Lesson 2: Characteristics of Tourism
At the end of the lesson, the student should be able to
1. Distinguish tourism from other industries
2. Describe nature of a tour
3. Explain what are tourist products, tourist services and tourist destination
PROPERTIES OF TOURISM
Tourism differs from manufactured goods in the following respects. (Cruz, R.G.,
1998)
• it is a composite product
• The tourism product is intangible
• Each destination provides unique visitor experiences
• Tourism products are perishable
• Tourism interacts with external forces.
1. It is a composite product
Tourist product, loosely defined as visitor experience, involves a combination of
products – in the form of goods or services. These products and services are
created not by one single entity but by several sectors, interacting and
depending on its other. The tourism’s three important and interdependent
sectors are:
a. the business sector – refers to organizations involved with meeting the
needs of the visitors such as hotels, motels, food enterprises, attractions,
travel agencies and transportation companies. In the Philippines, these
entities have come to be regarded as separate but interdependent sectors
that make up the tourism industry.
b. the non-profit sector – covers voluntary organizations – health, religious,
recreation, historic, ethnic, professional, archaeological, and youth
organizations that plan, develop and manage land for visitors. These
organizations support specific causes or activities such as historic
preservation, performing arts, ethnic custom perpetuation,
environmental protection and youth training.
c. the government sector – comprises agencies which may be involved in
any or all of these functions: enactment and implementation of laws and
regulations affecting tourism; maintaining visitor attractions and
facilities; ownership and management of tourism infrastructure; tourism
promotion and marketing. His sector of tourism is usually formalized
through the establishment of a national tourism organization (NTO),
2. Tourism product is intangible
With manufactured goods, the products are brought to consumers. With
tourism, the markets have to come to the destinations.
Travelers have to go to the destination to experience it
You cannot try it before you buy it.
Tourism products do not offer money back guarantee.
3. Each destination provides unique visitor experiences
Plant locations for manufactured goods have very little impact on the quality
of the final product whereas changing location instantly alters the quality of
the tourist product.
4. Perishable
Perishability is a major characteristic of tourism products in that revenues
lost from unsold hotel rooms or airline seats are not recoverable.
5. Interacts with external forces
Tourism is influenced by and in turn exerts influence on a destination’s
economy, society and natural environment.
The quality of tourist experience is at the mercy of natural, political,
technological and economic forces, which are beyond anyone’s control.
The Macro-Environment
The macro-environment refers to external forces that are largely uncontrollable that
affect the operation, survival and growth of the tourism industry. These forces are
interrelated and change in one will have an effect on the other factors. An analogy will
be the spider web, whose strands are interconnected that if you touch one, the rest
will move. The tourism macro-environment refers to: (Cruz, R.G., 2009)
Nature
Technology
Politics and Law
Economy
Society and Culture
These factors are constantly changing, causing a reaction on the other elements in
the system. For example, airfare increase in 2008 was blamed on fuel price increase.
On the other hand, fuel price hikes will likely continue as oil reserves run low in the
oil-producing countries (a natural trend), and as China and India require more and
more energy to sustain their rapid industrialization (an economic trend). In turn, the
unabated fuel price increase has caused airlines to raise fuel surcharges, which
resulted to higher ticket costs. Another effect of higher fuel cost has been the
development of new technologies, such as the development of lightweight but strong
materials for airplanes.
Nature
Nature is one of the foundations of tourism. The seas, mountains, rivers, climate and
natural sciences have provided the impetus for tourism development throughout
history. Strong natural features give destinations something to work on. On the other
hand, nature is also highly uncontrollable and the success of destinations depends
on their ability to take advantage of their natural assets and anticipate and respond
to nature’s wrath.
The following are issues concerning nature:
1. Climate change. Is now the most discussed environmental issue. As cited by
the Nobel Prize winner Al Gore, the use of fossil fuels has led to rising global
temperatures worldwide, a phenomenon known as global warming. One of the
most visible impacts of global warming has been the melting of glaciers in the
alpine regions. The tourism sector is exposed to numerous direct and indirect
impacts from climate change. Global warming is also disturbing climate
patterns, with storms becoming more severe and disrupting the regular
seasonal changes. Sever weather disturbances not only result to flight delays or
cancellations, they also cause fatal accidents. When this happens, hotels and
resorts also suffer as fewer passengers mean fewer guests. Sea-level rise and
more acidic oceans will threaten costal tourism infrastructure and natural
attractions. Rising temperatures will shorten winter sport seasons and threaten
the viability of some ski resorts. Climate change will lead to changes in
biodiversity, affecting eco-tourism
2. SARS and other health issues. Public health issues affect the tourism
industry. Chronic threat of diseases may discourage foreign travel, but on the
other hand, may helped boost domestic tourism in other countries, e.g. the
occurrence of SARS. It may also lead to the adoption of preventive health
measures, such as thermal cameras at airports.
3. Environmental degradation and tourism. The worsening state of the
environment has been drawing the attention of concerned organizations and
citizens. This heightened environmental consciousness has contributed to the
rise of alternative forms of tourism, such as ecotourism and geotourism.
4. Natural disasters. Several natural catastrophes have severely affected tourism
in the Asian region in recent past. The impact of natural disasters has been
more profound during the last few years and this can be attributed to the
changing weather patterns around the world as well as the increased number
of tourist spots. Today, more and more natural reserves and areas that were
once inhabitable are being made accessible to attract tourists. Though this gives
a boost to the local tourism, it also increases the impact of natural disasters. In
fact, natural disasters cause many tourist destinations to lose their beauty,
culture and economy for a temporary or extended period of time. The scale of
the damage depends to a large extent on the fury of the natural disaster. For
example, during the 2004 Tsunami, the Andaman and Nicobar Islands of India
suffered heavily. Located in the Indian Ocean off the eastern coast of India, these
islands were attracting large numbers of tourists due to its untouched natural
beauty. (Tourismembassy, 2014)
Technology
Technology has been a major driving force in the development of mass tourism.
1. Electricity. Tourists consumed electricity of a destination either directly or
indirectly. Electricity powers elevators that make multi-story hotels feasible. It
lights buildings and streets that make night sightseeing a pleasure. Electricity
powers appliances, sparing use from back-breaking tasks, giving us more
leisure time to travel.
2. Computer and Internet. Computerization has revolutionized the buying and
selling of tourism products. People can use their digital devices to hook online
to browse, comparison shop, reserve and buy travel products. Tourism is now
the most popular retail item on the Internet. With the Internet, upstart travel
operations can compete side by side with giant chains. The Internet makes it
possible for a small-bed-and breakfast facility in a remote island in the
Philippines to sell the whole world.
3. Transportation. Airplanes have become the dominant mode of transportation
for international travel. It is first used for war and delivering mail and now it
has become lighter, more fuel-efficient and bigger. In the field of train travel, the
hottest development has been high-speed trains, exemplified by France’s TGV.
Technology has reached a point where it has become possible to make space
travel accessible to the wealthy few. Space travel will also become a regular
destination for tourists who desire the ultimate experience.
Politics
Tourism development is influenced by political and legal factors. The presence or
absence, the quality of international relations and internal security conditions all
determine whether or not tourism can develop in a sustainable manner.
1. War and Peace. World War II was instrumental in the development of
technologies that would have peace-time applications. These includes jet
engines, digital electronics, synthetic rubber, alternative fuels, radar and sonar.
2. Terrorism. Is one of the most serious obstacles to travel and tourism. The
problem with terrorism is that mere perceived threats could prevent a place from
becoming successful destination.
3. Political and economic integration. Political and economic integration
encourages greater travel. Citizens of the European Union (EU) and ten Asean
countries can travel within their respective group’s territories without visa.
Economy
There is a positive relationship between the state of the economy and tourism demand.
The more the economy develops, the higher the demand for outbound tourism gets.
1. Exchange rates and tourism. There is a positive relationship between the value
of a local currency and outbound travel. An appreciation of the local currency
will encourage foreign travel and depreciation will discourage it.
2. Globalized economy. Overseas Filipino workers and call center employees have
been the primary beneficiaries of globalization.
Social and demographic factors
Modern society has been subjected to accelerating social and demographic
transformations which have led to the creation of new forms of tourism:
1. Longer lives. Advances in medicines and nutrition have led to increased
longevitiy. Global life expectancy increases from 45 to 75 thus, this demographic
segment is a good target for medical tourism, retirement resorts, cruise travel,
golf, luxury train tours, safari, museum tours and other senior-oriented leisure
products.
2. Smaller family size. The trend towards having fewer or even no kids at all is
encouraging tourism. Smaller family size makes for easier travelling.
3. Women power. Women make up half of the world’s population and so progress
in women’s rights and economic status has been contributory to the expansion
of tourism.
4. Lifestyle changes. More and more people are becoming health and appearance
conscious. Many people now travel to explore caves, climb mountains, go diving,
swim or simply walk on the beach to display their gorgeous physique.
THE NATURE OF A TOUR
To critically examine the nature of a tour, it is best to understand the difference
between domestic and international tourism; independent and inclusive tour;
independent inclusive tour and group inclusive tour. (Cruz, Z.L.,2013)
Domestic tourism – travel taken within the national boundaries of the
traveler’s
country
International tourism – movement of people across international boundaries
- Travel from one country to another
- Documentation requirements
- Different language, different currencies are involved
Inclusive tour – arrangement in which transport and accommodation is bought
by the tourist at an all-inclusive price and the price of individual elements
cannot be determined by the purchaser himself.
Independent tour – the tourist buys those facilities separately, either making
reservations in advance through a travel agent or en route during his tour
Independent Inclusive Tour – tourist travels to his destination individually
(IIT)
Groups Inclusive Tour – tourist s travels in the company of other tourists (GIT)
THE TOURIST PRODUCT
The tourist product consists of what the tourist buys. It is a combination of what the
tourist does at the destination and the services he uses during his stay. The following
are the important characteristics of a tourist product: (Cruz, Z.L.,2013)
1. It is a service. – It is an intangible item that cannot be inspected by
prospective purchasers before they buy as they can with a car, laptop or
other consumer goods. (Cruz, R.G.,2014)
1. It is a composite product, comprising of goods and services
2. Tourist product tends to vary in standard and quality over time unlike
the production of a television set. A package tour cannot be
consistently of equal standard. A holiday tour to Pagudpud beach
resort may be spoiled by a prolonged rainy spell.
3. Tourism products are perishable, wherein, revenues lost from unsold
hotel rooms or airline seats are not recoverable.
2. It is largely psychological in its attraction. – It is more than a collection of
services. It is the temporary use of a strange environment plus the culture
and heritage of the region and other intangible benefits such as atmosphere
and hospitality.
3. Another characteristic is that the supply of the product is fixed. The number
of seats available in an airline flight cannot be varied to meet the changing
demands of tourists during a particular season. Any unsold hotel rooms or
aircraft seat cannot be stored for later sale as is the case with tangible
products.
4. Tourism destinations have a long gestation period. Very few destinations
achieve overnight success. (Cruz, R.G., 2014)
5. Tourism is very capital intensive, particularly at the incipient stage of
development when a lot of money is required to build infrastructure, facilities
and human expertise. (Cruz, R.G., 2014)
THE TOURIST DESTINATION
The tourist destination is a geographical unit which the tourist visits and where he
stays. It may be a village, a town, a city, a district, a region, an island, a country or a
continent. Tourist destination’s success depends upon the interrelationship of three
basic factors: (Cruz, Z.L., 2013)
1. Attractions which may be site or event attractions. A site attraction is one
in which the destination itself has appeal while an event attraction is one in
which tourists are drawn to the destination solely because of what is taking
place there. A site attraction may be a country, a geographical region, a city, a
resort such as Boracay. Event attractions include congresses, exhibitions,
festivals such as Ati-Atihan Festival, and sports events such as the Olympics
Games.
Attractions may also be natural or man-made. Natural attractions include
mountains, beaches, climatic features such as sunshine and pure air. Man-
made attractions include buildings of historical architectural interest such as
Paoay Church, holiday camps or “theme parks” such as the Hong Kong
Disneyland.
2. Amenities or facilities. These include accommodation, food, local transport
and communications, and entertainment at the site. However attractive a
destination, its potential for tourism will be limited unless the basic amenities
which a tourist requires are provided. Amenities will differ according to the
attractions of the site. Sometimes the amenity is itself the principal attraction
as in the case when a resort hotel is built to offer different kinds of
entertainment in a previously undeveloped region.
3. Accessibility. Accessibility means having regular and convenient forms of
transport, in terms of time/distance to the destination from the originating
country at a reasonable price. If private transport is to be the means of access,
tourism flow will depend upon adequate roads, gasoline stations, etc. Good
railways and coach services, airport and seaports are designed to facilitate
accessibility.
TOURIST SERVICES (Cruz, Z.L., 2013)
1. The principal tourist services are supplied by passenger transport which
provides the means to reach the destination as well as the movement at the
destination.
2. Accommodation, food and beverage, and entertainment constitute the
second group of tourist services
3. A third group of tourist services consists of those provided by the travel agent
and tour operator. The travel agent provides an intermediary function
between the tourist and the providers of transport and accommodation while
the tour operator combines the individual components of a holiday into a
product which is then sold directly to the public or through travel agent.
Self-Check
I. Identify which among the component of the macro-environment
the following examples fall under.
N – Nature T – Technology P – Politics and Laws
E – Economy S – Society & Culture
_____1. E-tourism
_____2. SARS in 2003
_____3. 1990 Baguio Earthquake
_____4. Computer and Internet
_____5. Bullet train in Japan
_____6. Smaller family size
_____7. GPS (Geographic Positioning System)
_____8. Cold War
_____9. Schengen Visa
_____10. Exchange Rates
II. Multiple choice. Select the best possible answer by writing the letter only of
the correct answer. Note: If all the choices are correct write O and if none of
the choices are correct write X.
_____1. A major characteristic of tourist products in that revenue lost from
unsold hotel rooms or airline seats are not recoverable. This is called
_.
A. Perishability B. Probability C. Intangibility D.
Peculiarity
_____2. Which of the following is not a true statement about the tourist
product?
A. It is a service
B. It is largely psychological in its attraction
C. Tourist product tends to vary in quality over time
D. Supply of the product is fixed
_____3. Which of the following best describes “tourism product is a composite
product?
A. Products are brought to the consumer
B. Changing location instantly alters the quality of the tourist
product
C. It is a combination of goods and service
D. Do not offer money back guarantee
_____4. What do you call a geographical unit in which the tourist visits and
where he stays?
A. City
B. Village
C. Region
D. Island
_____5. What do you call the type of tour wherein tourist s travels in the
company of other tourists?
A. Inclusive tour
B. Independent Inclusive Tour
C. Groups Inclusive Tour
D. Independent Tour
III. Identify what properties of tourism are the following. Write the letter only:
A – It is a composite product
B – Tourism product is intangible
C – each destination provides unique visitors experience
D – Perishable
E – Interacts with external forces
________1. Revenues lost from unsold hotel rooms are not recoverable
________2. Products and services in tourism are created not by one single entity
but by several sectors
________3. You cannot try tourism products before you buy it.
________4. Changing of location in tourism instantly alters the quality of tourist
product
________5. The quality of tourist experience is at the mercy of political,
technological and economic forces which are beyond anyone’s control.
Answer to Self-Assessment Questions: (please proceed to appendix A)
If you got……
20 CONGRATULATIONS! THAT WAS FANASTIC!
19-16 Very Satisfactory
15-12 Satisfactory
11 and below Please read the module again