Unit 2: Resources in Tourism

Composition of the tourism industry and its product: suppliers' and tourists' views

The tourism industry is composed of a wide range of suppliers and stakeholders who contribute to the
production of tourism products and services. These suppliers include accommodation providers such as
hotels and vacation rentals, transportation companies such as airlines and car rental agencies, and
various attractions and activities such as museums, theme parks, and outdoor recreational activities.

From a supplier's perspective, the tourism industry is an opportunity to create and sell products and
services that cater to the needs and desires of tourists. Suppliers view tourists as customers who are
seeking unique and enjoyable experiences, and they strive to create products and services that meet
these expectations. For example, hotels and vacation rentals offer comfortable and convenient
accommodations, transportation companies provide efficient and reliable travel options, and
attractions and activities offer entertainment and excitement.

From a tourist's perspective, the tourism industry is an opportunity to explore new destinations, learn
about different cultures, and have fun. Tourists view the industry as a source of entertainment,
relaxation, and education, and they expect suppliers to deliver high-quality products and services that
meet their needs and preferences. Tourists may also have different preferences and expectations
based on their age, gender, interests, and budget, and suppliers must be able to cater to these diverse
needs.

In summary, the tourism industry is composed of various suppliers and stakeholders who work
together to create and sell products and services that meet the needs and expectations of tourists.
Suppliers view tourists as customers and strive to create products and services that meet their
expectations, while tourists view the industry as a source of entertainment and education and expect
high-quality products and services.

Composition of tourism industry

The tourism industry is composed of a wide range of sectors and subsectors that work together to
provide goods and services to travelers. Some of the main components of the tourism industry include:

1. Accommodation: This includes hotels, resorts, motels, bed and breakfasts, and other types of
lodging facilities.
2. Food and beverage: This includes restaurants, cafes, bars, and other dining establishments that
cater to tourists.
3. Transportation: This includes airlines, cruise lines, car rental companies, and other
transportation providers that move tourists from one destination to another.
4. Attractions: This includes natural and cultural attractions such as national parks, museums,
historical sites, theme parks, and other points of interest.
5. Travel agents and tour operators: These are companies that organize and sell travel packages,
including flights, accommodations, tours, and activities.
 6. Events and conventions: This includes conferences, trade shows, and other events that bring
together people from different industries and backgrounds.
7. Tourism services: This includes travel insurance, currency exchange, translation services, and
other services that support the needs of travelers.

Overall, the tourism industry is made up of many different sectors and subsectors that work together
to provide a range of goods and services to tourists.

Objective of Tourism Industry

The tourism industry has multiple objectives, including:

1. Generating economic benefits: Tourism is a significant source of revenue for many countries,
regions, and local communities. The industry generates employment opportunities, supports
small businesses, and contributes to the overall economic development of a destination.
2. Promoting cultural exchange: Tourism provides an opportunity for people from different
cultures to interact, learn from each other, and foster mutual understanding.
3. Preserving natural and cultural heritage: The tourism industry has a role in preserving natural
and cultural heritage sites by promoting sustainable tourism practices that minimize negative
impacts on the environment and cultural resources.
4. Improving quality of life: Tourism can contribute to improving the quality of life for local
communities by supporting infrastructure development, providing access to new services, and
creating cultural and recreational opportunities.
5. Enhancing education and personal growth: Tourism can also provide opportunities for
education and personal growth by exposing travelers to new ideas, cultures, and experiences.
6. Fostering peace and security: Tourism can be a tool for promoting peace and stability by
creating opportunities for cross-cultural communication and understanding, and by supporting
economic development in areas that may otherwise be prone to conflict.

Overall, the tourism industry aims to provide positive and meaningful experiences for travelers while
also contributing to the social and economic well-being of the destinations they visit

Tourism Product
A tourism product is any offering that satisfies the needs and wants of tourists and contributes to the
overall tourism experience. It can be a tangible or intangible good or service, and it can be marketed
and sold to potential tourists.

The tourism product can be broken down into several categories, including:

1. Accommodation: This includes hotels, resorts, motels, bed and breakfasts, and other lodging
options.
2. Transportation: This includes airlines, trains, buses, rental cars, and other means of
transportation that tourists use to travel to and within their destination.
 3. Activities and attractions: This includes recreational activities such as skiing, surfing, and hiking,
as well as cultural and heritage attractions such as museums, historical sites, and monuments.
4. Food and beverage: This includes restaurants, cafes, and bars that provide tourists with local
and regional cuisine.
5. Shopping: This includes retail stores, markets, and shopping centers that sell souvenirs,
clothing, and other goods.
6. Events and festivals: This includes cultural and sporting events, festivals, and other special
events that attract tourists.
7. Tourism products can be packaged and marketed in various ways, such as tour packages, all-
inclusive packages, and customized packages. The marketing of tourism products is important
for attracting tourists to a destination and generating revenue for the tourism industry.

The development and enhancement of tourism products are crucial for the growth and sustainability of
the tourism industry. Tourist preferences and trends constantly change, and the industry must
continuously innovate and adapt its offerings to remain competitive and meet the evolving needs and
wants of tourists.

Characteristics of Tourism products

The tourism product refers to the combination of goods, services, and experiences that are offered to
tourists by the tourism industry. Here are some of the key characteristics of the tourism product:

1. Intangible: Many aspects of the tourism product, such as the experience of visiting a new place
or enjoying a cultural performance, are intangible and cannot be touched or seen.
2. Perishable: The tourism product is perishable, meaning that it cannot be stored or saved for
future use. Once a tour or activity has passed, it cannot be repeated exactly in the same way.
3. Heterogeneous: Tourism products vary widely in quality and content, depending on factors
such as the location, type of attraction, and type of service provider.
4. Produced and consumed simultaneously: Unlike most products, the tourism product is
produced and consumed simultaneously. For example, a hotel room is produced and
consumed at the same time.
5. Inseparable: The tourism product is often inseparable from the location where it is produced.
The natural or cultural resources of a destination are integral to the tourism experience.
6. Subjective: Tourists have different preferences and expectations, which can influence their
perception of the tourism product. What is appealing to one tourist may not be as appealing to
another.
7. Complex: The tourism product is complex and involves a range of industries and stakeholders,
including transportation, accommodation, food and beverage, attractions, and tour operators.

Concept of free and scarce resources in tourism

In the tourism industry, the concepts of free and scarce resources play an important role in
determining the availability and pricing of products and services.

Free resources are those that are available to tourists at no cost, such as public beaches, parks, and
museums. These resources are generally provided by the government or local communities and are
intended to promote tourism and enhance the visitor experience. However, even though these
resources are free, they are not unlimited, and their availability can be impacted by factors such as
seasonality, weather conditions, and visitor demand.

On the other hand, scarce resources are those that are limited in availability and are typically provided
by private businesses such as hotels, restaurants, and transportation companies. These resources
include products and services such as hotel rooms, meals, and tours, and their availability is impacted
by factors such as supply and demand, pricing strategies, and competition. Scarce resources are
typically priced according to market conditions and the perceived value of the product or service, and
can vary depending on factors such as location, quality, and level of service.

Tourists must consider both free and scarce resources when planning their trips, as they can impact
the overall cost and availability of their travel experiences. While free resources can provide cost-
saving opportunities, they may also be subject to limited availability or high demand, requiring tourists
to plan ahead and potentially pay for alternatives. Scarce resources, on the other hand, may be subject
to higher pricing during peak travel times, requiring tourists to balance their desire for high-quality
products and services with their budget constraints.

Controlling and rewarding resource use

Controlling and rewarding resource use is important in the tourism industry to promote sustainability
and responsible tourism practices. Here are some ways in which resource use can be controlled and
rewarded:

1. Government regulations: Governments can implement regulations and policies to control and
manage the use of resources in the tourism industry. For example, they can establish rules to
limit the number of visitors to sensitive areas or to restrict the use of certain resources.
2. Certification and accreditation: Certifications and accreditations can be used to reward tourism
businesses that use resources responsibly. For example, eco-labels can be used to certify
hotels and other tourism businesses that meet certain environmental standards.
3. Education and awareness: Educating tourists and local communities about the importance of
responsible resource use can help promote sustainable tourism practices. Tourists can be
encouraged to minimize their use of resources, such as water and energy, while local
communities can be empowered to manage and conserve resources for future generations.
4. Incentives and rewards: Offering incentives and rewards can encourage tourists and tourism
businesses to use resources responsibly. For example, hotels can offer discounts to guests who
opt to reuse towels and linen, or local communities can offer incentives to businesses that
implement sustainable practices.
5. Technology and innovation: The use of technology and innovation can help reduce the impact
of tourism on resources. For example, energy-efficient appliances and renewable energy
sources can be used to reduce energy consumption, while smart water systems can be used to
monitor and control water use.
Overall, controlling and rewarding resource use is essential for promoting sustainability in the tourism
industry and ensuring that resources are available for future generations.

Interrelationship between tourism and other sectors of the economy

The tourism industry is interconnected with various other sectors of the economy, and its impact can
be felt in many areas. Here are some examples of the interrelationship between tourism and other
sectors:

1. Transportation: The transportation sector is closely linked to tourism, as it provides the means
for tourists to reach their destinations. Airlines, cruise lines, trains, and rental car companies all
depend on the tourism industry for a significant portion of their business. Conversely, the
tourism industry relies on transportation services to bring tourists to their destinations and to
move them around once they arrive.
2. Hospitality: The hospitality sector, which includes hotels, restaurants, and other
accommodation providers, is an integral part of the tourism industry. The success of the
tourism industry depends on the quality and availability of hospitality services, and the
hospitality sector benefits from the steady stream of customers provided by the tourism
industry.
3. Retail: Retail businesses, such as souvenir shops and gift stores, are often found in tourist
destinations and rely heavily on the tourism industry for their revenue. Tourists are often eager
to purchase mementos and souvenirs of their travels, and these retail businesses cater to that
demand.
4. Agriculture: Agriculture is another sector that is closely tied to tourism. Farmers and food
producers often supply restaurants and other hospitality businesses with local and regional
products, and many tourists are interested in trying local foods and beverages during their
travels.
5. Arts and culture: The tourism industry also has a significant impact on the arts and culture
sector. Museums, galleries, and performance venues are popular attractions for tourists, and
many communities rely on tourism to support their arts and culture programs.

Overall, the tourism industry is closely interconnected with many other sectors of the economy, and its
success depends on the collaboration and cooperation of these sectors. The tourism industry can
provide significant economic benefits to these sectors, and in turn, these sectors can contribute to the
growth and success of the tourism industry.