Introduction
What is tourism and tourism
business?
Tourism
is a collective name of industries related to sightseeing.
A lot of
people visiting sightseeing spots, local people need to hospitality to them.
Tourist
using local area service during stay in sightseeing spots.
→Hotel,
Transport, Restaurant, Travel agency, Industry(ex. Making souvenir) etc.
We can
call Tourism business.
Good points of Tourism
A lot of
tourists come sightseeing spots, variety of economic activities condition of
being prosperous.
Therefore,
very big economic ripple effects are excepted in the country.
The
biggest feature of tourism is not influence only one industry.
Weak points of Tourism
Tourists
are coming from all over the world.
They
have many different cultures.
→Maybe
it caused problems.
Pollution
(Deforestation, Ocean pollution, Noise), Traffic jam, Cross-cultural
understanding (Religion, Language), Be easily influenced by trends and natural
disaster.
What is
service?
Services
are growing at faster rate than all agricultural and manufacturing business
combined.
Because…Services
doesn’t need to specialized skills.
Unformed
goods→Communication, Hospitality, Behavior
Services
caused by interact with people.
Tourism
has developed into an important part of the economic foundation of many
cultures.
Tourism
business is account for 10% of GDP in the world
(In
2016, total nominal GDP is 75,176.74 billion US＄,
10%…7,517.674
billion US＄)
Tourism
in Bali
According
to Tripadvisor, (Tripadvisor is the top online reviews website in the world.)
ranking of popular sightseeing spots in the world 1st place is Bali.
Bali is
very famous and popular sightseeing spot in the world.
Could a
career in tourism be in your future?
There
are many jobs related to tourism.
One
industry has a lot of different type jobs.
If you
choose any jobs, we can involve in tourism indirectly.
DEFINITION OF TOURISM
Tourism
is the temporary movement of people to destinations outside their normal place
of work and residence, the activities undertaken during their stay in those
destinations, and the facilities created to cater to their needs. Tourism
includes a wide array of people, activities, and facilities. Specific segments
of tourism, such as, air transportation, theme park, eating and drinking
establishment, accommodation, and museum, have their own industrial
classification codes such as the North American Industrial Classification
System (NAICS).
Tourism As An Industry Or Non
Industry
Tourism
can’t be classified as a distinct industry. As we know industry is a group of
businesses that produce a particular kind of goods or services. So as tourism
are consist of more than one sector of businesses, which mean there are a lot
of goods and services in variety, then Tourism can’t be classified as a
distinct industry. But it is general agreed that “tourism appears to be
becoming an acceptable term to singular describe the activity of people taking
trips away from home and the industry which has develop in response to this
activity.
TOURISM MODEL
From the
tourism model we can know the important participants and forces that shape the
tourism industry. There are 4 important part of the tourism models. First is
travelers, who serve as the focal point for all tourism activities and form the
center of the model. Second part is tourism promoters consist of tour
operators, tourist boards, travel agents, meeting planners, and direct
marketing. And the other part is tourism services suppliers, consist of
destination, entertainment, accommodation, food and beverage, and transportation.
And the most outside part is external environment, consist of economy,
politics, technology, environment, and social culture. The travelers may need
information when they want to travel over the world. Then tourism promoters
provide information and other marketing services. As long as the tourism
promoters only have the information so they need a suppliers regarding to the
information they give. Then tourism suppliers provide transportation,
accommodations, and other services required by travelers. The tourism suppliers
may compete with each other or work as a group together to develop promotional
package, for example. And those three parts are influenced by external
environment. All of the participants either individually or as a group, are constantly
responding to a variety social/cultural, political, environmental, economic,
and technological forces. For example in technology, steamship was eclipsed by
the faster and more efficient airplane which opened new horizons for travelers.
HISTORY OF TRAVEL AND TOURISM
In the
beginning travel occurred as seasons changed and animals migrated, people
traveled to survive, and travel use to satisfy the human curiosity.
•The Empire Era
Tourism
as an industry probably began to develop during the Empire Era, which stretched
from the time of Egyptians to the Greeks and finally came to an end with the
fall of the Roman Empire. During this time, people began travelling in large
numbers for governmental, commercial, educational, and religious purpose out of
both necessity and pleasure.
·
The
Egyptian Kingdoms were the first known civilization to have consolidated
governmental functions at centralized locations. At this time people traveled
by boat. As travel became commonplace, basic necessities such as food and lodging
had to be provided. Large numbers of travelers began to seek out enjoyable
experience in new locations. And Greek was the most notable group known because
of their numbers.
·
The
Greek Empire promoted the use of a common language throughout much of the
Mediterranean region and the money of some Greek city states became accepted as
a common currency of exchange. As centers of governmental activities, these
city states became attractions and they offered visitors a wide variety of
opportunities while away from home.
·
The
Roman Empire fostered expanded tourism opportunities as good roads and water
routes made travel easier. As these roads were developed, so were inns. Many of
the hassles of travel to distant places were removed because Roman currency was
universally accepted, and Greek and Latin were common languages. In addition, a
common legal system provided protection and peace of mind, allowing people to
travel further away from home for commerce, adventure, and pleasure. The
absence of any of these factors can dampen people’s desire to travel and enjoy
tourism-related activities.
• The Middle Ages and the Renaissance
Era
As the
dominance of the Roman Empire crumbled, travel became dangerous and sporadic.
The feudal system that eventually replaced Roman rule resulted in many
different autonomous domains. This breakdown in a previously organized and
controlled society resulted in the fragmentation of transportation systems,
currencies, and languages, making travel a difficult and sometimes dangerous experience.
As the
Roman Catholic Church gained power and influence, people began to talk of
crusades to retake the Holy Land. There were nine of these crusades, but each
failed. In 1291, Acre, the last Christian stronghold, was retaken by the
Muslims, bringing the Crusades to an end. After the Crusades, merchants like
Marco Polo traveled to places well beyond the territories visited by the
Crusaders.
The
rebirth in travel emerged slowly during the Renaissance. Trade routes slowly
began to reopen as commercial activities grew and merchants ventured into new
territories. The desire to learn and experience from other cultures heightened
awareness of the educational benefits to be gained from travel and led to the
Grand Tour Era.
•The Grand Tour Era
The
Grand Tour Era, marked the height of luxurious travel and tourism activities.
Travel and the knowledge provided by these travels, became a status symbol
representing the ultimate in social and educational experience. Grand Tour
participants traveled throughout Europe seeking to experience the cultures of
the “civilized world” and acquiring knowledge through the arts and sciences of
the countries they visited.
Yet, the
industrial revolution changed economic and social structures, from agricultural
and commercial focus to modern industrialism. Economic growth and technological
advances led to more efficient forms of transportation, the integration of
markets across geographic and international boundaries, and higher personal
incomes for larger numbers of people. Travel became business necessity as well
as leisure activity, and tourism suppliers rapidly develop to serve the growing
needs of travelers.
• The Mobility Era
The
Mobility Era is characterized y increased travel to new and familiar locations,
both near and far. The growth and development of roads and railroads helped to
increase the availability of transportations alternatives and reduced their
costs, attracting more and more people to the idea of travel.
Thomas
Cook bringing travel to general public by introducing tour package. The next
major steps in the Mobility Era were the introduction of automobiles and air
travel.
• The Modern Era
During
World War II, millions of people throughout the world, including over 17
million Canadian and U.S. citizens, were exposed to many new, different, and
even exotic locations. Military service forced many people who had never
traveled before to do so, and they were eager to share their positive
experiences with family and friends when they returned home.
Following
the end of World War II, several additional factors helped to encourage the
growth of tourism, such as cars were being produce in large numbers, gas that
was no longer rationed, and prosperity began to return to industrialized
countries. The introduction of jet travel popular in both domestic and
international travel, even credit card was born in the form of Diners Club
Card.
The 20th
century phenomenon we call mass tourism, consist of organization mass tourist
who buy packaged tours, and individual mass tourist, who visited destination
independently.
Bringing tourism into Focus
Figure:Typical
reasons for travel.The percentage of trips in each category may vary from year
to year but it is relatively constant overtime
Travel
and Tourism have now become so commonplace in industrialized countries that we
may fail to think about what has made this activities possible.If you think
about it,tourism affects all of our lives and is intertwined throught the
entire fabric of a host community,region,or country.Tourism can be viewed in
other presfectives.In additional to geography and the commonly studied business
disciplines of marketing,management,and finance,other disciplines often
includes in the study of tourism are:
1. Anthropology,
2.
sociology,
3.
economics,
4. and
psychology
Each of these prespectives provides
important insight into tourism activities and raises a variety of question.Some
of the more commonly asked question that could help us understand
travel,tourism,and tourist includes:
• Who are these visitors?
• Why do they travel?
• Where do they travel?
• What are their concern when they
travel?
• What forms of transportation do they
use?
• Where do they stay?
• What they do when they travel?
• Who provides services they need?
• What impact to they have on the
locations they visit?
• What types of career opportunities
are available in this industry?
Geography Provides a Window to
The World
Travel is a key compenent in all
tourism activities,therefore a basic understanding of geography can enrich our
understanding of the tourism industry.Information provide through three broad
of categories of geography physical,Human Geography,and Regional.
Physical Geography
Knowladge
of Physical Geography provides the means to identify and describe natural
features of the earth including landforms,water,vegetation,and clime.
For example: During winter months in
the Northern Hemisphere,visitors might be attracted to snow covers mountain for
skiing
Human Geography
An
understanding of Human Geography provides specific types of information that
can enchance any tourism experience.Human geography which includes people and
economic activities, creates the rest of the picture that can be captured and
explain through maps.
For example: English is the most
commonly spoken language in the industrialized word, but it may not spoken in
some location like Chinese, French, Spanish, Russian, Japanese. While this
might create a language barrier for some it can create opportunities for other
who provide interpretation or tour services
Regional Geography
Regional
Geography is a useful framework for studying the physical and human geography
of a specific area or location, providing a convenient way to organize a wide
variety of facts
For example: Location near large
population centers combined with access to well-developed transportation system
generally crate high levels of tourism activity
Studying Tourism from Business Perspectives
1. Marketing
Concepts
Which
the purpose is to make the organization understand and successfully meet the
needs of the customer
Set of
tools and techniques meet the customer needs in marketing concept called
marketing mix and known as 4 P:
-
Product
is goods or service that is being offered
-
Price
is the value of goods/ service
-
Place
is location or activities that are required to make goods/service available to
customer
-
Promotion
is all activities that are undertaken to
communicate the availability and benefits of a particular goods/ service
To
determine most suitable marketing mix there was Market segmentation, dividing
customer who share the same characteristics and common needs. For example: Businessman
in transportation industry want to arrive as soon as possible, meanwhile Summer
vacationer want to find leisurely and scenic route.
The organization
simply don’t have enough resources to fulfill everyone needs so they need a
good strategy to win a big profit.
2. Management
Concepts
It furnishes
additional tools and techniques to serve visitor needs successfully.
It also provides
unified approach to 4 functions (planning, organizing, directing, controlling) of
management which present future actions for accomplishing organization goals.
For
example: Tourism Business Class is going to trip! Then as a class coordinator
you should plan and make the trip success and full of happiness.
• First thing to do is planning, where
are we going to (mountain or beach)? What is the facilities we need (lunch or
snacks)? How many person will go there? When are we going (if you go to
mountain make sure it was not in winter because it was freezing and if you want
to go to the beach make sure it was summer to have a wonderful sun shine)?
• Organizing, Use the web for more information,
then decide who will make the reservation, who will buy food and refreshments,
and who will call everyone to make sure they will arrive on time
• Directing, answer our
subordinates question and coordinate the planned activities together
• Controlling, checking the
reservation, appliances, and make sure the car going to the right direction so
the trip is success!
3. Finance
Concept
It provides
a basic understanding of how organization manage revenues and expenses. Both
profit and non-profit companies using finance concept, profit companies used it
to gain a better profit and non-profit companies used it to gain a better
control of their expenses.
Accounting
is used for communicate Financial Information. Accounting is an activity
designed to accumulate, measure, and communicate financial information to
various decision-makers, such as investors, creditors, managers, and front-line
employees.
To
measure and report financial results as accurately as possible, a set of
standard procedure called accounting cycle includes:
- Analyzing
- Recording
- Classifying
- Summarizing
- Reporting Financial Data
There
are two kinds of financial reports:
-
Internal
Financial Reports, used by those who direct day-to-day operations of a business
-
External
Financial Reports, used by individuals and organizations who have an economic
interest in the business but are not part of its management
Three
Basic Building Blocks used to Measure Financial Success:
v
Margin
(the amount of each sales dollar remaining after operating expenses have been
deducted)
v
Turnover
(the number of times each dollar of operating assets has been used to produce a
dollar of sales)
v
Leverage
(the extent to which borrowed funds are being used)
If the
three of them are multiplied together, they equal Return on Investment (ROI)
which measure profit.
For example:
o
How
to measure margin of Bispar Airlines if the ticket price is 125$ and its
operating expenses (flight attendant and pilot salary, jet fuel, food and
beverages, etc.) is 100$?
Airlines
ticket – its operation expenses (flight attendant and pilot salary, airlines
food, jet fuel, airplane routine service, etc.) = margin
125$
- 100$ = 25$
o
Turnover
is calculated by the number of times a seat was sold during a 24-hour period
o
Leverage
is when the airlines want to buy more airplanes, they might go to a bank to
investor to get the money
SUMMARY
• Tourism is one of the
fastest-growing industries in the world, it was a multifaceted service industry
that has a rich history and exciting future marked by many challenging
opportunities
• As we learned from history,
travels continues to be influenced by factors such as time, money, mobility and
a relative sense of safety
• Geography provides a foundation
for understanding the development and growth of tourism activities. Marketing,
management, and finance concepts will equip you with additional approaches to
meet the needs of individuals successfully as they travel. By practicing the
art of hospitality, you can use all of your knowledge and skills to meet and
exceed visitor expectations
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