Chapter 4 Tourism Supply, Demand, Policy, Planning and Development (Tourism & Hospitality Management)

1. Tourism Supply, Demand, Policy,
Planning & Development

2. Md. Shaifullar Rabbi
BBA & MBA, Major inTourism & Hospitality Management
University of Dhaka
Lecturer, Dept. of Tourism & Hospitality Management
Daffodil Institute of IT
-NU
Presented By

3. Tourism Supply
The tourism supply of an industry is derived by
summing the value of tourism products sold by the
tourism industry to the tourists It takes into account
accommodation services, food, transport, and other
retail sales.
Properties of Tourism Supply
Tourism supply is perishable (cannot be stored like
the products).
It cannot be examined before one purchases it.

5. Components of Tourism Supply
Here are typical components of the tourism supply −
1. Attractions
 They are the places the tourists perceive as the satisfaction of their leisure-
oriented needs.
 Natural Attractions − Caves, canyons, rocks, waterbodies, landscapes.
 Man-Made Attractions − Theme parks, towers, bridges, architecture, temples,
mosques, churches, and monuments.
 Cultural Attractions − Historical sites, monuments, local arts and crafts, local
folk core, music and dance.
2. Transportation
 They are the modes of commuting.
 Road − Car, bus, cycle.
 Rail − Long distance, high speed, commuter, or intercity trains.
 Water − Boats, ferries, cruises.

6. 3.Intermediaries
They are the mediators.
 Travel Agents − The business of selling hospitality and tourism products.
 Tour Operators − They deal with the operating components for rates.

7. 4. Destination
It is the place the tourists visit. It is composed of −
 Accommodation − Hotel, motel, lodge, guest house, B&B.
 Restaurant − Specialty restaurants, themed restaurants, branded
restaurants such as CCD, KFC, Bistros, and takeaway food joints.
 Tourist Facilities − Pubs, entertainment parks, shopping centers,
and casinos.
5. Activities
They include activities the tourists are interested to engage in −
 Adventure Sports − Mountain biking, bungee jumping, rafting, and
other similar activities.
 Leisure − Basking on beaches, swimming, dining near waterbody.
 Business Activities − Attending seminars, business meetings,
promotions.

8. Categories of Tourism Supply
Components
Tourism supply incorporates the following
components −
Natural Components
They are mainly
the Environmental components. They are the
natural elements for visitors’ experience and
enjoyment.
Climate
Milieus of the destination

9. Constructed Components
They are the infrastructure and superstructures. They include all surface, underground, and above
the ground constructions and facilities.
 Water Supply System
 Cooking gas supply system
 Electric supply system
 Drainage and sewage system
 Rest rooms for sanitation
 Airports
 Transport hubs
 Parking hubs
 Accommodations/hotels/Restaurants
 Museums
 Gardens
 Shopping centers
 Attractions

10. Operating Components
 They are mainly related to the services. They include the work force that is instrumental in
imparting excellent experience to the tourists.
 Transport service
 Food service
 Accommodation service
 Service at the places of attraction
Regulatory Components
 They are the permitting authorities.
 The public sector − Government policies
 Licensing
 Civil rights authorities
 NGOs
Spirit of Hospitality and Cultural Resources
 Social foundation of the destination: the culture
 What is the culture of the host community with respect to tourism?
 The tourist supply inspires, conducts, and affects the entire tour. If any one of the above
given components does not work well, it impedes the experience of the tourists and the tour

11. Task Analysis
Task analysis is the procedure used in matching supply
with demand. The following steps are usually employed:
1. Identification of the present demand
2. A quantitative and qualitative inventory of the existing
supply
3. The adequacy of present supply with present demand
4. Examination of present markets and the
socioeconomic trends
5. Forecast of tourism demand 6. Matching supply with
anticipated demand

12. Vital Demand Data
1. Number of visitors
2. Means of transportation used by visitors to arrive
at destination
3. Length of stay and type of accommodations used
4. Amount of money spent by visitors

13. Demand to a Destination
Propensity Resistance
Propensity depends on:
 Psychographics
 Demographics
(socioeconomic status)
 Marketing effectiveness
Resistance depends on:
 Economic distance
 Cultural distance
 Cost of tourist services
 Quality of service
 Seasonality
Demand for travel to a particular destination is a function of the propensity of the
individual to travel and the reciprocal of the resistant of the link between origin and
destination areas. Demand = f (propensity, resistance).

14. Measures of Actual Demand
1.Visitor arrivals
Number of people arriving at a destination who stay for
24 hours or longer
2.Visitor - days or - nights
= no. of visitor’s x avg. no. of days or nights at
destination
3.Amounts spent
= no. of visitor - days or - nights x avg. expenditure per
day/night

15. Projection Methodology
Several statistical methods or econometric analysis can be used
to project demand.
 Trend analysis method
 Simple Regression — Linear least square method
Multiple Regression — Linear least squares method
Computer simulations and models
 Executive Judgement (Delphi) method

16. TOURISM DEMAND AND SUPPLY
Tourism demand is a broad term that covers the factors governing the
level of demand, the spatial characteristics of demand, different types
of demand and the motives for making such demands. Cooper
(2004:76) defines demand as “a schedule of the amount of any
product or service that people are willing and able to buy at each
specific price in a set of possible prices during some specified period
of time”. Individuals called “tourists” generate tourism demands. This
happens in a particular place called a "tourism destination". The scale
and the magnitude of demand differ with time and sometimes with
seasons. Time demand for tourism services either advances or
changes. Such changes could be due to the emergence of the so-
called “new tourists” (Poon, 1994 & 1993). These tourists want to
experience something new and expect high quality service and value
for their money. Perhaps this contributes to the problem statement of
the study as stated on section 1.3. New tourists bring with them a

17. Factors that motivate people to
travel
There are as many reasons for engaging in tourism, as there are tourists.
Different people participate in tourism for different purposes. Seemingly,
every purpose comes with specific tourism demand. One of the most
common demands is for accommodation. Whatever the intention, tourists
should be accommodated in one way or another. The most common
reasons for travel away from home are:
 For leisure, recreation and holidays
 To visit friends and relatives
 For business and professional engagements
 For health treatment
 To undertake religious and other pilgrimages
 Other more personal motives
Table 3.1 represents a classification of motives that encourage people to

19. Tourism Demand
The demand for tourism can be defined in various ways, depending on the
economic, psychological, geographic and political point of view of the author.
The geographic perspective defines tourism demand as the total number of
persons who travel or wish to travel, and use tourist facilities and services at
places away from their places of work or residence (Cooper et al. 1993).
The second one is the inverse demand curve that states that the quantity of
demand for tourism drops with an increase in the price associated with
tourism, and vice versa. According to Prosser (1994), the character of tourism
demand will continue to change. Schwinger (1989) predicted these changes in
tourism demand as follows:
 Tourism demand will continue to grow and become increasingly
differentiated.
 There will be greater market specialization and segmentation with a
stronger emphasis on more active pastimes rather than passive holidays.
 Packaged holidays will be customized to accommodate greater individual
freedom through a modular product design.

20. The Domain of Tourism Demand
Tourism demand is led and influenced by many external factors, in particular
market forces and economic factors, leading to the generation of physical
and financial flows that have strong economic, socio-cultural and
environmental impacts. The inter-linkage between the five important
tourism-related issues is demonstrated in Figure 3.1 and identified as:
Part 1: Main external factors influencing tourism demand
Part 2: The basic services that are intertwined with tourist’s motivations
Part 3: The different levels of tourism market segments (different segments)
expressed by economic indicators and indicators pointing out the impact of
tourism
Part 4: Tourism policy by governmental organizations on different aspects
affecting both the supply and the demand side
Part 5: Connecting demand and supply on different markets within the

22. Tourism Supply
Tourism supply has to do with the provision of the key elements of the
tourism industry by the host governments or destinations. Such
provision should extend to maintenance, promotion and
management of the tourism facilities and resources. Tourism resources
that are necessary for tourism supply range from natural to man-
made. Infrastructure required would include telecommunication,
accommodation and transportation. Tourism reception services
include travel agencies, tourist offices, hire companies and visitor
managers. The one underlying characteristic of tourism supply that
distinguishes it from other services is the way in which the mobile
population who visit destination areas consume a tourism product,
service or experience. In contrast, the supply elements are often fixed
geographically at certain places (e.g. hotels, restaurants or visitor
attractions).

24. Economic impacts of tourism

25. Economic Impact Reports
 WTTC produces reports on the economic and employment impact of Travel & Tourism for 185
countries and 25 geographic or economic regions in the world. These reports are a vital tool in
helping us to equip public and private sector bodies with hard evidence of the huge value
Travel & Tourism brings to the economy, so that their policymaking and investment decisions
support our sector.
 WTTC’s latest annual research, in conjunction with Oxford Economics, shows the Travel &
Tourism sector experienced 3.5% growth in 2019, outpacing the global economy growth of
2.5% for the ninth consecutive year. Over the past five years, one in four new jobs were
created by the sector, making Travel & Tourism the best partner for governments to generate
employment.
In 2019, Travel & Tourism’s direct, indirect and induced impact accounted for:
 US$8.9 trillion contribution to the world’s GDP
 10.3% of global GDP
 330 million jobs, 1 in 10 jobs around the world
 US$1.7 trillion visitor exports (6.8% of total exports, 28.3% of global services exports)
 US$948 billion capital investment (4.3% of total investment)

26. The economic impacts of tourism: Why
Governments invest
Here are a few facts about the economic importance of the tourism industry globally:
 The tourism economy represents 5 percent of world GDP
 Tourism contributes to 6-7 percent of total employment
 International tourism ranks fourth (after fuels, chemicals and automotive products) in global
exports
 The tourism industry is valued at US$1trillion a year
 Tourism accounts for 30 percent of the world’s exports of commercial services
 Tourism accounts for 6 percent of total exports
 1.4billion international tourists were recorded in 2018 (UNWTO)
 In over 150 countries, tourism is one of five top export earners
 Tourism is the main source of foreign exchange for one-third of developing countries and one-
half of less economically developed countries (LEDCs)
In short, tourism is an example of an economic policy pursued by governments because:
 it brings in foreign exchange
 it generates employment
 it creates economic activity

27. Positive economic impacts of tourism
 Foreign exchange earnings: One of the biggest benefits of tourism
is the ability to make money through foreign exchange earnings.
 Contribution to government revenues: Tourism can help to raise
money that it then invested elsewhere by the Government. There are
two main ways that this money is accumulated.
 Direct contributions are generated by taxes on incomes from
tourism employment and tourism businesses and things such as
departure taxes. Taxes differ considerably between destinations. I will
never forget the first time that I was asked to pay a departure tax (I
had never heard of it before then), because I was on my way home
from a six month backpacking trip and I was almost out of money!
According to the World Tourism Organization, the direct contribution
of Travel & Tourism to GDP in 2018 was $2,750.7billion (3.2% of
GDP). This is forecast to rise by 3.6% to $2,849.2billion in 2019.
 Indirect contributions come from goods and services supplied to

28.  Employment generation: he rapid expansion of international tourism
has led to significant employment creation. From hotel managers to
theme park operatives to cleaners, tourism creates many employment
opportunities. Tourism supports some 7% of the world’s workers. There
are two types of employment in the tourism industry: direct and indirect.
 Direct employment includes jobs that are immediately associated with
the tourism industry. This might include hotel staff, restaurant staff or taxi
drivers, to name a few.
 Indirect employment includes jobs which are not technically based in
the tourism industry, but are related to the tourism industry. Take a
fisherman, for example. He does not have any contact of dealings with
tourists. BUT he does sell his fish to the hotel which serves tourists. So
he is indirectly employed by the tourism industry, because without the
tourists he would not be supplying the fish to the hotel.
 Contribution to local economies: All of the money raised, whether
through formal or informal means, has the potential to contribute to the
local economy. If sustainable tourism is demonstrated, money will be
directed to areas that will benefit the local community most. There may

61. Environmental Impact of Tourism
 Awareness creation and sensitization about sustainable tourism options: Over time,
tourism has brought about awareness in conservation, protection, and maintenance of
exotic often near-extinct, fragile flora and fauna in the ecosystem.
 The adoption and implementation of regulatory measures: Through enacting
regulatory measures to curb the potential negative aspects of tourism, the government
has been able to offset a number of destructive environmental impacts.
 Development of infrastructure: Improvement of roads, electrical grid systems,
telecommunications as well as social amenities are some of the benefits that have been
realized around communities within tourist destination sites.
 Preservation of historic monuments and cultural heritage: Some international tourists
seek to experience diversity in culture and a difference in the scenery as compared to
theirs.
 Degradation and loss of natural ecosystems and aesthetic landscape: Improper
development of infrastructures such as extensive paving and sand and beach mining,
unplanned construction of resorts, hotels, roads, airports, power plants, reservoirs, and
waste disposal systems brought about as a result of tourist visits has led to congestion

62.  Leads to various types of environmental pollution: Tourisms as a whole and some
of the actions by tourists have over time adversely affected the destination areas
through various kinds of environmental pollution including air, land, water, and soil.
Some tourists, for example, will litter and leave behind garbage or waste like plastic
wrappers and cigarette butts in the surrounding environment thereby causing land
pollution, plastic pollution, and cigarette pollution respectively.
 Depletion of natural resources and putting a strain on the locally existing ones:
When the number of tourists visiting an area over time surpasses the level to which the
area can sustain; it subsequently leads to an overuse of the available local resources
causing a strain on the environment. In most cases, tourism puts a strain on the already
scarce local natural resources owing to over-consumption.
 Erosion of social and cultural norms aimed at preserving local and environmental
heritages: International tourists come with diverse social-cultural behaviors that are
often quite distinct from the usual ways of local dwellers. Tourism involves intermingling
and exposure to new experiences, new practices, a dynamic way of living, new
traditions, and new historical background for the locals.
 A contributor to global warming and climate change: Tourism is a key contributor
to greenhouse gases emitted in the atmosphere, which have been scientifically proven
to be the main reason for the increasing global temperatures and changing climates.

63. SUSTAINABLE DEVELOPMENT
"Tourism that takes full account of its current and future economic, social and
environmental impacts, addressing the needs of visitors, the industry, the environment and
host communities"
Sustainable tourism development guidelines and management practices are applicable
to all forms of tourism in all types of destinations, including mass tourism and the various
niche tourism segments. Sustainability principles refer to the environmental, economic, and
socio-cultural aspects of tourism development, and a suitable balance must be established
between these three dimensions to guarantee its long-term sustainability.
Thus, sustainable tourism should:
 Make optimal use of environmental resources that constitute a key element in tourism
development, maintaining essential ecological processes and helping to conserve
natural heritage and biodiversity.
 Respect the socio-cultural authenticity of host communities, conserve their built and
living cultural heritage and traditional values, and contribute to inter-cultural
understanding and tolerance.
 Ensure viable, long-term economic operations, providing socio-economic benefits to all
stakeholders that are fairly distributed, including stable employment and income-earning
opportunities and social services to host communities, and contributing to poverty
alleviation.

64. Tourism Concern guidelines
Using resources sustainably
Reducing overconsumption and
waste
Maintaining diversity
Integrating tourism into planning
Supporting local economies
 Involving local economies
Consulting stakeholders and the
public
Training staff
Marketing tourism responsibly

65. Concept of sustainability
To explore the principles and objectives of sustainable development in tourism first it is
necessary to define the term “sustainable development”. Despite the widespread
acceptance of sustainable development, there remains a lack of consensus over the actual
meaning of this term. It means different things to different people and can be applied to
many context, including tourism. Nonetheless, the most general but accurate is the
definition provided by the Brunt Land Report: “sustainable development is one that
meets the needs of the present generation without comprising the ability for future
generations to meet their own needs”. This definition identifies basic principles of
sustainability, such as:
 takes a holistic approach to planning and strategy
 protects the environment (biodiversity) and man-made heritage
 preserves the essential ecological processes;
 facilitates and engages public participation
 ensures that productivity can be sustained into the long-term future.
 provides for a better level of fairness and opportunity between different countries.

66. Aims of sustainable tourism
The main aim of creating strategy of sustainable tourism for a given region
is defined as an increase of the number of tourists with the principles of
sustainable development. This aim can be achieved by a number of specific
objectives, such as:
 coordination of all parties interested in developing of tourism in the region
 inventory of area tourism product
 consideration of the interests of local communities and the environment in
shaping the tourism product and marketing activities
 assessment of marketing and product perception by potential buyers
 developing a vision, mission and framework marketing plan activities for
the duration of the strategy
 developing a common brand of region
 developing tools to evaluate progress in implementing the strategy
(Meyer, Milewski, 2009).
As sustainability is considered in 3 contexts: economical, environmental and

67. Economical aspects of sustainable
tourism
a) Economic profitability
Economic profitability: Ensuring the viability and
competitiveness of regions and businesses to achieve long-
term viability;
b) Local prosperity
Local prosperity: Maximizing the economic benefits of tourism
to the local community, including the expenditure of tourists in
the area
Quality of employment: Increasing the quantity and quality of
jobs related to tourism in the local community, including wages,
work environment and employment opportunities without

68. Environmental aspects of sustainable tourism
 c) Quality of employment
 Physical integrity: Maintaining and building quality of the landscape, in both urban
and rural areas and preventing form ecological and visual pollution
 Biological diversity
 Biological diversity: Promoting and protecting environment, natural habitats and
wildlife, as well as minimizing the impact of tourism on the environment
 Effective waste management: Minimizing of the use of rare and non-renewable
resources in the development of tourism
 Clean environment
 Clean environment
 Clean environment
 Clean environment
 Clean environment
 Clean Environment: Minimizing of water, air, soil pollution and reduction of
generating waste by tourists and tourist operators

69. Socio-cultural aspects of sustainable
tourism
Welfare of the community: Building welfare of the
community including social infrastructure, access
to resources, environmental quality and avoidance of
social corruption and the exploitation of the resources
Cultural wealth: Maintaining and developing
cultural heritage, local culture, customs, and the
exceptional nature of the host community
Meeting expectations of visitors: Providing safe and
enjoyable tourist experience, which will meet the
needs of tourists and will be available to all
Local control: Authority for planning and

70. Ecotourism
 Ecotourism (also called sustainable tourism) can be defined by
a variety of travel practices, but it all comes down to a general set
of ideas. As an eco-tourism, you decide to travel in a way that
shows respect to nature and does not contribute to its degradation.
 Additionally, ecotourism is a part of environmental conservation and
understanding what the needs of the people are who are local to
the area so that you can help to improve their quality of life. It also
involves learning more about the history of other cities and
preserving historical landmarks.
 The environment is where we all meet; where all have a mutual
interest; it is the one thing all of us share. ~ Lady Bird Johnson
 As per The International Ecotourism Society, “Ecotourism is now
defined as “responsible travel to natural areas that conserves the
environment, sustains the well-being of the local people, and

71. Important Principles of Ecotourism
Ecotourism is about responsible travel to natural areas that promote
conservation, bring harmony among communities, and sustain
wellbeing of local people. People who implement and participate in
ecotourism activities should adopt the following ecotourism principles:
 Minimize physical, social, behavioral, and psychological impacts
 Build environmental and cultural awareness and respect
 Provide positive experiences for both visitors and local people
 Provide direct financial benefits for environmental conservation
 Generate financial benefits for both local people and private
industry
 Deliver memorable interpretative experiences to visitors that help
raise sensitivity to host countries’ political, environmental, and

72. Benefits of Ecotourism
 As you travel, not only do you learn about others and teach them
about your ways of life, you also learn more about yourself than you
could imagine. Ecotourism gives us a completely different view of
the world and challenges us to open our minds to different ways of
thinking.
 Enjoy the different varieties of music and styles of dress that you
will be introduced to during your travels. People watch to see how
intriguing the interactions between locals can be. Many places have
live outdoor performances where you can dance and mingle with
locals who enjoy sharing stories and meeting tourists. You can
spend the day in bathing suits and surfboards or informal wear at
opera performances. You’ll notice that no matter where you travel,
there are distinctive experiences to be had.
 Everyone craves a sense of excitement in their lives and eco-travel

73.  Your vocabulary also increases as you take on different accents and
learn terms that you were unfamiliar with, making you a more well-
rounded speaker. This can be beneficial in professional settings and
adds a sense of excitement when you return home to share the long-
lasting memories you’ve made.
 History takes on a life of its own for eco-tourists. If you want to feel like
you’ve traveled back in time, you can tap into the feeling, the food, and
the atmosphere of past places based on where you decide to visit. Take
a tour of cities with preserved and restored buildings that have historical
and religious value. Castles and landmarks of major events that shaped
the history and politics of various places can often be toured, and the
architecture and design alone will amaze you.
 Keepsakes are always original and can keep you enlightened on the
darkest days. You can create your own souvenirs with photographs you
take of incredible places or show the locals that you support their talents
by purchasing handcrafted items they’ve made.
 The impossible doesn’t seem as impossible anymore. There are so many

74. What Are the Sectors Within the Tourism
Industry?
1) Transportation
The transportation sector is concerned with helping tourists to get where they need to go, via the provision of
transport. This may include providing them with the means to get to their intended holiday destination in the first
place, but may also include assisting them with getting around after they arrive at their destination. Included within
this sector are services related to road, rail, air and sea travel.
 Airline Industry: The airline industry plays a vital role in the modern travel industry, providing passengers with
access to both domestic and overseas flights, allowing them to quickly reach their intended destinations via
commercial aircraft. Airline services are generally divided into scheduled and chartered flights.
 Car Rental: For many tourists, having access to a car is an important part of their tourist experience, ensuring
they have the freedom to explore and travel freely. Car rental services provide this kind of access and often
operate in close proximity to airports, or even in partnership with particular airlines or travel companies.
 Water Transport: As the name suggests, the water transport sub-section is concerned with movement across the
water. This includes things like ocean liners and ferry transport, where the objective is usually to get passengers
from A to B, but also includes cruise liners, where being on the cruise liner itself forms the main part of the travel
experience.
 Coach Services: Coach and bus services are an important part of the tourism industry, offering long-distance
travel, assisting airport passengers with travel to their accommodation, taking groups of tourists on day trips to
local attractions or popular tourist destinations, and offering access to other nearby towns and cities.
 Railway: Rail travel has played a key role in the tourism industry since the 19th century and continues to do so.
Railways not only provide a means for travelers to get to their destination, but over ground and underground rail
services also provide options for navigating many of the major towns and cities that tourists visit as well.
 Spacecraft: A new element of the transport sector – and one that will become increasingly important in the years
ahead – involves the use of spacecraft to carry tourists into space. Indeed, Virgin Galactic, recently sent the VSS
Unity spaceplane into outer space and is planning to offer commercial flights to ‘space tourists’ in the near future.

75. 2) Accommodation: The accommodation sector is central to the
travel and hospitality industry, because people travelling to different
areas require somewhere to stay, rest, sleep and unwind. In fact, by
many definitions, a tourist is only classed as such if their stay exceeds
24 hours and they use some form of overnight accommodation.
Within this subsection, there are a number of different components,
ranging from the hotel industry to camping, hostels and cruises.
These sub-sections are explained in greater detail below:
 Hotels: Hotels are the most obvious and popular form of
accommodation for tourists and the hotel industry is inextricably
linked to the tourism industry. Put simply, hotels provide paid
lodgings for guests. With that being said, aside from beds and other
essential facilities, the services they provide can vary quite
drastically.
 Shared Accommodation: In more recent times, shared
accommodation has emerged as a major option for tourists. One of
the most popular services offering shared accommodation is
Airbnb, where users are able to list spare rooms and rent them out
to travelers on a short-term basis. These could be individual, private
rooms, or common areas shared with others.

76.  Camping: Camping is the practice of staying outdoors overnight, in a tent
or similar type of shelter. While tourists may opt to camp in public areas,
commercial camp sites are extremely popular and often more
convenient. These commercial sites will typically charge for access, but
will also provide additional facilities or utilities.
 Bed & Breakfast: B&B accommodation offers a small number of rooms
for guests and offers overnight stays and breakfast in the morning. In
most cases, guests will have a private bedroom and bathroom, although
bathroom facilities are sometimes shared. The owners or hosts of these
establishments will often live in the bed & breakfast too.
 Cruises: Cruises also come under the accommodation sector, because
cruise liners serve as a form of accommodation in their own right.
Typically, on a cruise, travelers will be allocated their own cabin and the
cruise itself will last a set length of time, with tourists staying on the
cruise ship for the majority of the duration.
 Farmhouse Accommodation and Agri-Tourism: Travelers are increasingly
willing to stay in farmhouse accommodation, usually on a self-catering
basis. This is linked to the idea of agri-tourism, where tourists visit farms,
learn about the work that goes on there, and sometimes even participate
in the daily work themselves as part of the travel experience.
 Time-Share Accommodation: Finally, time-share accommodation, also

77. 3) Food and Beverage: The food and beverage sector has an interesting role
within the tourism industry, providing tourists with essential refreshments at all
stages of their travel experience, including during travel, when spending time in
their chosen accommodation, and when they are out and about exploring the
location they have travelled to. In addition to catering for travelers' basic
requirements, however, the food and beverage sector also offers them
opportunities to socialize, meet new people and enjoy themselves.
 Restaurants: Restaurants or eateries provide one of the main ways in which
tourists eat food and socialise on their travels. This category includes everything
from fast-food restaurants like McDonald’s and KFC, through to family
restaurants, and luxury restaurants offering high-end cuisine.
 Catering: Catering is usually recognised as the provision of food services at
more remote locations. Within this sub-section would be the various food and
drink offerings found at hotels and other accommodation types, as well as on
planes, cruise ships or trains. It also includes offerings at many tourist
attractions or entertainment sites.
 Bars & Cafés: Bars and cafés are an important part of the local economy in
many travel destinations, offering tourists a more relaxed location to consume
refreshments, drink alcohol and socialize with locals or other tourists. They tend
to be smaller than restaurants and may have a theme or serve a fairly general
range of products.

78. 4) Entertainment: Some tourists travel to new locations in the pursuit of entertainment.
Such travelers may be drawn to entertainment options that are not available in their home
location, or they may simply require more general entertainment, which would be
accessible almost anywhere in the world, as part of their trip. Entertainment attractions or
venues are sometimes the main things drawing travelers to a particular tourist location. On
the other hand, many other entertainment offerings are set up to capitalize on existing
tourism.
 Casino: Casinos are an entertainment facility centred around gambling activities. The
majority of these activities are games of chance, although casinos do also offer games
where there is some element of skill involved. Additionally, casinos are commonly
connected to hotels and may offer further entertainment, such as music or comedy
performances.
 Tourist Information: In the modern travel and hospitality industry, tourist information
exists both online and offline. Examples of online tourist information include
informational websites highlighting local attractions, tourist sites or facilities. Meanwhile,
offline services include tourist information centers and literature produced by the tourist
board.
 Shopping: The retail industry and the travel industry are closely connected and most
major tourist destinations will also provide shopping facilities. Shopping can even, in
some cases, attract tourists in the first place, while the shopping sub-section of the
entertainment sector also includes things like duty-free shopping and local market
trading.

79. 5) Connected Industries: Finally, there are also a number of industries that are either directly
or indirectly connected to the tourism industry. These include industries based on actually
connecting customers with travel services, as well as industries based on providing customers
with important information that can assist them in their travels. Some of the most notable
related industries are detailed in greater depth below:
 Financial Services: Financial services can be linked to the travel industry in a number of
ways, with the most obvious being the provision of insurance products, which offer financial
protection in emergency situations, or in cases where medical treatment is needed.
Additionally, financial services may be connected to things like currency exchanges.
 Travel Agents: Travel agents sell travel or tourism-related products to customers on behalf
of suppliers. They generally receive a commission from suppliers and also offer travellers
advice on the best travel products to suit their particular needs or preferences. Some travel
agents also offer business travel services.
 Tour Operators: Tour operators tend to sell package holidays, which combine multiple travel
and tour services into a single product. A package holiday might, for example, include
charging tourists for flights, airport transfers, a hotel stay, and services from a local rep. It
could also include holiday experiences or a set itinerary.
 Online Travel Agencies (OTAs): Online travel agencies, or OTAs, offer similar services to
other travel agents, although these services are delivered over the internet, providing more
of a self-service experience. Some of the most popular OTAs include Expedia, Booking.com,
Kayak and lastminute.com. These OTAs may also double as metasearch engines.
 Tourism Organizations: Tourism organizations are essentially organizations that exist to look
out for the tourism industry and act on its behalf. They may have influence over national

80. Current Trends in the Tourism
Industry
Some trends are driven by customers and their desire for experiences different from what we've
previously seen as commonplace. Others are driven by the tourism industry itself and its
adoption of new technologies that improve their companies and the experiences their customers
have. Read on now to find out more about the current trends in the travel and tourism industry.
1. Safety & Hygiene Tourism Trends: Whether it is airlines, cruises, hotels, restaurants or
bars, since the outbreak of COVID, safety and hygiene standards have been absolutely
paramount. With this in mind, there are a number of tourism trends that are related to this, such
as increased cleaning, socially distanced seating, providing hand gel and enforcing masks in
some settings.
2. Increased Emphasis on Leisure: COVID has forced countries to adopt travel restrictions,
while many businesses are encouraging employees to work from home and use video calling.
As a result, business events have been particularly badly affected and one of the resulting
tourism trends has been a switch in focus towards leisure customers.
3. Shift from International to Local: The various travel restrictions and the reluctance of many
people to travel abroad has meant many in the tourism industry are having to focus on local
customers, rather than international ones. This does not mean giving up on international
travelers entirely, but it is likely to require a change in your core marketing strategies.
4. Growth of Contactless Payments: Contactless payments have been a staple when it comes

81. 6. Virtual Reality Tourism Trends: Virtual reality is another of the major tourism trends disrupting the industry
and capitalising on the technology can give you an edge over rivals who have not yet adopted it. Through online
VR tours, customers can experience hotel interiors, restaurant interiors, outdoor tourist attractions and more, all
from their home.
7. Solo Travel: Leisure travel used to be a family affair or something that couples undertook together. While that’s
still the case for many, more and more people are choosing to strike out on their own. Enjoying a solo trip is no
longer so unusual and tourist trends increasingly reflect this. The needs of solo travelers are diverse. Some simply
want to travel without the distraction of a companion. Others are young singles looking for social activities or to
find a partner. Some widowed seniors even use long-term hotel stays or cruises as a luxurious alternative to
conventional elder care. These tourism trends are set to grow and grow.
8. Eco Travel: Tourism trends are heavily influenced by the concerns and mores of the customer base. As a new
generation becomes increasingly relevant in the marketplace, the ideals driving their purchasing decisions create
new tourism trends. Eco travel is just one example of these tourism trends, reflecting a growing concern among
today’s travelers for ethical and sustainable tourism options. Eco travel includes simple changes, such as the
availability of carbon credits when booking a flight or the option to rent an electric instead of a conventional
vehicle.
9. Local experience: Today’s tourists don’t want to be insulated from the places they visit inside a cultural bubble.
They want to engage with and participate in the local culture. From enjoying local cuisine to celebrating regional
festivals and holidays, local experiences are set to become some of the top tourist trends to watch. One example
of a popular local experience would be visiting Japan during a major festival, renting formal Japanese clothes to
wear, consuming regional delicacies and engaging in traditional games or cultural activities. Another might be a
long stay with a host family in the destination country as a means to learn more about the local culture.
10. Personalization: You’re probably familiar with those ads that pop up on social media and certain other
websites, ads related to things you’ve looked at or purchased online. This is just one example of personalization.
As well as in marketing tourism more effectively, personalization can apply to every aspect of the tourist
experience. Today’s consumers expect experiences that closely match their personal preferences, from
destinations to accommodation and the kinds of activities they’ll engage in. The more closely an experience can
be tailored to a client’s desires and expectations, the more likely they are to return and to use the same service
again.
11. Robots, catboats and automation: One of the more eye-catching examples of these particular tourism
trends is Connie, the Hilton Hotel chain’s robot concierge. Other hotels have also got in on the robot-staff trend,

82. 12. Artificial intelligence: As well as the aforementioned catboats, artificial intelligence is becoming increasingly
important to the tourism industry. Machine learning technology is now firmly entrenched in the marketing of the tourism
sector, with AI helping to personalize the experience of finding and booking tours and trips. AI is also increasingly valuable
in contexts such as smart hotel rooms, identifying the likely needs of guests and fine-tuning the environment and services
to fit the guest’s needs and preferences. Artificial intelligence is finding applications everywhere, from customer service to
security. Future AI tourism trends to watch out for might include self-driving vehicles and virtual guides for tourism.
13. Recognition technology: Recognition technology is one of those increasingly important travel and tourism trends
that’s starting to creep into a multitude of different areas. One of the most familiar applications of recognition technology
for a frequent traveler is the bank of automatic gates at some borders. The gates are capable of reading the data on the
traveler’s passport or ID card and matching it to their face using a camera and facial recognition technology. Recognition
technology is one of the big tourism trends in the hospitality industry too, with voice recognition becoming more and more
popular as a method of control in smart hotel rooms.
14. Internet of things (IoT): IoT is relevant to many tourism trends. IoT devices are gadgets equipped with a
microprocessor and some form of digital connectivity, allowing them to connect to, and be controlled from, the internet. IoT
devices include heating and cooling systems, entertainment systems and other items often found in a hotel room, giving
rise to “smart” hotel rooms. The IoT is also used to integrate services in a hospitality setting, for example by allowing
guests to book activities (a session in the hotel’s spa, swimming in the pool, training in the gym etc) or request such things
as room service or extra linen via a hub or a smartphone application.
15. Augmented reality (AR): Where VR simulates entire environments and experiences, augmented reality combines
real-world experiences and virtual elements. A familiar example would be the smartphone game Pokémon Go, where
imaginary creatures are superimposed on real-time footage of the player’s environment. In the tourist industry, this is
obviously very useful: instead of fantasy monsters. AR smartphone apps can show tourists information about the area
they’re exploring. This could be historical details about buildings and landmarks, or listings and menus for entertainment
venues and local eateries. Museums make increasing use of AR, allowing visitors to view artefacts with their original
appearance as a virtual overlay. Other augmented reality applications might include internet-enabled virtual maps.
16. Healthy and organic food: Healthy food and the kind of fare consumed by tourists used to be antonyms in the minds
of many travelers, with holidays traditionally representing a chance to break one’s diet and indulge in forbidden treats.
Today’s travelers know that delicious and nutritious are not exclusive concepts. Demand for excellent cuisine with a view
to better nutrition is driving new tourism trends. The modern tourist wants to know that the food they’re eating is as healthy
as it is delicious. The organic food movement is also affecting tourism trends, with more eateries and hotels offering
organic options. Other special diets are also represented.
17. Customer Experience: Of course, the customer experience has always been central to the tourist industry. With new
technologies and an ever-broadening array of options for tourists, enhancing the customer experience has never been