Introduction to Tourism Principles

• The exam will consist of 50 questions based on Chapters 1, 2, 3, 6, and 15.
• Review PowerPoints along with the notes pages.
• The content marked with an asterisk in the PowerPoints has a high importance for the exam.
• Use key takeaways or chapter summaries for understanding.
• The exam will consist of multiple-choice and true/false questions.
• The time limit is 70 minutes.

Chapter 1

• Tourism is a social, cultural, and economic phenomenon that involves people traveling outside their usual environment for personal or business/professional reasons.
• Branches of Tourism (World Tourism Organization): Inbound, Outbound, Domestic, Internal, National, International.
• Inbound tourism refers to visits to a country by non-residents of that country.
• Outbound tourism refers to visits by the residents of a country to other countries.
• Domestic tourism refers to visits by residents within their own country.
• Internal tourism refers to visits by residents and non-residents within a country.
• National tourism refers to visits by residents of a country to other countries plus visits by residents within their own country.
• International tourism is the combination of inbound and outbound tourism.
• Europe receives the most international visitor arrivals.
• There are six reasons for a systems approach to study tourism: interdependency, open system complexity and variety, competitiveness, friction and disharmony, and responsiveness.
• The four parts of the tourism system: Destination, Marketing, Demand, Travel.
• The four links in the tourism system: destination product, promotion of tourism, travel purchase, and travel mobilities.
• Destination refers to a geographic area that attracts visitors.
• Travel refers to the act of moving outside one's usual environment.
• Tourism is the activity or phenomenon that occurs when people travel.
• Recreation refers to what happens during an individual's leisure time.
• Trip refers to travel of more than 100 miles from one's home environment.
• Visitor is an alternative name for tourist or traveler.
• The five Destination Mix/Products: attractions and events, facilities, infrastructure, transportation, service quality and friendliness.
• Attractions and events generate demand for the other 4 elements.
• Facilities serve the needs of the visitors.
• Infrastructure helps ensure accessibility of the destination to the visitor and meet the needs of residents.
• Transportation helps ensure accessibility of the destination to the visitor and meet the needs of residents.
• Service quality and friendliness is delivered to the visitor.
• Attractions can be classified based on nature, culture, history, and heritage.
• Types of events include cultural and festivals, entertainment services, sports events, MICE (meetings, incentives, conferences, and exhibitions) and business events, weddings and other family events, and other events.
• Elements of infrastructure include utilities, services, transportation infrastructure, and other amenities.
• Types of facilities include hotels, resorts, and other lodging, food and beverages, shopping, and convention and exhibition centers.
• Types of accommodations consist of traditional lodging, specialist accommodations, recreational accommodations, and other accommodations.
• The three predominant foodservice concepts consist of traditional, outdoor and convenience, and international.
• Other major players in tourism consist of DMOs (Destination Marketing Organizations), travel trade, associations, government, parks and recreation, and consumer services.
• Attractions often are the main reasons why people visit specific destinations.
• Tourism is a phenomenon that requires a systems approach.
• Tourism is a people business, and host-guest relationships are critical to positive visitor experiences.

Chapter 2

• Tourism can produce both positive and negative impacts on the environment and on the society and culture of a destination area.
• The three components of the "triple-bottom-line": People (Social and Cultural), Planet (Environment) and Profit/Prosperity (Economic).
• People (Social and Cultural) pros: social interaction, civic pride, heritage preservation.
• People (Social and Cultural) cons: social friction, healthy issues, commodities of heritage.
• Planet (Environment) pros: greater appreciation of natural areas and concern for biodiversity.
• Planet (Environment) cons: increased resource use and pollution.
• Profit (Economic) pros: export earnings, benefits through the economy and jobs.
• Profit (Economic) cons: costs of hosting and higher prices.
• Sustainable tourism development satisfies the present needs without compromising the needs of future generations.
• Sustainable tourism development is key to achieving an acceptable balance between the positive and negative impacts of tourism.
• Three major economic benefits of tourism: increasing income, increasing foreign exchange earnings, increasing employment.
• The three levels of income generated by tourism: direct, indirect, and induced.
• Economic leakage is defined as the money that leaves the destination community instead of staying there; reducing this ensures that there are more funds to stay.
• Two levels of employment generated by tourism: primary/direct employment and secondary/indirect employment.
• Tourism is "labor-intensive" and "capital intensive."
• Three stages in tourism development: change in cost per job created; its high due to the capital costs, then its reduced due to the experience and less investment required, then increased due to higher land prices and infrastructure necessary.
• Four changes in society influenced by tourism: economic structure of a destination area, workforce migration, economic power, the value and land ownership pattern.
• Examples of positive social, cultural, and environmental impacts: supporting local cultures, improved quality of life for locals, keeping local cultures and traditions alive.
• Examples of negative social, cultural, and environmental impacts: clashing cultures, increased crime, exposure to health risks, damage to heritage sites.
• Cultural involution may halt a local community to modernize its way of living.
• Ensuring sustainability is the responsibility of every stakeholder.

Chapter 6

• Sustainable tourism development: definition (UNWTO) and the principles; 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, improves the quality of life for hosts, provides a high-quality experience for visitors, maintains the quality of the environment for everyone.
• Six types of tourism development: flagship, hub, cluster, circuit and trail, event or festival, support.
• Hard vs Soft tourism developments: hard (mass tourism, e.g., beach with a high string line of hotels along it), soft (for individuals or small groups of visitors).
• Roles in tourism development: private sector (invests in, develops, markets, and operates tourism facilities and services), non-profit organizations and NGOs (non-government organizations), community role, government roles (stimulator), government financial incentives (taxes), private sector financing.
• Economic feasibility analysis: determines if the developers have sufficient equity to invest in a tourism development project.
• Economic feasibility analysis two main groups: developers/investors and lenders.
• Analysis of Individual Project Development opportunity: cost-benefit analysis and environmental impact analysis.
• Tourism development is not just physical; people, programs, and packages are also realms for tourism development.
• Pre-feasibility and economic feasibility should be done on individual tourism development projects.
• Large-scale tourism development projects should be subject to environmental impact analyses.

Chapter 3

• Multiplier: One dollar in tourism expenditures can be worth two dollars in economic value to other businesses and the economy.
• Carrying capacity: the number of tourists in an area, attraction, or heritage site can accommodate without damaging it.
• Three reasons for government involvement: ensure security and political purposes, support sustainable development and the environment, improve the economy.
• Eight roles of government in tourism: policy-setting and tourism destination planning, legislation and regulation, coordination, development simulation and control, infrastructure and transportation development, operations, marketing and research, training and education.
• Levels of Tourism organizations & responsibilities: global, multi-country regional, national, state, provincial, and territorial, regional, local, other.
• Global organizations: World Tourism Organization (UNWTO), World Travel and Tourism Council (WTTC), and World Tourism Cities Federation (WTCF).
• Multi-country regional organizations conduct planning, development, and marketing of tourism; which includes COTAL, CTO, ETC, PATA, SPTO.
• National organization types include DMO, NTO vs NTA; the difference is that NTAs handle policy making and planning, whereas NTOs handle marketing.
• A NTA example is Australian Trade and Investment Commission.
• A NTO example is Visit Britain and Tourism New Zealand.
• State, provincial, and territorial tourism organizations' primary role is domestic tourism promotion; but they are becoming more involved in international travel promotion and are spending more to attract foreign visitors.
• Regional tourism entities exist in Canada, Australia, and the U.K.
• CVBs (Convention and Visitors Bureaus) collect taxes to support local promotional activities.
• Other organizations: Global Airline, Multi-country economic, Development agencies and banks.
• NGO examples: Global Sustainable Tourism Council (GSTC) and World Wide Fund for Nature (WWF).

Chapter 15

• Seven Wonders of the Ancient World: Great Pyramids of Egypt, Hanging Gardens of Babylon, Tomb of Mausolus at Halicarnassus, Statue of Zeus at Olympia, Colossus of Rhodes in the Harbor at Rhodes, Great Lighthouse in Alexandria Egypt, Temple Artemis at Ephesus.
• New Wonders of the World: The Great Wall of China, the Ancient City of Petra in Jordan, The Stature of Christ the Redeemer in Rio de Janeiro, Machu Pichu in Peru, The Mayan Ruins of Chichen Itza in Mexico, The Colosseum in Rome, India's Taj Mahal.
• The earliest motivation for travel was to trade.
• The term holiday comes from holy days for religious observances.
• Early tourism occurred along the Silk Routes (began in the 2nd century BC), and after World War II, mass tourism began. Yellowstone was the first national park in the world, established in 1872, followed by space tourism.
• In 2016, Europe had the largest share of receipts from international tourism, but the share of international visitor arrivals is decreasing.
• Asia Pacific is increasing and expects to reach 30% of sharing by 2030.
• France, USA, and Spain are major countries with the most international tourist arrivals.
• China was reported as the "highest-spending outbound market."
• Bangkok is the city with "the most international visitors," followed by London, Paris (According to MasterCard).
• The USA was ranked as the #1 conference country in 2016.
• Morocco and South Africa have the most international visitor arrivals in Africa.
• Saudi Arabia has the most international visitor arrivals in the Middle East.
• For many countries, domestic tourism is much larger than international tourism and is the "bread and butter" of the tourism sector.
• UNWTO forecasts that there will be 1.8 billion international tourist arrivals by 2030

Explore fundamental tourism principles with key definitions. Understand different types of tourism and the tourism system. Learn about destination management.