This document discusses tourism products and destinations. It defines tourism products as anything that satisfies a tourist's needs, including tangible things, places, people, events and organizations. Destinations are comprised of various attractions, amenities, services and facilities that cater to tourists. Developing a successful destination requires comprehensive planning that considers factors like market demand, environmental and social impacts, infrastructure requirements, and financial feasibility.

2.  Tourism products in its generic sense
or in general can be a thing, a place, a
person, an event or an organization
which satisfies the needs of a tourist.
 Therefore the products have need
satisfying capabilities.
 Anything even water & food,
transportation, or a tourist directory
may be called tourism products.
 A place may be defined as a city,
town, village, river bank, sea coast,
ecological places etc.
 A person also comes under the
category of tourism products

3. According to Kotler,
“A product is anything of consumption
offered to satisfy the need or want of a
person. Products are a bundle of utilities
required by a tourist. This includes even
physical products which are very much
related to the services offered & we call
them as service products.”

4.  According to Foster, “Tourism products
include a great range of packages & travel
facilities & in addition other non material
intangible things

5.  Transport- Air, rail, ship, taxi, luxury coach,
cruise
 Attraction- parks, zoo, heritage centers,
monuments, physical landscape.
 Accommodation- hotel, motel, guest centers,
apartments, villas, cabins, camps, youth hostels,
youth camps or beach resorts.
 Catering- these includes restaurants, dhabas,
café, fast food, public services, moving hotels.

6. -Travel insurance
-Printing -
-Advertising
- marketing
- Travel agents
- distributers
- Literature
- teletext
- Wholesale tours
- coach operators
- Private ports
- airports
- Marine
- banking or currency exchange.

7. - Government organisation
-regional tourists organisation
- Local or community bodies
- information centers
- Tourism council
- tourism department
- Visa & passport offices
- custom & excise services
- Medical services
- safety & security services

8.  - Tourism products are of tangible &
intangible in nature
 Inseperability
 Perishability
 Absence of ownership
 Variability of tourism products
 Unstable demand

9.  Natural attractions
 Climate
 rivers
 beaches
 Mountains
 landscapes
 Forests
 Spas
 valleys
 lakes
 Wildlife
 Backwaters

10. Man made attractions
 Artistic - paintings - cultural
 Art forms- historical monuments
 Archeological sites- sculptures
 Converted activities & objects
 Entertainments
 Cinemas - race courses - theaters
 Night clubs - theme parks - zoo
 Sports
 Adventure sports: Aero based, water based, land based
 Tennis courts - Sports training centres
 Polo - Jeep safari - Camel safari
 Transport
 Coaches - railways - cruises
 airplanes
 Others
 Shopping (duty free) - handicrafts

11.  A place or set of places to which tourists go and in
which they may stay as a prime objective of their
visit.
 A destination comprises a core of facilities
amenities services fashioned to cater the needs of
the tourist i.e 5As
 Attraction
 Accommodation
 Accessibility
 Amenities
 Ancillary services

12. Traditional concepts
Destination is a place where people spend their
holidays
Characteristic elements
Place(Structure and development of tourism region)
People(Demographics, motivation,participation and
destination)
Holiday(Tourists holiday activities)

13.  A)Visitor perspective
An area where people choose to spend their
holidays and the resulting impacts of their
activities
 Characteristic elements are
Area(city,tribal region)
Choice(individual motivation, alternative
places, holiday companions) and
Impacts(Economic,socio cultural,ecological)

14.  Managing the demand for tourism and its
impacts on the destination
 Characteristic elements are
Management of demand(access,quality control)
Management of Impacts(capacity
analysis,planning,zoning)

15.  Destination is an amalgamation of several
components
 Formulation and implementation involves a
team of experts
 Large scale development involves huge planning
 Masterplan includes Destination strategy,
detailed design, infrastucture
requirements,Types of analyses,technical
description and impact of resort development

16.  Master plan comprises series of steps
 Site selection
 Understanding the history
 Ownership
 Applicable zoning regulations of the land holdings
 Also information such as
Estimated cost of land
Development/Construction cost
yearly cash flows for projected economic life
of resort
capital gains
need to be gathered

17.  Success of holiday recreation depends on
LOCATION. The choice of an appropriate
location is prime important for destination
developers.
 Location can be set about in two ways
-Seemliness of the site as per nature of
use.(Range of activities intended to be
consummated)
-Accessibility of the site

18.  Prescribed site area
 Land for expansion for ancillary services and
adds attractiveness and status for the site
 Climate-Eg. outdoor activities
 Building specifications-Eg. Indoor sports,
Conference, museums etc
 Services and utilities-Majority of the activities
need basic services like Water, electricity,
communication

19. The identification of the following is important and
they rely on the activity under consideration
(Eg.Theme Park)
 Area of land or water
 Size and
 Form

20.  Influenced by factors like
o Attractiveness-(visitors compare broad
surroundings with one another and it differs from
visitor to visitor)
o Accessibility-from market area of origin to
destination and accessibility to the site

21.  Safety and security
based on design layout and management
( Eg. provision of Life belts and free
movement of children)
 Quality and range of activities
Visitors are happy to pay for quality
provisions
Expect range of activities like
shopping,entertainment

22.  Computerized mapping
 Applicable in situations where there is a Clear
resource requirement is applied by setting the
criteria on the basis of activity requirements
identified earlier in the process
 Potential surface analysis
 Aerial surveys

23.  Once alternative sites are identified, the
next step is their site evaluation
 Commonly used methods are
 Carrying capacity
 Scoring

24.  Max Number of people that can be accommodated at a site
without an inadmissible change in the quality of physical
environment and without an undesirable diminution in the
quality of experience gained by the visitors
 While evaluating a particular site its carrying capacity in the
context of following has to be considered
 Physical Carrying capacity
 Ecological Carrying capacity
 Perceptual Carrying capacity
 Economic Carrying capacity and
 Social aspects

25. An approach implying an assessment of every
individual site against the criteria setup on
the basis of preconditions of the activity and
the visitors likely to experience activity.

26. Involves use of land for
 Resorts
 Apartments
 Condominiums
 Free standing residencies
 House for employees etc
Also for attractions like
Botanical gardens
Zoos
Landscaping etc

27.  Land Development should be gainful for
visitors
Developers and
Community
 Villages or towns holding attractions are also included in Land
development
 Land development should weigh on both
o Welfare of the people likely to be employed in new facilities ,their life
style and economic welfare
o Satisfaction of the, expectation of the visitor and developer

28.  For all facilities (roads, attractions,
Entertainment, security)required for a
destination land development take in long range
plans.
 It may also include community Clubs,
greenbelts, Golf courses and other facilities.
 Balance to be maintained amongst historic, socio
economic, aesthetic and ecological concerns.
 Control in form of Size and Type of Buildings in
down town areas

29.  Facilitates financial and social cost benefit analysis
 Considered in two aspects i.e Demand and Supply
 Market for project output (Tourist demand to the country)and
 marketability of project output (Tourism supply)
 Level of demand can be accesed by analysing the trends
(eco,soc,pol,dem,beh) and indicating how the nature and to what
extent(years) in the tourist market to the country.
 Primary demand which pulls other demand is the demand for the
project
 In evaluating the demand ,characteristics of the region has to be set by
project analyst giving a brief description about the proposed
location,its population,business activities and ancillary characteristics.

30.  Marketability becomes important due to fragmented(Uneven)
nature in terms of
 Size,
 location and
 ownership
with features of tourism like
 inflexibility of supply,
 perishability of services,
 fixed location and financial investment,
 level of risk and return on investment.
 These are affected by Changes in Tourist attitude,
competitive condition,socio economic forces and govt
activity
 Marketability of the product ought to be capable of
attracting target market to promise fair profit and potential
future growth

31.  Market study is a basic prerequisite for
justifying conceptual plan
 Market study helps in reducing investment
uncertainity and improving investment
decision

32.  Market study helps in finding answers for
 Pattern of changes in cost
 Trend of visitor market
 Accessibility,
 degree of competitiveness
 Advantage of the project
 Experiences of comparable destination in hotel occupancy and other
facilities
 Revenue generation units
 Sales velocity
 Quality and
 price range

33.  Based on the answers of market study market analyst
concentrates on
 Size
 Scope
 Timing
 Nature
 Tentative price range and
 Quality
To be provided at the destination

34.  Project concerning destination development may necessitate
development of infrastructure, accommodation and other facilities
 Financial aspects in a project may involve problems like
 cost over run,
 cash flow,
 initial investment,
 high debt etc.
 The success of land facility leads to profitability of hotels
 Due to uncertainties in future and lack of entrepreneurship the pvt
sector feels like learning the experiences of the public sector before
investing
 FA Conducted parallel to non tourism projects

35.  The modus operandi of such an appraisal is to adapt an inventory of
revenues and expenditures, including both capital and operational
,discounting the cash flows for each year and apply specific
techniques for project viability
 Commonly employed appraisal approaches are
 Net present value
 Internal rate of return
 Both are discounting techniques meant to provide present value of
future cash flows and Timing for cash flows

36.  NPV furnishes exact monetary value and effective in choosing mutually
exclusive projects
 IRR provides profitability in % and simple to interpret
 Financial appraisal comprises thorough financing plan for the requisite
capital investments, pro forma income statements and predicted cash flows
 Financial evaluation also serves as the core of social cost benefit analysis and
economic analysis in which benefit from the activity to a region is taken as a
whole
 The central concept in cost benefit analysis in pricing the benefits and cost of
project is that of opportunity cost
 Benefits from the activity are reflected by satisfaction of needs of the project
 There are non quantifiable benefits like enhanced
income,employment,foreign exchange etc
 Criteria for project to prove financially feasible are
 NPV must be positive or greater than Zero
 IRR exceed the cost of capital

37.  Comprehensive description of the technical layout of project
including all the relevant infra/super structure elements should be
worked out for costing
 Role of each component has to be defined
 Nature , volume of materials, equipment and labour content should
be detailedPROJECT CONSTRUCTION SCHEDULE should be
composed by either bar chart/PROJECT EVALUATION AND
REVIEW TECHNIQUE/CRITICAL PATH METHOD
 Approximate costs of each component has to be worked out(by
square foot)
 Cost for similar construction can also be a guideline
 Sum total of cost of project and subproject is the investment cost of
the project (contingency 10% has to be made to offset cost overrun
owing to time lag inn starting and completion of the project)

38.  Role of economic analyst is to check with engineers to know the
anticipated land development and construction cost and then analyze the
nature of fit of development and construction cost with the pricing
structure suggested by market analyst.
 If the cost and market rate are in harmony, the economy analyst attempts
to figure out the cost details of the project with the help of architects and
engineers
 Such an info provides an assessment of total investment including data on
 gross project investment,
 construction cost on depreciation basis,
 capital requirement schedule at regular intervals

39.  If the cost and market price turns to be unfitting the economic
analyst discuss the developers issues like
 Allowable level of quality sacrifice to lower construction cost
 Probability of creating an unparalled product to defend higher
pricing
 Possible reduction in recreation facilities
 Impact of lower quality or unique products on the marketability of
the product etc
to chalk out the alternative strategies

40.  With all these deliberations ,the destination development cost
may be brought down to satisfy the highly competitive market
 It may also be resolved by the uniqueness of the proposed
product will convince the visitor to pay the higher price
 Next step is the Identification of financial inputs-project
profitability in terms of profitability index(Benefit cost ratio)

41.  Profitability index is the relationship between the present value of the
expected cash inflows discounted at the desired rate and the cost of
investment
 Helps in collating projects of diverse size and economic life
 An investment proposal is considered viable if present value of aggregate
future cash inflows is more than the present cash outflow by way of
investment cost and social cost
 Of the two proposals one with higher surplus of discounted cash inflows as
well as social over the cash outflow and social cost is preferred
 PI=Present value of cash Inflows/ Present value of
cash Outflows

42.  Researchers advise the use of computerised
model to forecast the profitability of the
destination

43.  Analysis of impact of destination development on environmental
and social patterns has been introduced in destination development
plan
 Development plan has emerged as interdisciplinary approach
 Characteristics of this approach are inputs from planners and
architects at early stages of analysis ,setting the tone for the
development, by designing a conceptual master plan and indicating
the type of input that market analyst can offer.
 Market/economic analyst are responsible for working out the
rationalization(validation) of the nature, size and timing of the
conceptual plan

44.  Tourism has strong intricate but fragile relationship with
environment, the prime features offering attractiveness to the
destination
 Environment can be biologically defined as the life support
system of an organism community a species or other life system
complexes
 In tourism it is perceived as a health of the tourist spot, resource
generation and long range infra structural development.
 Env and ecology not only determines type of tourism, tourist
traffic flow, potential tourist activity but also overall magnetism
of the destination

45.  Env is the thread of unity between community, visitor and destination
 On failing of above conflict occurs
 Tourism has central impact on env (pos & neg) which affects the economic
base of industry itself in natural areas
 There is a general support for symbiotic relationship between two. (Tourism
and env)
 Developers focus on revenue and tourists focus on environment protection.
 Natural resorts are turning into commercially managed resorts

46.  Destination development takes into account the env and ecological
affects of the development and the factors that disturb ecological
balance.
 Env and ecology has both cost and benefit-economic and social
 Development of islands pose climatic problems
 Concept of system economy(quality tourism) growing fast than scale
economies(mass tourism)
 If env issues are not dealt in planning stage it may lead to loss of
attraction itself
 Poor planning and ineffective management destroys the env
 Therefore harmonious balance has to be maintained

47.  Travel is linked with communities-Hosts and guests
 Community aiming at tourism should realize that there will be
impacts
 Tourism development and its resultant activity besides the
economic gains would have certain socio cultural env impacts
 It can be great benefit also be a stress
 Dissimilar conflicting interest has to be considered to avoid
development at the cost of one group and to disperse benefit in
a right manner

48. It is significant but also imperative in
destination development.
Depends on Number as well as quality
of activities to be offered

49.  Govt enter into tourist development in various levels like
Central, state or local
 Intensity varies with the mode of participation and range of
activities covered
 Tourism policy is an outcome of activities planned at different
levels
 Public participation is crucial due to land development which
leads to increase in value of area
 Most tourist developments require state and public money to
be invested for provisioning of utilities

50. In developing countries the pvt sector is reluctant to
take the initiative of investment in tourism
In such conditions the govt takes the lead by investing
in tourism in order to get it started which acts as pump
priming for pvt participation.
Govt also provide incentives in form of loans for govt
approved developments at lower than market rate of
interest, various concessions, subsidies etc.

51.  Identified 5 areas of active consideration of govt. They are
 Maximizing net foreign exchange earnings
 Attracting foreign investment
 Ensuring employment openings for residents
 Designing befitting land use policies
Securing commensurate air transportation
 for achieving objectives such as
 Developing the economy through tourism
 Fostering social and cultural development
 Safeguarding and protecting nature
 Preparing citizens for tourism

52. Destination passes the lifecycle indicating changes
in the destination to meet the supplementary visitor
needs
Govt through NTO should undertake alternative
roles consistent with a destination stages of
development
Implementing a Tourism policies at national level
is a prerogative of the govt exhibiting a diverse of
priorities and circumstances.

53.  Development design bears relevance to following factors
 Political
 Socio cultural
 Environmental
 Economic
Size of the resort is bound to be influenced by
•Underlying theme
•Characteristics of the location
•Setting and the product and
•The nature of the outstanding activity of the area

54.  The engenderment of marketable tourist product in a given
region is determined by decision centers internal and
external(foreign)
 Resorts are established in locations with unique features
 The size of the resort is bound to be influenced by
 The underlying theme
 Characteristics of the location setting and the product
 Nature of the outstanding activity of the area
 Resort should be tailored in a circuit of an activity

55.  Societal and behavioral attitudes change in course of time making once
flourishing resorts hardly sought after
 Problematical issue is the revitalization of winningly appealing old places
 Accessibility to the destination
 For a successful launching and take off of project understanding resources
and analyses of generating markets are required to determine a range of
products
 Ancillary demands helps in extending the tourist stays should be
considered as an integral component
 The market share secured is influenced and determined by
 attractions available and
 the comparative advantage over contending resorts
in terms of accessibility and price levels

56. With this info the conceptual planning phase is
purposed to be structured around the
following
 The projects intents and objects
 The resources to be developed
 The equipments to be created
 The social and environmental implications
 The measures proposed to redress the adverse
impacts
 The govt role in the form of financial aid or other

57.  The stepping in of state funding rests on
factors like
 Existence of general political policy of aid for
development
 Capacity of the regions or locations for
enterprise
 The fact that specialized investors are able to
generate competition between the prospective
host communities

58.  Whatever the funding project is the
developer need to keep in view several
things determined by
 natural perspective
 State of appurtenances
 The economic conditions during the different
manufacturings
 There is possibility of exceeding thresholds
by means of added expenditure i.e adding an
attraction delicate natural landscape or
countryside may opt for hosting a larger
tourist population

59.  The most crucial pressure is seasonality
dimension of a product
 The facility available during off peak season
results in a demanding problem of adaptation
as the services required by the customer may
venture economic loses due to low demand
 Having recourse to the image aspect, an
important instrumentation of commercial
communication, the resort env ought to
adapt itself to the market segment with a
touch of creativity

60.  Unduly customer image is inappropriate and
ineffective too
 An over abridged image is also risky
 Problem arises when complex groups with
varied tastes due to urban diversification
seeks for a richer image
 The capital gained in the form of a promising
image and exquisite standing during a season
may by no means prove to be adequate
enough to ensure favorable income during
one more spell of the year

61.  To avoid overlapping and vagueness in image
coining, the management and promotion
should be left with tourist offices
 Activity relating to the field of information is
challenging, since it collects
 all the direct info from target market using an
appropriate add strategy and
 continual feed back of customers opinion through
surveys
All the info should be precise and exact
The reliability acquired is the key indicator of the
service quality of the targeted market

62.  The basic economy of tourist resort revolves
around two approaches
 Economic benefit through multiplier effect
 Direct-tourist spending
 Indirect-expenditure on purchases by tourism
related business
 Induced-Purchase by employees of tourism
business
 Long term induced indirect benefits to the
community

63. a) Identification of tourist resources
For the identification of a tourist development in a
site two plans are in usage
 The inference drawn from current practices
 Likeliness with analogous sites
An examination of site’s resources primarily relates
to the following
Tourist attractions
Climatic conditions
Infrastructure and facilities
Land reserves
Labour availability

64.  Apart from the above features qualitative
elements are also important they are
 Urban or rural quality,
 Quality traits of architecture and landscape
 Cultural traditions
 Social and economic conditions
 Local residents
 Attitude towards tourism etc

65. B)development planning
 Choice of facilities to be incorporated in the
resort
 The values to be preserved are aggregated
in a plan of explicit long and short term
measures
 This may relate to natural and built heritage,
the cultural values and the grandeur and self
respect of the host.

66.  Well defined development plan is expected
to be relevant to
 The radical access equipment
 The public utilities
 The guest facilities
 Entertainment, shopping and cultural facilities
 Housing for employees and residents
 Information and training the host population
 marketing

67. C)Financing the project
 Once the minutest details are worked out the next aspect is
financing
 The funding of critical equipment especially with the returns
prolonging over a long period of time
is mainly encountered with two problems
 The function of imported capital
 The function of public funds
 The people making sacrifice in terms of tax payments should
undoubtedly be benefitted the most from concerned project.
 The public funding agencies would be keen on the reinvestment
of the gains in public facilities associated with augmenting a
major business or in furtherance of a development programmes

68. d)Image ,awareness and details
 The promotion of resorts image has to be
coordinated by means of an uninterrupted, steady
and determined effort of public relations and use
of media.
 Word of mouth Communication propogated by
contented customers, employees and host
population
 Internal communication within the community can
help mobilize all residents to welcome tourists

69.  Public services should be geared up
 Monitoring of tourist without any disturbance or
toning down the undue expenses is also
essential to get a proper feedback about their
experience of the product
 Suggest and facilitate appropriate remedial
measures besides the timely up gradation of the
product