1. The role of government policy and
tourist transport
2. The role of government
Most governments seek to maximize the
domestic population’s opportunities for
mobility and travel by the provision of
various modes of transport to facilitate the
efficient movement of goods and people at
a national level
3. The role of government
The development of transport to facilitate
inbound tourism is often motivated by
government’s desire to increase earnings
from tourist receipts
4. The role of government
To achieve the government’s objectives for
transport to facilitate tourist travel, policies
are formulated to guide the organization,
management and development of tourist and
non- tourist transport
5. The role of government
Government may need to develop policies
and planning measures which expand and
develop national, regional and local
infrastructure to accommodate tourists
and recreational travel alongside the use for
commuting and non- tourist travel
6. The role of government
Government’s role is to promote and
protect the interest of the consumer against
unfair business practices, and to ensure that
safety standards are maintained to protect
the interests of employees in large and small
– scale transport operations
7. The role of government policy
Policy – is the direction and
objectives an organization wishes to
pursue over a set period of time
National policy is normally
formulated by government
organizations with economic and
social factors
8. The policy making process
POLICY MAKERS
Issue/ problem definition
Process of policy definition
Policy formulation
Policy implementation
Problem superceded or redefined
Policy Outcome
9. POLICY – frequently used to denote
the direction and objectives an
organization wishes to pursue over a
set period of time
POLICY MAKING is a
continuous process which is
applicable to the way tourism
transport issues are considered
by government bodies
Process of policy definition – How to
address the problem
Problem redefined/ super ceded
(replace something that is less
efficient) U TURN
POLICY MAKERS
ISSUE/PROBLEM definition
Process of policy definition
Policy Formulation
Policy Implementation
Problem redefined
Policy Outcome
10. Transport policy
Is a reactive element of government activity
as changes in society and the demand for
tourist and non- tourist travel require a
certain degree of continuity and change in
policy to meet the new trends and activity
patterns among the population
11. The government has been a major factor in
developing transportation facilities. They are
responsible of the following:
1. Ensure the safety of the travelers
2. Protect the public from the abuse of the
monopoly/domination power
3. Promote fair competition
4. Develop or continue vital transport services
12. Transport policy has affected the tourist
transport system based on two economical
principles:
1. Allocative efficiency; cost-efficient
2. Political obligations (need to protect the public
interest for transport provision); road repairs
These principles had an important effect in
tourist transport in terms of development,
expansion, and regulation of the different
modes of transport.
13. The policy changes in 1980’s – 1990’s which are
characterized by:
1. transferring transport from public sector to private
sector through privatization
2. the introduction of competition on public
transport services
3. the pursuit of greater levels of private capital in
the large infrastructure projects – private
companies who invests
14. Flag Carrier
A flag carrier refers to a transportation
company, such as an airline or shipping
company, that is locally registered in a
given country.
They may be state-run, state-owned or state-
designated companies or organizations with
preferential rights or privileges accorded by
the government.
15. Country Airline Designated State-owned
Afghanistan
Ariana Afghan
Airlines
Yes Majority
Albania Albanian Airlines Yes Joint-Venture
Algeria Air Algérie Yes
Majority (By opening
its capital)
Angola TAAG Angola Airlines Yes Full
Åland Islands Air Åland
Argentina Aerolíneas Argentinas Yes Full
16. Netherlands KLM Yes No
Netherlands
Antilles
Dutch Antilles
Express
New Caledonia Aircalin
New Zealand Air New Zealand Yes Majority
Nicaragua NICA Yes
Nigeria
Virgin Nigeria
Airways
Yes
50% Virgin
Atlantic / 50%
Nigerian
institutional
investors
Norway
Scandinavian
Airlines System
Yes Minority
Oman Oman Air Yes Majority (82.4%
17. Privatization in the Asia Pacific
Region
1997 – Fastest growing regions in the world
for scheduled air travel.
However, even though that the major
airlines of Asia belong to the world’s fastest
growing airline market, they have remained
relatively small in terms of network size,
traffic volume and operating revenue,
compared with major carriers in the USA
and Europe; third world vs first world
18. Where privatization has occurred, it can take a number of
forms/ways:
1. Listing on the stock market – it adds equity to the
company
2. Sale of the airline to other companies in the same
country
3. Sale of the airline to strategic
shareholders/stakeholders – merging of companies
19. • Privatization also allows overseas investment in
airline through direct investment by shareholders and
equity holdings through strategic alliances
• Has certainly opened up the opportunities for the
region’s airlines to become part of a global aviation
industry through foreign investment, alliances and
cooperation even on the absence of state policies to
protect state airlines.
