I NTRODUCTION TO T M OURISM ANAGEMENT About the Author Dr. Kshitiz Sharma is currently working as Assistant Professor of Marketing and Hospitality at Alliance School of Business, Alliance University at Anekal, Bangalore. He has more than 12 years’ experience in academics and hospitality industry. He is a postgraduate in Tourism Management, Business Administration, and English and he received his doctoral degree in Management from Bhavnagar University in 2010 on the topic ‘Entrepreneurship Development and Tourism: Study of Goa’. Dr. Sharma had been associated with Carlson Hospitality Worldwide (better known as Radisson), Le Meridian, and Ambassador Flight Catering, where he honed his skills as a service personnel. For many years now, he has worked with various reputed academic institutions across India as faculty member in the fi eld of hospitality and management. Dr. Sharma is a Certifi ed Online Hospitality Educator from American Hospitality Academy (AHA). He has presented papers at various national and international seminars and has published widely in leading journals, including Finance India, the Journal of Entrepreneurship and Management, Academicia, and Asia Pacifi c Journal of Marketing and Management Review. He has also contributed chapters in edited titles like Heritage and Tourism: Public, Potential & Problems, Business Competitiveness in the 21st Century and Tourism Entrepreneurship. I NTRODUCTION TO T M OURISM ANAGEMENT Kshitiz Sharma Alliance School of Business, Alliance University at Anekal, Bangalore McGraw Hill Education (India) Private Limited NEW DELHI McGraw Hill Education Offi ces New Delhi New York St Louis San Francisco Auckland Bogotá Caracas Kuala Lumpur Lisbon London Madrid Mexico City Milan Montreal San Juan Santiago Singapore Sydney Tokyo Toronto McGraw Hill Education (India) Private Limited Published by McGraw Hill Education (India) Private Limited P-24, Green Park Extension, New Delhi 110 016 Introduction to Tourism Management Copyright © 2014 by McGraw Hill Education (India) Private Limited. No part of this publication may be reproduced or distributed in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise or stored in a database or retrieval system without the prior written permission of the publishers. 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ISBN (13 digit): 978-1-25-902680-5 ISBN (10 digit): 1-25-902680-9 Managing Director: Kaushik Bellani Head—Higher Education Publishing and Marketing: Vibha Mahajan Senior Publishing Manager—B&E/HSSL: Tapas K Maji Manager—Sponsoring: Hemant K Jha Associate Development Editor: Indrani Dutta Manager (Editorial Services): Hema Razdan Production System Manager: Manohar Lal Junior Production Manager: Atul Gupta Assistant General Manager—Higher Education Marketing: Vijay Sarathi Senior Product Specialist: Navneet Kumar Senior Graphic Designer (Cover Design): Meenu Raghav General Manager—Production: Rajender P Ghansela Manager—Production: Reji Kumar Information contained in this work has been obtained by McGraw Hill Education (India), from sources believed to be reliable. However, neither McGraw Hill Education (India) nor its authors guarantee the accuracy or completeness of any information published herein, and neither McGraw Hill Education (India) nor its authors shall be responsible for any errors, omissions, or damages arising out of use of this information. This work is published with the understanding that McGraw Hill Education (India) and its authors are supplying information but are not attempting to render engineering or other professional services. If such services are required, the assistance of an appropriate professional should be sought. Cover Photograph: S. Balasubramanyam, MHEI Typeset at Tej Composers, WZ 391, Madipur, New Delhi 110 063 and printed at Cover Printer: Preface Tourism is one of the fastest growing industries in the world; its ever increasing demand and provisions for relaxation and peaceful environment makes it one of the most important industries. Tourism, as such, has the capacity to transform the entire society and bring foreign wealth through the easiest way. Certain places with less industrial activities have been converted into tourist hubs and it has brought about surprising results. Almost every state in India is eyeing for this tourism pie through various means. Media, especially advertising, has played a key role in promoting the key tourist spots of India. Kerala has been portrayed as “God’s own Country”, Rajasthan as “Incredible State of India”, and Goa as “Go Goa”, and so on. Brimming with innovative ideas, the tourism fi eld is constantly calling for discussions among practitioners and academicians. These ideas are being put into practice in many economies including India. Being the most infl uential destination in South Asia, India has registered the highest growth rate after China in Asia and Pacifi c region. The tourism industry in India has gained technological strength and has become more organized. India is among the top few countries having its own Geographic Information System (GIS). The contribution of domestic tourism is also large, in comparison with international visitor contributions, being as high as 60 per cent of the total tourism income. With the aforementioned background in mind, Introduction to Tourism Management will serve the purpose of taking tourism studies to newer heights. The book has been designed to accommodate all essential elements on tourism as prescribed by the major universities and educational institutions. The book gives suffi cient coverage to latest concepts and developments in the industry and related sectors that have helped in bringing a sense of competitiveness in Indian tourism at par with developed economies. The text includes larger topics from the updated and current syllabus as suggested by the National Council for Hotel Management and Catering Technology and universities where hospitality courses are offered. The author hopes that the level of treatment of the topics, inclusion of up-to-date data from India and the world and coverage of newer topics like Tourism Market, Tourism Finance, Socio-economic Development of Tourism, Marketing in Tourism and Entrepreneurship etc. would help the students gain a global perspective on the subject. This book has been designed for advanced undergraduate, graduate, MBA, e-MBA programmes in Tourism and Hospitality courses at the university level. Simultaneously, it will appeal executive programme participants who want to combine their ongoing work with academics. Virtually anyone who wants to be part of the global tourism industry will fi nd this book extremely useful for career advancement. The rich course material equipped with ample examples and cases, presents an opportunity for learning and preparing students for managerial levels in hospitality and tourism industry. Overview of Contents The book is divided into fi ve parts covering the basic concepts, nuances of managing travel functions, probe into the tourism attractions in India, details of managing tourism functions and effects, and emerging trends in tourism. vi Preface Chapter 1 highlights the development of tourism in different ages. This background information will help students in the long run. Case study on Travel Account facilitates learning. Chapter 2 on modern tourism and tourism phenomenon defi nes tourism structure related issues including TPCM model of tourism structure and sustainable tourism. This would help the readers in developing the base on which they can increase their understanding of the subject and its course. A case study on Spiritual Tourism fi nds place here. Chapter 3 on typology and forms of tourism defi nes types of different tourism, their concepts, role, advantages and disadvantages in detail. A supplement material on Marketing Initiative for Rural Tourism has been provided for the readers. Chapter 4 highlights the factors that infl uence tourism growth and demand. Case study on Destination Life Cycle of Bali aids deeper understanding. Chapter 5 on constituents of tourism highlights the primary and secondary constituents necessary for tourism to develop. A case on Padmanabh Swami Temple is the additional feature. Chapter 6 on tourism policy and planning deals with Policy Initiative 1982, and National Tourism Policy 2002 highlighting role of NCT. The focus on tourism development in the fi ve-year plans of GOI has also been discussed accordingly. Chapter 7 on the organisation of tourism has discussion on various organisations developed for the establishment and growth of tourism at global, regional and national levels. Recommendation of UN on tourism makes part of the chapter along with important organisations like, WTO, PATA, IATA, ICAO, IHA, NTO, STO, TAAI, IATO etc. The case study on Public-Private Partnership in Tourism exemplifi es this. Chapter 8 on role of travel agencies in tourism covers travel agency business highlighting the contribution of leading travel agencies like Thomas Cook, American Express etc. The chapter also covers Department of Tourism guidelines for travel agency affi liation and functioning. The case study on Travel System deals with the recent changes in travel and tourism. Chapter 9 on formalities of travel discusses in detail the offi cial regulations associated with the travel documents including passport, visa, and health certifi cates. A section on custom and visa formalities in India complements this chapter. Chapter 10 on tourism legislation talks about tourism regulations in India covering laws related to entry, accommodation, environment, monuments, in addition to the laws for the protection of tourists and economic regulations. Chapter 11 on important landmark of Indian history highlights history of hospitality and tourism in India and the effect of the country’s interesting geography on the same. Chapter 12 on Indian performing arts covers the rich heritage of Indian art and culture. This chapter would defi nitely enrich the reader’s knowledge base. Chapter 13 on handicrafts of India offers information on a large variety of material for tourism industry. India’s rich culture and diversity is refl ected in its handicrafts and is indeed very popular among tourists. Chapter 14 throws light on architecture in India. In this chapter Indian temple architecture has been categorized into Nagara, Dravida and Vesara styles which are well differentiated from one another. The role of ASI in preserving this heritage wealth of India is discussed in the chapter. Preface vii Chapter 15 on tourism market deals with the global and domestic market of tourism. Special feature on the Impact of the Global Financial Crisis of 2008-2009 on International Tourism is added here. Chapter 16 on human resource management in tourism industry covers information on human resource in tourism. Human Resource at Two Hill Resorts gives an opportunity to brainstorm on HR issues. Chapter 17, Marketing in Tourism, highlights the importance of market environment, market research, market segmentation and the role of advertisement and publicity. The case study named Tourism India is available for discussion. Chapter 18 discusses about Management Information System (MIS) which has made tourism operations much easier. Additional feature on GIS in Tourism and Tablets for In-Room Control gives latest information in this fi eld. Chapter 19 on institutional framework and tourism fi nance highlights specialized policies and programmes by the Ministry of Tourism, GOI, and the role of government bodies like ITDC in this direction. Chapter 20 highlights the major entrepreneurs of the tourism industry. Special features on entrepreneurs like Priya Paul, William Becker, Paul Greene, Conrad Hilton Sr., J.W. Marriott Jr. enrich the content. Chapter 21 discusses the socio-economic development of tourism. Case study on Xenophobia in Tourism narrates the fear of meeting strangers in the journey. Chapter 22 on impacts of tourism talks about ecology and its properties like absorbing capacity, carrying capacity, resilience and sustainability. Case studies on Baleric Island, Spain and Bhutan discusses the impact of tourism over environment. Chapter 23 on new trends in tourism deals with the progressive nature of tourism and its contribution to the society and the economy. Emerging forms like rural tourism, cruise tourism, adventure tourism, heliport tourism, cinema tourism and poll tourism are attractions of the chapter. Relevant issues of women and children, technology, growing middle class, green practices, taxation and SEZ are additional content for the readers. Feature Highlights • Tourism Insight box provides specialized information from the tourism industry to supplement the material given in chapters. • Tidbits highlighting pieces of vital information, available in every chapter, makes the book rich and very suitable for greater use in competitive exams. • Case studies for discussion are given at the end of certain chapters to encourage problem- solution based learning. • Online learning centre (OLC) provides additional reading material, case studies and some important application proformas. Feedback and suggestions from the readers are always welcome. These would certainly help us in revising and refi ning the book in its next edition. Kshitiz Sharma Acknowledgements There are reasons and forces behind every piece of work. The force behind this compilation is my Satguru. The reason must be well known to Him only. This project is the outcome of sincere support provided by well-wishers at every stage. The open discussions and sharing experiences with my colleagues, friends and family, to whom I am indebted, have shaped my thoughts, perspectives and knowledge refl ected in this text. The fi rst name which comes to my heart in this journey is Shri Premjit Singh Ji – the person whose compassion knows no boundary and who always inspires me to do good in life. His extremely rich and diverse knowledge base amazes me every time. The most important person in this journey has undoubtedly been my wife Moutushi; her constant encouragement, love and eye for details helped me to generate this material. She has provided her literary support throughout and even edited portions happily. Another major source of encouragement throughout has been my daughter Veni. I owe a deal of gratitude to Hon’ble Chancellor of Alliance University, Dr. Madhukar Angur, who has created a strong environment of research and fi rmly put the university on the stage as ‘most innovative private university in south India’. It is his constant encouragement that helped in completion of this text. The academic fraternity in Alliance University has always been supportive in this direction. One person who stands out for me is Professor Siddhartha Sengupta. His commitment to high quality education became a source of inspiration for me. It would not be fair on my part if I forget acknowledging contribution of McGraw Hill Education (India) Pvt. Ltd. and its team members for their constant involvement in this project. I am thankful to the editorial and production team for the high-quality editing, typesetting, and printing. I am thankful to the following institutions for providing access to extremely important information which is incorporated in this book: India Tourism Development Corporation (ITDC), Ministry of Tourism, Government of India Indian Railways, Ministry of Railways, Government of India Karnataka State Tourism Development Corporation Department of Tourism, Government of Goa Tourism Master Plan: Goa - 2011, Government of Goa Madhya Pradesh State Tourism Development Corporation Limited (MPSTDC) Tourism Corporation of Gujarat Limited (TCGL) Chhattisgarh Tourism Board Entrepreneurship Development Institute, Gandhinagar, Gujarat Agnel Entrepreneurship Development Institute, Goa Directorate of Planning Statistics and Evaluation, Government of Goa Goa Handicrafts, Rural and Small Scale Industries Development Census of India, 2001, Ministry of Home Affairs, Government of India x Acknowledgements Internet has been a great source of accessing rare information. The web-sources have been duly referenced in the text. I am thankful to my mentor Dr. Kavitha Sood, Principal, Vivekanand Institute of Hotel and Tourism Management and to Professor (Dr.) B. K. Oza, my PhD guide from Bhavnagar University for constant advice and encouragement. I am thankful to many other people in this journey especially Prof. Hemant Singh, Director, SISTM, Dr. Rohit Trivedi, Associate Professor, MICA, Mr. Aniruddha Das, Director, IIHM. A special thanks is due to Prof. Hemant Singh for kindly permitting the usage of one of his photograph of Bala Quila, Alwar in the book. I would also like to thank Dr. Aparna Raj, Department of Tourism Studies, Bundelkhand University, Jhansi; Dr. Rekha Maitra, Department of Hotel Management, Manav Rachna International University, Faridabad; Dr. Joby Thomas, Department of Tourism, Christ University, Bangalore; Dr. Sampad Kumar Swain, Department of Tourism Study, Indira Gandhi Tribal University, Amarkantak; Dr. Bindi Varghese, Department of Tourism Studies, Christ University, Bangalore; and Dr. Jitendra Mohan Mishra, Department of Tourism, Pondicherry University, Puducherry for reviewing the manuscript and providing their valuable suggestions and opinion. Above all, the selfl ess, unconditional love and support of my parents, for which no amount of appreciation would be enough, worked as inspiration for me all the time. Their simple and honest approach towards life gave me strength to withstand odds and create a balance, justifying all the aspects. Last but not the least; I would like to thank all the people, who directly or indirectly helped me to complete this project. May all of them be blessed with happiness and success. Contents About the Author ii Preface v Acknowledgements ix Part I Tourism Concepts 1. TRAVEL THROUGH AGES 3 Introduction 4 An Ancient Phenomenon 4 Travel for Trading 4 Silk Route 4 Tourism Insight: Travel Accounts 5 Travellers from the Past 6 Pleasure Travel 7 Emergence of Spas and Seaside Resorts 8 Tourism Insight: Social Baths in History 8 Religion as a Motivator 9 The Grand Tour 9 The Origin of the Concept of Holiday 10 Industrial Revolution and the Development of Travel 11 Summary 13 Tidbits 13 Question Round 14 Case Based Questions 16 2. MODERN TOURISM AND TOURISM PHENOMENON 17 Tourism Insight: Tourism Then and Now 18 Introduction 18 Post-World War Phenomenon 19 Causes of Rapid Growth 19 Geography of Tourism 20 Tourism Insight: The Gravity Model 25 Meaning and Nature of Tourism 27 Tourism System and Integrated Tourism Model 28