Advisory Committee Hospitality Sector of Additional Skill Acquisition Programme Kerala, Post Graduate Board of Studies in Tourism at Central University, Puducherry and Anna University, Chennai. He also served as Chairman, Board of Studies (UG), member of Post Graduate Studies in Economics and Management and faculty of Social Sciences, University of Kerala. He has coordinated 12 research projects, published 4 books in economics, 11 books in tourism and contributed research articles to various national and international journals. He has presented research papers in more than 75 national and international conferences. He is a recipient of National Award for Best Research Report in 2003, instituted by International Institute of Adult and Lifelong Education New Delhi and Vocational Excellence Award by Rotary Club, Thiruvananthapuram in 2014. His areas of expertise include sustainable tourism and community-based tourism activities. He is actively involved in propagating responsible tourism among tourism stakeholders at micro and macro levels through public meetings, workshops, print and electronic media. Saroop Roy B.R. is currently Assistant Professor, Kerala Institute of Tourism and Travel Studies, and the project coordinator of the Responsible Tourism Initiative in Kerala, and he has played a significant role in the formulation and implementation of the project in the state. He finished his degree of Masters of Tourism Administration (MTA) from the University of Kerala after finishing his B.Tech in Electronics and Communication engineering. Starting his career in tourism field as a trainee at Thenmala Ecotourism Promotion Society (TEPS) in 2000, he was the Kerala co-ordinator of EQUATIONS, a Bengaluru-based research campaign and advocacy organization on tourism policies and issues, for eight years. In 2010, he moved to the tourism academic field as faculty MBA (Tourism) at the Institute of Management in Kerala (IMK) under the University of Kerala. In 2011, he joined KITTS as Assistant Professor in Travel and Tourism (T&T). His expertise includes areas in tourism policy formulation, ecotourism, responsible tourism, rural tourism and community-linked tourism projects. During his tenure at EQUATIONS, he participated in the SBSTTA 13 meeting of the Convention on Biological Diversity held at Rome in February 2008. He also led the Indian delegation of ecotourism practitioners to attend the South African and Indian Practitioners' Workshop to exchange lessons and best practices on using nature tourism as a force for Poverty Alleviation at Johannesburg in May 2008. He was also the resource person at various sessions on Institution Building for Sustainable Tourism and Livelihoods, organized by UNDP at IRMA, Anand as part of the Endogenous Tourism Project in 2006 and 2008. He participated and presented papers at various international forums including the 'Canopy Tourism: Concept and Practice in the Indian Context,' at the 5th International Canopy Conference in October 2009, Bengaluru, and made the key note presentation on environmental responsibility at the International Conference on Responsible Tourism-Looking Back: Moving Ahead-held at Kumarakom in June 2013. On the policy front, he was the drafting committee member of the Kerala Tourism Policy 2012, Revamping of Homestay Classification Scheme for Kerala 2015 and preparation of charter for Green Carpet initiative for Kerala Tourism 2016. Vijayakumar and Saroop Roy jointly authored the books Tourism and Livelihood: Selected Experiences from Kerala (2011), A Case Study on Kumarakom (2013) and submitted research paper 'Community Based Tourism Business in Kumarakom: A Case Study of Innovative Products and Experiences' which was accepted for presentation at the 2nd UNWTO Knowledge Network Global Forum held at Mexico in 2014.

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