This document provides an overview of tourism, including definitions, types, and impacts. It discusses: 1. Tourism is the world's largest industry and has grown exponentially since the 1950s. It provides economic benefits but also environmental and social impacts. 2. Tourism can be international, involving travel between countries, or domestic within one country. It takes many forms such as cultural, recreational, sports, and health tourism. 3. The economic impacts of tourism include job creation, income generation, and tax revenue. However, it also puts pressure on infrastructure and can increase costs of living. The environmental and social impacts require careful management to maximize benefits and minimize harm.

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EL 201: Tourism and Hospitality Management, Srikanth K S
EL 201: Tourism and Hospitality Management
Module-1: Introduction to Tourism: Definition and Meaning of Tourism and Tourist-Forms, types and
Nature of Tourism, Socio Economic Significances of Tourism-Tourism Components and Distribution-
Positive and Negative Impacts of Tourism.
Introduction
Tourism is the world’s largest and fastest growing industry. It is significant to note that in a short span
of last 50 years, tourism has fast grown as a pursuit of profound human interest, developing itself as the
world’s most important industry in terms of export earnings. Tourism has long been recognised as an
industry for generating immense business and job opportunities throughout the world, as a creator of
wealth, income multiplier, as a catalyst for employment and preserver of culture and environment.
The studies carried out in the field of tourism reveal that travel and tourism had been an important
social activity of human beings from times immemorial. Man has been fascinated by travel to distant
places from the earliest historic period but modern tourism, which is distinguishable by its mass
character, started only in the 1950’s and since 1970’s, it continued to grow exponentially. By 1990,
tourism ripened into the world’s third most important industry and by 1995, tourism evolved into one
of the largest and fastest expanding industries of the world, which makes up a higher contribution to
the value of world exports than all other sectors, except crude petroleum and petroleum products.
It is considered that tourism also has indirect significance on the development of education of people
as a part of civilised existence. Francis Bacon aptly remarked, “Travel in the young sort is a part of
education and in the elder, a part of experience”. Tourism can stimulate local economy's growth and
development in the relatively backward regions within the country and can help educate local
population through interaction between people of different races and nationalities. It has been identified
as an agent for the development of the backward regions.
The concept of Tourism is based on travelling from one place to another comfortable, in terms of travel,
food and accommodation. In the early days, people travelled from their home to places of worship, on
a pilgrimage or to escape persecution. They also travelled for reasons such as famine. The Puritans left
England to escape the harassment of Queen Mary. Similarly, the Irish left Ireland in large numbers
because the potato crop was afflicted by blight and people had no food to eat. However, things have
changed since then, with rapid advances in science and technology and a greater sense of tolerance.
Nowadays, people travel more for pleasure than to escape famine or religious persecution.
Modern tourism is one of the most striking phenomena of our times and offers us an opportunity to
enrich humanity and to identify what may be termed as goals for a better life and a better society. As
an industry, the impact of tourism is manifold. The tourism industry nourishes a country’s economy,
stimulates the process of development, restores the cultural heritage and helps in maintaining
international peace and understanding. Tourism at present is India’s third largest export industry.
Definition
Although travelling is perhaps as old as the human civilisation itself, one of the earliest available
definitions of tourism was provided by Hermann V. Schullard, an Austrian economist, as late as in
1910.
He defined tourism as “the sum total of operators mainly of an economic nature, which directly relate
to the entry, stay and movement of foreigners inside and outside a certain country, city or region”.
A couple of Swiss Professors, Hunziker and Krapf, provided a more technical definition in 1942. They
believed that tourism is the totality of the relationship and phenomena arising from the travel and stay

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of strangers, if the stay does not imply the establishment of a permanent residence and is not connected
with a remunerated activity.
In Sanskrit literature, there are three terms for tourism with the suffix ‘atana’, meaning leaving home
for some other place. These are:
• Paryatana: going out for pleasure and knowledge
• Deshatana: going out of the country primarily for economic gains
• Tirthatana: going out to places of religions merit.
An amalgamation of these definitions brings out the following distinct elements of tourism:
1. Involvement of travel by non-residents
2. Stay of temporary nature in the area visited
3. Stay not strictly connected with any activity involving earnings
The word tourism relates to tour derived from the Latin Word ‘Tornus’, which means a tool for making
a circle. Tour is also a Hebrew word derived from the term ‘Torah’, which means learning, studying or
searching. Thus, tour means an attempt by a traveller to discover something about a place.
What is Tourism?
Tourism refers to that activity which is conducted for a short period of time, more than 24 hours and
less than 1 year, for a non-remunerative purpose.
Based on the UNWTO definition on tourism, tourism could be categorized as:
• Domestic Tourism: Domestic tourism involves trips made by local residents within their own
countries. Example: An American, who lives in New York, takes a business trip to Los Angeles.
• International Tourism: International Tourism involves trips between 2 countries. To a certain country,
a visit by residents of that country to another country is an outbound tourism; a visit to that country by
residents of another country is an inbound tourism. Example: Trips between Hong Kong and Japan.
Hong Kong as the point of origin/point of destination: Visits made by Hong Kong residents to Japan
are Hong Kong’s outbound tourism; Visits made by Japanese to Hong Kong are Hong Kong’s inbound
tourism. International tourists are those who travel to a country other than the one in which they
normally live.
General Impacts
• Generating Income and Employment: Tourism in India has emerged as an instrument of income and
employment generation, poverty alleviation and sustainable human development. It contributes 6.23%
to the national GDP and 8.78% of the total employment in India. Almost 20 million people are now
working in the India’s tourism industry.
• Source of Foreign Exchange Earnings: Tourism is an important source of foreign exchange earnings
in India. This has favourable impact on the balance of payment of the country. The tourism industry in
India generated about US$100 billion in 2008 and that is expected to increase to US$275.5 billion by
2018 at a 9.4% annual growth rate.
• Preservation of National Heritage and Environment: Tourism helps preserve several places which are
of historical importance by declaring them as heritage sites. For instance, the Taj Mahal, the Qutab
Minar, Ajanta and Ellora temples, etc., would have been decayed and destroyed had it not been for the

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efforts taken by Tourism Department to preserve them. Likewise, tourism also helps in conserving the
natural habitats of many endangered species.
• Developing Infrastructure: Tourism tends to encourage the development of multiple-use infrastructure
that benefits the host community, including various means of transports, health care facilities, and sports
centres, in addition to the hotels and high-end restaurants that cater to foreign visitors. The development
of infrastructure has in turn induced the development of other directly productive activities.
• Promoting Peace and Stability: Honey and Gilpin (2009) suggests that the tourism industry can also
help promote peace and stability in developing country like India by providing jobs, generating income,
diversifying the economy, protecting the environment and promoting cross-cultural awareness.
However, key challenges like adoption of regulatory frameworks, mechanisms to reduce crime and
corruption, etc. must be addressed if peace-enhancing benefits from this industry are to be realized.
Typology of Tourism Impacts
The impacts of tourism can be sorted into six general categories:
1. Economic
2. Environmental
3. Social and Cultural
4. Services
5. Taxes
6. Community Attitude
Economic Impact
Tourism increases employment opportunities. Additional jobs, ranging from low-wage entry level to
high-paying professional positions in management and technical fields, generate income and raises
standard of living. Particularly in rural areas, the diversification created by tourism helps communities
that are possibly dependent on only one industry. As tourism grows, additional opportunities are created
for investment, development and infrastructure spending. Tourism often induces improvements in
public utilities such as water, sewer, sidewalks, lighting, parking, public restrooms, litter control and
landscaping. Such improvements benefit tourists and residents alike. Likewise, tourism encourages
improvements in transport infrastructure resulting in upgraded roads, airports, public transportation and
non-traditional transportation (e.g., trails). Tourism encourages new elements to join the retail mix,
increasing opportunities for shopping and adding healthy competitiveness. It often increases a
community’s tax revenues. Lodging and sales taxes most notably increase but additional tax revenues
include air travel and other transportation taxes, business taxes and fuel taxes. New jobs generate more
income tax revenues. When considering the economic impacts of tourism, it is essential to understand
that tourism businesses often include a significant number of low-paying jobs, often at minimum wage
or less. These jobs are often seasonal causing under-employment or unemployment during off-seasons.
Labour may be imported, rather than hired locally, especially if particular skills or expertise is required,
or if local labour is unavailable. Some tourism-related businesses are volatile and high-risk ventures
that are unsustainable. Greater demand for goods, services, land and housing may increase prices that
in turn will increase the cost of living. Tourism businesses may claim land that could have higher- value
or other uses. Additionally, non-local owners and corporations may export profits out of the community.
The community may have to generate funds (possibly through increased taxes) to maintain roads and
transportation systems that have become more heavily used. Similarly, if additional infrastructure
(water, sewer, power, fuel, medical, etc.) is required, additional taxes may also be needed to pay for

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them.
Environmental Impact
Areas with high-value natural resources like oceans, lakes, waterfalls, mountains, unique flora and
fauna and great scenic beauty attract tourists and new residents (in-migrants) who seek emotional and
spiritual connections with nature. Because these people value nature, selected natural environments are
preserved, protected and kept from further ecological decline. Lands that could be developed can
generate income by accommodating the recreational activities of visitors. Tourist income often makes
it possible to preserve and restore historic buildings and monuments. Improvements in the area’s
appearance through cleanup or repairs and the addition of public art such as murals, water fountains
and monuments (part of making a community ready for tourism) benefit visitors and residents alike.
Tourism is generally considered a “clean” industry, one that is based on hotels, restaurants, shops and
attractions, instead of factories.
Social and Cultural Impact
The social and cultural ramifications of tourism warrant careful consideration, as impacts can either
become assets or detriments to communities. Influxes of tourists bring diverse values to the community
and influence behaviours and family life. Individuals and the collective community might try to please
tourists or adopt tourist behaviours. Interactions between residents and tourists can impact creative
expression by providing new opportunities (positive) or by stifling individuality.
Increased tourism can push a community to adopt a different moral conduct such as improved
understanding between sexes (positive) or increased illicit drug use (negative). Safety and health
facilities and staffing tend to increase but also the safety problems such as crime and accidents increase.
Traditional ceremonies may be renewed and revived by tourist interest or lost in alternative activities.
Community organizations can be invigorated by facing the opportunities of tourism or overwhelmed by
its associated problems. Calamities such as natural disasters, energy shortages, terrorism, political
upheaval, disease outbreak, a chemical spill, or even wide spread negative publicity could shut down
tourism abruptly but sometimes can attract curious visitors. Tourism can improve the quality of life in
an area by increasing the number of attractions, recreational opportunities and services. Tourism offers
resident’s opportunities to meet interesting people, make friendships, learn about the world, and expose
themselves to new perspectives. Experiencing different cultural practices enriches experiences,
broadens horizons and increases insight and appreciation for different approaches to living. Often,
dwindling interest in host cultures is revived by reawakening cultural heritage as part of tourism
development, which increases demand for historical and cultural exhibits. This interest by tourists in
local culture and history provides opportunities to support preservation of historical artefacts and
architecture. By learning more about others, their differences become less threatening and more
interesting. At the same time, tourism often promotes higher levels of psychological satisfaction from
opportunities created by tourism development and through interactions with travellers.
Establishing or developing a tourism industry involves expenditure as well as gains/ benefits. If these
impacts are taken into consideration from the outset of planning, strengths and opportunities can be
maximized. Lists of potential benefits are presented below. Table 1 presents some of the positive
impacts of tourism.
Economic 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.

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• 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 road systems and infrastructure that contributes to the entire destination can be justified and
supported by the benefits from tourism development.
• Often the jobs created through tourism can be low-paying and unskilled but they constitute an
important step for the poor to improve their economic condition.
• Increased tax revenues from tourism.
Social Benefits
• The quality of life 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 spaces may be developed and enhanced through tourism activity.
• Tourism enhances local community’s esteem and provides an opportunity for greater understanding
and communication among peoples of diverse backgrounds.
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 at tourism destinations and can result
in the revival of local traditions and crafts.
Physical 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.
Services
Tourism creates opportunities to develop new amenities and recreation facilities that would not
otherwise be viable in a community. Tourist expectations can upgrade service by local shops,
restaurants and other commerce operators. Tourist traffic in a community creates an opportunity for
upgraded fire, police, and medical protection that also benefits residents. Traditional services may be
forced out or relocated due to competition with tourist interests. Supply shortages may occur
temporarily, seasonally or chronically. Water, power, fuel, and other shortages may be experienced with
increased pressure on the infrastructure.
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.

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Tourism has two types and various forms. On the basis of the movement of people tourism categorized
into two types.
These are following as:
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.
International tourism further divides into two types;
 Inbound Tourism
 Outbound Tourism.
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 based on the purpose of the visit and alternative forms. These are further
divided into many types according to their nature. Forms of tourism are the following:
 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.
 Cultural: Cultural tourism satisfies cultural and intellectual curiosity and involves visits to
ancient monuments, places of historical or religious importance, etc.
 Sports/Adventure: Trips have taken by people with a view to playing golf, skiing and hiking,
fall within this category.
 Health: Under this category, people travel for medical, treatment or visit places where there are
curative possibilities, for example, hot springs, spa yoga, etc.
 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.
 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.
 Adventure Tourism, Atomic Tourism, Bicycle Tours, Beach Tourism, Cultural Tourism,
Ecotourism, Geotourism, Industrial Tourism, Medical Tourism, Religious Tourism, Rural

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Tourism, Sex Tourism, Space Tourism, Sports Tourism, Sustainable Tourism, Virtual Tourism,
War Tourism, Wildlife Tourism.
Nature of Tourism
Tourism as a socio-economic phenomenon comprises the activities and experiences of tourists and
visitors away from their home environment and are 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.
 Tourist and service: Tourism is a service industry, which is a compound of those sectors of
the economy that are involved in providing services, such as accommodation, food, beverage,
transportation, and recreations as well as distributions and sales SERVICES.
 Tourism products are highly perishable: The tourism product cannot be transported. The
customer needs to move to the products or visits the points of services delivery (POSD). For
example. Culture, hotel rooms, attraction is not possible to be transported from ‘the place where
it is to the place of tourist residence’. “Export or “export of tourism product” means the arrival
of tourist or any facilities used by tourist.
 Tourism is a contributor to the economy: Through tourism, a lot of incomes is generated in
the economy in the form of domestic or international exchange. A large chunk of the workforce
gets employed in this industry. It is a major contributor to the public revenue. Nature too can
be tapped and the friendly relation with other countries can result in the benefit of the economy.
 The tourism industry is sustainable: there is no any horizon or end to the tourism activities.
This industry is a long-term industry. It is a non-stop movement of the people and the never-
ending move gives rise more tourism activities.
 Tourism helps in educating the mass: There exists a spontaneous process of learning and
exchange of ideas in this industry. The scope of exploration and discovery is very high among
adventure tourists. Due to tourism, there exists a respect for each other’s own life.
Components of Tourism
Tourism is a coordinated total of many components. Its takes many forms. A travel may range from
several thousand kilometers which may include one or more form of transports. It involved the stay of
several days, weeks or months which require accommodation, recreation, sightseeing and a variety of
facilities and services for use and enjoyments. Tourism depends on all these factors which are paper
known as 4' AS..
 Attractions: It is considered as the most important basic component of tourism .Attraction
means any things that create a desire in any person to travels in a specific to visits destination
or places. In others, Attraction is those elements, which determines the choice of tourists to visit
one destination rather than others.
 Natural Attractions – Man made attractions
 Core Attractions – Supplementary Attractions
 Accessibility: Accessibility means reachability to the place of a destination through various
means of transportation. A tourist can reach the area where the attraction is located by the means
of transportation. So, transportation should be regular, comfortable, economic and safe.
 Accommodation: Accommodation which is primary tourist service needed at the destination. It
is a place where tourists can and food and shelter provided to them. If s/he is in a t position to
pay for it.
 Amenities: Amenities mean that element which are extra facilities as service added with
attraction, accessibility, and accommodation to create tourism. Therefore it is one of the basic
elements of Tourism. The facilities provided to the tourists complement the attraction these
include different facilities and service provided by the government, travel agencies, hotel etc.

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TOURISM DISTRIBUTION CHANNEL
The process which moves the product from production to consumption stage is called distribution.
The tourism channel of distribution is an operating structure, system, or linkage of various combinations
of organizations through which a producer of travel products describes, sells, or confirms travel
arrangements to the buyer/consumer/traveller/tourist.
A tourism distribution channel is a network of intermediaries that facilitates the sales and delivery of
products and services specifically related to tourism from suppliers to consumers (Buhalis and Laws
2001; Kracht and Wang 2010; Longhi 2009).
Two factors make the distribution of the tourist product unique:
 The consumer must go to the destination
 The tourist product is highly perishable
It is important to understand the sales distribution systems and their role in influencing sales.
Distribution channels provide time, place, and ownership utility. They make the product available when,
where, and in which quantities the customer wants.
Members of the marketing channel perform many keys function:
 Information- Gathering and distributing marketing research intelligence information about the
marketing.
 Promotion – Developing and spreading persuasive communications about an offer.
 Contact – Finding and communicating with prospective buyers.
 Matching – Shaping and fitting the offer to the buyer’s need, including such activities as
manufacturing, grading, assembling and packaging.
 Negotiation – Agreeing on price and other term of the offer so that ownership or possession can
be transferred.
 Physical distribution – transporting and storing goods.
 Financing – Acquiring and using funds to cover the costs of channel work.
 Risk taking – Assuming financial risks such as the inability to sell inventory at full margin.
One-Level (Direct) Distribution Channels
 Simplest form of distribution, no intermediary between supplier and customer
 Most tourism suppliers utilize one-level distribution channels
 Purchase directly from the supplier
 World Wide Web is increasing the direct availability of information and purchase
 Airlines encouraging the use of the Web and
ticketless travel
Advantages
 Simplicity
 Additional Sales Opportunity
 Flexibility
 Greater Profitability to Suppliers
One Level Distribution
Channels

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 Personal Control over the Sale
Two Level distribution
 Intermediary between tourism supplier and tourist
 Most common form of tourism supplier
 Travel agencies are the department stores of the travel industry
 Improving service delivery through cooperative systems
 Global distribution system (GDS)
 Computer reservation system (CRS)
Advantages
 Professional Assistance
 Multiple Options
 Free or Low-Cost Assistance
 Cumulative Group Power
 Single-Charge Billing
 Cost Less???
Three level distribution
 Add another level of intermediary such as tour operators to low-level channel
 Some travel agencies have entered tour packaging business
 Tours
 A package of two or more tourism services priced together
 Four primary forms of tours
 Independent
 Foreign/domestic independent
 Hosted
 Escorted
 Tour Operators
 Purchase tourism services in bulk and then mark up the price and resell in packaged
form Plan, prepare, market and often operate vacation tours
 Also termed tour packager or tour wholesaler
 Many financial risks in the tour packaging business
 Receptive service operator is local company that handles group’s needs while in its
location

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